Ethereum is the second-largest cryptocurrency by market cap. It has been around for about six years and has expanded the possibilities of blockchain by introducing smart contracts. For this reason, many decentralized applications have been able to build on it and innovate, leading to Defi protocols, NFTs, and so on. This makes Ethereum’s place within the market quite remarkable since the crypto space wouldn’t have been able to innovate so much without its smart contracts. The protocol uses Ether or ETH as its native token, which is used to conduct transactions and pay fees on its network. The coin is currently trading at 3,698, representing an ROI of over 887,000% from its all-time low back in October 2015. That means if you put $100 into the coin back then, today, your money would have grown by almost 8,900x.
But, many might feel that it is too late to get in and profit from the cryptocurrency at the current price. This is inaccurate since one can buy small fractions worth even $5 and hold onto them. If the price rises, your assets will also grow proportionally. But, this will take you a long time to make substantial gains over your investment. And unless you have bags of money to purchase a large amount of the coin and the patience to see its value grow, you have to look for a simpler alternative. This piece will cover the benefits of Ethereum trading since this is the only way to grow your portfolio fast.
The first step involves signing up on a reputable platform such as PrimeXBT that allows users to trade Ethereum and other cryptocurrencies. The signup process should be simple where you provide your email address/phone number, set a strong password, verify the account, and you are good to go. The next step is funding the account, and then you can begin to trade. Also, before funding the account, you need to secure it by activating the two-factor authentication (2FA) and employing any other extra security measures.
There are two ways to trade Ethereum; on spot markets or derivative markets. The former involves joining a cryptocurrency exchange or any other platform that allows you direct access to ETH. In contrast, the latter involves joining a derivative platform where you get to trade financial instruments attached to ETH using leverage.
Buying ETH on spot markets is easy; however, it comes with its own troubles. For example, you will need a secure private wallet to store your coins for the entire period you plan to hold on to them. Many people have lost billions of dollars through hacks on exchanges; therefore, it’s never good to leave your assets on the platform you purchased them, especially if you have enormous amounts. Also, your profitability will depend on how patient you are. As mentioned earlier, there is no doubt holding onto ETH for years can be lucrative, but for the guy with $100 that needs to turn it to $1000 quickly, the spot market isn’t quite ideal.
This guy can opt for derivative markets that support ETH CFDs. You get to trade with leverage which means your capital receives a boost, thus increasing your success tremendously. However, this activity isn’t a walk in the park. You need to educate yourself on conducting technical and fundamental analysis and practicing proper risk management, or your account will be wiped out before you can blink.
Luckily, platforms such as PrimeXBT provide users with a plethora of free educational resources from blogs, ebooks, webinars, and so on that one can utilize to move from zero trading knowledge to a pro. Also, there is a demo account where you can put what you study to use and practice your strategies with the platform provided “virtual money” before starting actual trading. And incredibly, there is a feature that allows one to copy expert traders and enjoy the same success as they do.
All that you need to trade Ethereum successfully is time and dedication.
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