Contents
eToro, a reliable brokerage for those who want to purchase Bitcoin Cash from Nigeria
Some of its benefits are:
- Allows to learn from other investment tactics
- Admits short-trading
- User-friendly and straightforward
- Leverage is allowed
- There are uncountable possibilities for investments
Homepage: www.etoro.com/bitcoin-cash
In case you are considering purchasing Bitcoin Cash from Nigeria, eToro may be the best way to do it.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become trendy because of eToro.
eToro has solutions for you, especially if you don't have much experience in trading, since it puts your investment on autopilot by replicating moves from traders with a very long profit history. Also, in case you do have experience in investment, eToro pays you for sharing it with others.
It is also worth mentioning how accessible is this platform, perfect for beginners who are starting in the investment world.
Can you trust eToro?
eToro has been independently tested many times to verify its reliability in the treatment of data from previous users. Every time, results have shown that eToro is very meticulous with the information.
The main headquarters of eToro is located in Cyprus, and the platform is approved by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients. Furthermore, eToro follows all the strict regulations of the European Union.
It is also supported by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). Besides all these regulations, eToro has been active for fifteen years, with more than 20 million users, so we can be sure that our money is in good hands.
It is also important to mention the great customer service. They have a phone number for assistance, a ticket system, and a live chat.
How to deposit funds into your eToro account
When it comes to depositing funds on eToro, there is not much to say, since it is pretty simple. You only need to select “Deposit funds”, set an amount, and choose the payment option you prefer. You can use PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
Remember that for security policies, you need to be the owner of the credit card or the account.
The lowest amount is $ 200, and there is a maximum allowed if you are not verified. Therefore, in case you want to trade with higher amounts, contact Support beforehand to verify your account.
You can pay in any currency and eToro will do the conversion to USD. However, we suggest depositing directly in USD since the platform charges a fee.
BTW, do you know what leverage is? Just in case, we'll put it simply:
trading allows you to invest more money than you can have in a given time. That is, if you enter with $ 100 and you choose to leverage x2, the amount of your investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Suppose now that you know that the price of Bitcoin Cash is going to raise its price, and you choose to take a long position.
You are certain that Bitcoin Cash will rise, and you have $ 1,000 at that moment, but the fact is, you have the chance of investing more.
Perhaps you could go to your bank, ask for a credit, put an asset as collateral, wait for it to be accepted and receiving the money, and then acquire Bitcoin Cash… However, when you finish doing all that, probably Bitcoin Cash would be already much higher (if your prediction got confirmed), and investing wouldn't be a good idea anymore.
With leverage, you can get that amount of money with two clicks. It's exactly like borrowing money, but much better: you will get it from eToro, which lets you invest much more than you have on the platform. Before trading, you will see the leverage options as in the image below:
With other assets, the ability to leverage is greater. The reason is that leverage is regularly for short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's explain how this works in the practice:
- If you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- Then, turns out that Bitcoin Cash does increases, as you thought, and now the cost of your investment is $ 2,400 (20% more), so you decide to sell back.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours from the beginning.
With $ 1000 you get $ 400 more, no less than a profit of 40%. Not bad, right?
It may sound too good to be true. The thing is, you can also lose money. If everything goes as you planned, you will earn more money in less time; but if the value of the asset goes in the opposite direction, you will also lose more in less time.
Let's suppose that the asset didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but $ 40, because of the leverage. That is why the concepts of Take Profit and Stop Loss are so important when operating with 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 Bitcoin Cash at $ 100, you can ask eToro to close your operation when it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to keep waiting in case it keeps going up, which could be a mistake.
Stop Loss is even more important, especially if you use leverage, since a small loss with leverage can be fatal for your wallet. Take into account that eToro will recommend a limit for Stop Loss, but you should place it lower than that.
eToro Interface
We mentioned previously that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.
If you are familiar with any of the most popular social networks today, you can perfectly manage eToro's interface.
Let's talk about the sign-up process and the different sections of eToro.
First of all, you will have to fill in all the information that eToro asks for: first and last name, address…
They will also ask you about your previous trade experience.
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 suggest. For instance, if you have never invested before, they will not suggest that you invest in futures.
As soon as you are registered and have completed your profile, you will stop seeing the “incomplete profile” message.
Let's get to know the different sections of the interface.
In the “Set Price Alerts” tab, you have, as its name says, the option to 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 want to buy a security that is falling, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned before, the types of financial instruments available on are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Forex trading
- Index funds
In “People”, you can find the public profiles of eToro users and their performances. This is where you can replicate the strategies of your preferred traders.
You can search for those investors that you find more interesting: by average earnings, types of assets or risk level, for instance. Just indicate the amount of your investment and eToro will be in charge of replicating the movements of the selected investor, in proportion. This means that if you have $ 1000 and the investor puts 10% of his or her balance in an asset, the platform will invest also 10% of your funds (in this case $ 100) in that same asset.
Finally, there are three main types of CopyPortfolios: Top Trader, Market, and Partner.
Sometimes you might prefer copying to CopyPortfolios than to other traders, since the former offer more diversity. There are all kinds of portfolios that you can identify easily and are classified by sectors. So, in case you suspect a specific sector, such as gaming or healthcare, has good chances to succeed, you should probably look for that specific portfolio.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading, for naming just a couple.
My recommendation for those who are starting to invest is something in the middle: when you open your Bitcoin Cash position, place a stop-loss 15-20% under the top price, and let the magic happen.
This means that if, for instance, you acquire a cryptocurrency at $ 10, it reaches $ 20, and after that it falls to $ 12, your stop loss will close your position at $ 16-17 and you will have earned a decent profit.
You may be wondering: why not selling when the price is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and is more realistic.
Later on, you will be able to apply more complex strategies, like using leverage or going short.