PrimeXBT Trading Platform Review

Aug 28, 2020
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learn it, it helps you financially

 

Whenever there are useful trading platform, i will just get very excited. Today, there are many supposed to be good trading platform, but i’m going to share with you about PrimeXBT which is so much better than the rest.

There is fierce competition throughout the cryptocurrency market when it comes to the battle between top trading platforms. The trend has also leaned heavily toward margin trading platforms, as using leverage has become all the rage with cryptocurrency traders, seeking to maximize profit opportunities across speculative assets.

PrimeXBT is one of those margin trading platforms, but it boasts some unique features that others in the market simply cannot compare to. This platform review aims to educate the reader on if PrimeXBT is worth signing up for, and how to get started once a decision is made.

try trading

Platform Benefits

PrimeXBT is an ADVFN award-winning Bitcoin-based margin trading platform offering up to 1000x leverage on commodities, stock indices, forex, and cryptocurrencies.

Here are the platform’s primary benefits and features:

  • Fast registration with no KYC
  • Low minimum deposits, and low minimum position size requirements
  • Easy withdrawals, with address whitelisting and bank-grade security
  • Long and short positions, even simultaneously for hedge positions
  • Built-in technical analysis software, with key indicators
  • 1000x leverage on forex, gold, and silver; 100x on crypto, stock indices, commodities
  • Advanced order types such as stop loss and take profit orders
  • Additional revenue streams, such as a referral program and CPA offers
  • 24/7 live customer service
  • Powerful security and reliable trading engine
  • Innovative tools to separate platform from competition

Based on these factors, it is recommended users give PrimeXBT a try, due to the ease of registration and the availability of free demo accounts and educational materials. It is an ideal platform for new users, for this reason, but advanced trading tools keep things interesting and satisfying for professional traders.

Here is a full platform overview and a review of each individual component of the platform and user experience.

Registration

Few platforms provide as simple of a signup process as PrimeXBT. In less than one minute and no personal information beyond an email address and country, users can get started with making their first deposit.

The only steps required are entering a username and password, then confirming your email address.

Only for investing

Deposits

Accounts are denominated in BTC, and all deposits must be made to a BTC address. A low minimum deposit of 0.001 BTC is required.

Funds are made available after a Bitcoin deposit is confirmed. Additional deposit methods are available through a third-party service called Changelly.

Once the deposit is made, the trading account must be funded. This is a helpful tool to keep some capital separated from what is currently available for margin in the trading account.

Withdrawals

Withdrawals are equally simple, but remember to only send to another BTC address. Sending to a different cryptocurrency address could lead to a loss of funds.

Withdrawals are added to a queue for a once-a-day rollover period at which withdrawals are processed. Pending withdrawals can be canceled until a window ahead of rollover is reached.

Trading

The trading terminal can be customized to the trader’s liking, with a variety of widgets. These include watch lists, and charts with built-in technical analysis software and many top trading indicators, such as Ichimoku, RSI, Parabolic SAR, and many more.

Long and short positions let traders profit from whichever the way the market turns, and both types can be open at once for hedge positions.

Orders executive quickly with minimal slippage, and the trading engine has reliable uptime of as much as 99.9%.

Stop loss and take profit orders assist traders in minimizing risk and maximizing profit potential.

Assets

Over 50 unique asset markets are offered by PrimeXBT with up to 1000x leverage. This includes:

  • Cryptocurrencies such as Bitcoin, Ethereum, and Ripple.
  • CFDs for major stock indices like the S&P 500, ASX 200, or the DAX 30.
  • The world’s most popular forex currency trading pairs across USD, JPY, AUD, and many more.
  • Commodities natural gas, Brent and WTI Crude oil.
  • Precious metals gold and silver.

The variety provides more opportunities to profit than most other competitors and offers unrivaled portfolio diversification. Right now, traditional markets are especially attractive for traders, making PrimeXBT an exceptional value proposition.

Referral Program

The top PrimeXBT trader has already generated over 50 BTC alone, according to the leaderboard.

This was achieved through the platform’s lucrative four-level referral program. As each referred trader brings new traders to the platform themselves, the original client to make the first referral will continue to earn commissions from each new referral forward, up to four levels of commissions.

trading as investment

CPA offers are also available, as are exclusive ambassador relationships, complete with personal customer care representatives.

Customer Service

24/7 live customer service is available via online chat, who are ready to assist with any issue or provide assistance with using the platform.

A help center is also offered and the company provides regular updates, guides, and more through the company blog. Further assistance is often provided via official social media accounts.

Security

The website itself is encrypted and uses Cloudflare technology to prevent DDoS attacks or other disruptions.

Address whitelisting is enabled on withdrawals, and two-factor authentication can further secure accounts.

The best security measure of all, however, is the fact no personal info is ever required.

Turbo

PrimeXBT recently launched a separate platform for short duration, synthetic Bitcoin contracts. Traders can simply choose from an UP or DOWN contract, then when the duration of 30 seconds, one minute, or five minutes passes, either a profit or loss is booked.

Check the steps for bitcoin contract

This tool is especially interesting for when markets are lacking a defined trend, and are tightly ranging.

Summary

PrimeXBT took home several awards recently, including the ADVFN award for Best Bitcoin Margin Trading Platform.

With so many profitable tools to choose from, fast registration, and the widest variety of traditional and digital assets, PrimeXBT can help provide traders with an edge that few others can offer.

Sign up today for a free trading account on PrimeXBT.

 

Discovering DeFi uses

Aug 28, 2020
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decentralised finance

DeFi stands for decentralised finance and majority of these are build on ethereum blockchain. So what is DeFi and why it is so powerful and how it affects ethereum price.

A lot of decentralization in crypto world is a buzz up actually. Many are not decentralized so one need to do research. There are now starting to have DeFi project base on other blockchain like Tron blockchain.

Looking at the deFi space, one of the website to go to is Defipulse.com where you can see the market size etc. If you are interested, one of the most popular DeFi coin is Maker. If you want to take up a loan, you can put into cdp and take some money out as a loan and take interest.

How much value locked on DeFi tokens

Anyone in DeFi community knows this site

 

One can borrow money, you can do it in the DeFi space. Most of the time it is over collaborated. You need to put money to take out money. You have to reach certain level of collaboration. If you go below that, you might have your loan liquidated. It is not like personal insecure loan. It is different from bank where they will see your credit check and ensure you are capable to pay back your loan.

There isn’t a universal credit score in the DeFi ecosystem yet. Rather than running somebody credit score, they made you put some money and if you didn’t pay loan back, they will take it away. You can borrow money, you can also supply money. If you want to earn interest, you can earn money using a pool and earn money back.

In addition, you can also trade on the DeFi space. Dydx allow you to do margin trading. This is among many others exchanges. Token sets is also getting hot. There is also with defi space is take a cool product that airswap bulid. A lot of different place to hop in to.

Loanscan.io is great which is an aggregator with different types of things you can do in the DeFi space. You can earn interest if you want to.

When comes to DeFi token, Yearn Finance is the one that sets the most pulse running. When it is officially launched on several main crypto-exchanges, the price ballooned from $32 per token in early August to $10,000 in late August 2020. At several instances, it got past $30,000 easily.

yield finance token

Andre Cronje

Yearn finance token is the brainchild of Andre Cronje, a South African who first created yEarn. Since then, the tokens he create has been gaining in popularity ever since with no slowing down.

Social trading with eToro

Aug 21, 2020
0
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Just to intro myself first. My name is Johnny Lim. I am 21 years old and still schooling.

I’ve always had an interest in the financial markets but, like most of us, I had no real idea how to break through the castle walls and actually trade. I used to walk around Raffles Place and Shenton Way, looking around aimlessly. I never thought i can trade, and definitely never even dream that i can do well in this…

That all changed about a year ago. I was a final year student and came across a platform called eToro which blew open the doors and allowed me to start trading online. eToro is up to 20 times cheaper than traditional stockbrokers, with 0% commission on real stocks.

etoro

Sound easy enough?

Well, actually it’s not all that straight-forward. It’s important for you to know that I have been on quite a learning curve. Whilst I’ve been enjoying the whole experience, I’ve also made some rookie mistakes.

For total beginners the eToro platform and the concept of trading itself can be a little daunting at first. So with the benefit of hindsight and my own personal trading experience on eToro, I wanted to put together a comprehensive no-nonsense guide to help others get the best results as quickly as possible. And here it is…

What’s in this guide:

  • What is eToro?
  • Getting started
  • Copying other traders
  • How to make money trading
  • Becoming a Popular Investor
  • Understanding (and reducing) the costs
  • Avoiding common mistakes
  • Useful investing resources

 

What is eToro?

eToro would describe themselves as an accessible trading platform that incorporates a social element into investing. I’d describe them as Facebook for trading. They first went live in 2006, and are now the world’s largest investment network with a community of 4.5 million users.

The platform and the wider phenomenon of social investing have been widely covered by mainstream media, including a recent BBC documentary called Traders: Millions by the Minute.

The most unique feature of eToro is probably ‘CopyTrader‘. This allows you to sort through other users and plainly see their trading history, including how much they have made or lost over any given period. If you find someone you like the look of, you can allocate some funds to automatically copy their trades.

Another big plus is the ‘Popular investors‘ program. This rewards users based on how many copiers they have in the form of monthly commission. The program also incentivises responsible trading, and we’ll discuss this in more depth towards the end of the guide.

So with the social and copying features, you’ll certainly learn a great deal relatively quickly! Most of the need-to-knows you’ll pick up by reading this guide or playing with a demo account.

chart risingTake it easy at the start and make sure you know what you’re doing before investing larger amounts of money. Trading on eToro can be very profitable but it’s important to note that, whenever you’re dealing with the markets, you can lose money too (“your capital is at risk”)!

 

General Pros & Cons about eToro

It is a great way to trade with eToro, whether you are trading in stocks, cryptocurrencies, forex among others. It act like a social trading broker. However, for benefits of audience, i like to share briefly the Pros & Cons with eToro as below:

etoro trading

 

Create your investing account

  1. Sign up for eToro.com

    No lengthy paperwork here, it’s free and really very straightforward! Simply enter your details and choose a username. They ask for a phone number to protect your account’s security.

    You’ve now opened up the world of real-time trading, but to actually make trades you’ll be prompted to complete your profile ?

    Disclaimer: eToro is a multi-asset platform which offers CFD and non-CFD products.

    75% 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.

    This content is intended for information and educational purposes only and should not be considered investment advice or recommendation.

    CFDs are a type of leveraged product that we do not recommend in this guide, we are concentrating on buying and holding actual stocks you own.

  2. Complete profile

    This is an important step to protect your account and tailor the eToro platform to your needs.

    The first part covers basic personal information (you don’t need to enter an ‘Identification Number’ if you’re unsure).

    Next there are a couple of trading experience questions. It’s not a test so don’t worry too much about the answers, just try and be honest.

  3. Deposit

    Click ‘Continue to deposit’ (or ‘Deposit funds’ at the bottom left).

    The minimum you can deposit is $200, which is perfect for getting started.

    Note: eToro’s main currency is $USD but you can deposit in £GBP and other major currencies. It will be converted to $USD in your account.

  4. Familiarising yourself with the platform

    I’ll just give you a very quick overview of the main sections of eToro for now. We’ll delve more into each one later as I explain how to browse and trade in detail.

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Watchlist

Organise the people and markets you’re interested in copying or investing in. You can create multiple lists, such as ‘promising stocks’ or ‘people to copy’.

Portfolio

The nerve centre of your investment journey. View all your open trades with live tickers and values, and monitor your performance.

News Feed

This is just like your News Feed on Facebook, where you can see everything the traders you follow have been doing and saying recently.

Trade Markets

The place to research and trade in the markets available to you: stocks (eg. Apple), currencies (eg. GBP/USD), commodities (eg. gold) and indices (eg. UK100) and ETFs.

Copy People

The heart of the community. Search through other traders who you may want to copy or follow. There are loads of useful filters to help narrow down to the results you want, such as markets and performance.

Now that you’re a part of the community and have explored the site a little, I’m going to share the 3 main ways to invest on eToro with you.

 

Copying other good traders (Copy People)

This is the simplest way to invest on eToro. When you copy someone, every trade they execute is simultaneously opened in your account too and then closed when they close it.

It’s all proportional to what % of your total account’s funds you choose to allocate to them (more on this later), but ultimately you will achieve the same rate of return as they do.

Finding reliable traders to copy on eToro isn’t always as straightforward as it might appear. You need to know what to look for and what to stay clear of (more on this later on). Allow me to help you master the art of copy trading…

Avoid the most common mistakes!

do_not_signLet me point out the numero uno mistake beginners make right away: being a sheep. When you venture into the ‘ Copy People’ section looking for a trader to copy it’s intuitive to sort by ‘most copied’ and blindly copy the top results. You’d think that the most copied people have lots of copiers for a reason, right? The wisdom of the crowd perhaps.

But the reality is that most people on eToro are complete beginners and don’t really know what they are doing. If a few people copy a trader for the wrong reasons, that trader can quickly ‘go viral’ with exponentially more copiers following suit without thinking for themselves. Let me give you an example.

etoro copytrading

A popular yet under-performing eToro trader

 

Even though this trader has extremely poor performance (he would have lost 98% of your money over the last five months if you’d copied him), he still has close to 2,000 people copying him! Bizarrely this happens quite a lot on eToro, so I’ll be explaining the process I follow when copy trading.

Having warned against consistently under-performing traders, the other big pitfall beginners fall into is over-trading. It’s incredibly tempting to keep checking how much you’ve made or lost every few hours, but emotions will cloud your better judgement and lead to tinkering.

No trader will EVER profit every single week or month, so I highly recommend you take a medium/long-term approach. This requires patience and discipline, but you’re more likely to see better gains over time.

 

Finding the best traders to copy

First off click on ‘Copy People’ on the eToro sidebar.

You can either simply scroll down the page to see promising and trending popular investors…

etoro best traders

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This is not investment advice.

 

…or you can use the advanced search feature. Everything in blue you can change to meet the criteria you’re seeking in potential traders to copy.

etoro search

Hit ‘GO!’ for a list of matching traders, ordered by the number of copiers they have. To further drill down use the filters at the top.

5 attributes EVERY trader you copy should have:

  1. Really demonstrate their market knowledge and experience on their profile feed
  2. Have low weekly and daily drawdowns (basically how much they’ve been ‘down’ over a given period). Anything more than 10% should be a red flag
  3. Don’t have ridiculous returns. I know this may seem counter-intuitive, but if you see someone with 1,000%+ returns in a very short period of time, realise that this is unsustainable luck and can only be achieved by being reckless
  4. Don’t have a 100% win rate. It’s perfectly normal to close some trades in the red, this is a sign of discipline and experience. Beginners chase their losses, proper traders know when to cut loose
  5. Are communicative. You want to copy someone who can help you learn and is willing to share their trading methodology. If they don’t reply to your messages they either don’t care (likely to trade carelessly too) or they don’t know how to answer because they don’t have a clue what they’re doing!

Viewing a trader’s past performance

I’ll now walk you through assessing an individual trader before outlining the exact steps to copy a trader, so you can understand what to look for and how the process works.

etoro stats

Viewing a trader’s stats

 

By clicking on the ‘stats’ tab in a trader’s profile you can access some very useful information to help determine whether they are worth copying or not.

etoro history

My eToro performance. Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This is not investment advice.

 

There are two other key things to look at here. The risk score indicates how risky a trader is and the max drawdown shows the maximum a trader has ‘been down’ in a single week during this period. Same idea for daily and yearly.

etoro riskreward

Trader’s risk/reward stats

 

It’s interesting to compare current risk to past months to see how their strategy has evolved. Anything green shows a very safe, low-risk low-return attitude. The spectrum then moves through yellow, orange, red and black where the risk is highest.

I personally steer clear of anyone with more than a seven, but it can be good to have a mix of traders with different styles.

How to copy a trader

Copying itself is simple. Once you’ve found a trader who you feel is reliable, simply open their profile and click on the blue ‘Copy’ button.

You’ll then be prompted to enter an amount with which to copy that trader, and you’ll see some useful information appears.

etoro copy

Copying a trader

 

Let’s say you copy a trader with $200, then “Avg. copied trade size” leads us to how the copying actually works in real dollar terms. In the example above, each trade you copy would be (on average) $2.72. Proportionally this is just 2.72% of the total ($5.44 out of the $200) of your total investment in them. In this case, it’s a good sign as it shows a cautious and safe investment style.

You can also set a “stop loss”, which is a means of protecting against heavy losses, set at 40% by default. If the person you are copying loses 40% of your investment, your account automatically stops copying them. You can set this level to whatever you want, depending on how much risk you’re prepared to take. Personally I keep the number closer to 25%.

Monitoring your performance

Clicking on ‘Portfolio’ takes you to your open trades.

etoro webtrader

My Portfolio showing Open Trades

 

This is the actual trading area and your nerve-centre. Here you can monitor all of your current open positions and close them, and also access a record of your trading history.

All of your copied traders (and in fact any of your own investments) will be listed in your Portfolio. You can see your overall return on the investment in a trader, and also click on the person to see what positions they (and you) currently have open, and how these are performing individually. Usefully you’re able to close individual copied trades without uncopying a trader altogether.

Watchlist users

It’s worth noting that you can also just ‘follow’ traders (without copying or investing in them) so their updates show up in your Watchlist and News Feed, as with Twitter. It’s a good way to gauge whether you think they’re worth copying and tune into useful information.

 

Trading well yourself

hand_cardOnce you’ve familiarised yourself with the eToro platform and (hopefully) had some success copying other people, you can start thinking about placing your own trades.

You need to think a bit harder and do your research. Any shortcomings are squarely on you now!

Focusing your energies on the stock markets gets you used to the platform and the whole process of opening and closing positions without too much pressure. You probably have a fair amount of existing consumer knowledge here too.

Which stocks should you choose?

Well, that’s up to you, partner. I cannot offer specific investment advice. All I will say is that it pays dividends to do your homework, read the news frequently and listen to earning announcements. Only invest in stocks or companies that you believe are in a strong and healthy position to resist market shocks, and ultimately have room to grow.

If you’re really serious, you might also want to read up on the price/earnings ratio to identify undervalued/overpriced stock.

What I can do though is take you through the steps of placing a trade on eToro.

How to buy stocks and shares

Click on ‘Trade Markets’, then ‘Stocks’, then ‘Industry’. Choose an industry, for example ‘Consumer goods’.

You will then be presented with a list of all consumer goods stocks tradable on eToro, along with their respective prices and change over the past day.

etoro markets

eToro markets

 

Let’s pretend we want to buy some Apple stock, say $50 worth. Click on ‘AAPL’ (this is the ticker used for Apple on the stock exchange) and you will first see the ‘Feed’. This displays all the latest news and insightful discussions surrounding the Apple share price and the company’s activity in general.

etoro livefeed

Stock live feed

 

Click ‘Chart’ to display a chart showing the company’s stock prices over the last year. You’re able to change the period shown by zooming in and out.

etoro apple

Apple stock price information

 

If you want to invest in Apple (on the basis that you believe the share price will rise over the medium/long term), click on ‘Trade’ in the top right corner.

The minimum amount to trade is $50. Below this you can set the amounts at which you automatically want to close the trade, for both loss and profit.

Finally, take note of the “Leverage” figure. The number refers to how much you can multiply your gains (and losses) by. The higher the number equals higher risk.

X1 is essentially buying the real stock. If you traded at X2, any price movement is magnified by 2 (doubles). Usually it’s automatically on X5, so for beginners I’d suggest clicking on the number and reducing it to X1.

When you’re ready click ‘Set Order’.

etoro 50dollars

Placing a trade

 

That’s it! You’re now invested $50 in Apple ?

Monitoring your performance

Click ‘Portfolio’ to see your open positions.

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My Portfolio showing Open Trades

 

If you click on the Apple stock, you can see more info. In my case below, I bought $400 worth in September, and it shows I’m currently up 3.94% on this trade, which translates to +$15.75. This is the amount I would profit if I decided to sell these stocks (close my position) right now by clicking on the ‘Close’ button (red X).

etoro webtrader

Stock performance

 

As I warned earlier, do not fall into the trap of checking the real-time performance of your trades every hour! This just leads to over-trading which again, is very costly.

I’ve had to develop the discipline to let the markets take their course, and be confident that over the longer term the value of my portfolio will rise (which it has). It’s a strategy that has served me well and means I don’t make rash spontaneous decisions just because a company released some ‘bad’ news and the market overreacted in the short-term.

Advanced trading

Only once you really feel like you know what you’re doing on eToro (ie. been actively trading for a few months) should you even consider trading indices, currencies (forex) and commodities. There is much more risk involved in these markets compared to stocks, so I’m only going to briefly cover these to the extent that you know what you’re doing.

The steps:

Let’s work through an example of how to buy EUR/USD (currency market). First we click on ‘Trade Markets’ then ‘Currencies’, then scroll down to find EURUSD.

You can see the sell price and the buy price. We want to buy so are going to click on the ‘B’ box to launch the order window. Make sure the dropdown is set to ‘Order’ rather than ‘Trade’.

etoro place forex

Ordering a currency

 

Rate

The current buy price eToro is quoting you for EURUSD – in this case 1.0599.

Amount

Simply the amount of money you are investing in this trade. The equivalent amount of units will be shown. $90 in this case at X100 leverage = 9,000 units.

Leverage

This is a financial concept (see Wikipedia for an explanation). All you really need to know is that the number in the box tells you how much you are effectively able to multiply your gains (and losses) by. The higher the number equals higher risk.

You can change this from a minimum of X1 to a maximum of X400, and therefore adjust your risk level.

etoro leverage

Setting leverage level

 

If you were actually buying real ‘hard’ currency, this would effectively be X1 as any fluctuation in the exchange rate would equate almost exactly to your gains/losses. In this case however, if you made the same trade on eToro at X2, any movement in the exchange rate magnifies your gain/loss by 2 (doubles). I personally would recommend reducing your risk level as low as possible.

Stop loss

A bottom price limit you can set to avoid you being hit too heavily by a plummeting price on a position. If the price happens to get this low eToro will automatically sell/close your position to cut (rather than chase) your losses.

You can set this as $ amount or as the EURUSD price level at which you want the trade to close.

In our EURUSD example above, our position will be closed when the value has dropped the equivalent of $45. This stop loss is displayed as the red line in the EURUSD chart below.

Take profit

Conversely, you can also set a price which will also trigger eToro to sell/close your position but when you’ve made the return you were after.

In our EURUSD example above, our position will also be closed when the value has risen the equivalent of $45.

Once you’re happy with the parameters, simply click ‘Send order’ and your trade will be placed.

 

Becoming a ‘Popular Investor’

This program acts an incentive for users to trade responsibly and be an active part of the community. As soon as you start performing well on eToro you’ll notice other people will start copying you! This is a really rewarding and exciting moment, allowing you to earn monthly commission as your copiers increase.

etoro popular investor

It can take some time to build up your copier numbers, but it really isn’t that hard to achieve so long as you make consistent solid trades, following my advice in this guide.

It also pays to be active in the community. Posting regular updates, getting involved in discussions and answering other people’s questions all help get your name out there to attract interest.

 

Understanding (and reducing) the costs

percentageJust like any company, eToro exists to make money from providing a service. Primarily they do this by charging users a small spread fee on positions (outlined on the order windows). There is 0% commission though, so the costs of trading here are far less (up to 20x) than traditional stockbrokers and fund managers.

Trading stocks typically have the lowest fees on eToro, which is one reason why I recommend you stick to this market when starting out.

The ‘spread’ is the small difference between the buy and sell price that all brokers offer – this is how they make their money (same as a Bureau de Change) and similar in magnitude to the markup for stocks. You will be charged this when you close a position.

For all the latest fees click here. (you will be pleasantly surprised to find out. It looks so good !). Please read on below.

One way to minimise the spread fees is not to over-trade, and it’s also worth mentioning that if you become a Popular Investor (see above) you can get a partial or even total rebate on these fees.

It really comes down to individual trading strategies and preference. But to give you an idea, I tend to hold on to stocks for a minimum of 6 months and all other trades tend to have an average duration of about two-three weeks.

When copying another user you’ll be charged the same fees as they are on trades (which may not always be stocks), so it’s worth checking your portfolio to see what positions they have opened.

The only other fee you will encounter on eToro is the withdrawal fee (flat $5) if you want to transfer funds out of your account.

 

Recap: Avoiding the common mistakes

exclamation_markI’ve gone through A LOT over the course of this guide and covered up plenty of pitfalls along the way (high five for making it this far!).

Before we finish up I just wanted to summarise for you the main mistakes in one list:

  • Over-trading – this is a poor strategy for beginners and quickly racks up the fees
  • Allocating more than 25% of your total equity (funds) to one single trader (copy)
  • Blindly copying the most copied traders
  • Copying people with absurd rates of return (what goes up often comes down)
  • Copying people without properly researching their profile and activity
  • Not doing your homework on stocks before investing
  • Allocating more than 10% of your total equity to one of your own trades
  • Using too high a leverage (advanced trading)
  • Trying to close every single trade in the green (don’t chase losses!)

A final word on over-trading

This is a point that I want to expand on a little more, specifically in relation to copying other traders. Below is a screenshot of my equity chart over six months. The red line shows the number of people copying me.

etoro copiers chart

My equity vs copiers chart

 

As you can see, copiers tend to flood in when my total equity (blue line) peaks and leave when my gains fall. To the lay-person it seems like rational behavior, but actually it’s a clear sign of knee-jerk reactions without considering that the overall long-term trend is upward.

Even the best traders in the world will have some fluctuations, but most copiers lose money by copying at the peaks and stop copying shortly after because they’re down a few dollars.

In my case, if these people had stuck with me for the longer term (as I recommend throughout the guide), they would have been much better off!

The same holds true for the stock market in general.

ftse history chart

Long-term growth of UK stock market

 

Despite short-term market crashes, the trend over the long-term is UP. Why? Because all the companies in any stock market are constantly striving to create VALUE!

 

By signing up on eToro, it is a proactive step to explore and earn extra income. It’s free to sign up anyway. 

 

Thank you, good luck and happy trading!

Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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Gold vs bitcoin: experts view

Aug 1, 2020
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hedge fund nowray dalio on bitcoin and gold

Gold vs bitcoin discussion. Peter Schiff is an economic forecaster who is a great believer in gold investing. He has also been a stock broker and is CEO of Euro Pacific Capital Inc. He is base in Westport, Connecticut.

Peter Schiff talks about bitcoin. Firstly, the nation already lose value by donating. He did not purchase any bitcoin though he have bitcoin (given by others). Peter think it is just speculative and to cause FOMO. The situation can be complicated with regulators.

People talk about shifting gold to bitcoin. However, many people don’t accept bitcoin. Probably through bitpay to buy gold. So bitpay is like the middle man.  But there is no direct transaction.

gold vs bitcoin

Peter Schiff

Peter feels government will not want competition to real money. That’s why they are scrutinize on libra by facebook stating reasons like money laundering. Bitcoin is decentralized which government will be very worried. A complete free market is what he want for anyone who wish to invest in.

We should not overvalue bitcoin. Peter says we can’t expect bitcoin to go 10 times over. Go for gold mining stock. 3 or 4 times the money for profit in it. He don’t see bitcoin long term money compare to gold. He feels people looking for bitcoin are not looking for stability. They will not be rich with gold, but they will not be broke. It is conservative long term value.

People are looking to go rich with bitcoin compare to gold as a store of value, that makes the difference. If bitcoin is a digital receipt for gold and traded like it. If bitcoin can be bought by gold, then you can exchange bitcoin into gold which isn’t logical.

Gold demand in the world

Gold have industry demand and can be use (dentistry, aerospace, jewellery). There is a natural demand for gold. There isn’t a real substitute for gold. Maybe copper, but is not as good as gold.

Bitcoin have no natural demand. The price goes up because more people buys them. But what is the value of bitcoin? (except people who just hoarding them). We can’t use bitcoin as a payment as it doesn’t quite make sense. But with gold, it is different. It will worth more because we are in inflation world. It is stable and can be a unit of account, but not with bitcoin.

If everyone want to sell bitcoin, bitcoin have no bottom. Then what will be bitcoin? Bitcoin has become like a religion (to Peter). Digital money that is not back by anything. Perhaps for the game. If digital money needs to have value, then it must be able to use.

Paper money is going to change to gold base on current situation. Every currency is base by US dollar, but it is back by nothing. Gold will be used for stability.

Bitcoin risk level

Bitcoin has more downside risk than gold. So why don’t buy gold? It is a store of value but bitcoin as just a speculation. Bitcoin scarcity is man-made but gold scarcity is real. Bitcoin is not unique in all cryptocurrencies. In fact, there is 5000+ cryptocurrencies which any can better than bitcoin (transaction speed…etc)

Anything man can create, man can improve. Gold here for 5000 years but it cannot be improved by other metals which explain the real scarcity. It is the best conductor for electricity. People use it for all sorts of things. It doesn’t tarnish.

What makes bitcoin more secure than other cryptocurrencies? It is far more likely that someone can hack bitcoin. There is no confirmation in crypto community that bitcoin is the best. Bitcoin may be the first, but it may not be around the next time. Bitcoin only have 70% of the whole crypto market, not 100%. But gold is 100% in it’s own realm. It is also tangible.

Is bitcoin sustainable?

Miners for bitcoin need to be paid. If there are no mining for bitcoin, what happen next? For bitcoin to have market value, there need to be a system support it. Provided if there is nothing support it, bitcoin has no value.

Peter says bitcoin has no value. Bitcoin has no use. Gold is a store of value and can be use anywhere. It doesn’t rot or decay. It is eternal.

If bitcoin can be anonymous (to be a value), it can only be use as a money laundering purpose. Government will crack down any institutions that link to bitcoin criminal activity. No institutions will want to involve in bitcoin. Transaction cost for bitcoin is high.

Bitcoin can be use without crackdown by the government in a crisis. But it is high risk. Now with all the crisis there is going on: money printing…etc, gold reach it’s 9 years high. But bitcoin doesn’t increase like gold. If now bitcoin doesn’t raise like gold then when it will?

Check out more on why and how to buy gold here

Gold have in various shape and sizes. You don’t need to spend enormous amount of money to buy it. You can buy gold even with a few hundred dollars. Some of the more popular platform to buy from are JM Bullion, Kitco, London Metal Exchange and GoldCore. We recommend GoldCore since it is one of the most established Gold selling platform in USA. It also serves clients in over 130 countries in the world.

Now there is Ray Dalio, who is an american billionaire hedge fund manager. He like to share about his approach to life and management. Ray is also founder of Bridgewater in New York. He was listed as one of the 50 most influential people by Bloomberg Markets in 2011 and 2012.

gold vs bitcoin

Ray Dalio

Ray Dalio on paradigm shift

He talks about paradigm. Every 10 years there is a paradigm. Identify the paradigm you’re in, examine if and how it is unsustainable and visualize how paradigm shift will transpire when that which is unsustainable stops.

History have low interest rate-cheap to borrow money. This cannot last forever. It leads to folding economy. Paradigm last a decade. 2019 could be the end of our current paradigm.

Interest rates-how cheap it is for individuals and businesses to borrow money in an economy. Low interest cause economy to struggle.

Quantitative easing-printing money (creating money out of thin air). Central bank creates new money, buy government bonds. Gov bond prices rise, businesses have more money to spend. It increases economy stimulus.

In quantitative easing, since 2009-> strong stimulative effect. Today-> Diminishing returns. Reverse quantitative easing cause very poor results.

The consequences

What happen next?

  1. Helping borrowers -> means low interest rates
  2. Helping lenders -> High interest rates

We will know the paradigm from this. It seems obvious that they have to help borrowers relative to the lenders.

In normal economy time, it means lowering interest rate and greater quantitative easing. But these are not very effective.

Instead, Dalio believes that monetization of debt and currency depreciations will eventually pick up, which will reduce the value of money and real returns for lenders. This will test how far lenders will let central banks go in providing negative real returns before moving into other assets. Many countries have negative interest rates. Japan, Switzerland etc.

In other words, by reducing the value of currency and making lending lesser & lesser attractive. Investors will look for more risky investment, thus making economic stimulus. In will cause greater conflicts between people and countries on growth of economic pie and global influence. In such a world, storing one’s money in cash and bonds will no longer be safe.

Which investments will perform well? Those that will likely do best will be those [investments] that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold.

Dalio add that he believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.

Investment outlook & gold vs bitcoin

Traditional markets (stocks, bonds, cash) will have poor returns in coming years.

Market hedge for traditional markets is an investment that will move in opposite direction that will increase in value. In the last recession, gold perform very well.

For bitcoin -> decentralised and mathematically limited supply, is like gold as it is a hedge against traditional markets. Bitcoin is slowly into a hedge. For warning for bitcoin holder, it may be like a hedge, it is still a very new asset. Many feel it is a speculative investment.

Bitcoin is the new gold, you don’t have to choose between bitcoin and the previous by the bitcoin community. It make sense that investors to hold both gold and bitcoin in this economic situation.

Nothing is intended as financial advice, nothing can be accurate unless one do his financial research.

More on why you should buy gold here

Check the gold chart here

An interesting video here:

Credits: Peter McCormack, Tom Heavey