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eToro, an advisable brokerage for those in South Africa who want to buy Binance Coin
Some of its benefits are:
- It is possible to invest in countless of other products
- You can leverage
- It is uncomplicated and manageable
- You can imitate other investment strategies
- You can short sell
Official site: www.etoro.com/binance-coin
You should definitely consider eToro in case you are interested in investing in Binance Coin from South Africa.
“Social trading”, a relatively new way of investing by replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.
eToro is very useful if you are still a novice user in trading, since it automatizes your investment by repeating strategies from those who have been doing it for years and making profits. And for those skilled investors willing to share their techniques with others, eToro pays for it.
Besides, the interface of this site is amazingly manageable, ideal for a user who wants to begin in the Binance Coin world, without stressing over tons of graphs and figures.
Is eToro safe for purchasing Binance Coin?
Many tests from independent consultants have been applied to the platform to certify its reliability in displaying previous performance statistics. And it has been confirmed every time that eToro is meticulous with the data.
The main office of eToro is located in Cyprus, and the platform is certified by the Cyprus Securities Market Commission (known as CySEC), which covers debts up to € 20,000 from its clients. Furthermore, eToro follows all the strict requirements of the European Union.
In Europe, it is backed by the European Financial Instruments Market or MiFID, and in the USA it is under the control of the Financial Conduct Authority (FCA). Besides all these regulations, it should be mentioned that eToro has more than 20 million users worldwide, and it has been operating for fifteen years. To sum up, we can be certain that our finances are safe.
Their excellent customer service is also worth mentioning. You can use the online chat, and they also have a phone number available for assistance.
How to deposit funds on eToro
When it comes to depositing funds on eToro, there is not much to say, since it is really straightforward. You only need to select “Deposit funds”, type an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
Remember that for security reasons, you must be the holder of the account or the credit card.
You can start from $ 200, and there is a limited maximum for unverified accounts. So, if your intention is to deposit larger sums, you should contact Support to verify your account.
The platform allows deposits in any currency, but charges a commission for making the conversion to USD. So it is better to use USD from the beginning.
About Contracts for Difference
It is possible that you have seen the term CFD now and then if you entered eToro before. Before we come back to this, 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 interested in day trading cryptocurrency or more advanced practices.
The good thing about eToro is that it allows you not only to bet “in the black”, but through CFDs you can also bet “in red”. For instance, you believe that the Binance Coin will fall, so probably you think that the best thing to do is refrain from getting in until it does. However, if it actually goes down, you can make some profits out of that.
You can accomplish that by “going short”. Here's how it works ,roughly:
- You obtain from a loan 100 units of Binance Coin, with a total price of $ 5,000 (these numbers are fictional)
- Next, you earn $ 5,000 by selling them at the market price
- As you thought, the price falls, and the unit of Binance Coin now costs $ 30 instead of $ 50
- You purchase all 100 units one more time, but now they are worth $ 3,000
- You return the 100 units to the person that loaned them to you
- You save the $ 2000 difference!
It is far more simple than it may seem. Just take into account that by trading in Binance Coin on eToro, you can make money when you anticipate the price will fall.
eToro Interface
We already said that one of the best features of eToro is that the platform is very friendly and easy to use. You don't need to read a lot or have previous knowledge to start investing.
If you are familiar with any of the most popular social networks today, like Instagram or Linkedin, you can perfectly manage eToro's interface.
We will explain the registration process and the different tabs that you will see.
You will have to fill in some requested data when registering.
Additionally, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated, there is no right or wrong answer. The objective is to know more about you and determine which financial instruments they should suggest according to your knowledge and experience.
Let's get to know the fundamental sections of the interface.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. This is ideal in case you want to buy a security and you are waiting for its price to fall.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments that are available on eToro:
- Cryptocurrencies
- ETFs
- Stocks
- Raw materials
- Forex trading
- Index funds
In “People”, you can find eToro users and their past performance. This is where you can duplicate with just one click the strategies of your preferred investors.
You can search for those investors that you find more interesting: by average earnings, market or risk level, for example. You just have to type the amount of your investment and eToro itself will be in charge of replicating the movements made by the investor you chose, in proportion. This means that if you have $ 1000 and the trader puts 10% in an asset, eToro will invest also 10% of your money (in this case $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying individuals is that this way you will diversify the risk. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain industry will prosper anytime soon? Then you will surely find a CopyPortfolio about it.
How does a demo account work?
If you do not have much experience investing, the possibility to operate in “demo” mode will be helpful. You just have to set the “virtual” option” in the upper left corner and you will be able to trade with “imaginary” funds.
This can be a great way of practicing before starting to trade with real money. You will have an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can trade with all the different instruments available on eToro, not only with Binance Coin.
The first attempt is not usually that good. But don't worry, since you can ask support to deposit back the virtual funds to your portfolio, and the second try you should do better.
But remember that trading is mostly about being cold-minded, and using a demo account can have an adverse effect. It is completely different to risk your own money than to do operations with virtual funds which loss does not suppose any drama.
And of course, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and wait for years. But it can be ideal if you want to practice short and medium-term investment.