In the unofficial rankings, Ethereum is the second cryptocurrency after Bitcoin. Such a significant place is provided to it by high capitalization and a unique working platform, which helped the “coin” to successfully overcome the crisis of 2018 and even become more expensive, including almost half concerning Bitcoin.
Mining and speculative trading
Blockchain technologies suggest that the growth in the number of farms and solo miners makes the “extraction” of digital “coins” an activity more difficult and less profitable, so mining is of interest to those who like to earn less. Also, many investors come to the conclusion that another rapid rise in the quotes of the 2017 version of the cryptocurrencies should not be expected, so speculative transactions on exchanges can give the greatest prospect. They are attractive for several reasons: some cryptocurrencies traditionally show high volatility, and Ethereum itself (ETHEREUM) is now widely represented by various exchange instruments: ETH/USD, ETH/EUR, ETH/RUB, ETH/BTC, ETH/LTC.
Where and how best to trade Ethereum?
You can find an application for your investor funds on specialized cryptocurrency exchanges. Their number is constantly growing, but thanks to the work of numerous trading robots, price arbitrage for them is impossible since the cost of a digital “coin” on different sites instantly equalizes. In such conditions, it remains to choose the exchange, for example, by the convenience of using the interface! The second option is Forex brokers, which traditionally provide good leverage, making it possible to make money on speculative Ethereum trading
with relatively little money.
Features of trading Ethereum
Experts often call this cryptocurrency the only one with some kind of security, but this fact has practically no effect on the dependence of the Ethereum exchange rate on any global economic factors. Under such conditions, fundamental analysis is not applicable, although some events should always be kept under control: hacks of crypto exchanges, hacker attacks on the virtual infrastructure of the system, the mention of cryptocurrency in criminal news, etc.
The answer to the question of how to trade Ethereum correctly is given by the good old technical analysis. Observations of the behavior of quotes made it possible to draw several important conclusions that can be used by stock speculators who prefer short-term and medium-term trading:
- Ethereum often shows good trends, starting with strong momentum when exiting a consolidation.
- ETH correlates with Bitcoin, so the search for direction should always be compared with the chart of the world’s main cryptocurrency.
- The Ethereum“coin” perfectly fulfills strong levels, which gives good prospects for using strategies for breakdown and rebounding from them.
- Finding the price of Ethereum in a flat is usually short-lived, and the probability of false breakouts within the corridor’s boundaries is extremely small.
How to store ETH
There are several ways to store Ethereum. Among them, the most reliable are:
- stock exchange account;
- wallet on the Ethereum website;
- wallet on your PC.
At the same time, you do not need to store all the coins in one place because, this way, you increase the risk. Experts recommend spreading ETH across different wallets. If you do not intend to trade cryptocurrency, then you should not store it on the Internet. It is better to gradually withdraw Ethereum to a bank card before exchanging it for the desired currency. If you want to earn on the difference in rates, make sure not to lose on commissions during exchange transactions.
