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eToro, recommended online brokerage for those who want to purchase Ethereum Classic from Thailand
Why do we recommend it?
- You can imitate investment tactics
- Allows you to go short
- It is uncomplicated and manageable
- You can leverage
- There are uncountable possibilities for investments
Go to the official page: www.etoro.com/ethereum-classic
You should certainly consider eToro in case you are interested in acquiring Ethereum Classic from Thailand.
eToro is well-known for making “social trading” a trend. Social trading is a revolutionary way of investing in which traders can repeat the moves of other investors who have been generating income for a long time.
eToro has solutions for you, even if you are still a beginner in trading, because it automatizes your investment by replicating moves from traders with a long profit history. On the other hand, if you are an expert in the field and want to share your techniques with other traders, eToro pays up for it.
It is also very convenient how easy is the interface of this platform, excellent for new traders who are starting in the investment world.
How to deposit funds on eToro
When it comes to depositing funds on eToro, there is not much to say, since it is really straightforward. You only need to select “Deposit funds”, type an amount, and choose the payment option you prefer. You can use PayPal (available for some countries), bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
(Keep into consideration that you should be the account or credit card holder, for security policies).
The minimum you can deposit is $ 200 and there is a maximum limit of how much you can deposit if you are not verified, so if you plan to operate with higher amounts, you should verify your account first.
eToro allows transfers in any currency, but charges a commission for making the conversion to USD. So it is better to use USD directly.
How are CFDs and futures different?
In case you want to know, next you have some major differences between CFDs and Futures:
- Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
- Date of expiry Futures have a determined expirationdate, 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 Being higher figures, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher.
- Use of leverage With Futures, you can’t leverage; while with CFDs it is always possible.
Have you heard the term “leverage”? We'll put it simply:
trading lets you invest even more than you can have in a given time. Let's say that you have $ 100 and you use x2 leverage, the amount of your investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Let's say that you are confident that Ethereum Classic will raise its price, and you want to “go long”. You have $ 1,000, but you actually can invest more and make 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 receive 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 just like a credit, but it is only a few clicks away! You will be able to operate with much more money than what you have on the platform's wallet. You will simply see the different options as in the image below:
When trading in different markets you can use more leverage. Why? Because leverage is most used for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works.
If for your investment of $ 1,000, you choose leverage x2, you will be investing $ 2,000. eToro gives you the remaining amount to reach that figure.
A few days later, as you thought, Ethereum Classic increases 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.
You will have to give back the $ 1,000 of leverage and the net profit would be $ 400 (since the other $ 1,000 was your initial investment).
As you can see, with $ 1000 you get $ 400, in other words, 40% more. That's not bad at all, right?
It may sound too good to be true. The thing is, you can also lose. If everything goes according to plan and the price goes up, you will earn more money in less time; but if the value of the asset goes down, you will also lose more in less time.
For instance: if the price falls by 10%, you do not lose $ 10, but twice that figure, which means $ 20. That is why to operate with leverage it is very important to know about Take Profit and Stop Loss.
Take Profit is an automatic order of selling once the asset achieves a certain price: you buy Ethereum Classic at $ 100 and you ask eToro to close your position as soon as the price goes up to $ 120. It is very useful to avoid being blinded by greed: a 20% profit is usually very good, but once you see the price has risen, you might consider you can make higher profits, which is not always the case. Consequently, you might lose money if you don't close on time. So, Take Profit helps you to trade more safely.
Stop Loss is even more necessary, mostly if you trade with leverage, since a reduced loss with leverage can have a significant impact. Consider that eToro will recommend a limit for Stop Loss, but you should set it lower than the platform suggests.
Exchange-Traded Funds
ETFs or Exchange-Traded Funds are 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 have lower fees.
Currency market
What is known as Forex trading consists in the trading of currencies. Put differently, is the conversion of one currency to another, and the aim is, evidently, to obtain a benefit out of this.
If you want to exchange euros and dollars, you buy euros and pay with dollars, with the expectation that the euro will raise its price compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when their price is 1.20 USD, you'll be keeping that margin.
As you may have already inferred, operating with currencies usually implies large resources, since variations are normally low, or using a lot of leverage, which could be incautious. Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.
You can exchange with almost every currency on eToro but take into account that Forex trading functions through contract for differences, which means the underlying asset won't be yours.
Equities
Now let's talk about the most popular financial assets: stocks. Stocks are portions of publicly traded corporations. It is possible to obtain a profit through third-party companies just by investing money in them. But of course, you have to know how to invest.
We can categorize stocks into two main types: the ones that payout at the end of every fiscal year to the investors, and those that don't. The former ones are great, obviously, but investing in the latter can also be a good idea since the profit you can make by selling the shares can be even larger.
On eToro, if you choose a company that pay out dividends, you will receive them in your account, and you can collect them in cash or reinvest them. Our suggestion is, if you don't need the money right away, that you don't renounce the magic of compound interest and reinvest it in the company itself.
Take into account that on eToro you can “dope” your trades with leverage, but in that case, you will not receive interest as it would be a CFD. That is why for long-term investments, it is not advisable to use leverage: you can end up not gaining at all, since you will not get interest and also you will have to pay fees while your position is open.
Commodities or raw materials
Most people invest in raw materials due to their stability. While other assets present higher fluctuation, commodity prices vary less and offer safety against inflation or market volatility. Nevertheless, prices do depend on supply and demand, so if the fear of possible inflation produces greater demand for a certain good, its cost will also rise.
Keep in mind that the only intended income from the investment in raw materials will come from their further sale because, unlike shares, commodities do not pay dividends.
There are two main kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (like aluminum, iron, or zinc), and oil; while the latter are agricultural goods as wheat, soybeans, vegetables, or even dairy, among many others.
What are Contracts for Difference?
It is possible that you have found the term CFD all the time if you already registered on eToro. We will explain its meaning now, but first, you should know that cryptocurrency trading on eToro is only CFD if you short sell or leverage above x2 (although this is not even an option on the platform).
We will also explain terms such as short-selling and leverage, in case you are considering day trading cryptocurrency or other more advanced practices.
The good thing about eToro is that it allows you not only to bet “in the black”, but through CFDs you can also bet “in red”. For example: you believe that the Ethereum Classic will fall, so perhaps you consider that the best thing to do is wait until it does and then go in. But if it actually goes down, you can earn some money out of that.
You can do that by “going short”. Here's how it works ,roughly:
- They lend you, let's say, 100 units of Ethereum Classic, with a total value of $ 5,000 (these are completely fictional numbers)
- You make $ 5,000 by selling the 100 units
- As you thought, it devaluates, and the unit of Ethereum Classic goes from $ 50 to $ 30
- You obtain the 100 units again, but at $ 3,000
- You return the 100 units to whoever made the loan
- You keep the $ 2000 difference!
It is really simple. Just keep in mind that by trading in Ethereum Classic on eToro, you can make money if you foretell downs in the price.
How to use eToro
We mentioned previously that eToro is very easy to manage. Anyone can start investing without having to read endless explanations.
If you have used any of the most common social networks, such as Instagram or Facebook, you can perfectly use this platform.
We will explain, roughly, the registration steps and the different sections that you will find.
First of all, you will have to fill in all the information that eToro asks for: first and last name, address…
Also, you will see that they ask you some questions about your experience at investing.
However, it is not like you are answering an exam. They only intend to know how much knowledge you have and what type of assets they can recommend. For example, if it is your first experience in the investment world, they will not suggest that you invest in futures.
When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.
Let's see what the different sections of the site are.
“Set Price Alerts” allows you to put alerts on the price of certain assets. It is a very useful tool for when you are after a security that is falling, but it seems to you that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments that are available on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Commodities
- Currencies
- Index funds
In “People”, you can find the public profiles of eToro users and their past performance. This is where you can copy with just one click the movements of the traders that you find most inspiring.
You will be able to find those users that you find more interesting. You can apply filters like risk level, average profits, or financial instruments. When you select 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 put $ 200 of your funds in the same asset as well.
You will also see the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The advantage of copying to CopyPortfolios instead of specific investors is that this way you will diversify the risk. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Thus, if you suspect a specific sector, like e-commerce or oil, will have good incomes in the future, you can find that specific portfolio and do your investment.
Trading strategies
You can operate cryptocurrencies using several different methods: for instance, you can buy and hold, or you can day trade using price volatility to your advantage.
My recommendation for those who are beginning to invest is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) when you open your operation and wait for it to work.
For example, if you buy a cryptocurrency when it is worth $ 15, then it rises up to $ 25 and falls back to $17, the stop-loss will close your position at $ 21 or $ 22. Hence, you will obtain a fine profit.
Perhaps you are wondering: why not selling when the cost is at its highest? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and give good results.
Later on, you will be able to apply more complex techniques, like using leverage or going short.
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 only need to set the “virtual” option and you will be able to trade with an imaginary balance.
A virtual portfolio can be a good way of gaining confidence before starting to operate with real funds. When you create your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of assets available on eToro (not only with Ethereum Classic).
If your performance is not that good and you lose your funds, there is always a possibility to replenish your virtual balance. The second time will probably be better.
Take into account that investing is mainly about being cautious, nevertheless, using a virtual portfolio might have the opposite effect. It is not the same to trade with your own money than with fake funds, which you can lose without any consequences.
And of course, if you are interested in investing in the long or medium-term, it makes no sense that you try the virtual mode and waste years waiting to see the results. On the other hand, it can be ideal if you want to practice short and medium-term trading.