In This Article
Ethereum is the second most popular cryptocurrency after Bitcoin in terms of market capitalization. Although the price difference between Bitcoin and Ethereum is huge, one trending roughly around $30,000 and the other trending at around $2,000. Still, Ethereum trading is quite popular amongst traders.
Ethereum was conceptualized not as a cryptocurrency but to pay the transaction cost or gas fees while trading Bitcoin.
Ethereum has revolutionized the cryptocurrency market and is in the process of developing a new Ethereum 2.0 that is more advanced than a normal Ethereum or Ether.
What Is Ethereum?
Ethereum is the brainchild of Vitalik Buterin and Gavin Wood. Mining nodes generate Ether cryptocurrency with the help of Ethereum. It is based on blockchain Proof-of-Work. Constructing smart contract capabilities that are challenging to use on the Bitcoin Blockchain enhances the network.
Ether is a digital asset or a cryptocurrency native to the Ethereum platform. Its primary function is providing access to the decentralized operating system of Ethereum. Although its primary function is to serve as utility tokens supporting Bitcoin, Ethereum supports the efficient operation of smart contracts and apps created on its blockchain without fraud, outage, control, or other outside influence. It is also traded like any other cryptocurrency across exchanges and cryptocurrency markets.
Why Trade Ethereum?
The second most ranked cryptocurrency in the world is Ethereum. Additionally, it is available on its smart network contracts and other decentralized programs. It is, therefore, a very desirable asset for smart investors.
Since Ethereum is a desirable cryptocurrency, many purchase Ethereum at a low price and keep them safe and secure, only to sell them at a high price for a profit.
Few trade Ethereum and store some using it as transaction fees or gas fees.
Although Ethereum can be traded like any other cryptocurrency, thus, if you have fewer funds available and wish to maximize your profit and enjoy the risk of Ethereum, you can even use leverages. In addition, there are other trading tools such as options, futures, and forward contracts available.
Ethereum Trading Forecast
Since its inception after a hard fork with ETC in 2016, it had losses in 2018 and 2019, the same years when Federal reserves decided to reduce their balance sheet. However, 2021 was a blissful year for Ethereum, where the price started to appreciate hitting an all-time high of $4,500 in November.
In 2022, at the time of writing this article, the price of Ethereum is roughly trending at $1,500. The price of Ethereum is bound to appreciate the inflation rate, and the price of crude oil is likely to drop. The price increase is also anticipated with the merger of Ethereum.
As per the experts, if one were to share a pessimistic outlook towards Ethereum price, the price would still trend roughly around $2,500.
Since Ethereum is a cryptocurrency, the price fluctuation can occur as and when any latest development occurs. Thus the price of Ethereum is bound to increase from a long-term investment point of view.
Ethereum Trading Tips
Before you even begin Ethereum trading, you need to plan out when to enter and exit the market. It requires a lot of planning, including research which helps in strategy.
- It would be best if you planned out how to approach the market and tried to set daily, weekly, and monthly goals.
- Learn thoroughly about which market you wish to trade.
- Strategize how much money you are willing to risk on each trade.
- Make most of the information that will determine your risk-reward ratio.
You can also make the most of the opportunity by thoroughly researching Ether’s trading strategy. For example, trading strategies like Swing trading involve making a profit as soon as the price trend changes. This process involves holding on to your position long enough till the next change in the price trend. On the other hand, Scalping works by frequent trading and making profits over minor price changes.
How to Buy Ethereum
Buying Ethereum is easy; we have broken down steps for you so that it is easy for you to own your first Ethereum.
- Choosing a cryptocurrency exchange: It isn’t easy to buy Ethereum from a traditional brokerage or bank. You will need the best trading platform for Ethereum. Since Ethereum is pretty popular, there are many cryptocurrency exchanges from where you can buy it. In addition, many exchanges are offering Ethereum trading services.
- Funding your account:After choosing a cryptocurrency exchange, you need to register an account with them. After verifying your account through an email, you need to provide identity proof while filling up the formalities.You can then purchase Ethereum through a bank account or use a debit or credit card to fund your account. The fees differ and are levied depending upon the method of payment.Now that sufficient funds are available in your account, you are ready to purchase Ethereum.
- Ethereum is bought in dollars; you can check the price of Ethereum while placing an order. In addition, Ethereum can be bought in fractions. Thus you don’t have to buy Ethereum as a whole.
- Storing Ethereum in a digital wallet:If you have a small amount of Ethereum, you can leave your investments in your account, which is registered on the cryptocurrency exchange. However, you must be aware that the chances of cyber threats and attacks on cryptocurrency exchanges are pretty common. Therefore, you have the option of storing your Ethereum in a more safe and secured digital wallet. Furthermore, since there are different types of digital wallets available both online and offline, they have different levels of securities available.
Where to Trade Ethereum
If you are keen on trading Ethereum, you can always contact us on Blockchain Tradein. We offer one of the best Ethereum trading platforms. You can start trading Ethereum today. Contact us now, and we will guide you toward your first Ethereum trade.
Should You Trade or Hold?
The cryptocurrency market is highly liquid with massive price swings. As a result, the market is unstable, and a trend reversal from bullish to bearish can happen within minutes.
Traders take advantage of these price fluctuations to make a profit. Since the cryptocurrency market does not follow the same sentiments as traditional markets like stock exchange and Forex exchange, the traders are more inclined to gather information from fundamental and technical analysis as well as the latest developments in the cryptocurrency field floating around on the social media platform.
Thus these traders make the most of the opportunity presented to them; Ethereum trading is not a bad choice. There are options to trade the price of Ethereum rather than owning it. Thus the same risk exposure is achieved with minimum investment. With the help of leverages, you can maximize your profits. But you also risk losing a lot if the price trend does not go as per your research or prediction.
Owning and holding on to Ethereum has its advantages and disadvantages. Like any asset, the Ethereum price is bound to appreciate slowly and steadily. However, if you have bought the underlying asset at a low price, you can immediately sell them as and when the price of Ethereum appreciates.
Ethereum Brokers Pros
There are a lot of advantages to buying Ethereum through a broker. For your ease, we’ve listed them below.
- Brokers are known to be more user-friendly than exchanges.
- While trading CFDs, brokers offer more advanced features like leverage.
- Brokers are known to provide excellent client support service.
- Ethereum coins can be bought easily and quickly at a fixed price.
- Some brokers are known to offer ‘social trading’ capabilities.
Who are Ethereum Brokers?
We at Blockchain Tradein are cryptocurrency brokers providing Ethereum trading platforms that connect our clients to the crypto market. We offer Ethereum, or Ether, for our clients to trade. You have the option of purchasing Ethereum or trading on the price of Ethereum with margin money, or you have the option of doing both.
You can invest in Ethereum from an investor’s point of view or keep trading CFDs along with leverages that can help you magnify your profit.
Our policy with regards to commission and fee structure rivals our competitors.
What differentiates an exchange from a broker?
One of the most prominent differences between the two is that you directly trade using a trading platform that a broker offers. At the same time, the exchange facilitates trade between the two traders.
An exchange offers the trade of Ethereum between the two traders; the broker, on the other hand, allows traders to speculate on the price of Ethereum and other cryptocurrencies based on the price fluctuation that is caused due to the demand and supply created in the exchanges.
What features does an Ethereum trading platform have?
You can start your Ethereum trading on any cryptocurrency trading platform. Although there are many Ethereum trading platforms, here are a few tips that can ensure choosing the best trading platforms.
- User-friendly platform. A cryptocurrency trading platform should be designed to be user-friendly. The idea behind having a user-friendly platform is that many aspiring traders have difficulty using an app. Moreover, as a trading platform is loaded with relevant information for trading, it should be easy to access.
- Cost factor. Each broker sells Ethereum at a different price. In addition, many brokers have hidden charges. Thus it is important on your part to inquire about all costs that can be incurred while buying Ethereum.
- Payment charges. There are a few payment methods that may attract additional charges. This is generally true for credit cards. Thus, it would be advisable to check all the payment options and learn about them to avoid additional charges for the privilege.
- Reputation. It is advisable to seek a broker with a good reputation as it reassures that the trading platform can be trusted. The easiest way to check the online reputation is for you to go through the review of that particular broker. Also, go to the webpage of the broker and check the reviews. Remember, since the broker is a service provider, there are chances that there may be a few disgruntled clients; however, try to see if the broker has anyway ripped off their clients.
- Although you are now interested in Ethereum, there are chances of you opting for a different cryptocurrency in the future. Therefore, you need to go for the broker offering a variety of coins, thus allowing you to create a cryptocurrency portfolio.
- Trading options.Although you might want to buy Ethereum and keep them for a long period until they appreciate and sell them at a profit, you are limiting yourself and denying the opportunity to create more wealth by trading Ethereum or other cryptocurrencies.
You don’t need to keep buying Ethereum or other cryptocurrencies and sell them when the price is right. Instead, you can trade all cryptocurrencies through financial derivatives and tools.
Do brokers charge commissions or fees?
Yes. Brokers generally charge fees and commissions for using their services. For example, it is common to levy overnight charges on traders while trading in CFDs. Some traders also levy hidden charges while selling Ethereum on the platform and the spread between the buy (bid) and sell (ask) prices.
When buying and selling Ethereum, should I use brokers?
Everyone has unique financial aspirations and goals. Brokers are the easiest to approach for buying Ether at a fixed price and offering CFD trading and leverages for cryptocurrencies.Although both have advantages and disadvantages, when you purchase any Ether, you have to pay a premium, while CFD trading offers the same risk exposure. Instead of owning the underlying asset, you speculate on the price of the underlying asset. Thus, some traders are attracted and prefer brokers while trading Ethereum instead of a cryptocurrency exchange.
Blockchain Tradein is a financial powerhouse that circulates its course around bettering investment opportunities and experiences for its fellow traders or investors. By strengthening the confidence, acknowledgement, and trading ability among users, we proffer a range of study material, courses, and news articles that fit to the taste of both, the new and traditional ways of earning through the market. Surpassing over 500 financial assets, market explorers have the freedom to capitalize and make returns from distinct instruments.
Why Choose Us
After analyzing the reviews and opinions coming from our clients worldwide, we’ve listed down the most dominant reasons why our users choose us and rely on us;
- Our supportive customer representatives are reachable and resourceful at your hour of need; whether it’s the account registrations that you are toiling with or any queries connected to your trade.
- We enable trading and investing with a diversified portfolio and other risk-management tools.
- You can hire a personalized investment manager who infers your investment goals and translates them into strategic plans.
- Market analysis and advisors guiding you through your exchange.
- An easy-to-use platform without any geographical limitations or complex paperwork for registration.
Frequently Asked Questions
Yes, paying tax on your profit is mandatory if you reside in the United Kingdom. Since cryptocurrencies like Ethereum are treated as asset gains, gains over £11,700 will be subject to capital gains taxes ranging from 10% to 20%. (depending on your income). Tax rules differ from country to country, so you need to check the tax law in your country.
No. When opening up an account with a broker, you need to provide government-issued identity proof, including a photo Id like a valid driving license, a passport, and so forth.
It means that two people are trading with each other equally as peers. Ethereum exchange is merely a marketplace allowing the trade of Ethereum on Ethereum exchanges, bringing users together.
It depends from broker to broker. If your broker supports PayPal as a withdrawal method, your funds will be transferred directly into your PayPal account. But bear in mind such facilities are not common. Also, it would be best if you remembered that PayPal only allows fiat currencies like GBP and USD, so you first need to sell your Ether.
Unlike traditional financial markets like stock, Forex, and commodity markets, Ethereum brokers are available 24/7.
Generally, a broker will accept payments through fiat currency. So if you wish to buy Ethereum using cryptocurrencies, you should use an exchange.
If you wish to, you may. There is no restriction on the number of broker accounts you can hold.
Yes, Ethereum brokers are legally allowed to operate in the United Kingdom. As far as other countries are concerned, it is difficult to say as you need to check with the country’s law.
Unfortunately, not all are regulated. The best ones are the ones that are regulated by recognized financial bodies. These bodies ensure that the users’ rights are protected from fraud or theft. Therefore, it is advisable to approach a regulated broker offering services at a higher rate than settling for an unregulated broker offering services at a cheaper rate.
Generally brokers can store your coins for you in your broker account. If you wish to keep your coins safe and secure, digital hardware wallets are available. However, such wallets are unnecessary if you hold a small amount of Ethereum.
Yes, you have the option to view your entire trading history on your trading platform. All you have to do is select the menu option and search in the relevant section.
Do you want to invest or trade in the third-largest crypto (Ethereum) in this digital universe?Get started with Blockchain Tradein.