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eToro, recommended broker for obtaining Dash from Thailand
Why do we recommend it?
- It uses other successful investment strategies so you can copy them
- Allows you to short sell
- Really user-friendly and simple
- Leverage is allowed
- Lets you invest in tons of different products
Go to the official site in English: www.etoro.com/dash
If you are thinking about investing in Dash from Thailand, eToro is probably the best way to do it.
“Social trading”, a relatively new form of investing by replicating techniques and strategies from other experienced investors, has become trendy because of eToro.
If you are still a rookie or do not have much experience in investments, eToro is very helpful. 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 pays for it.
Another thing to mention is how manageable the platform is, which turns out perfect for new users that are just learning all about Dash.
How to use eToro
We already mentioned that one of the best things about eToro is how simple it is to use the interface. You don't need to read a lot or have previous knowledge to start investing.
You won't have any problems with the interface if you are familiar with any of the most common social networks, like Pinterest or Whatsapp.
We will explain, roughly, the registration process and the different sections that you will see.
You will have to provide some personal information when registering.
To complete your profile, you will have to answer some questions about your experience at investing.
But you don't need to worry: it's not about passing an exam. They only intend to know how much knowledge you have and what type of assets they can suggest. For instance, if it is your first experience in the investment world, they will not suggest that you invest in futures.
Let's get to know the fundamental sections of the interface.
“Set Price Alerts” allows you to set alarms on the price of certain assets. It is a very useful tool for when you want to purchase an asset that is falling, but perhaps you think that it has not finished falling yet.
“News Feed” is the more “social” section. There, users can interact and share experiences.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. And we already mentioned the kinds of assets on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Forex
- Index funds
In the section “People” are all the profiles and historical performances of other investors, and you can replicate their strategies with just one click. This is where the “social trading” concept is best applied.
Through the search engine, you can find the investors that best suit your interests: by risk level, types of financial assets, average earnings… You just have to type the amount of your investment and eToro itself will be in charge of replicating the movements made by the investor you selected, in proportion. “In proportion” means that if you have $ 1000 and the trader puts 10% in an asset, the platform will invest also 10% of your money (that is, $ 100) in that same asset.
Finally, you will see the popular CopyPortfolios. There are three types: Top Trader, Market, and Partner.
The benefit of copying to CopyPortfolios instead of specific investors is that this way the risk is more diversified. Besides, the different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry will prosper anytime soon? Then you will surely find a CopyPortfolio about it.
Is eToro reliable for purchasing Dash?
eToro is very rigorous with the data about past performances from users, and its reliability has been tested several times times by independent organizations.
The main office of eToro is in Cyprus, and the platform is certified by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 from its client's debts, including those from Thailand. On the other hand, eToro meets all the strict requirements of the European Union.
eToro is backed by the European Financial Instruments Market or MiFID, and by 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 finances are safe.
Their excellent customer service is also worth mentioning. They have a phone number for assistance, a ticketing system to track any claim, and a live chat.
In case you still don't know what “leverage” is, we'll put it short. When trading, it's the capacity of multiplying your investment without putting more money. For example, if you start with $ 100 and you leverage x2, your initial investment will be $ 200.
Why using leverage and how to do it
Let's pretend that you have complete certainty that Dash will rise, and you consider “going long. You have $ 1,000, but you actually can invest more and make more money.
There's the possibility of asking for a loan, but it is a process that takes time, and by the moment you finally get the money, Dash might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Leverage is exactly like a credit, and you will only have to click a few times to get it! 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 leverage options as in the image below:
Within other markets, the ability to leverage is greater. This is because leverage is most common in 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 you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- Then, turns out that Dash does increases, as you thought, and now the cost 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.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
But watch out: if all goes as you planned and the price goes up, you will make money. However, if the asset decreases, you will also lose more money in the blink of an eye.
For instance: if the price falls by 10%, you do not lose $ 10, but $ 20, because of the leverage. That is why to operate with leverage it is fundamental to take into account Take Profit and Stop Loss.
Take Profit is a limit you can set when trading: you set the platform to sell your assets once they get to a point above the entry price. For instance, you can buy Dash at $ 100 and request that your position is closed automatically when it goes up to $ 120. It is very helpful to avoid being blinded by enthusiasm: we would all take a 20% profit when investing, but when you reach that 20% it is easy to ask yourself “what if this keeps increasing and I can earn even more?”. It's like you got assured in advance that you won't be irresponsible.
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). Always remember to mark a Stop Loss lower than that suggested by the platform.
How to deposit funds on eToro
Among the payment options that eToro accepts you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is very easy. You just have to go to “Deposit funds”, set an amount and choose the payment method you prefer.
Consider that for security reasons, you need to be the owner of the credit card or the account.
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. So, if your intention is to deposit larger sums, you should contact Support to verify your account.
Additionally, remember that you can make the deposit in any currency you want since eToro will make the conversion automatically to USD, although it charges a fee, so it is preferable to make the transfer directly in USD.
How are CFDs and futures different?
How are CFDs and Futures different?
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiration Futures expire in a variable given date, while CFDs don’t expire
- Variety of options for trading Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum investment Being higher figures, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher, although not too much.
- Leverage With Futures, you can’t leverage; while with CFDs it is always possible.
What are Contracts for Difference?
If you already browsed eToro, you must have seen how the acronym CFD appears all the time. We will come back to it, but first, you should know that CFDs on eToro are only possible when you short sell.
We will also explain concepts like leverage and “going short”, in case you are considering day trading cryptocurrency or more advanced practices.
eToro allows you not only to bet “in the black”, but through CFDs you can also bet “in red”. For instance, you are sure that the Dash will go down, so probably you consider that it is better to wait until it does and then go in. However, if it really falls, it might mean extra money for you.
The practice known as “going short” will allow you to do that. It functions, pretty much, like this:
- You ask someone for a loan of, let's say, 100 units of Dash, which total value at the moment is $ 5,000 (obviously, these numbers are made imaginary)
- You make $ 5,000 by selling the 100 units
- The Dash goes from $ 50 to $ 30 (as you predicted, it devaluates)
- You get the 100 units again, but at their current price, $ 3,000
- Now you return the 100 units to the loaner
- The $ 2000 difference is yours
Keep in mind that it seems much more complicated than it really is: we can summarize this whole operation by saying that by trading in Dash you can also make money if you foretell it will fall.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like day trading or buying and holding, for naming just a few.
My recommendation for those who are beginning to invest is something in the middle: when you open your position, set a dynamic stop loss 15-20% under the maximum price, and forget about the operation.
For instance, if you purchase a cryptocurrency at $ 15, then it increases to $ 25 and falls again to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Hence, you will get a pretty good income.
It may sound way better to sell when the cost is at its maximum, right before corrections, but unless you're a fortuneteller, that's impossible. The above strategy is much more down-to-earth and, well applied, it can work very well for you.
Later on, you will be able to apply more complex techniques, such as using leverage or going short to make money from bear markets.