The first takeoff of the cryptocurrency market fell in 2017. Since then, the question of how to trade Ethereum has worried the minds of traders.
In this article, we will look at what Ethereum is, what are its prospects for the near future, and whether it is beneficial to trade this digital coin.
Now, we can say that the cryptocurrency market, if not matured, then became much more formed. On the one hand, the data has already accumulated for technical analysis of cryptocurrency. It makes it possible to understand whether Ethereum is profitable. On the other hand, the blockchain increasingly penetrates various areas of activity, and serious experts are increasingly expressing the thoughts that cryptocurrencies are a new bubble.
To understand what prospects will expect a cryptocurrency on capitalization, and how to make money on ETH, let’s see what Ethereum is.
What is Ethereum?
Ethereum is a large software platform having open-source code. It was developed by the young Canadian Programmer Vitalik Bidinet in 2015. Later at its base created the cryptocurrency, which was called Ethereum. Now, this cryptocurrency ranks second in capitalization after Bitcoin.
From Bitcoin, Ethereum is distinguished by the fact that it is based on smart contracts that make this platform more functional.
Now the number of functions that are laid in the platform is quite extensive. According to the original idea, Ethereum should become a huge global computer with a large number of nodes. It is due to its functionality that Ethereum is a platform that many experts prophesy a successful future.
What are the prospects for Ethereum?
To understand if it is profitable to trade Ethereum, it is important to see its prospects. We have already said that at the moment ETH is the second capitalization of cryptocurrency (Bitcoin ranks first). It is considered altcoin, but some experts note that soon the air can change its status and become an independent asset in the cryptocurrency market.
The digital coins are largely dependent on how the platform transition to Ethereum 2.0 will be passed. Now there are some technical difficulties, but they are solved. When this happens, not entirely clear. However, the creator of Myetherwallet’s wallet notes that the full transition of the entire system on Ethereum 2.0 will occur no earlier than 2022.
Weighing current perspectives on Ethereum, it is worth considering the following factors:
- Starting Ethereum 2.0 – the uncertainty factor for cryptocurrencies, and is still unknown, as it will behave soon after the transition;
- The fundamental system can support the corporate sector’s refusal of its blocks and the transition to Ethereum;
- Cripmarked Etherium is popular among miners, which also positively affects her growth;
- Investors’ interest in the cryptocurrency market after the crisis is likely to increase which will support both ETH/USD.
How to trade ETH / USD
However, when trading a cryptocurrency trader, in addition to assessing the prospects, it is necessary to conduct a technical analysis that will give a lot of information to decide on the transaction. So, on a weekly schedule, using technical analysis, it is possible to estimate the possible direction of price and purpose.
In a situation, where there are uncertainty and questions about the medium or long-term ETH / USD, trade based on technical analysis on small timeframes will be one of the best solutions.
That’s what you need to consider:
- ETH / USD correlates with Bitcoin, so it is worth navigating the direction of the main cryptocurrency;
- For ETH / USD, the trading strategy works well at technical levels. Depending on the situation, you can use trading tactics for rebound and breakdown;
- The cryptocurrency is often traded in the sidework, after which the pulse leaves the range and forms a new corridor.
Ethereum can be traded both on cryptocurrency sites and forex brokers. To understand how to trade Ethereum on the stock exchange, except for analyzing the asset itself, it is necessary to study the conditions of the trading platform (spreads, rollovers, the presence of leverage, and its size).
If you want to trade ETH / USD along with other assets: fate currencies, CFD on stocks, and raw materials, it is best to go through the Forex broker. In Gerchik & Co, you will be able to trade Ethereum and other cryptocurrencies with small floating spreads, protect yourself from losses using the Risk Manager service and diversify the trading portfolio. And the daily analytics of the cryptocurrency market will give you additional guidelines for opening your deals.
