Contents
Why we reccomend eToro for acquiring Tron in Thailand?
Some of its benefits are:
- There are uncountable investment opportunities
- Leverage is allowed
- It's very easy to use
- It uses strategies from successful investors so you can replicate them
- You can go short
Official website in English: www.etoro.com/tron
In case you are thinking about obtaining Tron from Thailand, eToro is certainly the best way to do it.
“Social trading”, a relatively new form of investing by replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.
If you are a beginner or do not have much experience in investments, eToro is great for you, since it puts your investment on autopilot by emulating moves from those who have been doing it for years. Also, in case you are an investor, the platform pays for your knowledge.
Another thing to mention is how manageable the interface is, which turns out perfect for new users that are learning all about the trading world.
About ETFs
Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for combining the benefits of stocks and mutual funds: they can be traded regularly at market price, but have much more investment possibilities and considerably lower fees.
Forex trading
Forex or currency trading is the exchange between a pair of currencies.
If you decide to exchange euros and dollars, for example, you speculate how many dollars it will take to buy a euro, with the expectation that the euro will increase compared to the dollar. Then, if you bought each euro for 1.15 USD and you sell them back when they are worth 1.20 USD, you'll be keeping that difference.
You may be thinking by now that trading with currencies requires investing considerable amounts, and that is correct, since fluctuations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. Our recommendation for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.
Most currencies are available on eToro. Still, take into consideration that in Forex trading sales are always made through CFDs, so you will not own the underlying asset.
Stocks
The most common financial assets are stocks or shares: these are portions of publicly traded corporations. It is possible to obtain a profit with the performance of third-party companies just by putting your money in them. But, obviously, you have to know how to invest.
We can classify stocks into two main types: the ones that divide their earnings regularly among the stockholders, and those that don't. The former ones are great, of course, but investing in the latter can also be a good idea since sometimes you can make even more money by selling the shares later.
If you invest in equities that pay out dividends, you will receive them into your account on eToro. Therefore, you can collect that money or you can choose to reinvest it. Nevertheless, compound interest can do magic, so our suggestion is that you reinvest if you don't need the money immediately.
Remember that when investing in shares on eToro you can “dope” your trades with leverage, but in that case, you will not receive dividends as it would be a CFD. For long-term investments, it is better not to use leverage: not just because you lose dividends, but you will also have to pay commissions during the days that the operation is open, and these can end up with your gains.
Index Funds
In case you want to invest in the long term, and you won't need to take back your money in at least five years, index funds can be the best alternative. This kind of investment is also suitable for beginners since the risks are lower.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers achieve that, apart from some famous cases, like Warren Buffett's.
If someone brags about having beaten the index, they probably have done it for a chor period or on particular occasions, or perhaps the rates are so high that indexing would be a better decision anyway.
The great advantage of index funds is that they perfectly solve both issues: their rates are minor and they regularly beat active managers, but in the long term.
In case you are not familiar with the term “leverage”, we'll describe it briefly: it is, simply, the ability to invest a higher amount than you actually have. That way, if you start with $ 100 and you leverage x2, your initial investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for example, you are certain that Tron is going up, and that you have $ 1,000 for “going long”, you must know that you can increase your investment and make more money.
Perhaps you could go to your bank, request a loan, put something as collateral, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then purchase Tron… Nevertheless, when you finish doing all that, probably Tron would be already much higher, and investing wouldn't be a good idea anymore.
Thanks to leverage, you can get that amount just by clicking your mouse. It's like borrowing money, but much easier and quicker, and with the benefit that you will be getting it directly from eToro which will let you invest much more than you have on the platform's wallet. Before trading, you will how much leverage to use as in the image:
With other assets, the leverage you can choose is higher. Why? Because cryptocurrencies are usually medium-long term investments. However, leverage is used especially for day trading or short-selling. But let's see how leverage works:
- If you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 was “borrowed” from eToro).
- A few days later, Tron does increases, as you assumed, and now the cost of your investment is $ 2,400 (20% higher), so you decide to sell back.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours initially.
In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.
But not everything is wonderful. If everything goes ok and the price rises, you will make profits. Nevertheless, if the price goes down, you will also lose more money in the blink of an eye.
For example: if the price falls by 10%, you do not lose $ 10, but twice (the leverage) that figure, that would be $ 20. That is why to operate with leverage it is very important to take into account Take Profit and Stop Loss.
Take Profit is the automatic sell order that is above the entry price: you buy Tron at $ 100 and you ask eToro to close your operation as soon as the price goes up to $ 120. It is very helpful to avoid being blinded by greed: we would all accept a 20% profit in the beginning, but when you reach that 20% it is easy to want higher profits and risk losing it all. It's like you made sure now of not acting recklessly in the future.
On the other hand, when operating with leverage you should always use Stop Loss, because a small decrease in the price of an asset can lead to a substantial loss. Take into account that eToro will recommend a limit for Stop Loss, but you should place it lower than that.
Is eToro reliable for purchasing Tron?
eToro has been independently tested once and again to certify its reliability in the treatment of data from previous users and past performances. Every time, it has been confirmed that eToro is very meticulous with the information.
eToro complies with all the strict policies of the European Union. Its head office is in Cyprus, and it is certified by the CySEC or Cyprus Securities Market Commission, which protects up to € 20,000 of the debts that its clients may have with creditors (those from Thailand included).
eToro responds to the European Financial Instruments Market or MiFID in Europe, and to the Financial Conduct Authority or FCA in the USA. Apart from the above, it has a trajectory of fifteen years, with more than 20 million users around the globe. So, yes, it is a safe broker.
Finally, their excellent customer service is also worth mentioning. You can contact them by phone or use their online chat.
How to deposit funds on eToro
When it comes to payment on eToro, there is not much to say, since it is really straightforward. Just click “Deposit funds”, type an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card, Skrill, or Neteller.
Remember that for security policies, you must be the owner of the credit card or the account.
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. So, if you aim to operate with much more, you will need to verify your account previously.
The platform accepts deposits or transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD from the beginning.
How are CFDs and futures different?
If you are interested, these are the main differences between Futures and CFDs:
- Which are the counterparties? With Futures, the counterparty is another investor. In CDFs, it’s the broker (eToro)
- Expiry date Futures expire in a variable given date, while CFDs don’t expire
- Markets available for trading Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum deposit amount or “trade size” Being higher figures, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher.
- Leverage With Futures, you can’t leverage; while with CFDs leverage is always available.
What are Contracts for Difference?
It is possible that you have found the acronym CFD repeatedly if you entered eToro before. We will come back to it, but you should know first that CFDs on eToro are only possible if you short sell or leverage over x2 (nevertheless, the platform does not even allow this).
In case you are considering day trading cryptocurrency or other practices, we will also cover concepts such as leverage and “going short”.
The advantage of eToro is that it allows you not only to bet when you are “in the black”, but through CFDs you can also bet “in red”. Let's say that you believe that the Tron will fall, so probably you consider that the best thing to do is refrain from getting in until it does. Nevertheless, if it really falls, it might mean extra money for you.
You can do this through what is known known as “going short”. Its operation, roughly, consists in the following:
- Someone lends you, for example, 100 units of Tron, which cost $ 5,000 (these are completely imaginary numbers)
- Next, you get $ 5,000 by offering them at the market price
- The Tron devaluates from $ 50 to $ 30
- Again, you purchase the 100 units, but at the current price, $ 3,000
- You give back the 100 units to whoever loaned them to you
- The difference is yours, so, you will have made $ 2000
Consider that it sounds much more complicated than how eToro CFDs actually work: we can summarize this whole operation by saying that by trading in Tron you can also earn money if you foretell it will fall.
How to use eToro
As we have mentioned before, one of the best features of eToro is its extraordinary simplicity: anyone can invest without having to read endless guides.
If you have used any of the most popular social networks today, like Instagram or Facebook, you can perfectly manage this platform.
We will explain the registration steps and the different sections that you will find.
You will have to provide some personal information when registering.
To complete your profile, you will have to answer some questions about your experience at investing.
However, it's not like they're testing you or anything. They only intend to know how much knowledge you have and what type of assets they can suggest. For example, if you have never invested before, they will not suggest that you invest in futures.
As soon as you are registered and have completed your profile, you will stop seeing the “incomplete profile” message.
Let's get to know the fundamental sections of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. Just click the tab and you will be able to set it. This is helpful in case you want to purchase an asset and you are waiting for it to decrease.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
In “Discover” you will find the investment tabs: “Instruments”, “People” and “CopyPortfolios”. As we mentioned before, the trading instruments that eToro offers are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex trading
- Index funds
In “People” are all the profiles and historical performances of other investors, and you can replicate their movements with just one click. This is where the “social trading” term is best applied.
In this section, you will be able to find those traders that you find more interesting. You can apply filters like country, average profits, or financial market. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. For instance, if you invest $ 1000 and the trader puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also find the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
Remember that in some cases, it might be better to copy from CopyPortfolios than to individuals, because the former offer more diversity. The portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to have success in the future? Then you will surely find a CopyPortfolio about it.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading (and using price volatility to your advantage), for naming just a few.
My suggestion for those who are beginning to trade is going for a middle point: when you open your position, place a stop-loss order 15-20% below the top price, and let the rest happen on its own.
Therefore, if for example you acquire a cryptocurrency at $ 10, it reaches $ 20, and after that it decreases to $ 12, your stop loss will close your position at $ 16-17 and you will obtain a pretty good profit.
I know it might sound more appealing to sell when the cost is at its maximum, but that is simply not possible. The mentioned method is much more realistic and it can give great results.
Later on, you will be able to apply more sophisticated strategies, like using leverage or going short.
How does a demo account work?
For those who still don't have much experience in investing, using a demo account can be useful. Just make sure the virtual mode is set in the top left corner of the page and you can start operating with “fake” funds.
A virtual portfolio can be a good way of practicing before starting to trade with real money. When you create your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of assets available on eToro (not just with Tron).
Don't worry, since if you lose all your virtual balance, you can contact support so they can add back the $ 100,000 to your portfolio and you can try again.
However, keep in mind that you need to be prudent for trading, and using a practice account can have an adverse effect. It is completely different to risk your real savings than to do operations with virtual funds which loss does not suppose any drama. Besides, investing virtual money can prevent you from learning to control your emotions, something you should be able to do when trading.
As you may suppose, if you are going to invest in the medium or long-term, with profits almost guaranteed only by replicating an index, it is absurd that you invest in the virtual mode and wait for years. On the contrary, short or medium-term operations are perfect to try out with the virtual mode.