How to buy Ripple from Australia

eToro is an outstanding broker for those in Australia who want to obtain Ripple

Why do we recommend it?

1. It is possible to invest in plenty of different goods
2. Leverage is allowed
3. Very intuitive and straightforward
4. You are able to copy investment strategies
5. You can short sell

Official main site: www.etoro.com/ripple

In case you are considering it, eToro is the best way to buy Ripple from Australia.

This platform is popular for making “social trading” fashionable. Social trading is an ingenious form of investing in which traders can repeat the strategies of other investors who have been generating income over time.

eToro is very useful if you are still a beginner 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 advantage is how easy the interface is, which turns out perfect for new users that are learning all about Ripple.

Futures Vs CFD

In case you want to know, here are the main differences between CFDs and Futures:

• Counterparty
  • Futures: the exchange is made with someone else, another investor.
  • CFDs: you do not “play” against someone else, but the counterparty is the broker.
• Expiry date:
  • Futures: they expire. Once the contract expires, it is closed even if you have losses.
  • CFDs: on the contrary, they do not have an expiry date. You can wait until you get in a good position before exiting.
• Trading markets available:
  • Futures: options are much more limited
  • CFDs: they include lots of different assets, commodities and currencies
• Minimum investment amount:
  • Futures: minimum investment is higher
  • CFDs: you can get in with a small initial amount
• Trading costs:
  • Futures: as you have to invest more, costs are lower
  • CFDs: higher (although not too much)
• Use of leverage:
  • Futures: nonexistent leverage
  • CFDs: it is always possible to leverage

Are you familiar with the term “leverage”? We'll put it simply:
trading allows you to invest more money than you can have in a given time. Let's say that you enter with $ 100 and you choose to leverage x2, you will be actually investing $ 200.

What you need to know about leverage

Let's say now that you know that the price of Ripple is about to raise its price, therefore you want to take a long position.

You are completely sure that Ripple will rise, but you only have $ 1,000 to invest. Isn't it a shame to miss out on the opportunity to earn more money?

You could consider asking for a loan at your bank or other financial company, but it is a process that takes time, and by the moment you finally get the money, Ripple might be already at a much higher price, so you wouldn't be able to invest the way you planned.

Leverage is like a loan, but it is only a few clicks away! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform. Before trading, you will how much leverage to use as in the screenshot:

Within other markets, the ability to leverage is greater. The reason is that leverage is most common in 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 you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 was borrowed from eToro). 
• Then, turns out that Ripple does increases, as you thought, 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 deducted, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours from the beginning.

By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.

Still wondering where the catch is? The thing is, you can also lose. If everything goes according to plan and the price goes up, you will earn profits in little time; but if the opposite occurs, you will also lose more really fast.

For example: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but twice (the leverage) that figure, that would be $ 20. That is why the terms “Take Profit” and “Stop Loss” are fundamental when using 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 purchased Ripple at $ 100, you can ask 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 rising, which could make you lose it all.

Stop Loss is even more necessary, especially when trading with leverage, since a small loss could have a significant impact on your wallet. You always need to mark a Stop Loss lower than that suggested by the platform.

Exchange-Traded Funds

What do you know about Exchange-traded funds or ETFs? They are passively managed funds, known for merging the advantages of stocks and mutual funds, because they can be exchanged at any moment in the market, but include a much wider diversity of assets and considerably lower rates.

Shares

Stocks or shares are the most popular financial assets. Some publicly traded enterprises divide their capital into portions: you can be one of those shareholders, but first, you have to know where and how to make your investment.

There are, essentially two kinds of stocks: the ones that divide their earnings regularly among the investors, and those that don't. The former ones are great, of course, but investing in the latter can be a good idea too since sometimes you can make even more money by selling the shares later.

On eToro, if you choose a company that distributes dividends, these will be reflected in your balance, and you can collect them in cash or reinvest them. We recommend, if you don't need the money immediately, that you benefit from compound interest and reinvest it in the company.

If you invest in stocks on eToro, you can use leverage. But it is not advisable, since it would be a CFD and you would not get dividends. Also, equities are usually long-term investments, and you have to pay commissions.

Trading strategies

When trading cryptocurrencies, there are different possible methods or strategies, such as day trading or buying and holding, for naming just a few.

My suggestion for those who are beginning to invest is something in the middle: when you open your position, place a dynamic stop loss 15-20% below the top price, and let the rest happen on its own.

Therefore, if for example you buy a cryptocurrency at $ 10, it reaches $ 20, and after that it decreases to $ 12, your stop loss will close your position at $ 16-17 and you will have made a considerable profit.

Perhaps you are wondering: why not selling back when the cost is at its peak? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and give good results.

Sooner or later, you will be prepared for using more advanced trading strategies, like using leverage or going short to profit from bear markets.

Can you rely on eToro?

Many independent tests have been applied to the platform to certify its reliability in the treatment of data from previous users. Every time, results have shown that eToro is very meticulous with the information.

eToro complies with all the demanding policies requested by the European Union. Specifically, its main headquarters is in Cyprus, where it is certified by the Cyprus Securities Market Commission (known as CySEC), which can cover up to € 20,000 of the debts that its clients may have with creditors, including those from Australia.

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 funds are safe.

Finally, their excellent customer service is also worth mentioning. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.

How does a demo account work?

For those who still don't have much experience in investing, a demo account can be very helpful. You just need to set the virtual mode and you can start operating with fictional funds.

A virtual portfolio can help you to practice and gain experience before starting to trade with real funds. When you open your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on eToro (not just with Ripple).

Don't worry, since if you lose all your virtual funds, you can contact support so they can add them back to your demo account and you can try again.

But remember that investing is mainly about being prudent, and using a demo account can have the opposite effect. It is not the same to risk your own money than to operate with a fake balance that you don't mind losing. Also, using fake money can prevent you from learning to control your emotions, as a true investor should.

Evidently, the demo mode is kind of absurd if you intend to trade in the medium or long-term, since you would be wasting years. Demo accounts may be ideal for trying out short or medium-term investments.

How does eToro work?

As we have mentioned among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can use it without having to read endless guides.

Everyone who has previously used Twitter, Pinterest or any of the most common social networks, has enough knowledge to use eToro.

We will explain the registration process and the different sections that you will find on eToro.

You will have to provide some personal data when registering.

Additionally, you will see that they ask you some questions about your experience at investing.

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.

You will see a bar that says “incomplete profile” until you fill in all the information.

Let's get to know the fundamental sections of the page.

In the “Set Price Alerts” tab, you have, as its name indicates, the option to set alerts on the price of certain assets. 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. This is very helpful when you are after an asset that is falling, but it seems to you that it will decrease even more.

The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we already mentioned the kinds of assets that are available on eToro:

• Cryptocurrencies
• Exchange-Traded Funds
• Shares
• Commodities
• Forex
• Index funds

In the section “People”, you will find eToro users and their performances. This is where “social trading” makes sense since you can copy the movements of the users that you prefer.

You can search and find users according to your interests. You can search by risk level, trading market, or average profits, among other filters. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For instance, if you have $ 1000 and the trader puts 20% of their funds in an asset, eToro 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”.

The benefit of using CopyPortfolios instead of copying individuals is that this way the risk is more diversified. There are all kinds of portfolios that you can identify easily and are divided by sectors. Therefore, in case you suspect a specific industry, such as fashion or oil, will prosper in the future, you can find that specific portfolio and do your investment.