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Why we reccomend eToro for acquiring EOS from Philippines?
Why do we recommend it?
- You can learn from other investment strategies
- Accepts “shorting” or short-selling
- User-friendly and straightforward
- Leverage is allowed
- You can make investments in thousands of different products
Official website in English: www.etoro.com/eos
In case you are thinking about buying EOS from Philippines, eToro is certainly the best way to do it.
“Social trading”, a relatively new way of investing by replicating techniques and moves from other experienced investors, has become popular because of eToro.
eToro has solutions for you, especially if you don't have much experience in trading, since it puts your investment on automatic by repeating strategies from those who have been doing it for years and making profits. On the contrary, if you are an expert in the subject willing to share your abilities with the community, eToro rewards you with money.
Another advantage is how easy the interface is, which turns out perfect for new users that are learning all about EOS.
What are ETFs?
ETFs or Exchange-Traded Funds are a kind of passively managed fund, similar to index funds. We can say that ETFs are halfway between stocks and funds: they are traded in the market like stocks, during the day. However, their advantage is that they are more diversified compared to stocks, and the rates are much lower than those of an actively managed fund.
Currency market
What is known as Forex trading consists in the exchange of currencies. It's the conversion of one currency to another, and the aim is, evidently, to make a profit out of this.
If you decide to trade the EUR/USD pair, you speculate how many dollars it will take to buy a euro, hoping that the euro will rise compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when they cost 1.20 USD, you'll be keeping that margin.
As you may have already inferred, trading with currencies usually implies large resources, since variations are typically low, or using much leverage, which you know is a risk. If you are new to the world of trading, we don't recommend beginning with Forex, because it is very risky and intricate.
eToro allows trading with the most known currency pairs but take into account that this market functions with contract for differences, therefore you won't own the real asset.
Equities
Stocks are the most common financial instruments. Some companies divide their capital into portions and have many shareholders. By investing money in them, you can own a portion of a company and obtain returns.
We could say that there are two basic types of stocks: those of companies that distribute their earnings among the shareholders and those that don't. But this is not to say that those of the second type have less to offer. If a company does not pay out dividends but has a lot of potential, you should not give it up just because it does not pay you every year, since selling the shares eventually could pay much more.
When trading on eToro, if you invest in equities that give dividends, these will be deposited into your account, and you can collect them in cash or reinvest them. We recommend, if you don't have financial urgencies, that you benefit from compound interest and reinvest it in the company itself.
If you invest in stocks on eToro, you will be able to use leverage to “dope” your trades. However, it is not advisable, since it would be a CFD and you would not receive dividends. Also, equities are regularly long-term investments, and you have to pay commissions.
Exchange-Traded Funds
What do you know about Exchange-traded funds? They are similar to index funds and are known for combining the advantages of stocks and mutual funds, because they can be traded at any moment in the market, but include a much wider diversity of assets and considerably lower fees.
About Index Funds
In case you want to invest in the long term, and you won't need to withdraw your money in at least five years, index funds can be the best choice. This kind of investment is also suitable for beginners since it is safer. Besides, the variety is wider.
Contrary to what it may seem, very few fund managers can beat the benchmark (although you have probably heard of investors who achieve huge returns).
But putting aside some exceptional cases, all that glitters is not gold: if you hear of someone who has beaten the index, they have probably done so for a short period, or the rates are so high that it ends up being better for you to index (whit minimal commissions). Also, take into account that past performances do not ensure a future one.
The great advantage of index funds is that they perfectly solve both issues: their commissions are insignificant and they often beat active managers, but in the long term.
Commodity market
The major advantage of investing in commodities is that prices are more stable than those of other financial assets. In fact, their stability is what makes most investors trade with raw materials when facing possible inflation or market volatility. Still, the cost of commodities depends on supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Note that the only intended income from the investment in raw materials will be the hypothetical capital gain after selling them back: unlike shares, these don't give returns or pay interest.
Commodities are commonly categorized into hard raw materials, which include precious metals as gold, silver, or copper, as well as industrial metals, and oil; and soft raw materials, which are agricultural products, like soy, cocoa, corn, or rice, for instance.
Trading strategies
There are different methods or ways for crypto trading, such as buying and holding or day trading (and using market volatility to your advantage), for naming just a couple.
My suggestion for those who are starting to invest is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work its magic.
This means that if, for example, you acquire a cryptocurrency at $ 10, it goes up to $ 20, and after that it decreases to $ 12, your stop loss will close your position at $ 16-17 and you will have earned a considerable profit.
It might sound more appealing to sell when the price is at its highest, but that is simply not possible. The above strategy is much more down-to-earth and it can give great results.
Later on, you will be able to apply more sophisticated strategies, such as going short or using leverage.
Is eToro trustworthy for purchasing EOS?
eToro is very careful with the information about past performances from investors, and its integrity has been independently tested several times.
In the legal aspect, eToro fulfills all the strict regulations requested by the European Union. Specifically, its head office is in Cyprus, and it is validated by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts from its clients, including those from Philippines.
eToro is backed by the European Financial Instruments Market or MiFID in Europe, and by the Financial Conduct Authority (FCA) in the USA. You should also know that it has a trajectory of fifteen years, with more than 20 million users around the world. So, you can be sure that your money is safe.
It is also important to mention the great customer service. You can use the online chat, and they also have a phone number available for assistance.
How does a demo account work?
Are you taking your first steps in trading? 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 help you to practice and gain experience 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 EOS.
The first attempt is not usually that good. But don't worry, since you can ask support to deposit back the virtual funds to your account, and the second try you should do better.
However, remember that trading is mostly about being cold-minded, and demo account trading can have an adverse effect. It is not the same to risk your own money than to operate with virtual funds which loss does not suppose any drama. Besides, investing virtual money can prevent you from learning to control your emotions, something you should be able to do when trading.
As you may suppose, the demo mode is kind of absurd if you want to invest in the medium or long-term, since you would be wasting years to see the results. Virtual accounts may be ideal for practicing short or medium-term operations.
How to use eToro
As we have mentioned among the positive aspects of eToro, the best thing about this online broker is its simplicity: anyone can invest without having to read endless explanations.
If you are familiar with any of the most popular social networks today, you can perfectly manage this platform.
We will explain the registration process and the different sections that you will find.
You will have to fill in some requested data when registering.
They will also ask you about your previous trade experience.
But don't feel like you are taking an exam. The objective is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.
Let's get to know the fundamental sections of the page.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. This is perfect if you want to purchase an asset and you are waiting for it to decrease.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the kinds of assets on eToro:
- Cryptocurrencies
- ETFs
- Shares
- Raw materials
- Forex
- Index funds
The term “social trading” makes sense within “People”: that is where you can replicate the movements of any user you choose with just one click. You'll be able to see all their profiles and historical performances.
You can search for those users that you find more interesting: by risk level, types of instruments, average earnings… You just have to type the amount you want to invest and eToro will be in charge of replicating the movements of the investor you selected, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your balance in that asset.
Finally, there are three main types of CopyPortfolios: Top Trader, Market, and Partner.
Sometimes it might be preferable to copy from CopyPortfolios than to individuals, because the former offer more diversity. Besides, the different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to succeed in the future? Then look, because surely there is a CopyPortfolio about it.