How to buy Binance Coin from Philippines

eToro, recommended online broker for those in Philippines who want to obtain Binance Coin

Some of its advantages are:

1. User-friendly and simple
2. It takes other successful investment strategies so you can copy them
3. Accepts short-trading
4. eToro allows leverage
5. There are uncountable investment options

Official website in English: www.etoro.com/binance-coin

You should certainly consider eToro in case you are thinking about purchasing Binance Coin from Philippines.

This platform is well-known for making “social trading” a trend, a revolutionary form of investing in which investors can imitate the movements of other traders who have been making profits for a long 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. Additionally, in case you do have experience in investment, eToro pays you for sharing it with others.

Besides, the interface of the platform is so uncomplicated, great for a user who wants to start in the Binance Coin universe, without ending up overwhelmed with tons of diagrams and numbers.

How are CFDs and futures different?

What are the main differences between CFDs and Futures?

• Which are the counterparties? In the case of Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
• Expiry date Futures expire in a variable given date. CFDs don’t expire
• Variety of options 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 fees. Costs for CFDs are a bit higher.
• Leverage With Futures, you can’t leverage; while with CFDs leverage is always available.

Have you heard about “leverage”? We'll put it simply:
trading allows you to invest higher figures than you can have in a given time. Let's say that 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”

Let's pretend that you are confident that Binance Coin will raise its price, and you want to “go long”. You have $ 1,000, but you actually can invest more and make more money.

Possibly, you could ask your bank for a credit, put an asset as collateral, wait for it to be accepted, wait for the money, send the money to eToro, confirm that it arrived, and then acquire Binance Coin… Nevertheless, once you've managed doing all that, probably Binance Coin would be already at a much higher price (if your prediction got confirmed), and it wouldn't be a good idea to invest.

Thanks to leverage, you can obtain that amount of money really easily. It's like a loan, but much easier and quicker, and with the benefit that you will be getting it directly from eToro which will let you invest much more than you have on the wallet. Before trading, you will be able to choose between the different options as in the image below:

Trading with other assets allows you to use higher leverage. This is because leverage is most used for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. That said, I'm going to explain better how leverage works.

If for your investment of $ 1,000, you use leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro would be “loaning” you the extra $ 1,000.

A week later Binance Coin goes up by 20% and now your investment costs 2,400. So, a wise decision is to sell them back now.

You will have to pay back the $ 1,000 of leverage and you will have made $ 400 (since the other $ 1,000 was your initial investment).

With $ 1000 you get $ 400, in other words, 40% more. That's not bad at all, right?

Does it sound too wonderful? The trick is that the risk of losing out also increases. If everything goes as planned, you will earn more money in less time; however, if the value of the asset decreases, you will also lose more in less time.

For instance: if instead of increasing by 20%, the price falls by 10%, you do not lose $ 10, but twice (the leverage) that figure, that would be $ 20. For that reason, the concepts of Take Profit and Stop Loss are so important when trading with leverage.

Take Profit is an automatic order of selling once the asset achieves a certain price: you purchase Binance Coin at $ 100 and you ask eToro to close your operation as soon as the price goes up to $ 120. It is very helpful to avoid being blinded by enthusiasm: we would all take a 20% profit when making the investment, but when you reach that 20% it is easy to ask yourself “what if this keeps increasing and it is a mistake to exit?”. It's like you made sure now of not acting recklessly in the future.

Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). You always need to set a Stop Loss lower than that suggested by eToro.

What are Contracts for Difference?

If you already browsed eToro, you probably realized that the initials CFD appear all the time. Before we come back to it, we must say that CFDs on eToro are only possible when you short sell or select leverage above x2 (but the platform does not even allow this).

We will also refer to concepts such as going short and leverage, in case you are considering day trading cryptocurrency or other more advanced practices.

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 Binance Coin will go down, so the logical thing is to think “if it is going to depreciate or go down in price, I'll simply wait until it does”. But if you really think that it's going down, why not making some profits out of that?

You can do by “going short” which consists in something like this:

• You ask someone to lend you, for instance, 100 units of Binance Coin, which total value at the moment is $ 5,000 (obviously, these numbers are made up)
• You make $ 5,000 by selling the 100 units
• The Binance Coin devaluates from $ 50 to $ 30
• You purchase the 100 units again, but at $ 3,000
• You return the 100 units
• The difference is yours, so, you will have made $ 2000

It is far more simple than it may seem. Just take into account that by trading in Binance Coin on eToro, with CFDs you can make money when you anticipate downs.

How does eToro work?

As we have mentioned before, one of the best things about eToro is its simplicity: anyone can use 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, like Whatsapp or Pinterest.

Now we are going to detail the registration process and the sections of the eToro interface that you should know.

You will have to provide some personal information when registering.

They will also ask you about your previous experience as an investor.

But don't worry: it's not about passing an exam. They are only measures 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 recommend that you invest in futures.

Let's review the different tabs of the page.

With the “Set Price Alerts” tool, you'll be able to program an alarm when a security is at a certain price. This is helpful if you want to buy a security that is falling but you believe it will decrease even more.

“News Feed” is the more “social” section. There, users can interact and share their knowledge.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed in this guide, the six types of instruments on eToro are:

• Cryptocurrencies
• ETFs
• Stocks
• Commodities
• Currencies
• Index funds

The term “social trading” makes sense within “People”: that is where you can duplicate the movements of the best investors with just one click.

You can find those traders that you find more interesting. When you select an investor and indicate how much 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, the platform will invest $ 200 of your balance in the same asset as well.

Finally, you will also see the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.

In some cases, it might be preferable to copy from CopyPortfolios than to individuals, since you avoid putting all your eggs in one basket, or in other words, risk is more diversified. There are all kinds of portfolios that you can find easily and are classified by sectors. Thus, if you suspect a specific sector, such as e-commerce or oil, will prosper in the future, you should probably look for that specific portfolio.

Trading strategies

There are many methods to operate cryptocurrencies: for example, you can buy and hold, or you can day trade using volatility of the market in your favor.

In case you don't have much experience trading, I suggest something in between: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work its magic.

Therefore, if for example you buy a cryptocurrency at $ 10, it rises to $ 20 and then decreases to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will obtain a pretty good profit.

I know it might sound more appealing to sell when the cost is at its maximum, but unless you're psychic, that is not possible. The mentioned strategy is much more realistic and, well applied, it can work very well for you.

At some point, you can take your first steps with advanced investment techniques, such as going short or using leverage.