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eToro is an outstanding brokerage for purchasing Ethereum Classic from Nigeria
Some of its benefits are:
- There are uncountable possibilities for investments
- Leverage is allowed
- User-friendly and simple
- It uses other successful investment strategies so you can copy them
- Accepts short-selling
Homepage: www.etoro.com/ethereum-classic
In case you are interested in investing in Ethereum Classic from Nigeria, eToro is probably the best option.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become trendy because of eToro.
eToro is very helpful if you are still a beginner in trading, since it puts your investment on automatic by replicating moves from experienced traders with a very long profit history. Oppositely, if you are an expert in the subject willing to share your methods with other traders, eToro pays you for it.
Another thing to mention is how easy the platform is, which turns out perfect for new users that are learning all about the trading world.
Is eToro safe for purchasing Ethereum Classic?
eToro is very meticulous with the information about past performances from users, and its integrity has been independently tested several times.
The main headquarters of eToro is located in Cyprus, and therefore the broker is certified by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 from its client's debts, including those from Nigeria. On the other hand, eToro meets all the strict policies of the European Union.
In Europe, it is backed by the European Financial Instruments Market (MiFID), and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has more than 20 million users worldwide, and it has been operating for fifteen years. In short, we can be confident that our money is in good hands.
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.
How to deposit funds into your eToro account
Among the payment options that eToro accepts you will find: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Depositing money on eToro is so simple: go to “Deposit funds”, type the amount and choose a payment method from the previous ones.
(Keep into consideration that you should be the account or credit card owner, for security reasons).
The lowest amount you can deposit is $ 200, and there is a maximum allowed if you are not verified. Therefore, if you want to trade with larger sums, you should verify your account previously.
eToro allows deposits or transfers 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 directly.
How do Contracts for Difference Function?
If you already accessed eToro, you must have seen how the acronym CFD appears all the time. Before we explain what this is, we must say that cryptocurrency operations on eToro are only CFDs if you short sell or use leverage above x2 (and this is not even an option on the platform).
We will also refer to concepts such as leverage and “going short”, in case you are considering day trading cryptocurrency or more advanced practices.
Even if you aren't “in the black”, you can still bet on eToro with CFDs. In a hypothetical case: you have the certitude that the Ethereum Classic will fall, so perhaps you think that the best thing to do is refrain from getting in until it does. However, if it actually goes down, you can earn some money out of that.
You can accomplish that by “going short”. Here's how it works:
- You ask someone for a loan of, let's say, 100 units of Ethereum Classic, which cost $ 5,000 at the moment (these figures aren't real)
- Next, you make $ 5,000 by offering them at their price in the market
- The price falls, as you calculated, and the unit of Ethereum Classic now costs $ 30 instead of $ 50
- You purchase the 100 units again, but at their current price, $ 3,000
- You pay back the 100 units
- You will have made $ 2000, since you keep the difference
Take into account that it is much easier than it sounds: we can summarize this whole operation by saying that by trading in Ethereum Classic you can also earn money if you foretell it will fall.
How does eToro work?
As we have mentioned previously, one of the best features of eToro is its extraordinary simplicity: anyone can use it without having to read endless guides.
If you are familiar with any of the most popular social networks today, such as Whatsapp or Linkedin, you can perfectly manage eToro's interface.
We will explain the registration process and the different sections that you will see on eToro.
You will have to provide some personal data when registering.
Before you end up with the sign-up process, you will also have to answer some questions about your previous experience as an investor.
But don't feel intimidated. They only intend to find out about your previous experience and knowledge to determine which financial instruments to recommend for you.
Let's get to know the different 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 helpful if you want to purchase an asset and you are waiting for its price to fall.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the kinds of assets on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Forex
- Index funds
In “People” are all the profiles and historical performances of other investors, and you can replicate their strategies with just one click. This is where the “social trading” concept is best applied.
You can search for those users that you find more interesting: by average earnings, market or risk level, for instance. Just indicate the amount you want to invest and eToro will be in charge of replicating the movements made by the selected investor, in proportion. “In proportion” means that if you have $ 1000 and the investor puts 10% of his or her balance in an asset, eToro will invest also 10% of your money (that is, $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: 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 recognize easily and are classified by sectors. Thus, in case you suspect a specific sector, like biotechnology or oil, has a good chance of prospering, you should probably look for that specific portfolio.
Demo account
Are you beginning as an investor? Using a demo account can be very helpful. You just need to set the virtual mode and you can start practicing with a “fictional” portfolio.
This is a great tool for those who want to give it a few tries before trading with real money. When you create your account, you will start with $ 100,000 of virtual balance to do all the operations that you can think of: not just with Ethereum Classic, you can also create a diverse portfolio.
The first attempt is not usually that good. But don't worry, since you can ask eToro to deposit back the virtual funds to your account.
But remember that you need to be prudent for trading, and demo account trading can have the opposite effect. It is completely different to risk your own money than to operate with a false balance which loss does not suppose any drama.
As you may suppose, if you want to invest in the medium or long-term, with earnings almost assured just by duplicating a strategy, it doesn't make sense that you invest in the virtual mode and wait for years. On the other hand, the virtual mode can be helpful to experiment with short or medium-term trading.