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eToro, an advisable brokerage for buying Tezos from Thailand
Some of its benefits are:
- There are tons of possibilities for investments
- Leverage is allowed
- It's uncomplicated and user-friendly
- Allows to imitate other investment moves
- You can go short
Homepage: www.etoro.com/tezos
In case you are considering it, eToro is probably the best option today to purchase Tezos from Thailand.
eToro is well-known for making “social trading” a trend, an innovative form of investing in which investors can imitate the techniques of other traders who have been generating profits for years.
If you are a novice user or do not have much experience in investments, eToro is very useful, since it puts your investment on automatic by replicating moves from other experienced people with a very long profit history. Oppositely, if you are an investor willing to share your methods with other traders, eToro pays up for it.
Besides, the platform is so uncomplicated, great for users who want to begin in the Tezos world, without stressing over lots of graphs and figures.
Can you rely on eToro?
eToro is very meticulous with the data about past performances from traders, and its reliability has been independently tested several times.
Legally, eToro complies with all the strict policies required by the European Union, legislation in which it is found. Its head office is in Cyprus, where it is approved by the Cyprus Securities Market Commission or CySEC, which can cover up to € 20,000 of the debts that its clients may have with creditors (those from Thailand included).
In Europe, it is backed by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has more than 20 million users around the world, and it has been operating for fifteen years. To sum up, we can be certain that our money is in safe hands.
Their excellent customer service is also worth mentioning. They have a phone number for assistance, a ticket system, and a live chat.
How to deposit funds on eToro
When it comes to depositing money on eToro, there isn't really much to say, since it is pretty simple. You just have to click “Deposit funds”, put an amount, and choose the payment option you prefer. You can use PayPal, bank transfer, credit card, Skrill, or Neteller.
Consider that for security reasons, you need to be the holder of the account or the credit card.
The lowest amount is $ 200, and there is a maximum authorized if you are not verified. Therefore, in case you want to trade with larger sums, you should verify your account previously.
You can pay in any currency you want and eToro will automatically convert it to USD. But we suggest depositing directly in USD since the platform charges a commission.
How are CFDs and futures different?
Here is a brief comparison between Futures and CFDs, in case you want to know more:
- Who is the counterparty? With Futures, the counterparty is another investor. In CDFs, it’s the broker (eToro)
- Date of expiry Futures expire in a variable given date, while CFDs don’t have expiration date
- Variety of options for trading The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum investment amount or “trade size” Being higher numbers, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher, although not too much.
- Is it possible to leverage? With Futures, it isn’t possible; while with CFDs it is.
ETFs
ETFs or Exchange-Traded Funds are a kind of passively managed fund, similar to index funds. They can be described as a combination of stocks and mutual funds. They can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
Shares
The most common financial instruments are stocks or shares: these are the parts of publicly traded companies. It is possible to get dividends with the performance of third-party companies just by investing money in them. But, obviously, you have to know where to put it.
We can classify stocks into two main types: the ones that payout at the end of every fiscal year to the stockholders, and those that don't payout. The former ones are great, obviously, but investing in the latter can also be a good idea since the profit you can make by selling the shares can be even larger.
In the case of eToro, if you invest in stocks that give dividends, these will be reflected in your balance, and you can withdraw those funds or reinvest them. We recommend, if you don't need the money right away, 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, we don't recommend that, since it would be a CFD and you would not get dividends. On top of that, as equities tend to be long-term investments, you will have to pay commissions.
About ETFs
Exchange-Traded Funds or ETFs are a kind of passively managed fund, similar to index funds. They can be described as a merge between stocks and mutual funds. They are traded in the market like stocks, during the day. Their main benefit is that they offer more alternatives compared to stocks, and have lower fees.
Raw materials
The major benefit of trading with commodities is that their price fluctuates less than that of other financial products. In fact, their security is what makes people often invest in raw materials, to take refuge from possible inflation or market volatility. Still, the cost of raw materials depends on supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Keep in mind that the only intended income from the investment in raw materials will be the hypothetical capital gain after selling them: unlike stocks, these don't pay dividends.
Commodities are usually categorized into two kinds: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products such as sugar, cocoa, soybeans, among others.
Forex trading
Forex or currency trading allows obtaining profits by exchanging one currency for another.
In case you decide to exchange EUR and USD, you buy euros at their price in dollars, anticipating that after buying the first currency (the euro) it will increase compared to the second (the dollar), to make a profit by selling it. Let's say you entered when a euro is worth 1.10 USD and you close when the price has gone up to 1.15: that difference is yours once you sell again.
Perhaps you already deducted this, but operating with foreign exchange requires investing a lot, because prices rarely increase that much, or using a lot of leverage, which could be incautious. If you are just starting in trading, it is not a good idea to begin with Forex, because it's not the safest option.
You can exchange with the most common currency pairs on eToro. Still, keep in mind that in this market sales are made through contract for differences, so the underlying asset won't be yours.
eToro Interface
As we have mentioned before, one of the best features of eToro is its simplicity: anyone can use it without having to read endless explanations.
Everyone who has used social networks like Instagram or Linkedin, knows enough to use eToro.
We will explain, roughly, the registration steps and the different tabs that you will find.
First of all, you will have to fill in your personal data, like first name, last name, address….
Also, you will see that they ask you some questions about your experience at investing.
However, it is not like you are answering a test. It is only a way of finding out how much knowledge you have and what type of assets they can suggest. For example, if it is your first experience in the investment world, they will not suggest that you invest in futures.
Let's see what the different sections of the site are.
“Set Price Alerts” allows you to set alerts on the price of certain securities. This is very useful when you are after an asset that is falling, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the kinds of assets that are available on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Commodities
- Forex trading
- Index funds
In “People” are all the profiles and historical performances of other investors, and you can replicate their movements with just one click. This is where the “social trading” term is best applied.
Through the search engine, you can find the users that best suit your interests: by average earnings, market or risk level, for instance. Just indicate the amount you want to invest and eToro itself will replicate the movements of the investor you selected, 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 balance in that asset.
Finally, you will see in this section the popular CopyPortfolios. There are three types: Top Trader, Market, and Partner.
The benefit of copying to CopyPortfolios instead of people 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 industry is going to have success in the future? Then you will surely find a CopyPortfolio about it.
Investment strategies
There are different methods or ways for crypto trading, such as day trading or buying and holding, for naming just a couple.
If you are new in the world of investment, I suggest a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
For example, if you buy a cryptocurrency at $ 15, then it increases to $ 25 and falls back to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Hence, you will obtain a fine profit.
I know it might sound more appealing to sell when the price is at its peak, but that is simply not possible. The mentioned method is much more realistic and it can give great results.
Later on, you will be able to apply more complex strategies, such as using leverage or going short.