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How to buy
If you live in Kenya, the best way to invest in Zynga shares is, definitely, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the Cyprus Securities and Exchange Commission, and therefore complies with all the regulations of the European Union, the most demanding in the world.
We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in your language, accepts users from Kenya, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.
How to sign up, step by step
The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.
Now check your email inbox: you should have received an email from eToro, click on “Verify my email” and your account will be verified.
Once on eToro, you just have to click on “Deposit funds”, in the page menu.
There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:
As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.
If you have a choice, we do not recommend bank transfer because it takes longer, and it can be very frustrating to see the price of Zynga rising while you wait for your transfer to be done.
How to make your first purchase
When eToro has confirmed the receipt of your credit, you just have to search for “Zynga” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Zynga is a multinational company in the video game sector whose market niche is focused on web social games. Founded in 2007, in its beginning it had a great boom thanks to its alliance with Facebook, where users of the platform had access to the games.
Many of these games were truly iconic, surely you will have played some of them or at least the name will ring a bell. Among the best known are FarmVille, CityVille, Mafia Wars, and CastleVille, having a large number of users on Facebook.
Currently, Zynga has its own web platform where it offers its games separately from Facebook, although some of them are still present in the social network. In them we can find that the company states that it has offices in Canada, United Kingdom and India, in addition to the United States.
Likewise, they also state that currently more than one billion people have played their games both on their website and on Facebook or any mobile platform. This is of vital importance when we analyze its business model.
According to the platform, its most popular games are FarmVille, Zynga Poker, Words with Friends and CSR (a car game). Although these are quite old, it also has more up-to-date titles such as a game based on Harry Potter and another on Games of Thrones.
Zynga's business model
Their way of generating money is very simple, they create an addictive game and publish it for free, but with some limitations that only disappear if the user pays.
An example of this are the games in which, if the user loses, he must wait a certain time to play again. But if the user pays a small sum of money, he does not have to wait this time, but can continue playing immediately.
In addition, there is the income from real money gambling games in which he usually earns a commission. Although in this case Zynga is as if it were a casino and therefore applies the rule “the house always wins”.
Zynga as an investment
Its share price is quite low and the stock has some peculiarities.
The first and most salient is that its stock market performance the last 5 years has far outperformed the growth of the SP500 and the NASDAQ Composite Index.
The second is that, in the same period of time, although the company has had a constant growth with little volatility, the accumulated return is more than 500% and still has the possibility of continuing to grow.
And obviously, this has put Zynga in the eye of investors looking for companies with good long-term returns in the market.
Why do we recommend it?
- Very user-friendly and simple
- It offers other users successful investment strategies so you can copy them
- Allows you to short sell
- eToro offers leverage
- There are uncountable goods you can invest in
Main site: www.etoro.com *
eToro is the best option nowadays to buy Zynga shares from Kenya.
“Social trading”, an innovative form of investing by replicating techniques and strategies from other experienced investors, has become popular because of eToro.
If you are a novice user or do not have much experience in investments, eToro is great for you, because it automatizes your investment by repeating strategies from other experienced people with a very long profit history. Oppositely, if you are an expert in the field and want to share your techniques with the community, eToro rewards you with money.
Another advantage is how intuitive the interface is, which turns out perfect for new users that are just learning all about the trading world.
What are Contracts for Difference?
If you already browsed eToro, you must have seen how the acronym CFD appears all the time. Before we explain this further, we must say that CFDs on eToro are only possible when you short sell.
If you want to know about day trading cryptocurrency or other operations, you will also meet terms like leverage and “going short”.
The advantage of eToro is that it allows you not only to bet when you are “in the black”, but with CFDs you can also bet “in negative”. In a hypothetical case: you have the certitude that the Zynga will fall, so the logical thing is to think “if it is going to depreciate or go down, I'll just wait and bet when it has gone down”. But if it really falls, it might mean extra money for you.
You can do by “going short”. Its operation, roughly, works like this:
- You get from a loan 100 units of Zynga, valued at a total of $ 5,000 (these are completely made up numbers)
- You sell them at their market price, $ 5,000
- The Zynga goes from $ 50 to $ 30 (as you calculated, it devaluates)
- Again, you buy the 100 units, but now they are worth $ 3,000
- You pay back the 100 units to whoever made the loan
- The rest is yours, so, you will have made $ 2000
Take into account that it seems much more complicated than it really is: we can summarize this whole operation by saying that by trading in Zynga you can also earn money if you predict the downs.
What's the difference between CFDs and futures?
How are Futures and CFDs different?
- Which are the counterparties? In the case of Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiry 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 numbers, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher, although not excessively.
- Leverage: with Futures, it isn’t possible; while with CFDs it is.
How to deposit funds on eToro
Among the payment methods that eToro accepts you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. Making a deposit on eToro is so simple: click “Deposit funds”, set an amount and select the payment method you prefer.
Consider that for security reasons, you must be the owner of the account or the credit card.
The minimum amount required 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 or transfers in any currency, but charges a fee for making the conversion to USD. That is why we recommend, if possible, depositing in USD from the beginning.
Do you know what “social trading” is?
eToro was the first platform that proposed social trading, and this new concept became very successful. Many other brokers copied this idea, but eToro is still the best one.
But it wasn't just about creating yet another social network to talk about investment. The main innovation was in the possibility for users to replicate the moves of advanced investors, and to reward the latter for their ideas and knowledge.
You will find in the left menu of the site the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of financial assets of a certain sector. For example, if you heard that the gaming industry is going to prosper soon but you don't know which stocks to select, you just have to invest in the CopyPortfolio called “InTheGame”, which includes companies like Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…
You should know that in the last twelve months, CopyPortfolio has given returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss and click on “Invest”.
But it is also possible to copy other users of the platform who are successful investors. With “Copy People” you can find them and imitate their investments easily.
You will find in the profile of each user: the kind of assets they trade with, their risk profile, and their trading history.
And although copying other people's strategies is very interesting, you should also make the most out of the platform's community, read what other users think, and learn from them. It is great for acquiring important knowledge, especially if you want to turn investing into a lifestyle.
There are lots of cryptotrading methods: for instance, you can buy and hold, or you can day trade (taking advantage of market volatility).
If you don't have much experience in investment, I recommend a middle point: when you open your Zynga position, place a stop-loss order 15-20% below the top price, and let the magic happen.
For example, if you purchase a cryptocurrency at $ 15, then it rises up to $ 25 and decreases back to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will obtain a fine profit.
Perhaps you are wondering: why not selling back when the price is at its maximum? But that would only work for a psychic or a fortune-teller. The mentioned strategy is completely realistic and can work out perfectly if it is well applied.
Later on, you will be able to apply more complex strategies, such as using leverage or going short.
In case you are not familiar with the term “leverage”, we'll put it short: it is the possibility to use a higher amount than you actually have. For example, 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”
Let's say that you are confident that Zynga will rise, and you want to “go long”. You have $ 1,000, but you actually can invest more and make more money.
You could go to your bank, ask for a loan, put something as a guarantee, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then acquire Zynga… Nevertheless, once you've managed doing all that, probably Zynga would be already much higher, and investing wouldn't be a good idea at that moment.
Leverage is exactly like a loan, and you will only have to click a few times! You will be able to operate with much more money than what you have on the platform's wallet. Before trading, you will be able to choose between the different leverage options as in the image:
When operating in different markets you can use higher leverage. Why? Because cryptocurrencies are usually medium-long term investments, and leverage is used mostly for short-term operations or day trading. But let's deepen a bit more on how all this works.
You begin with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest, since eToro would put the other $ 1,000 (which is double your initial amount).
A couple of days pass and, indeed, you were right: Zynga price increases by 20% and your money has appreciated reaching $ 2,400. Ok, don't be greedy, it's time to sell.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 was yours initially, so the net profit is $ 400.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is pretty decent.
But not everything is wonderful. If all goes as you intended and the asset increases, you will make money. However, if the price goes down, you will also lose more money than you invested.
For instance: if the price falls by 10%, you do not lose $ 10, but twice that figure, which means $ 20, because of the leverage. For that reason, when using leverage it is fundamental to know about Take Profit and Stop Loss.
Take Profit is a limit you can set when trading: you set the platform to sell your assets once they get to a point above the entry price. For instance, you can buy Zynga shares at $ 100 and request that your position is closed automatically when it goes up to $ 120. It is very helpful to avoid being blinded by enthusiasm: a 20% profit is usually very good, but once you see it goes up, you might think you can make higher profits, which is not always the case. As a result, you might lose money if you don't close on time. So, Take Profit helps you reduce risks when trading.
Stop Loss is even more necessary, mostly if you use leverage, because a small loss with leverage can be fatal for your wallet. You always need to mark a Stop Loss lower than that suggested by eToro.
Frequently asked questions
* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.