How Coin Prices Crashed After China ICO Ban

How Coin Prices Crashed After China ICO Ban

Coin Prices Crash After China ICO Ban

In this article, we’re going to discuss why the crypto market has crashed this week and how investors can use Ethereum CFD to profit from this market. Most Coins have been crashing today, partly due to the recent ATHs in crypto and the China ICO ban. In the past week, Bitcoin reached $5000 and hit a milestone in the currency’s life. Similar to this, Ethereum was able to reach up to $385 but didn’t get past the ATH of $400. Due to this crash of prices in the crypto market, the market capitalization of cryptocurrencies has lost over $28 Billion. This huge loss was unexpected and I think that one of the primary catalysts in this crash is the China ICO Ban.

Why did Crypto Crash this Week?

After some speculation, people were expecting to see a correction in the market since Bitcoin hit $5000. Many investors were surprised that Bitcoin rose and was able to trade above $4500 for a few days. However, we were expecting to see the price to come down as soon as the boom dies down. It’s happened now and I believe that it happened a bit too early. Due to the China ICO Ban, the Asian markets have become a bit numb to crypto. China has declared that it is considering an outright ban of cryptocurrencies; including trading and investing. This comes after concerns about investor fraud were on the rise due to scam ICOs.

Profit from the Crypto Crash: Ethereum CFD

One community which was able to make profits from this crypto crash is the Ethereum CFD trading community on eToro. That’s because they shorted Ethereum CFD on eToro. Shorting is basically selling an asset to buy it later on for profit. Let’s take the example of Ethereum. Imagine you take you borrow Ethereum and sell it to a third party, on the condition that you will buy it back at a later time. During the time that the Ethereum is in under the ownership of that person, the value of the coin decreases due to market conditions. Since you have a contract with the person you sold the Ether to, you buy the Ether back at a much lower price. You then return the Ether and you’ve just made a nice profit in the process.

You can do this and it’s called Ethereum CFD shorting. It’s one of the most profitable options in a falling market. You can do this very easily on the eToro Ethereum CFD platform.

Is Ethereum CFD Trading Profitable?

Ethereum CFD trading can be quite profitable in the long run and there are many reasons for that. Firstly, understand that you won’t actually own Ethereum. You’ll be betting on the speculation that the price will rise in the future. Experienced traders are able to bet well, based on macroeconomic environments. If you were to copy such a trader’s trades, you can make a good profit, depending on your initial investment. Since eToro is a well-knit community, you’ll be able to learn along the way as you start investing into Ethereum CFDs on eToro.

The eToro website is quite a new and innovative idea; to mix the community of a social network to the complexity of CFD trading. This mix allows very basic users to master the platform with the help of the education programs available on the website.

Check out our article on how to trade Bitcoin for trading tips and tricks!

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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