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eToro, our reccomended platform for buying Zcash in Philippines
Some of its benefits are:
- User-friendly and straightforward
- Allows to copy investment tactics
- Allows you to go short
- eToro allows leverage
- You can make investments in countless of different products
Official main site: www.etoro.com/zcash
eToro is probably the best way to obtain Zcash from Philippines.
eToro is known for making “social trading” a trend, a revolutionary form of investing in which traders can emulate the moves of other investors who have been making profits for years.
If you are still a rookie or do not have much investment experience, eToro is very helpful. 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, eToro pays for it.
It is also very convenient how accessible is the platform, perfect for new traders who are starting with Zcash.
How does eToro work?
We said before that eToro is very easy to manage. Anyone can start investing without having to read endless explanations.
If you have used any of the most popular social networks today, such as Twitter or Facebook, you can perfectly use this platform.
Now we are going to detail the registration process and the different sections of the page that you should know.
You will have to provide some personal data when registering.
During the sign-up process, you will also find some questions 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 review the different functions of the page.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. Just click the tab and you will be able to set it. 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 for social purposes and interaction. This is the section where users can share opinions and learn from each other.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we already discussed the kinds of assets that are available on eToro:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex trading
- Index funds
The concept “social trading” makes sense in the section “People”: there, you can copy the strategies of any user you choose with just one click.
You can find those traders that you find more interesting. When you select an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, in proportion. For example, if you have $ 1000 and the user puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same asset, 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 using CopyPortfolios instead of copying individuals is that this way you will diversify the risk. Besides, the portfolios are easily identifiable: 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.
Have you heard about “leverage”? Just in case, we'll define it shortly:
trading lets you invest higher figures than what you really have. Let's say that you enter with $ 100 and you put them with x2 leverage, the amount of your investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Suppose now that you are sure that the price of Zcash is about to raise its price, therefore you are thinking about “going long”.
You are certain that Zcash will go up, but you can only invest $ 1,000. Despite that, why miss the opportunity to make more money?
You could go to your bank, request a loan, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then acquire Zcash… But maybe once you have made all that, your prediction could've been confirmed already and Zcash is so high that it is not worth trading.
Leverage is like a loan, and you will only have to click a few times! eToro allows you to operate with much higher amounts than what you actually have on the platform's wallet. Before trading, you will be able to choose between the different options as in the image:
Within other markets, you can use more leverage. The reason: leverage is regularly for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. But let's see how this works with the previous example:
- If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 are a “loan” from eToro).
- Then, turns out that Zcash does rises, as you thought, and now the price of your investment is $ 2,400 (20% more), so you decide to sell back because you want to play it safe.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours initially.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.
It may sound too good to be true. The thing is, you can also lose. If everything goes according to plan and the price goes up, you will make more money in less time; however, if the value of the asset goes in the opposite direction, 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 $ 20, because of the leverage. Because of that, the concepts of Take Profit and Stop Loss are fundamental when trading with 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 purchased Zcash at $ 100, you program eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps rising, which could be a mistake since the price could go down again.
On the other hand, when using leverage you also have to use Stop Loss, because a small fall in the price of an asset can have a big impact on your wallet. Take into account that eToro will recommend a limit for Stop Loss, but it is better to set it lower than the platform suggests.
How are CFDs and futures different?
In case you want to know, these are the main differences between Futures and CFDs:
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Expiration date Futures have a determined expiration. CFDs don’t have expiration date
- Variety of options for trading Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Use of leverage With Futures, you can’t leverage; while with CFDs leverage is always available.
Investment strategies
When trading cryptocurrencies, there are different possible methods or strategies, like day trading or buying and holding, for naming just a couple.
If you are just beginning in the world of trading, I recommend something in between: when you open your Zcash position, place a stop-loss 15-20% below the highest price, and let the rest happen on its own.
For example, if you buy a cryptocurrency when its price is $ 15, it rises up to $ 25 and decreases again to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will obtain a fine profit.
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 method is much more down-to-earth and, well applied, it can work very well.
Later on, you will be able to apply more sophisticated strategies, such as short-selling or using leverage.