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* Your capital is at risk.
How to buy
If you live in Egypt, a great way to invest in Coinbase shares is, without any doubt, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the Australian Securities and Investments Commission (ASIC).
We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in your language, accepts users from Egypt, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.
How to sign up, step by step
The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.
Then check your email: you should have received an email from eToro, click on the button and your account will be verified.
Once on eToro, you just have to click on “Deposit funds”, in the page menu.
There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:
As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.
If you have a choice, we do not recommend bank transfer because it takes longer, and it can be very frustrating to see the price of Coinbase rising while you wait for your transfer to be done.
How to make your first trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Coinbase” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Why we recommend eToro:
- Very intuitive and straightforward
- Allows to copy trading tactics
- Allows you to go short
- You can leverage
- You can make investments in tons of different products
Official main site: www.etoro.com *
You should consider eToro in case you are interested in trading Coinbase shares from Egypt.
This platform is popular for making “social trading” a trend. Social trading is an innovative way of investing in which traders can emulate the moves of other investors who have been generating income for years.
eToro has solutions for you, even if you don't have much experience in trading, because it puts your investment on autopilot by replicating moves from those who have been doing it for years. Additionally, in case you are an investor, the platform pays for your knowledge.
Another advantage is how easy the interface is, which turns out perfect for new users that are just learning all about the trading world.
How does eToro work?
We said previously that eToro is very easy to manage. Anyone can start investing without previous experience or long explanations.
You won't have any issues with the interface if you are familiar with any other social network.
We will explain, roughly, the registration steps and the different sections that you will find.
When you register, you will have to fill in all the information that eToro asks for: first and last name, address…
To complete your profile, you will see that they ask you some questions about your experience at investing.
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.
Now we will explain the fundamental sections of the site.
In “Set Price Alerts”, you have, as its name indicates, the option to put alarms on the price of certain assets. You just have to click on the three points at the end of the line and you will be able to program a price alarm. This is very useful when you want to purchase 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”. As we mentioned previously, the six types of instruments on eToro are:
- Exchange-Traded Funds
- Index funds
The term “social trading” comes to life in the section “People”: there, you can duplicate the strategies of the users you find most inspiring with just one click. You'll be able to see all their profiles and historical performances.
In this section, you will be able to find those users that you find more interesting. You can apply filters like risk level, average profits, or financial instruments. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. If you have $ 1000 and the trader 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 advantage of using CopyPortfolios instead of copying individual investors is that this way the risk will be more diversified. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Thus, in case you think a specific industry, such as biotechnology or oil, will have good incomes in the future, you should look for that specific portfolio.
What is social trading?
eToro is a pioneer in social trading, it was the first broker to propose it. A lot of copycats have appeared since then, but we have tried them all and eToro is still the best.
But it wasn't just about creating yet another social network to talk about investment. The main achievement was in allowing users to copy the moves of experienced traders, and to reward the latter for their ideas and knowledge.
When you enter eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are a kind of portfolio that includes several assets of the same sector. Let's say that you consider that the gaming industry is going to prosper shortly but you don't have enough information (or time) to choose stocks, you just have to pick the CopyPortfolio “InTheGame”, which includes companies like Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…
You should know that in the past year, CopyPortfolio has generated returns of 100%. And you can benefit from it just by choosing a portfolio, enter your chosen amount, place the stop-loss order and click on “Invest”.
But you can also copy other users of the platform who are successful investors. With “Copy People” you can locate them and duplicate their moves easily.
In each user profile, you will see their risk profile (the higher the risk, the more possibilities of earning more and losing more), their performance, and what kind of instruments they trade: shares, forex, cryptocurrencies, commodities….
Besides duplicating other user's strategies, which is great and very helpful, we also suggest that you make the most out of the community by reading other users. You can learn a lot from their experiences and knowledge, particularly if you aim to make a living from investments.
When trading cryptocurrencies, there are different possible methods or strategies, such as day trading or buying and holding, for naming just a couple.
In case you don't have much experience in investment, I recommend something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
For example, if you purchase a cryptocurrency when its price is $ 15, then it rises up to $ 25 and decreases back to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will get a satisfactory income.
It may sound more appealing to sell when the price is at its maximum, but unless you're a fortuneteller, that's impossible. The above method is much more realistic and, well applied, it can work very well.
Eventually, you will be ready for applying advanced investment strategies, like going short to profit from bear markets or using leverage.
How does leverage work
Do you know what leverage is? Just in case, we'll define it shortly: another good thing about trading is that it lets you invest even more than what you really have. That is, if you have $ 100 and you choose to leverage x2, the amount of your investment will be $ 200.
About leverage, Take Profit and Stop Loss
Assuming that, for instance, you are sure that Coinbase price is going up, and that you have $ 1,000 for “going long”, you must know that you have the option of investing more and making more money.
There's the possibility of asking for a loan at your bank, but it is a process that takes time, and when you receive the money, Coinbase 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! eToro allows you to invest (and earn) much more money than what you have on the platform's wallet. As in the image below, you will see the different options you have:
Trading with other assets allows you to use more leverage. This is because cryptocurrencies are a value that is invested in the medium-long term. However, leverage is used mostly for day trading or short-term operations. But let's explain how this works with the previous example.
You enter with $ 1,000 and decide to use leverage x2, then you would really invest $ 2,000 (the extra $ 1,000 to reach $ 2,000 are “borrowed” from eToro).
A week later turns out that Coinbase price goes up and now the value of your investment is 20% higher, which means, you have $ 2,400 in Coinbase shares. So, a wise decision is to sell them back now.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you put in yourself, so the net profit is $ 400.
As you can see, with $ 1000 you get $ 400 more, no less than a profit of 40%. That's not bad at all.
It may sound too good to be true. The thing is, it can also play against you. If everything goes according to plan and the price goes up, you will earn more money in less time; but if the value of the asset decreases, you will also lose more in less time.
Supposing that the price didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but $ 40, because of the leverage. For that reason, when operating with leverage it is fundamental to take into account Take Profit and Stop Loss.
Take Profit is an automatic order of selling once the asset achieves a certain price: you buy Coinbase shares at $ 100 and you ask eToro to automatically close your position as soon as the price goes up to $ 120. It is very helpful to avoid being blinded by greed: we would all take a 20% profit in the beginning, but when you reach that 20% it is easy to ask yourself “what if this keeps increasing and it is a mistake to exit?”. It's like you got assured in advance of not doing anything dumb in the future.
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). Take into account that eToro will recommend a limit for Stop Loss, but it is better to place it closer to current price than that.
How does a demo account work?
In case you are taking your first steps as an investor, you can start by practicing with a “demo” option. You only need to set a virtual account and you will be able to operate with “imaginary” funds.
A virtual account can help you to practice and gain experience before starting to operate with real money. When you open your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of financial instruments available on eToro (not just with Coinbase).
Don't worry, since if you lose all your virtual funds, you can contact support so they can add them back to your demo account and you can make a second attempt.
But remember that you need to be prudent for trading, and demo account trading can have the reverse effect. It is not the same to risk your own money than to do operations with a fake balance which loss does not suppose any drama. Also, investing virtual money can prevent you from learning to control your emotions, something you should be able to do when trading.
Evidently, the virtual mode is kind of absurd if you intend to trade in the medium or long-term, since you would be wasting years to see the results. Virtual accounts may be helpful for practicing short or medium-term operations.
* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.