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www.etoro.com *
*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.
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How to buy
If you live in Philippines, a great way to buy IOTA is, without any doubt, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the United Kingdom's Financial Conduct Authority (FCA).
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 our language, accepts users from Philippines, 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.
Now check your email inbox: you 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.
How to make your first purchase
When eToro has confirmed the receipt of your credit, you just have to search for “IOTA” 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.
eToro, our recommended platform
- It takes other users successful investment strategies so you can replicate them
- You can go short
- Very intuitive and simple
- eToro allows leverage
- Allows you to invest in thousands of other products
Homepage: www.etoro.com *
eToro is probably the best option nowadays to purchase IOTA from Philippines.
“Social trading”, an innovative investment method that consists in replicating techniques and moves from other experienced investors, has become trendy because of eToro.
If you are a novice user or haven't gained much experience in investments, eToro is great for you. You can rest assured that you will be making a smart investment since the site replicates those from subjects with a long profit record. Oppositely, if you are an investor willing to share your knowledge with the community, eToro rewards you with money.
Besides, the interface of the website is so uncomplicated, great for users who want to start learning about stocks and investment, without ending up overwhelmed with tons of diagrams and numbers.
Assets available in eToro
Besides criptocurrencies, there are other financial assets you can trade .
Exchange-Traded Funds
Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for merging the advantages of stocks and mutual funds, because they can be exchanged at any moment in the market, but have much more investment possibilities and considerably lower rates.
Commodity market
The major attraction of investing in commodities is that their price fluctuates less than that of other assets. Actually, their stability is what makes people often invest in raw materials, to take refuge from market volatility or inflation. However, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Consider that the only intended profit from the investment in raw materials will be the hypothetical capital gain after selling them back: unlike shares, these do not give returns or pay interest.
Raw materials are commonly classified 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 goods such as coffee, rice, soy, or sugar.
Forex trading
Foreign exchange trading or Forex consists, as the name says, in the exchange of currencies. Put differently, is the conversion between two currencies to make a profit through the operation.
For instance, if you want to trade euros and dollars, you acquire euros at their price in dollars, with the expectation that the first currency (the euro) will increase compared to the second (the dollar), to make a profit by selling it. Let's say you entered when the price of one euro is 1.10 USD and you leave when it is worth 1.15: as a result, that difference will be yours once you sell back.
Perhaps you already inferred this, but this type of trading usually implies a large capital, because prices never increase that much, or using much leverage, which you know is a risk. Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and simpler market.
eToro allows exchanging the most known currency pairs but bear in mind that Forex trading works with CFDs, thus you will not own the real asset.
Equities
Stocks or equities are the most common financial assets. Some companies divide their capital into portions: you can be one of those shareowners, but first, you should know where and how to make your investment.
We can group stocks into two different kinds: those of companies that distribute their earnings among the shareholders and those that don't pay regularly. However, that doesn't mean that those of the second type have less to offer. If a company does not pay every year but has a lot of potential, it can still represent a good inversion, since the capital gain you will get from the sale of the shares can be much greater than what you would earn through dividends.
If you invest in shares that pay out dividends, you will receive them into your account on eToro. Therefore, you can collect that money or you can choose to reinvest it. However, you can benefit a lot from compound interest, so our suggestion is that you reinvest in the company if you don't need the money immediately.
Consider that when investing in shares on eToro you can use leverage to “dope” your trades, but in that case, you will not receive gains as it would be a contract for difference. That is why for long-term investments, it is better not to use leverage: you can end up not gaining at all, since you will not get dividends and also you will have to pay commissions while your position is open.
Trading strategies
You can operate cryptocurrencies in many different ways: for instance, you can buy and hold, or you can day trade using volatility of the market to your advantage.
In case you don't have much experience in investment, I recommend something in the middle: when you open your position, place a dynamic stop loss 15-20% below the top price, and let the rest happen on its own.
For instance, if you purchase a cryptocurrency at $ 15, it increases to $ 25 and falls back to $17, the stop-loss will close your position at $ 21 or $ 22. Hence, you will obtain a good profit.
Perhaps you are wondering: why not selling back when the price is at its highest? But that would only work for a psychic or a fortune-teller. The mentioned strategy is more down-to-earth and can work out perfectly if it is well applied.
Eventually, you will be prepared for applying advanced trading strategies, such as using leverage or going short.
Leverage
If you still don't know what “leverage” is, we'll describe it briefly. When trading, it's the capacity of enlarging your investment by borrowing money from the broker. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.
Why using leverage and how to do it
Assuming that, for example, you are positive that IOTA price is going up, and that you have $ 1,000 for “going long”, you should know that you can increase your investment and make more money.
Possibly, you could ask a financial company for a loan, wait for it to be accepted, wait for the money, and then purchase IOTA… But maybe once you have made all that, your prediction could've been confirmed a long time ago, and IOTA would be already so high that it is not worth trading.
Leverage is just like a credit, and you will only have to click a few times to get it! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform. Before trading, you will find the leverage options as in the image below:
Trading with other assets allows you to use higher leverage. Why? Because cryptocurrencies are a value that is invested in the medium-long term, and leverage is used especially for day trading or short-term trading. Let's talk a bit more about how leverage works.
If for your investment of $ 1,000, you use leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro would be “loaning” you the extra $ 1,000.
A week later turns out that IOTA goes up by 20% and now your investment costs 2,400. But you don't want to be too greedy, so you decide, wisely, to sell again.
You will have to give 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.
But not everything is wonderful. If everything goes ok and the asset increases, you will make money. However, if the price falls, you will also lose more money in the blink of an eye.
For example: if the price falls by 10%, you do not lose $ 10, but twice (the leverage) that figure, that would be $ 20. That is why the concepts of Take Profit and Stop Loss are crucial when trading with leverage.
Take Profit is an automatic order of selling once the asset achieves a certain price: you buy IOTA at $ 100 and you ask eToro to close your operation as soon as the price reaches $ 120. It is very useful to avoid being blinded by enthusiasm: we would all take a 20% profit when investing, but when you reach that 20% it is easy to want some more and risk losing it all. It's like you got assured in advance that you won't be irresponsible.
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 virtual portfolio work?
If you do not have much experience investing, the option to operate in “demo” mode will be helpful. You just have to make sure that the “Virtual” option is set in the upper left corner and you will be able to operate with “imaginary” funds.
This can be a great way of gaining experience and confidence before trading with real funds. The platform will give you an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can operate with a variety of financial instruments in your portfolio, not only with IOTA.
The first attempt is not usually that good. But you can ask eToro to replenish the virtual $ 100k to your portfolio.
Nevertheless, keep in mind that investing is mainly about being cold-minded, and using a practice account can have an adverse effect. It is completely different to risk your own money than to trade with virtual funds that you don't mind losing.
As you may suppose, the demo mode is kind of pointless if you intend to invest in the medium or long-term, since you would be wasting years to see the outcome. Virtual accounts may be ideal for practicing short or medium-term operations.
Frequently asked questions
* 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.