Contents
eToro is an outstanding broker for those who want to buy NEO from Philippines
Why do we recommend it?
- You can invest in countless of different goods
- Leverage is allowed
- User-friendly and straightforward
- You are able to replicate investment moves
- Allows you to short sell
Homepage: www.etoro.com/neo
You should certainly consider eToro if you are interested in acquiring NEO from Philippines.
“Social trading”, an innovative investment method that consists in replicating techniques and strategies from other experienced investors, has become trendy thanks to eToro.
eToro has solutions for you, especially if you are still a novice user in trading. You can rest assured that you will be making a smart investment since the site replicates those from subjects with a long profit record. And for those skilled investors willing to share their techniques with the community, eToro rewards your knowledge with money.
It is also worth mentioning how accessible is the platform, perfect for beginners who are starting in the investment world.
Is eToro trustworthy for purchasing NEO?
Many tests from independent consultants have been applied to the platform to prove its integrity in the treatment of data from previous users. Every time, it has been confirmed that eToro is very meticulous with the information.
The main office of eToro is in Cyprus, and therefore it is approved by the Cyprus Securities Market Commission (or CySEC), which covers debts up to € 20,000 from its clients. Furthermore, eToro follows all the strict policies of the European Union.
eToro responds to the European Financial Instruments Market (MiFID) in Europe, and to the Financial Conduct Authority (FCA) in the U.S. You should also know that it has a trajectory of fifteen years, with more than 20 million users around the globe. So, you can be sure that your money is safe.
It is also important to mention the good functioning of its customer service. You can use the online chat, and they also have a phone number available for assistance.
How to deposit funds into your eToro account
Among the payment methods that you will find on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. Making a deposit with eToro is so simple: go to “Deposit funds”, type the amount and select your preferred method.
Remember that for security reasons, you must be the holder of the credit card or the account.
The minimum amount you can deposit is $ 200 and there is a maximum limit of how much you can deposit if you are not verified. Therefore, if you plan to operate with larger sums, you should verify your account first.
The platform accepts deposits or transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD directly.
Differences between futures and CFDs
How are CFDs and Futures different?
- Counterparties
- Futures: operations are made with another trader.
- CFDs: you don't “play” with another individual, but the counterparty is the broker.
- Expiry date:
- Futures: there is an expiration date. At that moment, your position is ended even if you are in losses.
- CFDs: they don't expire. This means that you can wait until you get in a good position before exiting.
- Options for trading:
- Futures: there are limited options
- CFDs: a lot of variety, there is a huge diversity and types of CFDs
- Minimum investment amount or “trade size”:
- Futures: you have to invest much more
- CFDs: it is possible to enter with a low amount
- Cost of trading and rates:
- Futures: costs are usually lower
- CFDs: rates are higher
- Leverage:
- Futures: you can't leverage
- CFDs: it is always possible to leverage
About Contracts for Difference
If you already accessed eToro, you must have noticed that the initials CFD appear frequently. Before we explain this further, you must know that CFDs on eToro are only possible if you are short-selling.
FYI, and if you are interested in day trading cryptocurrency and other advanced operations, you will also meet concepts like leverage and “going short”.
With CFDs you can bet on the platform even if you are “in red” or don't have a positive balance. For example: you have the conviction that the NEO will fall, so perhaps it is obvious to think “if it is going to depreciate (go down in price), I'll simply wait until it does”. However, if it really falls, it might mean extra money for you.
You can do that by “going short”. Basically, this is how it works:
- You ask for a loan of, let's say, 100 units of NEO, which cost $ 5,000 at the moment (obviously, these numbers are made imaginary)
- You sell them at their price on the market, $ 5,000
- The price is reduced, as you thought, and the unit of NEO now costs $ 30 instead of $ 50
- You purchase the 100 units again, but at $ 3,000
- You pay back the 100 units
- The rest is yours, so, you will have earned $ 2000
Keep in mind that it sounds much more complicated than it really is: we can just say that by trading in NEO you can also make money if you predict the downs.
eToro Interface
We mentioned before that eToro is very friendly and intuitive. Anyone can start investing without previous knowledge or long explanations.
If you have used before any of the most popular social networks today, you can perfectly manage eToro's interface.
We will explain, roughly, the registration steps and the different sections that you will find on the page.
When you register, you will have to enter all the information that eToro asks for: first and last name, address…
During the sign-up process, you will also find some questions about your previous trading activities.
But don't feel like you are taking an exam. The objective is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.
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.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is ideal in case you want to purchase a security and you are waiting for its price to fall.
“News Feed” is for social purposes. This is the section where users can share opinions and information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned previously, the six types of instruments on eToro are:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Forex
- Index funds
In the tab “People”, you will find the public profiles of eToro users and their performances. This is where you can replicate the strategies of the traders that inspire you the most.
You can search for those investors that best suit your interests: by average profits, market or risk level, for example. Just indicate the amount you want to invest and eToro itself 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% in an asset, the platform will invest also 10% of your funds (in this case $ 100) in that same asset.
In this section you will also find the three most popular types of CopyPortfolios, which are Top Trader, Market, and Partner.
In some cases, it might be better to copy from CopyPortfolios than to individuals, because the former offer more diversity. There are all kinds of portfolios that you can recognize easily and are divided by sectors. So, in case you think a specific sector, such as gaming or oil, will prosper in the future, you should probably look for that specific portfolio.
Investment strategies
There are different methods or ways for crypto trading, such as day trading or buying and holding, for naming just a few.
If you are just beginning in the world of trading, my recommendation is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
Therefore, if for example you buy a cryptocurrency at $ 10, it goes up to $ 20, and after that it falls to $ 12, your position will be closed at $ 16-17 and you will make a pretty good profit.
Perhaps you are wondering: why not selling when the cost is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.
Sooner or later, you will be ready for using advanced investment techniques, such as using leverage or going short to profit from bear markets.
How does a demo account work?
Are you taking your first steps as an investor? Using a demo account can be useful. Just make sure the virtual mode is set and you can start trading with fictional funds.
A virtual portfolio can help you to practice and gain experience before starting to operate with real funds. 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 eToro (not only with NEO).
The first attempt is not usually that good. But you can ask eToro to replenish the virtual funds to your portfolio, and the second try you should do better.
But keep in mind that you need to be prudent for trading, and demo account trading can have an adverse effect. It is not the same to risk your real savings than to operate with virtual funds that you don't mind losing.
And of course, if you are interested in trading in the long or medium-term, there is no point in using the virtual mode and having to wait for years. On the other hand, it can be ideal if you want to practice short and medium-term investment.