Contents
eToro, a great online brokerage platform for those who want to buy Ethereum Classic from Bangladesh
Why do we recommend it?
- Allows to copy investment tactics
- Admits “shorting” or short-selling
- It is uncomplicated and easy to use
- eToro allows leverage
- There are lots of possibilities for investments
Homepage: www.etoro.com/ethereum-classic
If you are interested in obtaining Ethereum Classic from Bangladesh, eToro may be the best way to do it.
“Social trading”, a relatively new investment method that consists in replicating techniques and strategies from other experienced investors, has become popular because of eToro.
If you are still a rookie or do not have much investment experience, eToro is great for you. You can rest assured that you will be making a smart investment since the site replicates those from subjects with a long profit record. Oppositely, if you are an investor and decide to share your abilities with others, eToro pays up for it.
Besides, the interface of the site is so uncomplicated, ideal for users who want to begin in the Ethereum Classic world, without ending up overwhelmed with tons of diagrams and numbers.
Differences between futures and CFDs
How are Futures and CFDs different?
- Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
- When do they expire? Futures expire in a variable given date, while CFDs don’t have expiry date
- Variety of options for trading Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Leverage With Futures, it isn’t possible; while with CFDs it is.
About ETFs
Exchange-Traded Funds or ETFs are a kind of passively managed fund, similar to index funds. They can be described as a merge between stocks and mutual funds, including the best of both. They can be traded like regular stocks, but include a wide diversity of assets and their commissions are much lower than those of an actively managed fund.
Stocks
Now let's discuss the most well-known financial assets: stocks. Stocks are the parts of publicly traded companies. It is possible to be a shareholder of a company and obtain a profit, but first, you should know where and how to invest your money.
There are, essentially two kinds of stocks: the ones that payout at the end of every fiscal year to the stockholders, and those that don't. The former ones are great, obviously, but investing in the latter can also be a good idea since sometimes you can make even more money by selling the shares.
If you invest in stocks that pay out dividends, you will receive them into your account on eToro. Therefore, you can collect that money or you can choose to reinvest it. Nevertheless, compound interest is magic, so we would suggest reinvesting in the company if you don't need the money immediately.
If you trade with stocks on eToro, you will be able to use leverage. However, it is not advisable, since it would be a CFD and you would not get dividends. Also, as equities tend to be long-term investments, you will have to pay fees as long as your operation is open.
About ETFs
Have you heard about Exchange-traded funds? They are passively managed funds, known for combining the benefits of stocks and mutual funds, because they can be traded regularly at market price, but have much more investment possibilities and considerably lower fees.
Index Funds
If a long-term investment sounds like a good idea to you, and you won't need to withdraw your money in at least five years, index funds can be the best alternative. This kind of investment is also great for beginners since it is more secure. Besides, they offer more variety.
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, all that glitters is not gold: if a fund manager achieves to beat the benchmark, it is only for a short period or on a specific occasion. Or perhaps they would charge very high rates and indexing would be a better decision (with minimal commissions).
With index funds, you don't have to worry about that: although in the long term, they frequently beat active managers, and the rates are lower than you imagine.
Commodity market
Most people invest in raw materials due to their stability. While other assets tend to fluctuate more, raw materials prices vary less and offer safety against inflation or market volatility. Nevertheless, prices do depend on supply and demand, so if an economic situation produces higher demand for a certain good, its cost will also rise.
Keep in mind that the only intended profit from the investment in raw materials will be the hypothetical capital gain after selling them: unlike stocks, these don't give returns or pay interest.
There are two basic kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; and the latter are agricultural products as sugar, coffee, corn, soy, among many others.
Investment strategies
When trading cryptocurrencies, there are different possible methods or strategies, such as buying and holding or day trading (and using market volatility in your favor), for naming just a few.
My recommendation for those who are beginning to trade is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) when you open your Ethereum Classic operation and wait for it to work.
This means that if, for instance, you acquire a cryptocurrency at $ 10, it rises to $ 20 and then falls to $ 12, your stop loss will close your position at $ 16-17 and you will obtain a pretty good profit.
You may be wondering: why not selling when the price is at its highest? 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 sophisticated strategies, like short-selling or using leverage.
Is eToro reliable for purchasing Ethereum Classic?
eToro is very careful with the information about past performances from investors, and its integrity has been independently tested several times.
eToro follows all the strict regulations requested by the European Union, legislation in which it is found. Specifically, its main offices are in Cyprus, and it is validated by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts from its clients (those from Bangladesh included).
eToro is backed by the European Financial Instruments Market or MiFID in Europe, and by the Financial Conduct Authority or FCA in the USA. You should also know that it has a trajectory of fifteen years, with more than 20 million users around the globe. So, you can be sure that your finances are safe.
Their customer service functions perfectly. You can use the online chat, and they also have a phone number available for assistance.
Virtual portfolio
In case you are beginning as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional funds is very easy.
A virtual portfolio can be a good way of practicing before starting to operate with real money. When you create your demo account, you will begin with a virtual balance of $ 100.000, to operate with a variety of assets available on the platform, besides Ethereum Classic.
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 account.
But keep in mind that trading is mostly about being cautious, and demo account trading can have the opposite effect. It is completely different to risk your own money than to do operations with virtual funds that you don't mind losing. Besides, investing virtual money can prevent you from learning to control your emotions, as a true investor should.
Evidently, the virtual mode is kind of absurd if you intend to trade in the medium or long-term, since you would be wasting years to see the outcome. Virtual accounts may be ideal for trying out before investing in the short or medium-term.
eToro Interface
We already mentioned that one of the best things about eToro is how simple it is. You don't need to read a lot or have previous knowledge to start trading.
Everyone who has used Whatsapp, Linkedin or any of the most common social networks, has enough skills to use eToro.
We will explain the registration steps and the different sections that you will see on the platform.
When you open your account, you will have to fill in your personal data.
Also, you will see that they ask you some questions about your experience at investing.
But don't feel like you are taking an exam. The objective is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.
When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.
Let's review the different functions 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 in case you want to buy an asset and you are waiting for its price to fall.
“News Feed” is for social purposes. This is the section where users can share opinions and learn from each other.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we already talked about the different financial instruments on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Forex
- Index funds
In the tab “People”, you will find eToro users and their past performance. This is where you can duplicate with just one click the movements of the traders that you find most inspiring.
In this section, you can search and find users according to your interests. You can apply filters like risk level, average profits, or financial market. When you choose an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. If you have $ 1000 and the user puts 20% of their funds in an asset, eToro will put $ 200 of your balance in the same asset as well.
Finally, you will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying particular investors 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, in case you suspect a specific industry, like e-commerce or drones, has a good chance of prospering, you should look for that specific portfolio.