Contents
eToro, an advisable broker for those who want to purchase Tether from Thailand
Advantages:
- It's straightforward and user-friendly
- You can replicate investment strategies
- You can go short
- You can trade leveraged
- Lets you make investments in countless of different goods
Official homepage: www.etoro.com/tether
In case you are considering buying Tether from Thailand, eToro may be the best way to do it.
“Social trading”, a relatively new way of investing by replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
eToro is very helpful if you don't have much experience in trading. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques with others, eToro rewards your knowledge with money.
Besides, this platform is completely intuitive, ideal for users who want to begin in the Tether world, without getting crazy with tons of graphs and figures.
Can you rely on eToro?
Many tests from independent consultants have been applied to eToro to verify its reliability in the treatment of data from previous users and past performances. Every time, it has been confirmed that eToro is rigorous with the information.
The main headquarters of eToro is located in Cyprus, and therefore the broker is approved by the Cyprus Securities Market Commission (or CySEC), which can cover up to € 20,000 from its client's debts, including those from Thailand. The platform complies, on the other hand, with all the strict policies of the European Union.
It is also supported by the European Financial Instruments Market or MiFID, and in the USA it responds to 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 the last fifteen years. To sum up, we can be certain that our finances are safe.
No less important is their excellent customer service. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
In case you still don't know what “leverage” is, we'll put it short. When trading, it's the capacity of enlarging your investment by borrowing money from the broker. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Suppose now that you are sure that the price of Tether is going to raise its price, thus you decide “going long”.
You are certain that Tether will go up, and you have $ 1,000 at that moment, but the fact is, you have the chance of investing more.
You could go to your bank, ask for a loan, wait for it to be accepted and receiving the money, and then obtain Tether… But maybe once you have made all that, your prediction could've been confirmed a long time ago, and Tether would be already at such a high value that it is not worth investing.
Thanks to leverage, you can get that amount of money with two clicks. It's like borrowing money, but much easier and quicker, and with the advantage that you will be getting it directly from eToro. As in the image below, you will see the different options you have:
Within other markets, the ability to leverage is greater. The reason: leverage is most common in short-term operations, 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 (remember that$ 1,000 was borrowed from eToro).
- A few days later, Tether does rises, as you thought, and now the price of your investment is $ 2,400 (20% higher), so you decide to sell back because you want to play it safe.
- 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 initially.
As you can see, with $ 1000 you get $ 400, in other words, 40% more. Not bad, right?
But watch out: if all goes as you intended and the price goes up, you will make money. On the opposite scenario, if the price goes down, you will also lose more money than you invested.
Let's say that the price didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but $ 40, because of the leverage. Therefore, when trading with leverage it is very important to take into account 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 Tether at $ 100 and request that your position is closed automatically when it goes up to $ 120. It is very useful to avoid being blinded by greed: a 20% profit is usually very good, but once you see the price has risen, you might want to gain a bit more and decide to wait, but this could be a mistake. So, Take Profit helps you to trade more safely.
On the other hand, when using leverage you should always use Stop Loss, because a small fall in the price of an asset can lead to a substantial loss. Always remember to establish a Stop Loss lower than that suggested by eToro.
About ETFs
What do you know about Exchange-traded funds or ETFs? They are passively managed funds, known for combining the advantages of stocks and mutual funds: they can be exchanged regularly at market price, but have much more diversity and the rates are significantly lower.
Exchange-Traded Funds
Exchange-Traded Funds or ETFs are similar to index funds. We can say that ETFs are halfway between stocks and funds: they can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
About Index Funds
This is the best option for people who can invest in the long term, especially for beginners, because it is less expensive, diversified, and the risk is lower.
Unlike a lot of people think, beating the benchmark is far from being a piece of cake and very few fund managers have done it, apart from some specific cases.
In practice, if a fund manager achieves to beat the benchmark, it is only for a short time or on a specific occasion. Or perhaps they would charge very high rates and indexing would be a better decision anyway (with minimal commissions).
Index funds offer solutions for that: they usually beat active managers in the long term, and the fees are minimal.
Foreign exchange
What is known as Forex trading consists in the exchange of currencies. It is the conversion between two currencies, and the aim is, evidently, to obtain a benefit out of this.
For instance, if you want to trade EUR and USD, you buy euros and pay with dollars, with the expectation that the euro will increase compared to the dollar. Therefore, if you bought each euro for 1.15 USD and you sell them back when they cost 1.20 USD, you'll be earning that margin.
Perhaps you already inferred this, but this kind of trading usually implies investing a lot, because prices rarely increase that much, or using much leverage, which could be incautious. In case you are a novice in trading, we don't recommend beginning with this market, because it is very risky and intricate.
You can exchange with the most common currency pairs on eToro. Still, bear in mind that this market works with CFDs, so you won't own the real asset.
Shares
The most common financial instruments are stocks or shares: these are the parts in which an enterprise that chooses to go public is divided. You may own a proportion of a company and obtain a profit, but you must know where to invest your money.
Basically, there are two types of stocks: the ones that divide their earnings regularly among the investors, 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.
When trading on eToro, if you invest in stocks that give dividends, you will receive them in your account, and you can collect them in cash or reinvest them. Our suggestion is, if you don't need the money immediately, that you take advantage of compound interest and reinvest it in the company itself.
If you invest in stocks on eToro, you can use leverage to “dope” your trades. But it is not advisable, since it would be a CFD and you would not get dividends. Also, equities are regularly long-term investments, and you have to pay fees.
Raw materials
The major attraction of investing in commodities is that their price varies less than that of other financial products. In fact, their intrinsic stability is what makes most investors trade with raw materials when facing economic adversities or market volatility. Even so, the cost of raw materials is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Take into account that commodities don't pay dividends. So, by trading with these you will only have a further income by selling them back.
Commodities are usually classified into two kinds: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products like sugar, cocoa, soybeans, among others.
eToro Interface
As we have referred among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can invest without having to read endless guides.
Everyone who has previously used social networks like Twitter or Pinterest, knows enough to use eToro.
Let's talk about the sign-up process and the different sections of eToro that you should know.
When you register, you will have to fill in your personal data.
To complete your registration, you will see that they ask you some questions about your experience at investing.
But don't worry: it is not an exam. They only intend to know how much knowledge you have and what type of financial instruments they can recommend. 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, the “incomplete profile” bar will disappear.
Let's get to know the fundamental sections of the page.
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 ideal in case you want to buy an asset and you are waiting for it to decrease.
“News Feed” is for social purposes. This is the section where users can share opinions and information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed previously, the trading instruments available on are:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Commodities
- Forex
- Index funds
The concept “social trading” makes sense within “People”: there, you can replicate the strategies of any investor you choose with just one click.
In this section, you can find those traders that you find more interesting. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. If you invest $ 1000 and the trader puts 20% of their funds in an asset, eToro will invest $ 200 of your funds in the same asset or company as well.
You will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The advantage of using CopyPortfolios instead of copying specific traders is that this way you will diversify the risk. There are all kinds of portfolios that you can find easily and are classified by sectors. Thus, if you suspect a specific industry, such as fashion or healthcare, has a good chance of prospering, you can look for that specific portfolio and invest.
Investment strategies
There are lots of ways to trade cryptocurrencies: for instance, you can buy and hold, or you can day trade (taking advantage of price fluctuations).
My recommendation for those who are beginning to invest is going halfway between the two options: placing a dynamic stop-loss (15-20% under the highest price) when you open your Tether operation and wait for it to work on its own.
Therefore, if for example you acquire a cryptocurrency at $ 10, it rises to $ 20 and then decreases to $ 12, your position will be closed at $ 16-17 and you will obtain a pretty good profit.
It may sound more appealing to sell when the price is at its highest, right before corrections, but unless you're a fortuneteller, that is not possible. The mentioned method is much more down-to-earth and it can give great results.
And when you have more experience, you can take your first steps with advanced trading strategies, like going short to profit from bear markets or using leverage.
Virtual portfolio: How does it work?
For those who still don't have much experience in investing, using a demo account can be very helpful. You just need to set the virtual mode and you can start trading with “fake” funds.
A virtual portfolio can be a good way of practicing before starting to trade with real funds. When you create your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of financial instruments available on the platform, besides Tether.
Don't worry, since if you lose all your virtual funds, you can contact support so they can add them back to your demo account and you can make a second attempt.
Nevertheless, remember that investing is mostly about being cold-minded, and demo account trading can have the opposite effect. It is not the same to risk your real savings than to do operations with a fake balance that you don't mind losing.
Evidently, the demo mode is kind of pointless if you want to trade in the medium or long-term, since you would be wasting years to see the outcome. Virtual accounts may be helpful for practicing before investing in the short or medium-term.