Contents
eToro, recommended broking platform for those who want to buy EOS from Thailand
Why do we recommend it?
- You can make investments in plenty of different products
- You can leverage
- It is really simple and user-friendly
- It offers strategies from experienced traders so you can replicate them
- Allows you to go short
Homepage: www.etoro.com/eos
You should certainly consider eToro if you are interested in purchasing EOS from Thailand.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
eToro has solutions for you, even if you don't have much experience in trading, since it puts your investment on automatic by repeating strategies from those who have been doing it for years and making profits. And for those skilled investors willing to share their techniques, eToro pays for it.
Besides, the platform is so uncomplicated, great for users who want to begin in the EOS world, without stressing over lots of diagrams and numbers.
How to deposit funds on eToro
Among the payment options that eToro accepts you will find: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Making a deposit with eToro is so simple: go to “Deposit funds”, set an amount and choose the payment method you prefer.
(Keep in mind that you should be the account or credit card owner, for security policies).
The lowest amount you can deposit is $ 200, and there is a maximum allowed if you are not verified, so if you plan to operate with higher amounts, contact Support beforehand to verify your account.
You can pay in any currency you want and eToro will do the conversion to USD. However, it is better to deposit directly in USD since the platform charges a fee for the conversion.
What's the difference between CFDs and futures?
Here are the main differences between CFDs and Futures, in case you want to know more:
- Counterparties
- Futures: the counterparty is another trader.
- CFDs: the counterparty is eToro, the brokerage. In other words: you do not “play” with someone else but with the bank.
- Date of expiration:
- Futures: there is an expiry date. At that moment, the contract is closed even if you are in red.
- CFDs: on the contrary, they do not have an expiry date. Therefore, you can wait until you get in a good position before exiting.
- Options for trading:
- Futures: there are fewer options for investment
- CFDs: they include lots of different assets, commodities and currencies
- Minimum investment amount or “trade size”:
- Futures: very high minimum investment
- CFDs: you can start with a small initial deposit
- Trading costs and charges:
- Futures: as you need to invest more, rates are lower
- CFDs: higher (although they are not excessively high either)
- Possibility of leverage:
- Futures: it isn't possible to trade with leverage
- CFDs: totally available
About Contracts for Difference
If you already have been on eToro, you must have seen how the acronym CFD appears over and over. We will come back to it, but you should know first that CFDs on eToro are only possible if you short sell.
For the record, and if you are thinking about day trading cryptocurrency and other advanced practices, you will also find terms like short-selling and leverage.
With CFDs you can bet on eToro even if you are “in red” or don't have a positive balance. Let's say that you have the conviction that the EOS will go down, so perhaps you think that the best thing to do is refrain from getting in until it does. However, if it really falls, it might mean extra money for you.
You can do that by “going short”. Here's how it works ,roughly:
- You ask for a loan of, let's say, 100 units of EOS, which total price at the moment is $ 5,000 (these numbers aren't real)
- Then, you sell them at their current price, $ 5,000
- The price is reduced, as you guessed, and the unit of EOS goes from $ 50 to $ 30
- You get the 100 units again, but their current value is now $ 3,000
- Then you give back the 100 units to whom made the loan
- You keep the $ 2000 difference!
It is really simple. Just keep in mind that by trading in EOS on eToro, with CFDs you can make a profit if you anticipate downs in the price.
How to use eToro
As we have mentioned among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can trade without having to read endless guides.
You won't have any issues with the interface if you are familiar with any of the most common social networks.
Now we are going to walk you through the sign-up process and the sections of the eToro interface that you should familiarize yourself with.
When you open your account, you will have to fill in all the information that eToro asks for: first and last name, address…
Also, you will have to answer some questions about your experience as an investor.
But don't feel like you are taking an exam. They only intend to find out how much you know and which instruments to recommend for you.
Next, we will talk about the fundamental sections of the interface.
In the “Set Price Alerts” tab you can set alerts on the price of certain assets. You only need to click on the three points at the end of the line and you will be able to program a price alarm. It is a very useful tool for when you are after an asset which price is decreasing, but it seems to you that it will decrease even more.
In “News Feed”, users interact and share valuable information.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already mentioned the different financial instruments that are available on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Currencies
- Index funds
The term “social trading” comes to life within “People”: there, you can duplicate the trading strategies of the users you find most inspiring with just one click. You'll be able to see all their profiles and performances.
You can search for those users that you find more interesting: by average profits, market or risk level, for example. You just have to choose the amount of your investment and eToro will replicate the movements made by the investor you selected, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your money in that asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
Sometimes it might be better to copy from CopyPortfolios than to individuals, because the former offer more diversity. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector will prosper anytime soon? Then look, because surely there is a CopyPortfolio about it.
Investment strategies
You can trade cryptocurrencies in many different ways: for example, you can buy and hold, or you can day trade using volatility of the market to your advantage.
In case you are a beginner in the world of trading, I suggest something in between: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work on its own.
For instance, if you buy a cryptocurrency when its price is $ 15, it increases to $ 25 and decreases again to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Hence, you will obtain a good profit.
Perhaps you are 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.
Sooner or later, you will be ready for using more advanced investment techniques, such as using leverage or going short to profit from bear markets.
Virtual portfolio
For those who still don't have much experience in investing, a demo account can be useful. You just need to set the virtual mode and you can start trading with “fake” funds.
This is a great tool for those who are new to this world and want to put their talents to the test before playing for real money. When you create your account, you will start with $ 100,000 of virtual funds to do your operations, not only with EOS, but you can also create a diverse portfolio.
Don't worry, since if you lose all your virtual balance, you can contact support so they can add them back to your demo account and you can try again.
Take into account that you should always be cold-minded when trading, and using a virtual portfolio might have the opposite effect. It will never be the same as risking your own money.
And of course, if you want to invest in the medium or long-term, with profits almost assured just by duplicating a strategy, it doesn't make sense that you waste years investing with a virtual account. On the contrary, the virtual mode can be helpful to practice with short or medium-term operations.