Why we reccomend eToro for trading with Dash from India?
- Allows to copy investment tactics
- You can go short
- Really intuitive and straightforward
- Leverage is allowed
- It is possible to make investments in countless of different products
Official main site: www.etoro.com/dash
You should certainly consider eToro if you are interested in acquiring Dash from India.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
If you are a novice user or do not have much investment experience, eToro is great for you, since it automatizes your investment by repeating strategies from those who have been doing it for years and making profits. Oppositely, if you are an investor willing to share your abilities with other traders, eToro pays you for it.
Besides, this platform is completely intuitive, ideal for those who want to begin in the Dash world, without ending up overwhelmed with tons of diagrams and numbers.
How to use eToro
We already said that one of the best things about eToro is how simple it is. 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 have used any of the most common social networks, like Twitter or Pinterest.
Now we are going to detail the registration process and the sections of the page that you should know.
First, you will have to fill in your personal data, like first name, last name or address.
During the sign-up process, you will also have to answer some questions about your previous trade experience.
But don't feel intimidated, there is no right or wrong answer. They only intend to find out about your previous experience and knowledge to know which instruments to recommend for you.
Next, we will talk about the different sections of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alarm when a security is at a certain price. This is helpful if you want to purchase a security that is falling but you believe it will decrease even more.
“News Feed” is for social purposes. This is the section where users can share opinions and information.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we already discussed the kinds of assets that are available on eToro:
- Exchange-Traded Funds
- Raw materials
- Index funds
In “People” are all the profiles and historical performances of other users, and you can replicate their strategies with just one click. This is where the “social trading” term is best applied.
In this section, you will be able to find those traders that you find more interesting. When you choose an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For example, if you invest $ 1000 and the user puts 20% of their funds in an asset, the platform 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 individuals is that this way the risk will be more diversified. The different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to succeed in the future? Then you will surely find a CopyPortfolio about it.
Is eToro safe for purchasing Dash?
eToro is very rigorous with the data about past performances from traders, and its integrity has been tested once and again 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 covers debts up to € 20,000 from its clients. On the other hand, eToro meets all the strict policies of the European Union.
eToro responds to the European Financial Instruments Market (MiFID) in Europe, and to the Financial Conduct Authority or FCA in the USA. 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 money is safe.
No less important is their excellent customer service. You can reach them by phone or use their live chat.
eToro payment methods
Within the payment methods accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is a very easy process. Just go to “Deposit funds”, type the amount and select your preferred method.
Consider that for security reasons, you must be the owner of the account or the credit card.
The lowest amount you can deposit is $ 200, and there is a maximum allowed for unverified accounts. Therefore, if you want to trade with larger sums, contact Support previously to verify your account.
The platform accepts deposits or transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD from the beginning.
What do you know about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds: they can be exchanged regularly at market price, but offer much more variety and considerably lower rates.
Forex or currency trading allows obtaining profits by exchanging one currency for another.
For example, if you decide to trade EUR and USD, you speculate how many dollars it will take to buy a euro, hoping that the euro will raise its price compared to the dollar. Therefore, if you purchased each euro at 1.15 USD and you sell them back when they cost 1.20 USD, that margin will be yours.
You may be thinking by now that operating with currencies requires high investments, and you're right, because fluctuation in prices is never that dramatic, and often you will need to use a lot of leverage (which is an important risk). Our recommendation for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
You can trade with almost every currency on eToro. Nevertheless, consider that in Forex trading sales are made through contract for differences, so you will not be the owner of the real asset.
Stocks are the most common financial instruments. Some companies decide to split into portions: you can be one of those shareowners, but first, you should know where and how to make your investment.
We can categorize stocks into two main types: the ones that divide their earnings regularly among the stockholders, and those that don't payout. The former ones are great, obviously, but investing in the latter can be a good idea too since sometimes you can make even more money by selling the shares later.
On eToro, if you choose a company that distributes dividends, you will receive them in your account, and you can collect them in cash or reinvest them. Our suggestion is, if you don't have financial urgencies, that you benefit from compound interest and reinvest it in the company itself.
Take into account that on eToro you can use leverage to “dope” your trades, but in that case, you will not receive interest as the trade is a CFD. For long-term investments, it is not advisable to use leverage: not only because you lose dividends, but you will also have to pay commissions during the days that you keep the position open, and these can end up eating your gains.
The main benefit of investing in commodities is that prices are more stable than those of other assets. Actually, their security is what makes people often invest in raw materials, to take refuge from market volatility or inflation. Nonetheless, 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 profit from the investment in raw materials will be the hypothetical capital gain after the sale since, unlike stocks, these do not distribute dividends or pay interest.
Commodities are commonly categorized into hard raw materials, which include precious metals as gold, silver, or copper, as well as industrial metals, and oil; and soft raw materials, which are basically agricultural products, like soy, cocoa, corn, or rice.
About Index Funds
If you are interested in long-term investments, and you won't need to withdraw your money in five years or maybe a decade, index funds can be the best alternative. This type of investment is also great for beginners since it is more secure.
Unlike a lot of people think, benchmark returns are very difficult to beat and very few fund managers have done it, apart from some famous cases, like Warren Buffett's.
In practice, all that glitters is not gold: 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 anyway.
Index funds offer solutions to both concerns: their fees are insignificant and in the long term they tend to beat active managers.
Futures Vs CFD
How are Futures and CFDs different?
- Futures: operations are made with someone else, another trader.
- CFDs: the counterparty is eToro, the brokerage.
- Futures: there is a date of expiration. Once the contract expires, it is closed and can't be reopened.
- CFDs: on the contrary, they do not have an expiry date. As a result, you can wait for your position to rise before closing.
- Futures: options are much more limited
- CFDs: a lot of variety, there are CFDs of practically anything
- Minimum investment amount or “trade size”:
- Futures: very high minimum investment
- CFDs: very low
- Trading costs and charges:
- Futures: being higher figures, the costs are, commonly, proportionally lower
- CFDs: fees are higher
- Use of leverage:
- Futures: you can't leverage
- CFDs: it is always possible to leverage
How do Contracts for Difference Function?
You probably have found the term CFD now and then if you entered eToro before. Before we come back to this, you should know that CFDs on eToro are only possible when you short sell or leverage over x2 (although this is not even an option on the platform).
In case you are considering day trading cryptocurrency and other more advanced practices, next you will also find information about concepts such as leverage and “going short”.
Even if you aren't “in the black”, you can still operate on eToro with CFDs. In a hypothetical case: you are sure that the Dash will fall, 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, this way:
- You ask someone to lend you, for instance, 100 units of Dash, which total price at the moment is $ 5,000 (these figures aren't real)
- Next, you make $ 5,000 by offering them at the market price
- The Dash devaluates from $ 50 to $ 30
- You purchase all 100 units one more time, but at the current price, $ 3,000
- Then you return the 100 units to the loaner
- The rest is yours, so, you will have made $ 2000
It is far more simple than it may seem. Just consider that by trading in Dash on eToro, you can make a profit when you anticipate downs.
There are several methods to operate cryptocurrencies: from purchasing and holding to day trading (taking advantage of market volatility).
If you don't have much experience in investment, our suggestion is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) when you open your Dash operation and wait for it to work on its own.
This means that if, for instance, you acquire a cryptocurrency at $ 10, it reaches $ 20, and after that it falls to $ 12, your position will be closed at $ 16-17 and you will have made a decent profit.
It may sound more appealing to sell when the cost is at its maximum, right before corrections, but that is simply not possible. The above method is much more down-to-earth and it can give great results.
And when you have more experience, you can take your first steps with advanced investment techniques, such as short-selling or using leverage.
How does a virtual account work?
Are you beginning in trading? Using a demo account can be useful. You just need to set the virtual mode and you can start practicing with a “fictional” balance.
A virtual portfolio can be a good way of gaining confidence before starting to trade with real money. When you create your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on eToro, besides Dash.
The first attempt is not usually that good. But don't worry, because you can ask support to replenish the virtual $ 100k to your portfolio, and the second time you should do better.
Keep in mind that you should always be prudent when trading, and using a virtual account might have the opposite effect. It will never be the same as risking your own money.
As you may suppose, if you intend to invest in the medium or long-term, with earnings almost guaranteed only by duplicating an index, it is absurd that you waste years investing in virtual mode. On the other hand, the virtual mode can be helpful to practice with short or medium-term trading.