Did you know that with a market capitalization nearing $17 Billion, Ethereum remains one of the most popular and most traded cryptocurrencies, second only to Bitcoin? And with its daily market volume well above $5 Million one can easily tell that Ether is also one of the most liquid crypto assets around. These plus the fact that it is easily available and that you can buy a portion of it, say 0.5 ether makes it a must-have asset if you hope to diversify your investment or trade in crypto markets.
While it operates in one of the most volatile markets, it is still possible to trade profitably through long term position holding or through day trading. For instance, if you bought into the digital currency in 2015 at the time it was gaining recognition for $0.30 you could have achieved over 4950% returns on investment by selling it at its peak, $1377 in Jan 2018. Nevertheless, the fac that it has gained over 18% since the start of the year and 12% in the last one month simply means that you still have the chance to profit from the all-new technology that seeks to revolutionize the internet. But why should you invest in ethereum and where should you invest.
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Why should you consider trading Ethereum?
Ethereum is more than just a cryptocurrency. It is a revolutionary technology on which a host of activities can be undertaken safely and without regulation. Ideally, ethereum is a decentralized network on which individuals and institutions can build different apps and has soared in popularity not just because it is a pioneering technology but also because of its guarantee of safety and security. Since its establishment, it has witnessed the onboarding of numerous prominent individuals and institutions either as traders, investors, and users of its underlying technology. The high regard with which ethereum technology is held by in the crypto community is evidenced by the formation and excellence of the Enterprise Ethereum Alliance, a consortium of fortune 500 and big brand companies devoted to pushing forward the ethereum technology. By investing or trading in the technology, you will be buying ether tokens that are used within its platform.
Here are some reasons why you should you invest in the ether
- More uses than most other cryptos: Ethereum isn’t just a digital currency, it is a technology with limitless potential. This implies that it will live on long after the digital coins craze dies and the gets infiltrated by numerous crypto tokens.
- Backing by leading technology companies: The EEA foundation is led by multinational financial and technology leaders like Microsoft, Intel, and JPMorgan who believe in Ethereum’s ability to transform the global FinTech scene. So should you.
- Large-scale adoption by financial institutions: Adoption by mainstream brands features as one of the key drivers of crypto coins value rise. The fact that such entities as Bank of America have embraced ethereum and are using it to build apps may thus be interpreted as a buy signal.
- Long term profitability: Microsoft, Bank of America, JPMorgan, BP, and countless other global household names are still exploring the numerous ways they could use ethereum technology to enhance the speed and security of their products and their services. As more join in and launch their products and services on the network, the higher the coin will rise in value.
What are the pros and cons of ethereum trading?
How to invest in Ethereum
This is by far the most popular form of ethereum trading/investment where you create an account with a crypto broker or exchange and exchange fiat currency or other crypto assets for ethereum tokens. You can then decide to day trade them or hold speculatively, waiting for a significant price jump.
Unlike bitcoin whose token supply will hit a limit at 21 million tokens, Ether tokens have no upper limit implying that you can mine them into the foreseeable future. Mining, however, starts with the acquisition of such specialized hardware as graphics cards.
Top ethereum trading brokers
CryptoRocket offers its clients the ability to trade cryptocurrencies like Ethereum via CFDs, allowing day trading strategies and extremely fast execution. Instead of having to deal with different pricing in exchanges, you can now trade directly with the current spot price.
Another important aspect where CryptoRocket represents a better choice than traditional exchanges is at pricing. Since CFDs are synthetic derivatives emulating the price action of the underlying asset, in this case, Ethereum, the overall cost of trading is considerably lower. Think about this way, you are only going to be charged a fraction of the cost of trading, and you will only have to pay a fixed price rather than a percentage of the transaction.
If you are interested in a short term strategy that requires opening and closing trades with speed, we recommend you take a closer look at crypto rocket as your next broker and trading provider.
Cryptocurrency CFDs trading has never been easier than with one of the most popular financial instrument brokers in the United States, FOREX.com. The online financial instruments broker allows you to benefit from Ethereum price movements without actually owning the tokens. Here, you benefit from highly competitive spreads, access to real-time market and data and attractive margin trading. Plus the possibility of benefiting from both the price increase and decrease by going long and short on ethereum trades.
Efficiency and affordability
FOREX.com is yet another pioneer online financial instruments broker to ventures into cryptocurrency trading with a rich emphasis on such popular digital currencies as ethereum. The token CFDs here are treated to a level of exceptionalism that the broker has accumulated over the last two decades, dealing with a host of other financial instruments.
This involves eliminating the incidence of slippage through near-instant order executions speeds as well as alert features available with the already user-friendly chart layouts that are made available on the MT4, WebTrader, and mobile platforms. Spreads for ethereum trades here start from $6 per trade with access to 25% margin.
How to secure your ethereum assets?
Ethereum, and the crypto coins by large falls in the most traded markets. Its industry players are also the most targeted by hackers. On 15th January 2019 for instance, a New Zealand crypto exchange Cryptopia is reported to have suffered a data breach (HACK) that saw them lose ether token worth an estimated 16 million. How then do you secure your ethereum investments?
- Choose your ether wallet carefully and keep it offline: If possible, consider going for the hardware cold wallets. You might, however, want to check where they are genuine before loading your ethereum here.
- Use two-factor authentication: Where you are investing in actual ether or CFDs, consider taking advantage of using every possible security measure available to foolproof your broker account, given that such features as two-factor authentication go a long way in deterring hackers.
- Keep the private keys for your desktop wallets offline
- Avoid using public Wi-Fi: Don’t log into your trading account from a public or suspicious Wi-Fi.
- Be cautious with what you download: Technological advancements make it possible for hackers to embed suspicious codes into download links that execute such malicious acts as copying keystrokes or recording home screens.
- Be cautious with crypto trading bots like Bitcoin Profit, which are highly unregulated.
Trading ethereum CFDs or actual tokens with a crypto exchange is no different from trading currencies and other financial instruments. You only have to brace for super volatilities where market prices are bound to change drastically in the shortest time possible. This creates room for the recording of abnormal profits or abnormal losses depending on your trading strategy, the effectiveness of your chosen broker, and adoption of expert advisors.
The secret to making it here nonetheless lies not just in the mastery of the trading techniques and perfect determination of price patterns but in understanding the factors acting on the price to buy ethereum. More importantly, you need to learn how to avoid the ever-increasing security breaches aimed at crypto traders and investors by learning how to keep your investments offline and your broker trading account private.
What is ethereum different from ether?
Ethereum refers to a highly secure and decentralized blockchain technology on which individuals and businesses can create Apps, DApps and run different projects securely and in a decentralized manner. Ether, on the other hand, refers to the ethereum platform’s native token.
What is the difference between ethereum and Bitcoin?
The primary difference between bitcoin and Ethereum, though they use almost similar underlying blockchain technology, is that Bitcoin is designed to serve as a digital currency while ethereum works as a technological platform on which businesses and apps can be launched and hosted.
Is it too late to invest in ethereum tokens?
Ethereum was first introduced to the global crypto markets in 2015 with its price peaking in 2018. You are however not too late in getting into the trade as it has only started gaining momentum with its adoption by technology and finance industry players.
Must I day trade ethereum with an expert advisor?
No. You can easily analyze markets, enter and exit trades manually. The high volatility witnessed in this market, however, stacks several odds against a manual trader and increases the possibility of being locked out of profitable ethereum trades or losing out more than you could have if you were using a reliable automated trader.
Can ethereum be used as a currency?
Yes. While it was primarily meant for use within the ethereum platform its soaring popularity has seen most ecommerce stores and businesses accept the tokens alongside fiat currencies for payments of goods and services. It is however not an accepted legal tender.
Do I have to invest in ethereum through a broker?
To a large extent, yes. You can trade ether tokens through a crypto exchange or such highly regulated financial instrument brokers as Forex.com. Unlike stocks that allow for Direct Investment with the parent company, ethereum is a global community without an option of direct investment.
How many ethereum are there today?
As at the end of April 2019, there are over 105.8 Million tokens in circulation. The upside to this is that ethereum doesn’t have an upper ceiling that its coins must not exceed implying that token generation, though mining and otherwise, will go on into the foreseeable future. Unlike bitcoin whose supply will not exceed 21 million coins
Can I mine ethereum?
Yes. The proof of work system allows for the mining of ethereum cryptocurrency. You will, however, want to invest in graphics cards and be prepared to foot substantial amounts in electricity bills.