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eToro, recommended online broking platform for those in Egypt who want to purchase Dash
Why do we recommend it?
- You can replicate investment strategies
- Allows you to go short
- User-friendly and simple
- eToro offers leverage
- There are tons of possibilities for investments
Main site: www.etoro.com/dash
eToro is the best option nowadays to buy Dash from Egypt.
“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, especially 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 long profit record. And for those skilled investors willing to share their techniques with others, eToro pays for it.
Besides, the interface of this platform is amazingly manageable, great for a user who wants to start learning about Dash and trading, without ending up overwhelmed with tons of diagrams and numbers.
About Contracts for Difference
If you have entered eToro before, you probably realized that the initials CFD appear over and over. We will explain its meaning now, but first, you should know that cryptocurrency trading on the platform is only CFD if you are short-selling or leverage above x2 (although the platform does not even allow this option).
We will also explain terms such as leverage and “going short”, in case you are considering day trading cryptocurrency or more advanced operations.
With CFDs you can operate on eToro even if you are “in red” or don't have a positive balance. In a hypothetical case: you believe that the Dash will go down, so you obviously think “if it is going to depreciate (go down in price), I'll simply wait until it does and then I'll bet”. But if you really consider that it's going down, why not take advantage of that and earn money?
You can accomplish that by “going short”. Here's how it works:
- You ask someone to lend you, for instance, 100 units of Dash, which total value at the moment is $ 5,000 (obviously, these numbers are made imaginary)
- Then, you sell them at their market price, $ 5,000
- As you supposed, the price falls, and the unit of Dash goes from $ 50 to $ 30
- You obtain the 100 units again, but their total current value is now $ 3,000
- You return the 100 units to the loaner
- The rest is yours, so, you will have earned $ 2000
Consider that it is much easier than it sounds: we can summarize this whole operation by saying that by trading in Dash you can also earn money if you predict it will fall.
Trading strategies
You can operate cryptocurrencies using several different methods: from buying and waiting to day trading (and benefit from price volatility).
In case you are a beginner in the world of trading, I suggest something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
This means that if, for instance, you purchase a cryptocurrency at $ 10, it rises to $ 20 and then decreases to $ 12, your stop loss will close your position at $ 16-17 and you will obtain a pretty good profit.
Perhaps you are wondering: why not selling when the cost is at its highest? But that would only work for a psychic or a fortune-teller. The mentioned strategy is completely realistic and can work out perfectly.
Later on, you will be able to apply more sophisticated techniques, like using leverage or going short.
How does a demo account work?
In case you are beginning as an investor, you can start by practicing with a “demo” option. You only need to set a virtual account and you will be able to trade with an imaginary balance.
This option is perfect for those who are new to this world and want to give it a few tries before trading with real funds. When you create your account, you will start with $ 100,000 of virtual funds to do your operations, not only with Dash, but you can also work with a diverse portfolio.
The first attempt is not usually that good. But don't worry, because you can ask eToro to replenish the virtual funds to your account, and the second try you should do better.
Take into account that investing is mainly about being cold-minded, and perhaps using a demo portfolio can prevent you from controlling your impulses. It is not the same to operate with your own money than with virtual funds, which you can lose without any consequences.
Finally, if you intend to invest in the medium or long-term, with earnings almost guaranteed only by replicating an index, it doesn't make sense that you waste years investing in virtual mode. On the other hand, you may be interested in the virtual mode if you want to experiment with short and medium-term operations.
How to use eToro
We said before that eToro is very friendly and intuitive. Anyone can start investing without previous knowledge or long explanations.
You won't have any problems with the interface if you are familiar with any of the most common social networks.
We will explain the registration process and the different sections that you will find.
When you register, you will have to enter your personal data, like first name, last name, address….
Additionally, you will have to answer some questions about your experience at investing.
But you don't need to worry: it's not about passing an exam. It is only a way of finding out how much knowledge you have and what type of financial instruments they can recommend. For instance, if you have never invested before, they will not suggest that you invest in futures.
When you finish filling in all the requested information, the annoying “incomplete profile” bar will disappear.
Let's see what the different sections of the page are.
“Set Price Alerts” allows you to set alerts on the price of certain assets. It is a very useful tool for when you want to purchase an asset 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 investment tabs: “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments on eToro:
- Cryptocurrencies
- ETFs
- Stocks
- Raw materials
- Forex
- Index funds
The concept “social trading” makes sense within “People”: that is where you can replicate the strategies of any investor you choose with just one click.
In this section, you can find those traders that you find more interesting. You can search by risk level, financial instruments, profits or country, among other filters. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. If you invest $ 1000 and the trader puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
Remember that in some cases, it might be better to copy from CopyPortfolios than to other investors, because you avoid putting all your eggs in one basket. There are all kinds of portfolios that you can identify easily and are divided by sectors. Thus, if you think a specific industry, such as e-commerce or pharmacy, will have good incomes in the future, you should look for that specific portfolio.