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eToro is an excellent broking platform for those in South Africa who want to obtain Tron
Some of its benefits are:
- It takes techniques and moves from successful traders so you can copy them
- Accepts short-trading
- User-friendly and straightforward
- You can trade leveraged
- You can make investments in thousands of different products
Main site: www.etoro.com/tron
You should absolutely consider eToro in case you are thinking about acquiring Tron from South Africa.
This broker is well-known for making “social trading” fashionable. Social trading is a revolutionary form of investing in which traders can repeat the moves of other investors who have been making profits for years.
eToro is very helpful if you are still a novice user in trading. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a long profit record. Additionally, in case you are an investor, the platform pays for your knowledge.
Another thing to mention is how intuitive the interface is, which turns out perfect for new users that are learning all about the trading world.
How does eToro work?
We said previously that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.
Everyone who has previously used Whatsapp, Facebook or any of the most common social networks, has enough knowledge to use eToro.
We will explain the registration process and the different sections that you will find on eToro.
First of all, you will have to enter all the information that eToro asks for: first and last name, address…
Before you end up with the sign-up process, you will also find some questions about your previous trade experience.
But don't worry: it's not about passing an exam. It is only a way of finding out how much knowledge you have and what type of financial instruments they can suggest. For example, if it is your first experience in the investment world, they will not recommend that you invest in futures.
Let's get to know the fundamental sections of the platform.
“Set Price Alerts” allows you to put alerts on the price of certain securities. This is very helpful when you want to buy a security which price is decreasing, but it seems to you that it has not finished falling yet.
“News Feed” is for social purposes and interaction. This is the section where users can share opinions and learn from each other.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Stocks
- Commodities
- Forex trading
- Index funds
The term “social trading” makes sense in the section “People”: there, you can copy the movements of the best investors.
You will be able to search and find users according to your interests. When you select an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, proportionally. If you have $ 1000 and the trader puts 20% of their funds in an asset, the platform will also invest 20% of your money in the same asset, in this case, $ 200.
Lastly, you will also see the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
Sometimes you might prefer copying to CopyPortfolios than to individuals, because you avoid putting all your eggs in one basket. Besides, the portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector will prosper in the future? Then look, because surely there is a CopyPortfolio about it.
Futures Vs CFD
How are Futures and CFDs different?
- Counterparties
- Futures: operations are made with someone else, another trader.
- CFDs: you do not operate with another individual, but the counterparty is the broker.
- Expiry:
- Futures: there is a date of expiry. Once the contract expires, it is closed and can't be reopened.
- CFDs: on the contrary, there is no expiration date. It is possible to wait until you are in a good shape to exit.
- Options for trading:
- Futures: there are fewer options for investment
- CFDs: a lot of variety, there are CFDs of practically anything
- Minimum investment amount or “trade size”:
- Futures: you need a larger initial investment
- CFDs: you can start with a lower minimum trade size
- Trading costs and charges:
- Futures: as you have to invest more, rates are lower
- CFDs: costs are higher
- Possibility of using leverage:
- Futures: it isn't possible to leverage
- CFDs: existing and available
About Contracts for Difference
It is possible that you have found the term CFD more than once if you entered eToro before. Before we explain what this is, you must know that CFDs on eToro are only possible if you are short-selling or leverage above x2 (nevertheless, the platform does not even allow this option).
If you want to try at some point day trading cryptocurrency or other operations, later on you will also meet concepts such as going short and leverage.
Even if you don't have a positive balance, you can still bet on eToro with CFDs. For example: you believe that the Tron will go down, so you obviously think “if it is going to depreciate or go down, I'll just wait until it does”. However, if it actually falls, you can earn some money out of that.
You can accomplish that by “going short”. Basically, it works like this:
- You ask for a loan of, let's say, 100 units of Tron, which cost $ 5,000 at the moment (these figures are made up)
- Next, you sell them at their price at the moment, $ 5,000
- The Tron goes from $ 50 to $ 30 (as you predicted, it devaluates)
- You buy the 100 units again, but their total current value is now $ 3,000
- You pay back the 100 units to whom made the loan
- The rest is yours, so, you will have made $ 2000
Consider that it is much simpler than it sounds: we can summarize this whole operation by saying that by trading in Tron you can also make money if you foretell the downs.