Contents
eToro is an excellent broker for those in Egypt who want to buy Ripple
Why do we recommend it?
- User-friendly and simple
- It takes strategies from successful investors so you can copy them
- Allows you to short sell
- eToro offers leverage
- There are uncountable possibilities for investments
Official main site: www.etoro.com/ripple
You should consider eToro in case you are interested in buying Ripple from Egypt.
“Social trading”, an innovative way of investing by replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.
If you are still a newbie or do not have much experience in investments, eToro is very helpful. You can rest assured that you will be making a smart investment since the site duplicates those from subjects with a long profit record. Oppositely, if you are an expert in the field willing to share your knowledge with other traders, eToro pays you for it.
Another advantage is how manageable the interface is, which turns out perfect for new users that are learning all about the trading world.
Is eToro trustworthy for purchasing Ripple?
eToro is very meticulous with the data about past performances from traders, and its integrity has been independently tested several times.
eToro follows all the demanding policies requested by the European Union, legislation in which it is found. Specifically, its head office is in Cyprus, and it is validated by the Cyprus Securities Market Commission or CySEC, which protects up to € 20,000 of the debts from its clients, including those from Egypt.
In Europe, it is backed by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). Besides all these regulations, it should be mentioned that eToro has worked for fifteen years, with more than 20 million users around the world, so we can rest assured that our funds are in good hands.
It is also worth mentioning the great customer service. They have a phone number for assistance, a ticket system to track any claim, and a live chat.
eToro deposit methods
Among the payment options accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. Depositing money with eToro is so simple: go to “Deposit funds”, choose an amount and the payment method you prefer.
Evidently, for security reasons, you should be the account or credit card holder.
The minimum you can deposit is $ 200 and there is a limited amount if you are not verified. Therefore, in case you plan to operate with larger sums, contact Support previously to verify your account.
eToro accepts deposits or transfers in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if it is in your hands, using USD directly.
What's the difference between CFDs and futures?
What are the differences between Futures and CFDs?
- Which are the counterparties? In the case of Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiry Futures expire in a variable given date, while CFDs don’t have expiry date
- Markets available for trading Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum deposit amount or “trade size” Being higher numbers, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher, although not excessively.
- Use of leverage With Futures, it isn’t possible; while with CFDs it is.
By the way, do you know what leverage is? Just in case, we'll put it simply:
another good thing about trading is that it allows you to invest even more 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 really investing $ 200.
Why using leverage and how to do it
Assuming that, for instance, you are sure that Ripple is going up, and that you have $ 1,000 for “going long”, you must know that you have the option of investing more and making more money.
You could consider asking for a credit, but it is a process that takes time, and when you receive the money, Ripple might be already so expensive that trading wouldn't be convenient anymore.
Thanks to leverage, you can get that amount with two clicks. It's like a loan, but much better: you will get it from eToro, which allows you to invest much more than you have on the platform. You will simply see the different options as in the image below:
Trading with other assets allows you to use more leverage. The reason: cryptocurrencies are a value that is invested in the medium-long term, and leverage is used especially for short-term operations or day trading. But let's see how leverage works.
If you have the $ 1,000 and choose leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro gives you the remaining amount to reach that figure.
A week after that, turns out that Ripple rises up by 20% and now your investment costs 2,400. So, a wise decision is to sell them back now.
First of all, the 1k $ of the leverage will be deducted. You have $ 1,400 left, of which $ 1000 was yours initially, so you'll have earned $ 400.
With $ 1000 you get a profit of $ 400, no less than a profit of 40%. That's not bad at all, right?
The thing is, it can also play against you. If everything goes as you planned, you will earn profits in little time; but in the opposite case, you will also lose more really quickly.
For instance: if 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 so important when using leverage.
Take Profit is the automatic order to sell once the asset is above the entry price: you purchase Ripple at $ 100 and you ask eToro to close your operation as soon as the price reaches $ 120. It is very helpful to avoid being blinded by greed: we would all accept a 20% profit when investing, but when you reach that 20% it is easy to ask yourself “what if this keeps increasing and I can earn even more?”. It's like you got assured in advance of not doing anything dumb in the future.
Stop Loss is even more important, particularly when operating with leverage, since a small loss could have a significant impact. You always need to mark a Stop Loss lower than that suggested by the broker.
How do Contracts for Difference Work?
If you already have been on eToro, you must have seen how the initials CFD appear over and over. We will explain exactly what this means, but first, you should know that CFDs on eToro are only possible if you short sell.
We will also refer to terms like leverage and “going short”, in case you are interested in day trading cryptocurrency or more advanced practices.
eToro allows you to bet both “in the black” and “in red”. For example: you believe that the Ripple will fall, so perhaps you think that it is better to refrain from getting in until it actually falls. Nevertheless, if you really think that it's going down, why not making some profits out of it?
The operation known as “going short” will allow you to do that. It works, roughly, like this:
- They lend you, for example, 100 units of Ripple, with a total price of $ 5,000 (these numbers are entirely made up)
- Next, you sell them at their current price, $ 5,000
- The Ripple devaluates from $ 50 to $ 30
- You obtain the 100 units again, but at their current price, $ 3,000
- You return the 100 units
- You keep the $ 2000 difference!
It is really simple. Just consider that by trading in Ripple on eToro, you can make a profit if you anticipate downs in the price.
eToro Interface
We already said that one of the best features of eToro is that the platform is very intuitive and easy to use. You don't need to read a lot or have previous knowledge to start trading.
If you are familiar with any of the most popular social networks today, you can perfectly use this platform.
We will explain, roughly, the registration steps and the different tabs that you will see on eToro.
First, you will have to enter your personal data, like first name, last name or address.
Additionally, you will have to answer some questions about your experience as an investor.
However, it is not like you are answering 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 example, if it is your first experience in the investment world, they will not suggest that you invest in futures.
Let's review the different functions of the page.
“Set Price Alerts” allows you to set alerts on the price of certain securities. It is a very useful tool for when you are after a security which price is decreasing, but perhaps you think that it has not finished falling yet.
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 different financial instruments on eToro:
- Cryptocurrencies
- ETFs
- Stocks
- Commodities
- Currencies
- Index funds
The concept “social trading” makes sense within “People”: there, you can duplicate the movements of the investors you find most inspiring.
In this section, you can search for those users that you find more interesting. You can apply filters like country, average profits, or financial instruments. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. For instance, if you invest $ 1000 and the user puts 20% of their funds in an asset, the platform will put $ 200 of your funds in the same asset or company as well.
Lastly, you will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
In some cases, it might be preferable to copy from CopyPortfolios than to other users, since you avoid putting all your eggs in one basket. 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 industry will prosper in the future? Then look, because surely there is a CopyPortfolio about it.
Trading strategies
You can trade cryptocurrencies in many different ways: from purchasing and waiting to day trading using price fluctuations to your advantage.
My recommendation for those who are beginning to trade is going for a middle point: placing a dynamic stop-loss (15-20% under the highest price) when you open your operation and wait for it to work.
Therefore, if for example you buy a cryptocurrency at $ 10, it rises to $ 20, and after that it decreases to $ 12, your stop loss will close your position at $ 16-17 and you will obtain a pretty good profit.
It might sound more appealing to sell when the cost is at its peak, right before corrections, but unless you're psychic, that will never be possible. The above strategy is much more down-to-earth and, well applied, it can work very well for you.
Eventually, you will be prepared for applying advanced trading strategies, like using leverage or going short.
How does a virtual portfolio work?
Are you taking your first steps as an investor? Using 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 be a good way of practicing before starting to operate with real money. When you create your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on the platform, besides Ripple.
The first attempt is not usually that good. But you can ask eToro to replenish the virtual funds to your portfolio.
Keep in mind that you should always be prudent when trading, and using a virtual account might have the opposite effect. It will never be the same as risking your own money.
Evidently, if you are going to invest in the medium or long-term, with earnings almost guaranteed just by duplicating an index, it doesn't make sense that you invest in the virtual mode and wait for years. On the contrary, the virtual mode can be helpful to experiment with short or medium-term investments.