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Hi there, The US government has bailed out its citizens and enterprises by giving them money. What effect, if any will this have on the dollar's value?

Hi there, Is mining bitcoins legal in all countries or there are some that have restrictions on the same?

Hi Pique, Different trading accounts have different guidelines concerning the transfer of coins. For the eToro account, all users in the eligible countries can withdraw coins from the platform to the wallet, but only if they meet the following requirements. The current value or the invested amount of the position you wish to transfer should not be more than the total amount of the eligible deposit you made. If you make the deposit through Skrill, Neteller, Rapid Transfer, or local online banking, eToro will take up to one business day to process your transfer. The transfer value, however, can’t exceed the value of deposit made at any time. For other payment methods such as UnionPay, Sofort, Credit Card, and PayPal, you will still transfer coins up to the value of any deposit made. But a certain number of days (which varies depending on your eToro club level and payment method used) must have elapsed since your initial deposit. You can only transfer real coins to the eToro wallet. Also, Margin Trade isn’t transferable to the wallet. Note that the transfer of coins guidelines are subjected to change at any given moment your trading company sees fit.

Hallo there, This is the current position of XRP. Ranking third (trailing bitcoin and ethereum) on the list of top virtual currencies by market capitalization, Ripple’s cryptocurrency, XRP, has been climbing steadily up the cryptocurrency ladder. But what makes it tick? While it may take several minutes and high transaction cost to process bitcoins, XRP’s transaction cost is low and takes seconds to process. Unlike bitcoins, XRP has a mining-free mechanism hence use little energy. XRP’s Effects on Remittance If you were to wire money to someone abroad via the bank system, it might take several days before the money reaches their account. Besides being slow, the bank is also expensive and less adaptable. As such, XRP comes in as a reliable alternative to the old banking system. So, if a large amount of money is to be sent via bank, the funds can be converted to XRP and sent to the receiving bank without relying on multiple intermediary banks for transfer. Therefore, it’s an easy and quick method of money transfer, putting it ahead of others in the digital currency world. Therefore, due to its efficiency (high adaptability, ease of use, and support of varied applications), XRP might shoot higher as it continues to gain popularity worldwide rapidly.

Hi Ryan, Your CFD provider must educate you on how to operate in the CFD market. Dealing in CFDs is complex. As such, your broker must always present you with comprehensive and unbiased information regarding each product. Commission or spread effectively refers to the costs of each trade. It’s a critical value to help you pick a broker. Demand spread figures on assets you intend to trade most. Expect clear deposit or withdrawal options from your provider. Insist on ensuring your preferred methods to withdraw from or fund your account are available. Leverage or margin is that percentage of an overall trade value you commit. Making a £1,000 on a GBP/USD currency pair requires a £50 deposit but exposes you to £1,000 in risks. Your broker needs to warn you of this risk since losses could exceed an initial deposit. Your broker presents margin in multiples such 200:1. That indicates leverage as 200 times your deposit, or an equivalent 0.5% margin. Regulatory bodies like ESMA and FCA restrict leverage amounts on CFD trading as your protection. Therefore, your broker should refrain from irresponsible leverage offers like 1000:1. Your trading platform needs to be easy to use and familiar. Expect from your provider a platform whose usability, feel, and looks meet your personal preferences. That way, you avoid missing prices or making errors due to an unsuitable trading platform. Requisite information should include the best researching tools, charts, and technical analysis features. Also, expect educational materials like webinars and eBooks about the market.

Hi Jack, To trade in a cryptocurrency, you have several options at your disposal. Among them, trading with leverage, margin trading, or shorting Bitcoin, are all different faces of the same coin - leverage trading. Nuances arise from the interchangeability they are defined by. Volatility is a hallmark of the cryptocurrency market. Price fluctuations traits of cryptocurrency markets allow proficient traders to profit from both bull or bear markets with Bitcoin marginal trading. Cryptocurrency margin trading, lets you borrow capital so that you have increased purchasing power and open positions well above your actual account balance. It’s a practice letting you gain more exposure to an asset, by borrowing capital from fellow exchange traders, or the exchange itself. This trade form contrasts a regular trade, where you would use your own capital for trading, whereas marginal trading lets you multiply whichever capital amount you can trade with. Supposing, you start your trade with a 100x leverage. This increases your potential profits and exposure by 100 times. The downside is that dabbling in cryptocurrency margin trade greatly increases risks. Fortunately, a higher margin trade risk is not proportional to leverage. However, losses may exceed the assets you have committed.

Hi Jessica, Yes, reinvesting your dividends will grow your portfolio massively due to the power of compounding whereby your shares increase and consequently your dividends too. Unfortunately, most ETFs do not have a program that allows an automatic reinvestment of your dividends. The option available is to reinvest manually by buying more shares using the dividends paid. However, some big providers give you two investment choices. There is the income share class ETF and the accumulating share class ETF. Picking the right one rests on your motive. If you aspire to put your money in an Exchange Traded Fund, start by determining the appropriate share class. An accumulating share class puts dividends back into the fund. This will not cost you anything in the form of additional expenses. On the other hand, an income share class will fund dividends from the pay-outs your ETF has reaped from underlying investments. An example is an FTSE-100 ETF making a pay-out of funds received as dividends from, say GlaxoSmithKline or Royal Dutch Shell. If your objective in investing in an ETF is growth from your investment, and you do not want the income, your best choice is the accumulating share class. Conversely, the income share class is an excellent choice if you seek a regular income. As you perform due diligence, remember to examine each share class by analysing respective performances. An accumulating share does appear more profitable than its income counterpart. That arises from dividends going into re-investment and subsequently compounding returns.

Hi Lindsay, An Exchange Traded Fund – ETF, is a securities basket trading on exchanges similar to stock trading. They have various types of investments, like bonds, stocks, and commodities. Prices fluctuate throughout the day. Some offer local holdings only while others are global. ETFs present a beginner with an ideal place to venture into investments. Benefits include liquidity, vast investment choices, low threshold of investment, low expense ratios, and so on. Picking an investment strategy ETFs have numerous traits creating ideal settings for new investors and traders. As a beginner, a good strategy would involve going for asset allocation, swing trading, sector rotation, hedging, seasonal trends, short selling, and dollar-cost averaging. Where to begin in ETF trading To trade in ETFs, you have to go through traditional dealers and online brokers. Begin by researching on what the market has to offer in top brokerage firms, and picking one. Points to note when starting ETFs investing ETFs, give you access to numerous stocks across an assortment of industries. Some ETFs focus principally on targeted industries. They present you with an avenue for risk management through their diversified investment instruments. Remember also that ETFs brokerages have lower commissions and low expense ratios. However, an actively managed ETF will cost you more in brokerage fees. Furthermore, certain ETFs focus on a single industry, limiting diversification.

Hi there, I am a big fan of cryptocurrencies and I love the anticipation of a big gain. The only fear I have is getting scammed. How do crypto scammers operate and how can I tell them apart?

Hi, I have heard about the many advantages of CFDs and I want to make it my investment vehicle of choice. It looks all good but am wondering if there any costs involved in the investing process other than the initial deposit I have to pay.

Hi there, I want to invest in ETFs. I understand they are advantageous since they are made of different asset classes. Does that mean there is only one type of ETF made of different investment vehicles or they are different ETFs? I want to know so that I can decide wisely as I get down to investing in ETFs. Thanks.

Hi Abrar, In short, what you are asking is if ETFs are less riskier than stocks since the major concern for any investor is the risk involved. ETFs, like all other investments, come with a degree of risk. To answer your question about which is better between ETFs and stocks, please read on. The good thing about stocks is that they give you more power over your investment and make you a decision-maker(as a shareholder) in certain companies. ETFs, on the other hand, are managed by a fund manager giving you little control over how matters concerning the investment are run. To determine which one is more favourable, you would have to look at volatility. This is because decreasing volatility is the best way to moderate risk. Considering this, ETFs emerge on top of stocks because as a fund, they are spread among different investment vehicles making them less volatile than stocks. Similarly, ETFs offer an advantage over stocks when you don’t have time to get enough information about a company to make an informed decision. This is because someone else has done all the research and settled on a combination they see as the best. That said, the risk of any ETF depends on its combination and you should, therefore, research thoroughly before investing to know what the ETF is made up of. The bottom line is that ETFs are less riskier than stocks though the returns may be smaller. In that case, if you are risk-averse, you should go for ETFs.

Hi there, I have decided to trade in cryptocurrencies and I have gathered a tonne of information about them. I therefore know cryptos are not regulated by any monetary authority. However, I came across an article indicating that cryptos are taxed. Is it true cryptos are taxed or its a case of misinformation?

Hi Parker, Inverse ETFs also known as short ETFs, are products that help you make a gain once a given investment class drops in value. That is, inverse ETFs earn you a profit when it is inverse against the benchmark or the interest it tracks. Inverse ETFs are best for small holdings within a big portfolio and for short-term purposes only. An inverse ETFs intention is to offer a single day trading bet and must not be held longer than a day. To trade in inverse ETFs, you must track a set of investments or an underlying index that you think will go down in value. Similarly, you must rely on extremely volatile tools like future and short selling contracts. If you thrive in volatility and anticipate high returns by going against the tide, you should definitely go for inverse ETFs.

Hi, After surveying various investments, I have decided to go for ETFs. I have no in-depth knowledge about them, and I need enlightenment on the risks, if any, that come with investing in ETFs.