How to buy Ripple from New Zealand

eToro is an outstanding broker for those in New Zealand who want to buy Ripple

Pros:

1. There are uncountable products you can invest in
2. Leverage is allowed
3. Very user-friendly and simple
4. It offers other successful investment strategies so you can emulate them
5. Allows you to short sell

Main site: www.etoro.com/ripple

You should certainly consider eToro in case you are interested in investing in Ripple from New Zealand.

“Social trading”, an innovative investment method that consists in replicating techniques and moves from other experienced investors, has become popular because of eToro.

If you are a beginner or haven't gained much investment experience, eToro is very useful, because it puts your investment on automatic by emulating moves from other experienced people with a long profit history. On the other hand, if you are an expert in the subject and decide to share your techniques with other traders, eToro pays you for it.

It is also worth mentioning how accessible is this platform, ideal for new traders who are taking their first steps with Ripple.

What are Contracts for Difference?

It is possible that you have found the acronym CFD more than once if you entered eToro before. We will explain exactly what this means, but you should know first that cryptocurrency operations on eToro are only CFDs when you go short or choose leverage above x2 (although the platform does not even allow this option).

For the record, and in case you want to know about day trading cryptocurrency and other advanced practices, below you will also find terms such as short-selling and leverage.

Even if you aren't “in the black”, you can still operate on eToro with CFDs. In a hypothetical case: you have the certitude that the Ripple will go down, so probably you think that it is better to wait until it does and then go in. However, if you really consider that it's going down, why not making some profits out of it?

You can do that by “going short”. More or less, this is how it works:

• You get from a loan 100 units of Ripple, valued at a total of $ 5,000 (these are completely fictional figures)
• Then, you earn $ 5,000 by selling them at the market price
• As you presumed, it devaluates, and the unit of Ripple goes from $ 50 to $ 30
• You obtain the 100 units again, but at their current price, $ 3,000
• Now you return the 100 units to whoever made the loan
• The $ 2000 difference is yours

Take into account that it is much easier than it sounds: we can just say that by trading in Ripple you can also make money if you foretell the downs.

What's the difference between CFDs and futures?

What are the differences between CFDs and Futures?

• Counterparties
  • Futures: operations are made with another trader.
  • CFDs: the counterparty is eToro, the brokerage.
• Expiration:
  • Futures: there is an expiry date. Once the contract expires, it is closed and can't be reopened.
  • CFDs: there is no expiration date. It is possible to get back to a good position before closing.
• Options for trading:
  • Futures: it is very limited
  • CFDs: there is an enormous amount of options for trading
• Minimum deposit:
  • Futures: you have to invest much more
  • CFDs: you can start with a small amount
• Trading costs:
  • Futures: costs are usually lower
  • CFDs: higher (although not excessively)
• Possibility of leverage:
  • Futures: there is no leverage leverage
  • CFDs: totally available

How to deposit funds on eToro

When it comes to depositing funds on eToro, there is not much to say, since it is really straightforward. Just click “Deposit funds”, put an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.

Consider that for security policies, you must be the holder of the credit card or the account.

You can start with a $ 200 deposit, and if you are not verified you will have a maximum amount allowed. So, if you aim to trade with large amounts, you will need to verify your account previously.

eToro allows deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we recommend, if it is in your hands, using USD directly.

Can you rely on eToro?

eToro is very meticulous with the information about past performances from users, and its reliability has been independently tested several times.

The main headquarters of eToro is located in Cyprus, and the platform is approved by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 from its client's debts, including those from New Zealand. On the other hand, eToro meets all the strict requirements of the European Union.

In Europe, it is backed by the European Financial Instruments Market (MiFID), and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, it should be mentioned that eToro has worked for fifteen years and that it has more than 20 million users around the world, so we can rest assured that our money is in good hands.

No less important is their excellent customer service. You can use the online chat, and they also have a phone number available for assistance.

How does eToro work?

We mentioned previously that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.

You won't have any problems with the interface if you have used any of the most common social networks.

We will explain, roughly, the registration process and the different tabs that you will find on eToro.

First of all, you will have to enter all the information that eToro asks for: first and last name, address…

To complete your profile, you will have to answer some questions about your experience at investing.

But don't feel intimidated, it is not a test that you have to pass. The objective is to know more about you and be clear about which financial instruments they should suggest according to your knowledge and experience.

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

With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. This is ideal in case you want to buy an asset and you are waiting for it to decrease.

The section “News Feed” allows users to interact and share their experiences and knowledge.

“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already talked about the kinds of assets that are available on eToro:

• Cryptocurrencies
• ETFs
• Shares
• Raw materials
• Forex
• Index funds

The term “social trading” makes sense in the section “People”: there, you can replicate the movements of any user you choose. You'll be able to see all their profiles and historical performances.

In this section, you can search for those users that you find more interesting. You can apply filters like risk level, average profits, or financial instruments. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. If you invest $ 1000 and the user 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”.

The benefit of using CopyPortfolios instead of copying specific traders is that this way the risk will be more diversified. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to have success in the future? Then you will surely find a CopyPortfolio about it.