Why is Ethereum Trading the next big thing?

Why is Ethereum Trading the next big thing?

What is Ethereum Trading?

Ethereum trading is pretty much like trading shares, you try to buy low and sell high. It’s the most basic type of trading so it’s pretty easy to carry out. All you need is an online trading account (click here to read our tutorial on How to open a trading account). From there, you can pretty much just buy Ethereum during the low periods of the day and then sell during the high periods of the day. That way, you can make a small profit on every trade. However, there’s a new way for people to engage in Ethereum trading. This solution is called CFD trading, it’s a much simpler trading method which allows you to trade on margin as well as short Ethereum. Generally, you can’t short nor trade on margin on an exchange without high risk. In this article, we’re going to explain why Ethereum Trading using CFDs is profitable and popular whilst being very accessible for beginners.

CFD Trading – A revolution in Ethereum Trading

CFD trading is pretty easy to understand. Essentially, this market only deals in CFDs. A CFD or a ‘contract for difference’ is a unit which represents Ethereum on the platform. When you buy CFDs, you’re not buying Ethereum itself, you’re speculating that the price of Ethereum will rise. If it rises throughout the day, you’ll make a profit depending on how much the price moves in your favour. If you think that the price of Ethereum will decrease, you can short Ethereum. Shorting Ethereum is essentially like borrowing CFDs at a market price and selling it. Then, when the price decreases, you buy the CFDs back. By this time, they have devalued and thus will cost you less to buy back. Then, you return these CFDs, so you make a profit. It’s very practical to have the possibility to short in Ethereum trading because you might speculate that the prices will decrease as well as increase. Thus, you can trade twice the time for more profit out of your speculations.

What is the best platform for Ethereum Trading?

Plus500 is the world’s most popular CFD trading platform which also provides Ethereum Trading. The Plus500 platform has great features for traders. There are risk management tools which let you make sure you don’t make excessive losses on a single trade. For example, let’s imagine you speculate that the price of Ethereum will rise. Then, you purchase a number of CFDs of Ethereum to show that position. When you finalise the trade, you can set a stop loss.

The platform currently enables you to invest in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), DASH and NEM. This is quite a large range of leading crypto currencies compared to all other CFD trading platforms. If you want, you can diversify your portfolio by doing Bitcoin trading rather than only Plus500 Ethereum trading. Overall the Plus500 platform is one of the simplest and most powerful CFD trading websites. The platform can be used by anybody to experience the world of CFD trading and get introduced to a new industry in the financial markets.

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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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