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eToro, recommended brokerage platform for purchasing Ethereum Classic from Egypt
Why do we recommend it?
- It is very easy to handle
- Allows to replicate investment strategies
- Allows you to go short
- You can trade leveraged
- There are tons of goods you can invest in
Official main site: www.etoro.com/ethereum-classic
If you are interested in buying Ethereum Classic from Egypt, eToro may be the best way to do it.
This broker is known for making “social trading” fashionable, a revolutionary way of investing in which traders can repeat the strategies of other investors who have been generating income for years.
eToro is very useful if you are still a novice user in trading. You can rest assured that you are making a smart investment since the site duplicates those from subjects with a long profit record. Oppositely, if you are an investor willing to share your knowledge with the community, eToro rewards you with money.
Besides, the interface of this platform is amazingly manageable, ideal for a user who wants to begin in the Ethereum Classic world, without ending up overwhelmed with tons of diagrams and numbers.
Is eToro trustworthy for purchasing Ethereum Classic?
eToro has been independently tested several times to verify its integrity in the handling of data from previous users. Every time, results have shown that eToro is very meticulous with the information.
The main headquarters of eToro is located in Cyprus, and therefore the broker is certified by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients, including those from Egypt. On the other hand, eToro meets all the strict regulations of the European Union.
It is also backed 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 been active for fifteen years, with more than 20 million users around the world, so we can be sure that our money is in good hands.
It is also worth mentioning the great customer service. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
eToro payment methods
Among the payment methods accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is really simple. You just have to click “Deposit funds”, type the amount and choose your preferred method.
Consider that for security policies, you need to be the holder of the account or the credit card.
The minimum amount allowed is $ 200, and there is a maximum limit for unverified accounts. Thus, if your intention is to deposit larger sums, you will need to verify your account previously.
eToro allows deposits in any currency, but charges a fee for making the conversion to USD. So it is better to use USD directly.
Futures Vs CFD
How are Futures and CFDs different?
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
- When do they expire? Futures have a determined expirationdate, while CFDs don’t expire
- Variety of options for trading The market for Futures is narrower. CFDs include a wide range of possibilities.
- Minimum investment amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Is it possible to leverage? With Futures, you can’t leverage; while with CFDs leverage is always available.
If you still don't know what “leverage” is, we'll put it short: it is the ability to invest a higher amount than you actually have. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for example, you are positive that Ethereum Classic is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.
There's the possibility of requesting a credit, but you must know that all the process takes time, and by the moment you finally get the money, Ethereum Classic might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Leverage is like a credit, and you will only have to click a few times to get it! eToro allows you to operate with much more money than what you have on the platform. As in the image below, you will see the different options you have:
Trading with other assets allows you to use even more leverage. This is because cryptocurrencies regularly represent medium-long term investments. However, leverage is used mostly for short-term operations or day trading. But let's deepen a bit more on how all this works:
- If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 was borrowed from eToro).
- Then, turns out that Ethereum Classic does rises, as you assumed, 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.
- Once the $ 1k from leverage is returned, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours initially.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
But watch out: if all goes as you intended and the asset increases, you will make money. On the opposite scenario, if the asset decreases, you will also lose more money really fast.
Supposing that the asset didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but double, $ 40. Because of that, the terms “Take Profit” and “Stop Loss” are fundamental when using leverage.
Take Profit is a trading limit you can set for your assets: you program your operation and ask the platform to sell them once they get to a point above the entry price. For instance, you can buy Ethereum Classic at $ 100 and ask eToro to close your position automatically when it reaches $ 120. It is very helpful to avoid being blinded by enthusiasm: a 20% profit is usually pretty good, but once you see it goes up, 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.
Stop Loss is even more necessary, especially if you trade with leverage, because a small loss with leverage can have a significant impact. That is why it is vital to establish a Stop Loss lower than that suggested by the platform.
How does eToro work?
We mentioned before that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
Everyone who has previously used social networks like Whatsapp or Pinterest, knows enough to operate with the eToro interface.
We will talk about how to register and the different tabs you will find on the platform.
When you open your account, you will have to enter your personal data, like first name, last name or address.
Before you end up with the sign-up process, you will also have to answer some questions about your previous investment activities.
But don't feel intimidated, there is no right or wrong answer. They only intend to find out how much you know and which instruments to recommend for you.
Let's see what the different sections of the platform are.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset 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 that is falling but you believe it will decrease even more.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already discussed the kinds of assets that are available on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Forex trading
- Index funds
In the section “People”, you will find eToro users and their past performance. This is where “social trading” makes sense since you can copy the strategies of the investors that you find most inspiring.
In this section, you can search and find users according to your interests. You can search by risk level, trading market, profits or country, among other filters. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. For example, if you invest $ 1000 and the trader puts 20% of their funds in an asset, the platform will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
Remember that in some cases, you might prefer copying to CopyPortfolios than to individuals, since the former offer more diversity. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Therefore, in case you think a specific industry, such as gaming or drones, will have good incomes in the future, you should look for that specific portfolio.
Trading strategies
There are lots of methods to trade cryptocurrencies: for example, you can buy and hold, or you can day trade (taking advantage of market volatility).
In case you are a beginner in the world of investment, I recommend a middle point: when you open your position, set a dynamic stop loss 15-20% below the highest price, and let the magic happen.
This means that if, for instance, you purchase a cryptocurrency at $ 10, it reaches $ 20 and then falls to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will have made a considerable profit.
You may be wondering: why not selling back when the price is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.
Later on, you will be able to apply more complex strategies, like short-selling or using leverage.
Virtual portfolio: How does it work?
In case you do not have much experience investing, you can start by practicing with a “demo” option. You just have to make sure that the “Virtual” option is set in the upper left corner and your operations will be carried out with an imaginary balance.
A virtual portfolio can be a good way of practicing before starting to operate with real funds. When you open your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of financial instruments available on eToro (not only with Ethereum Classic).
Don't worry, since if you lose all your virtual funds, you can contact support so they can add back the $ 100,000 to your portfolio and you can make a second attempt.
Take into account that trading is mostly about being cautious, and perhaps using a demo account can prevent you from controlling your impulses. It is not the same to trade with your own money than with virtual funds, which you can lose without any consequences.
As you may suppose, the virtual mode is kind of absurd if you want to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years. Demo accounts may be useful for trying out short or medium-term operations.