Contents
eToro, our favorite option for buying Litecoin in Thailand
Why do we recommend it?
- It is uncomplicated and easy to use
- It uses other successful investment strategies so you can emulate them
- Accepts short-selling
- You can leverage
- There are uncountable investment options
Main site: www.etoro.com/litecoin
In case you are interested in obtaining Litecoin from Thailand, eToro may be the best option nowadays.
“Social trading”, an innovative form of investing by replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.
If you are a beginner or haven't gained much investment experience, eToro is very helpful, since it puts your investment on autopilot by repeating strategies from those who have been doing it for years. And for those skilled investors willing to share their techniques with the community, eToro rewards your knowledge with money.
Another thing to mention is how manageable the interface is, which turns out perfect for new users that are learning all about the trading world.
If you are not familiar with the term “leverage”, we'll describe it briefly: it is the ability to invest a higher amount than you actually have. For example, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.
Leverage, Take Profit and Stop Loss
Suppose now that you know that the price of Litecoin is about to raise its price, and you choose to “go long”.
You are certain that Litecoin will rise, but you only have $ 1,000 to invest. Despite that, why miss the opportunity to make more money?
There's the possibility of requesting a credit, but you must know that all the process takes time, and when you receive the money, Litecoin might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Using leverage, you can obtain that amount with two clicks. 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: 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 decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 are a “loan” from eToro).
- Then, turns out that Litecoin 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.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours from the beginning.
In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.
But watch out: if all goes as you intended and the asset increases, you will make profits. However, if the asset decreases, you will also lose more money really fast.
Let's imagine that the asset didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. That is why the concepts of Take Profit and Stop Loss are so important when trading with leverage.
Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.
If you bought Litecoin at $ 100, you program eToro to close your operation when it reaches $ 120. That way, you make sure you won't change your mind and decide to wait a bit longer in case it keeps going up, which could make you lose it all.
Stop Loss is even more necessary, particularly when trading with leverage, since a small loss could have a significant impact. You always need to set a Stop Loss lower than that suggested by the platform.
Is eToro safe for purchasing Litecoin?
eToro is very meticulous with the data about past performances from investors, and its integrity has been tested once and again by independent organizations.
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 Thailand. Furthermore, eToro follows all the strict regulations of the European Union.
In Europe, it is 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, eToro has been active for fifteen years, with more than 20 million users, so we can be sure that our funds are in good hands.
No less important is their excellent customer service. They have a phone number for assistance, a ticket system to track any claim, and a live chat.
How to deposit funds into your eToro account
Among the payment methods that eToro accepts you will find: bank transfer, PayPal, credit card, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is very easy. Just go to “Deposit funds”, set an amount and choose the payment method you prefer.
Remember that for security reasons, you must be the holder of the account or the credit card.
The minimum you can deposit is $ 200 and there is a limited amount if you are not verified, so if you want to trade with higher amounts, contact Support beforehand to verify your account.
eToro accepts transfers in any currency, but you will have to pay a fee for the conversion to USD. That is why we recommend, if it is in your hands, depositing in USD from the beginning.
How are CFDs and futures different?
How are Futures and CFDs different?
- Which are the counterparties? In the case of 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 expire
- Variety of options for trading Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum investment amount or “trade size” Being higher figures, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher.
- Leverage With Futures, you can’t leverage; while with CFDs it is always possible.
What are Contracts for Difference?
If you already accessed eToro, you must have seen how the acronym CFD appears repeatedly. Before we come back to this, you must know that CFDs on eToro are only possible when you short sell or use leverage above x2 (and the platform does not even allow this).
We will also explain terms like leverage and “going short”, in case you are considering day trading cryptocurrency or other more advanced operations.
eToro allows you not only to bet “in the black”, but through CFDs you can also bet “in red”. In a hypothetical case: you have the conviction that the Litecoin will go down, so perhaps you consider that it is better to refrain from getting in until it does. But if it really goes down, it is possible to make some profits out of that.
You can do that by “going short”. Here's how it works:
- They lend you, let's say, 100 units of Litecoin, which cost $ 5,000 (these are completely imaginary numbers)
- You make $ 5,000 by selling the 100 units
- The Litecoin devaluates from $ 50 to $ 30
- You purchase the 100 units again, but their current value is now $ 3,000
- Now you give back the 100 units to the loaner
- You will have made $ 2000, since you keep the difference
It is really simple. Just remember that by trading in Litecoin on eToro, you can make a profit if you anticipate downs in the price.
How does eToro work?
We mentioned before that eToro is very friendly and intuitive. Anyone can start using it without previous knowledge or long explanations.
You won't have any issues with the interface if you have used any other social network.
We will talk about the sign-up process and the different tabs you will find on the platform.
You will have to fill in some information requested when registering.
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 be clear about which financial instruments they should suggest according to your knowledge and experience.
As soon as you are registered and have completed your profile, the annoying “incomplete profile” bar will disappear.
Let's review the different functions of the platform.
“Set Price Alerts” allows you to set alerts on the price of certain securities. You just have to click on the three points at the end of the line and you will be able to program a price alert. It is a very useful tool for when you want to buy a security that is falling, but perhaps you think that it will decrease even more.
In the “News Feed” tab is the most social part of eToro: where users are interacting all the time and sharing opinions, tips, and other valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Shares
- Raw materials
- Currencies
- Index funds
In “People”, you will find eToro users and their performances. This is where “social trading” makes sense since you can copy with just one click the strategies of the traders that you prefer.
In this section, you can search for those traders that you find more interesting. You can apply filters like risk level, average profits, or financial market. 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 user 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 see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying individual traders is that this way the risk will be more diversified. There are all kinds of portfolios that you can identify easily and are classified by sectors. Therefore, in case you suspect a specific industry, like biotechnology or oil, has good chances to succeed, you can look for that specific portfolio and do your investment.
How does a demo account work?
If you do not have much experience investing, the possibility to operate in “demo” mode will be helpful. Setting a virtual account and operating with fictional money is very simple.
A virtual account 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 the platform (not only with Litecoin).
If your first attempts don't go as planned and you lose your funds, there is always a possibility to replenish your virtual balance. Probably the second time will be much better.
Take into account that investing is mostly about being cautious, however, using a virtual portfolio might have the opposite effect. It is not the same to trade with your own money than with virtual funds, which you can lose without any consequences.
And of course, if you are interested in investing in the long or medium-term, there is no point in using the virtual mode and having to wait for years. On the other hand, it can be very useful if you want to practice short and medium-term trading.