After Bitcoin, Ethereum is the most traded cryptocurrency at the moment.
Ethereum is a fast and cheaper cryptocurrency, compared to Bitcoin. If you want to know, how to trade Ethereum follow the guide below.
How Ethereum Trading Works
Trading Ethereum is not that complicated as you may think. All you have to do is to follow a few simple steps.
Here are all the steps needed, to start trading Ethereum:
- Open Account At An Exchange: You need to register an account on an exchange like Coinbase or Kraken. This exchange has to accept fiat money (USD, EUR etc.). This is the reason why we haven’t mentioned Binance here.
- Deposit Money On The Exchange: Once your account is opened, you need to make your initial deposit. It is not recommended to invest more than 10% of your net worth into cryptocurrency.
- Buy Ethereum With Your Money: If you are only interested in Ethereum, there is no need to buy Bitcoin first. Most exchanges allow you to buy Ethereum directly.
- Start Trading Ethereum: Once your first Ethereum coins are purchased, you can send the cryptocurrency over to Binance. We recommend Binance, because it’s the most trusted exchange that has most of the coins listed. Now you can follow your trading strategy and exchange Ethereum into other coins whenever you want.
When signing up to Binance, to trade Ether, you can use this Binance referral code.
Ethereum Trading VS Ethereum Investing
There is a huge difference between trading and investing.
You may have searched for “how to trade Ethereum” when you found this article. But in reality, you may be more interested in the investing part. Let me explain:
- Ethereum Trading: This is for those of you who are looking for short term profits. There is day trading where you basically trade Ethereum a few times a day. Some people can make a living off of this. There is also swing trading ,where you trade the cryptocurrency one a week or month. This is also considered to be a short term trading strategy.
- Ethereum Investing: Investors typically just buy and hold. You don’t care about short term losses or gains. You know that in the long run, you will be in profit anyway. For most people, investing is the simplest and safest way to make money with crypto.
Ethereum and Ethereum Classic
We must clear up one important detail about Ethereum vs Ethereum Classic – they are not the same.
- Ethereum is abbreviated to ETH
- Ethereum Classic is also called ETC and there are times when traders fail to make the crucial distinction and end up buying Classic.
At first, there was just Ethereum and later the Decentralized Autonomous Organization (DAO) was formed as a kind of crypto-hedge fund, which raised some 150 million dollars’ worth of Ethereum. However, the code it was based on was not all that perfect.
One hacker in particular managed to exploit the loopholes in the system well enough to land Ethereum tokens worth $50 million. So obviously, Ethereum users and developers were not amused and asked that the stolen currency be reimbursed and the code be given its due update.
Meanwhile, ETC supporters maintained that the code was the law and that whatever happened ought to be forgotten.
But losing $50 million is not easily forgotten. Thus, the split between ETH and ETC, and the latter still operates as the original Ethereum did.
Start Trading Ethereum With A Strategy In Mind
Ever since their arrival on the online trading market, cryptocurrencies have caused one heck of a fuss among traders. They represent some of the most lucrative profit potentials of any trading commodity. Ethereum is one of these wild cryptocurrencies with an insane capacity for inflation, able to raise its value from $8 to about $400 in less than half a year.
But before you jump right into Ethereum trading and attempt to get yourself some of that, it is important to know that Ethereum, like any cryptocurrency, is a highly volatile commodity. If it has the capacity to make a rapid climb from $8 to $1000 in such a short time, you can be sure that it has the capacity to descend just as quickly.
If you are really going to make healthy profits by trading Ethereum, you will need to remain sober and focused on a long-term vision. It is all about implementing a successful strategy.
A good strategy is to buy Ethereum on support levels and sell it at resistance levels (or simply hold it for years).
Is It Still Worth To Trade Ethereum?
Like any prominent cryptocurrency in the world, Ethereum has the potential to sustain truly ridiculous surges in its price.
To put that into context, the price of Ethereum at the beginning of a given year can spike to as much as 5000% before the year is over.
That is growth like you have never seen before. However, factor in the opinions of analysts, and there is good reason to anticipate that the market as it were is on the way to correction. Nowadays you can even use Ethereum to play slots and bitcoin games.
Certain coins may well become outdated and a small number of coins are expected to increase in value from what they were.
Ethereum VS Bitcoin
As a trader, it is in many ways a good idea to invest your money in cryptocurrencies that are not carbon copies of bitcoin that have different uses and technologies.
In this regard, Ethereum has been developed with Smart Contracts as well as computation. That makes it a much more versatile and capable platform than Bitcoin.
In fact, you can perform more transactions on the Ethereum network than with Bitcoin, and for a lower fee too.
Some reports state that the market cap for Ethereum may well usurp that of Bitcoin in the not-so-distant future.
Others claim Ether could topple Bitcoin both in the number of users and the capability of its platform, specifically in computational power and cybersecurity.
Rest assured, Ethereum has a very capable team to work on it. Co-founder, Vitalik Buterin, was first introduced to bitcoin when he was merely 17.
Not long afterward, he would bring home the Bronze Medal in Informatics at the International Olympiads.
Ethereum developers have also concentrated on its legitimacy, and set up the Enterprise Ethereum Alliance or EEA, to make connections and assist global organizations such as Accenture, Intel, Microsoft, and so on in the use of blockchain technology.
As a matter of fact, a major reason why the price of Ethereum has soared so high is that the big players in EEA placing their trust in the technology and continuing with projects on the blockchain. So to answer the question “Is it too late to invest in Ethereum?” no, it most certainly is not. It is still very much a viable and recommended option for making any long-term investments.
Questions And Answers
In most countries, cryptocurrencies are legal. There are quite a few shops where you can buy stuff with cryptocurrencies, like Ethereum
Selling Ethereum is as simple as buying. You just send your coins to an exchange that accepts fiat currency. Example: Kraken or Coinbase
Both are cryptocurrencies, but both serve a different purpose. Ethereum is faster and cheaper.
Can I Buy Ethereum In My Country?
Just like with any other cryptocurrency, you can buy Etherum from online exchanges. Given the immense popularity of Ethereum, you can buy it in bitcoin as well as fiat currency. A few of the most recommended online exchanges to try are Coinbase, Bitstamp, Gemini, and Kraken.
Any online exchange with a significant reputation will require you to verify your account prior to purchasing Ethereum. The verification process involves uploading your personal ID from the government and going through the KYC process. All in all, the verification process takes a few days, going by how busy the exchange is.
Cryptocurrencies are only banned in a few countries, so there is a high chance that your country has no problem with this. The list of countries that accept cryptocurrencies changes on a daily basis. That’s why we can’t post a list here.
Upon verification, you can deposit fiat currency to your account and receive ETH. You can also buy ETH using Bitcoin.
It is important that you do not store any cryptocurrency in an online exchange for longer than necessary. Even with an updated system, the threat of hacking is constant and not to be undermined.
It is best to transfer your ETH into your own digital wallet just as soon as you receive it. That also means keeping your password and private key secure. Else, you might encounter problems with transferring ETH later on.
You would also do well to open an account with a highly recommended cryptocurrency broker such as Plus500 that counts deals with many of the world’s leading cryptocurrencies.
Should I Invest In Ethereum?
Ether works as a commodity which in turn works as a token of exchange to run the Ethereum Virtual Machine or EVM. The EVM is what enables smart contracts to be used and computers to work on blockchains.
For all intents and purposes, Ethereum is a new and improved platform, allowing its developers to build on the blockchain technology, especially with big names like Microsoft and JPMorgan using it in ongoing projects. If all does go according to plan, we may just see a new king on the Cryptocurrency front.