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eToro, a great brokerage platform for those who are in USA and want to obtain Tron
Why do we recommend it?
- Lets you make investments in tons of different goods
- eToro offers leverage
- Really intuitive and simple
- Allows to copy investment moves
- Allows you to go short
Go to the official website in English: www.etoro.com/tron
You should consider eToro in case you are interested in buying Tron from USA.
This broker is known for making “social trading” a trend, a revolutionary form of investing in which traders can emulate the strategies of other investors who have been generating income for years.
If you are a novice user or do not have much investment experience, eToro is very helpful, since it puts your investment on autopilot by emulating moves from other experienced people with a long profit history. And for those skilled investors willing to share their techniques with the community, eToro rewards your knowledge with money.
Another thing to mention is how manageable the interface is, which turns out perfect for new users that are just learning all about Tron.
How to use eToro
We mentioned before that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
You won't have any issues with the interface if you have used any of the most common social networks.
We will explain, roughly, the registration steps and the different sections that you will see.
You will have to fill in some information requested when registering.
They will also ask you about your previous trading activities.
However, it's not like they're testing you or anything. It is only a way of finding out how much knowledge you have and what type of assets they can suggest. For instance, if you have never invested before, they will not recommend that you invest in futures.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's get to know the different sections of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is helpful if you want to buy a security and you are waiting for it to decrease.
In “News Feed”, investors interact and share opinions, tips, and other valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed previously, the six types of instruments on eToro are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Forex trading
- Index funds
The term “social trading” comes to life within “People”: there, you can duplicate the strategies of the investors you find most inspiring.
You can search for those investors that you find more interesting: by average profits, types of assets or risk level, for instance. You just have to type the amount you want to invest and eToro itself will be in charge of replicating the movements of the investor you selected, in proportion. This means that if you have $ 1000 and the trader puts 10% in an asset, the platform will invest also 10% of your money (in this case $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.
The benefit of copying to CopyPortfolios instead of people is that this way the risk is more diversified. There are all kinds of portfolios that you can find easily and are divided by sectors. Thus, in case you think a specific sector, like gaming or oil, will have good incomes in the future, you can find that specific portfolio and do your investment.
Can you trust eToro?
eToro is very rigorous with the data about past performances from traders, and its integrity has been independently tested several times.
The main office of eToro is located in Cyprus, and therefore it is certified by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients, including those from USA. Furthermore, eToro follows all the strict requirements of the European Union.
It is also supported by the European Financial Instruments Market or MiFID, and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has worked for fifteen years, with more than 20 million users, so we can rest assured that our funds are in good hands.
It is also worth mentioning the good functioning of its customer service. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
Have you heard about “leverage”? Just in case, we'll put it simply:
the good thing about trading is that it lets you invest more money than what you really have. That is, if you enter with $ 100 and you choose to leverage x2, you will be really investing $ 200.
What you need to know about leverage
Assuming that, for example, you are sure 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.
You could consider asking for a credit, but you must know that all the process takes time, and when you receive the money, Tron might be already so expensive (if your guess was right) that trading wouldn't be convenient anymore.
Leverage is like a credit, but it is only a few clicks away! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform. You will simply see the different options as in the image below:
With other assets, the leverage you can use is higher. This is because leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's see how leverage works:
- If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- A few days later, Tron does rises, as you assumed, and now the cost of your investment is $ 2,400 (20% more), so you decide to sell back.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours from the beginning.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.
Does it sound too good? The trick is that the risk of losing out also increases. If everything goes as planned, you will earn more money in less time; but if the value of the asset goes in the opposite direction, you will also lose more in less time.
Let's imagine that the asset didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. Because of that, the terms “Take Profit” and “Stop Loss” are crucial when using leverage.
Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.
If you purchased Tron at $ 100, you can ask eToro to close your operation when it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to keep waiting in case it keeps going up, which could make you lose it all.
Stop Loss is even more important, particularly if you use leverage, because a reduced loss with leverage can have a significant impact. You always need to establish a Stop Loss lower than that suggested by eToro.
eToro deposit methods
Within the payment methods accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is very easy. Just go to “Deposit funds”, type the amount and choose a payment method from the previous ones.
Evidently, for security reasons, you need to be the account or credit card holder.
The minimum amount allowed is $ 200, and there is a maximum limit for unverified accounts. Thus, if you aim to operate with much more, you will need to verify your account previously.
eToro accepts deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if it is in your hands, depositing in USD from the beginning.
What are ETFs?
What do you know about Exchange-traded funds? They are similar to index funds and are known for merging the advantages of stocks and mutual funds, because they can be traded regularly at market price, but include a much wider diversity of assets and the rates are significantly lower.
Equities
Let's talk about the most well-known assets: stocks or shares. Stocks are portions in which an enterprise that chooses to go public is divided. You can get dividends 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 group stocks into two different kinds: the ones that payout at the end of every fiscal year to the stockholders, and those that don't. The former ones are great, obviously, but investing in the latter can be a good idea too since the profit you can make by selling the shares can be even larger.
In the case of eToro, if you choose a company that pay out dividends, you will receive them in your account, and you can withdraw those funds or reinvest them. Our suggestion is, if you don't have financial urgencies, that you don't renounce the magic of compound interest and reinvest it in the company.
Remember that on eToro you can “dope” your trades with leverage, but in that case, you will not receive dividends as the trade is a contract for difference. That is why for long-term investments, it is better not to use leverage: you can end up losing money, because you will not get interest and also you will have to pay fees while your operation is open.
Commodity market
The main attraction of trading with raw materials is that prices are more stable than those of other assets. Actually, their stability is what makes most people choose raw materials when facing possible inflation or market volatility. Despite that, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Note that the only intended income from the investment in raw materials will come from their further sale because these kinds of assets do not pay dividends.
Commodities can be classified into two main categories: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (for instance, iron, nickel, or aluminum), and oil; and the latter are agricultural resources as wheat, soybeans, vegetables, or even dairy, among many others.
How are CFDs and futures different?
If you want to know, here are the most important differences between CFDs and Futures:
- Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Expiry date Futures have a determined expirationdate, 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 numbers, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher.
- Is it possible to leverage? With Futures, it isn’t possible; while with CFDs it is.
About Contracts for Difference
You probably have seen the term CFD now and then if you already registered on eToro. We will come back to it, but first, you should know that CFDs on eToro are only possible when you short sell.
We will also refer to terms such as going short and leverage, in case you are considering day trading cryptocurrency or more advanced practices.
With CFDs you can bet on the platform even if you are “in red” or don't have a positive balance. For instance, you believe that the Tron will go down, so perhaps you think that the best thing to do is refrain from getting in until it actually falls. But if it actually falls, you can make some profits out of that.
You can do that by “going short”. Here's how it works:
- You ask someone to lend you, for instance, 100 units of Tron, which cost $ 5,000 at the moment (obviously, these figures are made imaginary)
- You make $ 5,000 by selling the 100 units
- The Tron devaluates from $ 50 to $ 30
- Again, you purchase the 100 units, but at the current value, $ 3,000
- You give back the 100 units to the loaner
- The rest is yours, so, you will have earned $ 2000
Keep in mind that it is much simpler than it sounds: we can summarize this whole operation by saying that by trading in Tron you can also earn money if you anticipate the downs.
Trading strategies
There are many cryptotrading methods: for example, you can buy and hold, or you can day trade using volatility of the market to your advantage.
My suggestion for those who are beginning to invest is something in the middle: when you open your Tron position, set a stop-loss 15-20% under the maximum price, and let the magic happen.
For example, if you buy a cryptocurrency at $ 15, it increases to $ 25 and falls back to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Hence, you will obtain a good profit.
I know it's tempting to look to sell when the price is at its highest, right before corrections, but that is simply not possible. The above strategy is much more realistic and it can give great results.
Later on, you will be able to apply more complex strategies, like going short or using leverage.
How does a demo account work?
Are you beginning as an investor? Using a demo account can be useful. Just assure yourself that the virtual mode is set in the upper left corner of the page and you can start trading with fictional funds.
This is a great tool for those who want to give it a few tries before trading with real money. When you open your account, you will start with $ 100,000 of virtual balance to do all the operations that you can think of: not just with Tron, you can also work with a diverse portfolio with all the different assets that are available on eToro.
Don't worry, since if you lose all your virtual balance, you can contact support so they can add them back to your portfolio and you can try again.
Nevertheless, remember that investing is mainly about being prudent, and demo account trading can have an adverse effect. It is completely different to risk your real savings than to trade with virtual funds which loss does not suppose any drama.
And of course, the demo mode is kind of absurd if you intend to trade in the medium or long-term (with almost guaranteed returns only by replicating an index), since you would be wasting years to see the results. Virtual accounts may be useful for trying out short or medium-term operations.