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How to buy
For those who live in Egypt, the best way to invest in Zynga shares is, definitely, 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 “Verify my email” 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.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “Zynga” 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.
Should I invest in Zynga?
Zynga is a multinational company in the video game sector whose market niche is focused on web social games. Founded in 2007, in its beginning it had a great boom thanks to its alliance with Facebook, where users of the platform had access to the games.
Many of these games were truly iconic, surely you will have played some of them or at least the name will ring a bell. Among the best known are FarmVille, CityVille, Mafia Wars, and CastleVille, having a large number of users on Facebook.
Currently, Zynga has its own web platform where it offers its games separately from Facebook, although some of them are still present in the social network. In them we can find that the company states that it has offices in Canada, United Kingdom and India, in addition to the United States.
Likewise, they also state that currently more than one billion people have played their games both on their website and on Facebook or any mobile platform. This is of vital importance when we analyze its business model.
According to the platform, its most popular games are FarmVille, Zynga Poker, Words with Friends and CSR (a car game). Although these are quite old, it also has more up-to-date titles such as a game based on Harry Potter and another on Games of Thrones.
Zynga's business model
Their way of generating money is very simple, they create an addictive game and publish it for free, but with some limitations that only disappear if the user pays.
An example of this are the games in which, if the user loses, he must wait a certain time to play again. But if the user pays a small sum of money, he does not have to wait this time, but can continue playing immediately.
In addition, there is the income from real money gambling games in which he usually earns a commission. Although in this case Zynga is as if it were a casino and therefore applies the rule “the house always wins”.
Zynga as an investment
Its share price is quite low and the stock has some peculiarities.
The first and most salient is that its stock market performance the last 5 years has far outperformed the growth of the SP500 and the NASDAQ Composite Index.
The second is that, in the same period of time, although the company has had a constant growth with little volatility, the accumulated return is more than 500% and still has the possibility of continuing to grow.
And obviously, this has put Zynga in the eye of investors looking for companies with good long-term returns in the market.
About Contracts for Difference
It is possible that you have seen the term CFD all the time if you already accessed eToro. Before we come back to it, we must say that cryptocurrency trading on the platform is only CFD when you go short.
If you want to know about day trading cryptocurrency or other operations, you will also meet concepts like short-selling and leverage.
The good thing about eToro is that it allows you not only to bet “in the black”, but through CFDs you can also bet “in red”. Let's say that you believe that the Zynga will go down, so perhaps you think that it is better to wait until it does and then go in. But if it really goes down, it is possible to earn some money out of that.
The operation known as “going short” will allow you to do that. It functions, pretty much, as it follows:
- You ask for a loan of, let's say, 100 units of Zynga, which total value at the moment is $ 5,000 (these numbers are made up)
- You make $ 5,000 by selling the 100 units
- The Zynga devaluates from $ 50 to $ 30
- Again, you buy the 100 units, but now their price is $ 3,000
- You pay back the 100 units to the loaner
- You keep the $ 2000 difference!
It is really simple. Just bear in mind that by trading in Zynga on eToro, you can make a profit if you foretell downs in the price.
If you still don't know what “leverage” is, we'll describe it briefly: it is the ability to use a higher amount than you actually have. For example, if you start with $ 100 and you leverage x2, your initial investment will be $ 200.
About leverage, Take Profit and Stop Loss
Assuming that, for instance, you are positive that Zynga 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.
Possibly, you could ask a financial company for a loan, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then acquire Zynga… But maybe once you have made all that, your prediction could've been confirmed a long time ago, and Zynga would be already so high that it is not worth investing.
Leverage is exactly like a credit, and you will only have to click a few times! You will be able to operate with much higher amounts than what you actually have on the platform's wallet. Before trading, you will how much leverage to use as in the screenshot:
Within other markets, you can use more leverage. Why? Because leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's deepen a bit more on how all this works.
You start with $ 1,000 and pick leverage x2, then you would have $ 2,000 to invest, since eToro would put the other $ 1,000.
A couple of days pass and, indeed, you were right: Zynga price raises its price by 20% and the value of your investment is now $ 2,400. Ok, don't be greedy, let's sell.
You will have to pay back the $ 1,000 of leverage and you will have made $ 400 (since the other $ 1,000 was your initial investment).
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.
Does it sound too wonderful? The trick is that the risk of losing out also increases. If everything goes as you planned, you will earn more money in less time; however, 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 went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. That is why to operate with leverage it is crucial to know about Take Profit and Stop Loss.
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 bought Zynga shares at $ 100, you can ask eToro to close when it reaches $ 120. That way, you make sure you won't change your mind and decide to wait a bit longer in case it keeps going up, which could be a mistake.
On the other hand, when operating with leverage you should always use Stop Loss, because a small fall in the price of an asset can lead to a substantial loss. That is why it is essential to set a Stop Loss more tight than that suggested by the platform.
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading, for naming just a few.
In case you are a beginner in the world of investment, I suggest a middle point: placing a dynamic stop-loss (15-20% under the highest price) when you open your position and wait for it to work on its own.
For instance, if you buy a cryptocurrency at $ 15, it rises up to $ 25 and decreases back to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Therefore, you will get a satisfactory income.
You may be wondering: why not selling when the price is at its maximum? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and give good results.
Sooner or later, you will be prepared for applying more advanced investment strategies, like using leverage or going short to make money from bear markets.
For those who still don't have much experience in investing, a demo account can be useful. Just assure yourself that the virtual mode is set in the top left corner of the page and you can start operating with fictional funds.
A virtual account can help you to practice and gain experience before starting to trade with real money. When you open your demo account, you will begin with a virtual balance of $ 100.000, to operate with a variety of financial instruments available on eToro (not just with Zynga).
If your performance is not that good and your balance ends at zero, you can always ask the platform to replenish $ 100k of virtual funds. Probably the second time will be much better.
But keep in mind that trading is mostly about being cautious, and demo account trading can have an adverse effect. It is completely different to risk your own money than to do operations with a fake balance which loss does not suppose any drama.
Finally, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and waste years waiting to see the results. But it can be very useful if you want to practice short and medium-term trading.
How does eToro work?
We mentioned previously that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.
You won't have any problems with the interface if you are familiar with any other social network, like Instagram or Facebook.
We will explain, roughly, the registration steps and the different tabs that you will find on the page.
First of all, you will have to enter your personal data.
Additionally, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated. 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.
Next, we will explain the fundamental sections of the site.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. This is ideal if you want to buy an asset that is falling but you believe it will decrease more to a certain point.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments that are available on eToro:
- Exchange-Traded Funds
- Forex trading
- Index funds
In “People”, you can find eToro users and their performances. This is where the term “social trading” makes sense since you can duplicate the movements of the traders that inspire you the most.
You can search for those users that best suit your interests: by risk level, types of financial instruments, average earnings… You just have to choose the amount you want to invest and eToro will be in charge of replicating the movements of the selected investor, in proportion. “In proportion” 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 the same company.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
Remember that in some cases, it might be preferable to copy from CopyPortfolios than to individuals, since you avoid putting all your eggs in one basket, or in other words, risk is more diversified. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to have success in the future? Then you will surely find a CopyPortfolio about it.
* 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.