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eToro, a great brokerage for obtaining Dash from Philippines
Some of its benefits are:
- Very user-friendly and straightforward
- You can replicate investment moves
- Allows you to go short
- Leverage is allowed
- There are lots of products you can invest in
Official homepage: www.etoro.com/dash
You should definitely consider eToro if you are interested in purchasing Dash from Philippines.
eToro is known for making “social trading” fashionable, a revolutionary form of investing in which investors can replicate the techniques of other traders who have been generating earnings for years.
eToro is very helpful if you don't have much experience in trading. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques, eToro rewards your knowledge with money.
Another advantage is how easy the interface is, which turns out perfect for new users that are just learning all about the trading world.
Differences between futures and CFDs
How are Futures and CFDs different?
- Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiration Futures have a determined expirationdate, while CFDs don’t have expiration date
- Markets available for trading The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Is it possible to leverage? With Futures, it isn’t possible; while with CFDs it is.
In case you still don't know what “leverage” is, we'll put it short. When trading, it's the capacity of increasing your investment without putting more money. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.
Why using leverage and how to do it
Let's pretend that you have complete certainty that Dash will raise its price, and you want to “go long”, but you only have $ 1,000 available. However, it is possible to put more and earn higher profits.
You could go to your bank, request a credit, put something as a guarantee, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then obtain Dash… However, once you've managed doing all that, probably Dash would be already much higher, and investing wouldn't be a good idea anymore.
Leverage is like a credit, but it is only a few clicks away! You will be able to operate with much higher amounts than what you actually have on the platform. Before trading, you will be able to choose between the different leverage options as in the image below:
When operating with other assets you can use higher leverage. This is because cryptocurrencies are a value that is invested in the medium-long term, and leverage is used mainly for day trading or short-selling. But let's see how leverage works.
You enter with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest (the extra $ 1,000 to reach $ 2,000 are “borrowed” from eToro).
A few days later, as you predicted, Dash has risen by 20% and the value of your investment is now $ 2,400. But you don't want to take too much risk, so it's time to sell back.
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.
But not everything is wonderful. If all goes as you intended and the asset increases, you will make profits. Nevertheless, if the asset decreases, you will also lose more money in the blink of an eye.
Supposing 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. For that reason, the concepts of Take Profit and Stop Loss are fundamental when using 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 bought Dash at $ 100, you request eToro to close your operation when it reaches $ 120. That way, you make sure you won't change your mind and decide to wait a bit longer in case it keeps rising, which could make you lose it all.
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 the platform.
About ETFs
What do you know about Exchange-traded funds? They are passively managed funds, known for merging the benefits of stocks and mutual funds: they can be exchanged at any moment in the market, but include a much wider diversity of assets and the fees are significantly lower.
Raw materials
The major advantage of investing in commodities is that prices are more stable than those of other financial products. In fact, their intrinsic stability is what makes people often invest in raw materials, to take refuge from financial insecurities or market volatility. Even so, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Note that the only intended profit from the investment in raw materials will come from their further sale because these kinds of assets don't pay dividends.
Raw materials are commonly categorized into two kinds: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products like sugar, cocoa, soybeans, among others.
Forex trading
Forex or currency trading is the exchange between two currencies in order to gain money through the operation.
In case you want to exchange the EUR/USD pair, you purchase euros at their price in dollars, with the expectation that the euro will raise its price compared to the dollar. Therefore, if you bought each euro for 1.15 USD and you sell them back when their price is 1.20 USD, that margin will be yours.
You may be thinking that trading with currencies requires high investments, and that is correct, since variations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
The most known currency pairs are available on eToro but remember that this market works through CFDs, so you will not own the real asset.
Investment strategies
There are lots of methods to operate cryptocurrencies: for example, you can buy and hold, or you can day trade (taking advantage of price volatility).
In case you don't have much experience in investment, I recommend a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
This means that if, for instance, you acquire a cryptocurrency at $ 10, it goes up to $ 20 and then falls to $ 12, your operation will be closed at $ 16-17 and you will have earned a decent profit.
It may sound more appealing to sell when the cost is at its peak, right before corrections, but that is simply not possible. The above method is much more realistic and it can give great results.
And when you have gained more experience, you can take your first steps with advanced trading strategies, like short-selling or using leverage.
How does eToro work?
We said previously that eToro is very friendly and intuitive. Anyone can start investing without previous experience or long explanations.
Everyone who has used social networks like Instagram or Pinterest, knows enough to operate with the eToro interface.
Let's talk about the registration process and the different sections of eToro.
First of all, you will have to enter all the information that eToro asks for: first and last name, address…
Additionally, you will have to answer some questions about your experience at investing.
But don't feel like you are taking an exam. They only intend to find out how much you know and which financial instruments to recommend for you.
When you fill in all your information in your profile, you will stop seeing the “incomplete profile” message.
Now we will talk about the fundamental sections of the site.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. This is ideal in case you want to purchase an asset that is falling but you believe it will decrease even more.
“News Feed” is the more “social” section. There, traders can interact and share their knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the financial instruments available on are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Currencies
- Index funds
The term “social trading” comes to life in the section “People”: that is where you can duplicate the trading strategies of the best investors. You'll be able to see all their profiles and historical performances.
In this section, you will be able to search for those traders that you find more interesting. You can search by risk level, trading market, or average profits, among other filters. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For instance, if you have $ 1000 and the trader puts 20% of their funds in an asset, the platform 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 classified into “Top Trader”, “Market” and “Partner”.
The benefit of copying to CopyPortfolios instead of people is that this way you will diversify the risk. 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 will prosper in the future? Then you will surely find a CopyPortfolio about it.