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eToro, recommended broker for buying Ripple from Thailand
Pros:
- Allows you to invest in tons of different goods
- eToro offers leverage
- It's very easy to operate
- It takes techniques and moves from successful traders so you can replicate them
- Admits short-selling
Homepage: www.etoro.com/ripple
In case you are considering purchasing Ripple from Thailand, eToro may be the best option currently.
This broker is famous for making “social trading” fashionable. Social trading is an ingenious way of investing in which users can imitate the techniques of other traders who have been generating income over time.
eToro has solutions for you, even if you don't have much experience in trading. You can rest assured that you are making a smart investment since the site replicates those from subjects with a great deal of expertise. Also, in case you are an investor, the platform pays for your knowledge.
It is also worth mentioning how easy is the interface of the platform, perfect for beginners who are starting in the investment world.
How do Contracts for Difference Work?
It is possible that you have found the acronym CFD all the time if you entered eToro before. Before we come back to it, you must know that cryptocurrency trading on the platform is only CFD if you short sell.
We will also explain terms such as short-selling and leverage, in case you are thinking about day trading cryptocurrency or more advanced operations.
eToro allows you not only to bet if you are “in the black”, but through CFDs you can also bet “in negative”. For example: you have the certitude that the Ripple will go down, so probably you consider that it is better to wait until it does and then go in. Nevertheless, if it really goes down, it is possible to earn some money out of that.
You can do that by “going short”. Here's how it works:
- Someone lends you, for example, 100 units of Ripple, which cost $ 5,000 (these numbers are entirely made up)
- You sell the 100 units and earn $ 5,000
- The Ripple goes from $ 50 to $ 30 (as you calculated, the price decreases)
- You purchase the 100 units again, but at $ 3,000
- Then you give back the 100 units
- The rest is yours, so, you will have earned $ 2000
Keep in mind that it is much easier than it sounds: we can just say that by trading in Ripple you can also earn money if you foretell it will fall.
How are CFDs and futures different?
Here are the major differences between CFDs and Futures, in case you want to know more:
- Counterparties
- Futures: the exchange is made with someone else, another trader.
- CFDs: the counterparty is the broker (eToro).
- Expiration:
- Futures: they expire. At that point, your position is ended even if you are in losses.
- CFDs: they don't expire. This means that you can wait for your position to rise before exiting.
- Trading options:
- Futures: very little variety
- CFDs: you have plenty of options to choose from, there is a huge diversity of CFDs
- Minimum investment amount or “trade size”:
- Futures: you need to enter with a larger amount
- CFDs: it is possible to start with a low amount
- Cost of trading and fees:
- Futures: as you have to pay more in the first place, costs are lower
- CFDs: higher (although not too much)
- Leverage:
- Futures: absent leverage
- CFDs: totally available
ETFs
Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for combining the advantages of stocks and mutual funds, because they can be exchanged at any moment in the market, but include a much wider diversity of assets and considerably lower fees.
Currency market
What is known as Forex trading consists in the trading of currencies. In other words, is the conversion between two currencies, and the aim is, evidently, to make a profit out of this.
If you decide to exchange EUR and USD, you purchase euros and pay with dollars, hoping that the euro will increase compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when their price is 1.20 USD, you'll be earning that margin.
Perhaps you already deducted this, but this kind of trading requires investing a lot, since fluctuations tend to be low, or using a lot of leverage, which is a bit like skating on thin ice, as you know. Our recommendation for those who are new in the world of trading is not to start with Forex, but with a safer and simpler market.
You can operate with almost every currency on eToro but keep in mind that in this market sales are made through contract for differences, which means the underlying asset won't be yours.
Index Funds
Are most adequate for those interested in long-term trading, mostly for beginners. If you don't need to take back your money in less than five or ten years, index funds offer you variety and lower risks.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers have done it, apart from some famous cases.
In practice, if a fund manager achieves to beat the benchmark, it is only for a short period or on a specific occasion. Or perhaps they would charge very high fees and indexing would be a better decision.
With index funds, you won't be concerned about that: although in the long term, they usually beat active managers, and the commissions are so much lower.
eToro Interface
We said previously that eToro is very easy to manage. Anyone can start investing without having to read endless explanations.
Everyone who has used Whatsapp, Facebook or any of the most common social networks, has enough knowledge to use eToro.
We will explain, roughly, the registration process and the different tabs that you will see on eToro.
When you open your account, 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 have to answer some questions about your previous investment activities.
But don't feel like you are taking an exam. The only intention is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.
Let's see what the different sections of the page are.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is helpful in case you want to buy a security and you are waiting for it to decrease.
In the “News Feed” tab is the most social part of eToro: where users are interacting all the time and sharing opinions, tips, and other valuable information.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. As we mentioned in this guide, the types of financial assets that eToro offers are:
- Cryptocurrencies
- ETFs
- Stocks
- Raw materials
- Forex trading
- Index funds
The term “social trading” comes to life in the section “People”: there, you can copy the trading strategies of the users you find most inspiring with just one click. You'll be able to see all their profiles and historical performances.
Through the search engine, you can find the users that you find more interesting: by average profits, types of assets or risk level, for example. You just have to choose the amount you want to invest and eToro itself will replicate the movements of the selected investor, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your money in the same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
Sometimes it might be preferable to copy from CopyPortfolios than to particular users, since the former offer more diversity. There are all kinds of portfolios that you can find easily and are divided by sectors. Therefore, if you think a specific sector, like biotechnology or healthcare, will have good incomes in the future, you can look for that specific portfolio and invest in it.