It is time for you to learn how to trade Ethereum and be good at it. If you didn’t know by now, Ethereum is one of the top 3 Cryptocurrencies globally and has many distinct uses than just as a simple cryptocurrency. But as it is now, this blockchain gained a lot of traction in the year 2020. The reason for that is mostly for its role in the decentralized finance system.
Trading Ethereum: Beginnings
To understand how to trade with any instruments, one must first learn its history. If you wish to be good at something, you have to know your product, so let us start there.
Ethereum, since its inception, had a lot of ups and downs in terms of its price. Even though Ethereum launched some six years after Bitcoin, it still got to be a significant competitor to the Crypto Giant.
The lowest moment in ethereum history was a split ( a hard fork ) of Ethereum into Ethereum and Ethereum Classic. This move hurt Ethereum price, but they managed to get themselves up and become the world’s second-largest cryptocurrency.
One of the more exciting metrics regarding Ethereum most significant competitor, Bitcoin, is its strength against it. While Bitcoin’s price was 28 ETH at the end of 2019, at the beginning of 2020 was 40ETH and now is back to 30ETH. This means that the price is quite volatile, and if you can notice a pattern or know when the spikes might happen, one could profit on this exchange very well. It might be hard to make money from trading Ethereum for Bitcoin, but the opposite might be the way to go.
We are all talking about ETH because, since the start of 2020, Ethereum has been the best performing Cryptocurrency. Ethereum strength is also affirmed because they managed to hold their ground despite the crash back in March.
What drives the prices and where to trade Ethereum
To understand Ethereum, it is best to understand what drives its prices up. Ethereum is a cryptocurrency that puts a lot of effort into its technology. Such technology updates always result in a spike in demand. On that note, more and more big companies are adopting Ethereum infrastructure and technology. With every new company using its technology, the price will of Ethereum grow. Where to trade Ethereum might be a more straightforward question as that depends on your preferences.
There are a lot of Ethereum exchanges that offer a variety of analytical tools along with different levels of security and price, of course. Please use the fact that most of these exchanges can create a demo account; it will help you find the place you want. It might be beneficial to know that the transaction fees have declined by 82% in the past month. While the transaction fees were $11.61 in September, they are now down to 2.09, making for an excellent opportunity to take advantage.
Ethereum trading – Tips and Tricks
There are a lot of strategies and techniques to trade Ethereum successfully. Some people use the stop loss or take profit option because it is a 24-hour market. These options might help you be on the winning side of the trade, but it will always limit the potential. Using trading bots can also be a viable option; however, with many different bots options roaming around, finding the proper one might be tough. If you are thinking of a long-term strategy, the idea of buying Ethereum might be a good one, but if you are afraid of its volatility, there seem to be a lot of different products coming along, such as futures and options. These options will help you protect yourself from price dumps.
If you are serious about Ethereum trading, you need to use the below tips to increase your chances of success.
Read Everything you can about Ethereum. In the trading business, knowledge is power. The more relevant information you can find, the more successful you will be. Pay attention to different social media platforms, other cryptocurrency websites, along with various analytics. Diversifying your news channels will help you not to get sucked into some lousy analysis.
Contemplate your strategies. Think ahead about your goals, how much you want to make, and how much you are ready to lose. Not knowing your limits and being led by emotions can cost you your dreams and goals, and one should prepare.
Finally, be very careful. Pay attention to how you are trading, especially when you are trading on margin. Even though this can yield excellent results without investing much money, it can also quickly make you broke.
Disclaimer: This is a paid post and should not be considered as news/advice.