Contents
Why we reccomend eToro for purchasing NEO from Thailand?
Why do we recommend it?
- Really user-friendly and straightforward
- You can replicate investment tactics
- You can go short
- You can trade leveraged
- There are uncountable investment options
Homepage: www.etoro.com/neo
eToro is probably the best option to purchase NEO from Thailand.
This broker is known for making “social trading” fashionable, an innovative form of investing in which traders can repeat the moves of other investors who have been generating income for years.
eToro is very helpful if you are still a novice user in trading. You can rest assured that you are 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, eToro rewards your knowledge with money.
Another thing to mention is how intuitive the interface is, which turns out perfect for new users that are learning all about NEO.
Can you trust eToro?
Many independent tests have been applied to eToro to validate its reliability in displaying previous performance statistics. The results have always confirmed that eToro is very precise with the figures.
The main office of eToro is located in Cyprus, and therefore the broker is certified by the Cyprus Securities Market Commission (or CySEC), which can cover up to € 20,000 from its client's debts, including those from Thailand. On the other hand, eToro meets all the strict regulations of the European Union.
eToro is backed by the European Financial Instruments Market or MiFID in Europe, and by the Financial Conduct Authority (FCA) in the USA. You should also know that it has a trajectory of fifteen years, with more than 20 million users all over the world. So, you can be sure that your finances are safe.
It is also worth mentioning the great customer service. You can use the online chat, and they also have a phone number available for assistance.
Have you heard about “leverage”? Just in case, we'll define it shortly:
another advantage of trading is that it allows you to invest more money than you can have in a given time. For instance, if you get in with $ 100 and you choose to leverage x2, you will be actually investing $ 200.
Why using leverage and how to do it
Let's say that you are confident that NEO will rise, and you consider “going long, but you only have $ 1,000 available. However, you have the option of investing more and earn higher profits.
Possibly, you could ask your bank for a credit, put something as a guarantee, wait for it to be accepted and receiving the money, and then buy NEO… But by then it is possible that your prediction was confirmed a long time ago, and NEO would be already at such a high value that it is not worth investing.
With leverage, you can get that amount just by clicking your mouse. It's exactly like borrowing money, but much better: you will get it from eToro, which allows you to invest a lot more than you have on the platform. Before trading, you will be able to choose between the different leverage options as in the screenshot below:
Within other markets, the ability to leverage is greater. The reason is that leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works.
If you have the $ 1,000 and use leverage x2, you will be investing $ 2,000. eToro gives you the remaining amount to reach that figure.
A couple of days pass and turns out that you were right: NEO raises its price by 20% and your money has appreciated reaching $ 2,400. But you don't want to take too much risk, so it's time to sell.
First of all, the 1k $ of the leverage will be deducted. You have $ 1,400 left, of which $ 1000 was yours initially, so the net profit is $ 400.
In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is quite good.
Does it sound too good? The trick is that the risk of losing out is also there. If everything goes as you planned, you will make more money in less time; but if the value of the asset decreases, you will also lose more in less time.
Supposing that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but double, $ 40. For that reason, the concepts of Take Profit and Stop Loss are fundamental when using leverage.
Take Profit is an automatic order of selling once the asset achieves a certain price: you purchase NEO at $ 100 and you ask eToro to automatically close your position as soon as the price goes up to $ 120. It is very helpful to avoid being blinded by enthusiasm: we would all take a 20% profit when making the investment, but when you reach that 20% it is easy to ask yourself “what if this keeps going up and I can earn even more?”. It's like you made sure now of not acting recklessly in the near future.
Stop Loss is even more necessary, especially when trading with leverage, since a small loss could have a significant impact on your wallet. That is why it is essential to mark a Stop Loss lower than that suggested by the platform.
How to use eToro
We said before that eToro is very easy to manage. Anyone can start investing without having to read endless explanations.
You won't have any issues with the interface if you have used any of the most common social networks.
Now we will detail the sign-up process and the sections of the eToro interface that you should know.
When you register, you will have to fill in all the information that eToro asks for: first and last name, address…
Additionally, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated, there is no right or wrong answer. They only intend to find out about your previous experience and knowledge to know which assets to recommend for you.
Now we will talk about the different sections of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alarm when a security is at a certain price. This is helpful in case you want to purchase an asset that is falling but you believe it will decrease more to a certain point.
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”. As we mentioned previously, the trading instruments that eToro offers are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Commodities
- Currencies
- Index funds
The concept “social trading” makes sense in the section “People”: there, you can copy the movements of any user you choose.
You can search for those users that you find more interesting. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. For instance, if you have $ 1000 and the trader puts 20% of their funds in an asset, the platform will also invest 20% of your money in the same asset, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
Sometimes you might prefer copying to CopyPortfolios than to other users, since the former offer more diversity. The portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to succeed anytime soon? Then you will surely find a CopyPortfolio about it.
Investment strategies
There are different methods or ways for crypto trading, such as day trading or buying and holding, for naming just a few.
In case you are just starting in the world of trading, I recommend a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
Therefore, if for example you buy a cryptocurrency at $ 10, it goes up to $ 20 and then falls to $ 12, your position will be closed at $ 16-17 and you will obtain a pretty good profit.
You may be wondering: why not selling back when the cost is at its highest? But that would only work for a psychic or a fortune-teller. The mentioned strategy is more down-to-earth and can work out perfectly.
Eventually, you will be prepared for applying more advanced investment strategies, such as short-selling or using leverage.