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How to Trade Ethereum: Ultimate Guide

24 Jul, 2023 9 min read
How to Trade Ethereum

If you're considering trading Ethereum, the second-largest cryptocurrency with a market capitalisation of over $220 billion, there are several essential things to remember. Ethereum trading offers a chance to invest in a prominent digital currency and participate in the ongoing blockchain revolution. Our guide should be helpful if you wonder how to buy and sell Ethereum for maximum profit. However, before discussing how to trade Ethereum, let's revise what Ether is and what features make it stand out. 

What is Ethereum (ETH)?

Contrary to popular belief, Ethereum isn't a cryptocurrency but rather a decentralised software that enables programmers to create various secure and manipulation-resistant applications to run on the blockchain. 

Ethereum trading

While Bitcoin's technology is focused on monetary transactions, Ethereum is built explicitly for running decentralised applications that offer enhanced security and protection. The price associated with Ethereum refers to its native token, Ether, which functions as a cryptocurrency and represents the value of the Ethereum network. 

Since its establishment in 2013 by Vitalik Buterin, the Ethereum network has garnered significant attention from finance, real estate, software development, and even pharmaceuticals.

Ethereum Overview

Ethereum is a decentralised blockchain platform that enables a secure and peer-to-peer network for executing and verifying smart contracts. These allow participants to transact without needing a central authority. Transaction records are distributed across the network, ensuring immutability, verifiability, and security. Users interact with Ethereum through their accounts, signing transactions and using Ether as a transaction processing cost. 

Ethereum provides a flexible platform for building decentralised applications, utilising the Solidity scripting language and Ethereum Virtual Machine. Developers benefit from the mature ecosystem of tools and best practices available for deploying smart contracts on Ethereum. The large user base of Ethereum further solidifies its position as the main platform for decentralised applications like DeFi and NFTs

What is Ethereum Trading?

How to trade Ethereum

Trading on Ether follows a similar process to other major cryptocurrencies, where you buy and sell the chosen currency on an exchange. You can trade Ether by purchasing it directly on a cryptocurrency exchange. To do so, you must create an exchange account and deposit the full value of the asset to open a position. This allows you to store Ether in your virtual wallet until you decide to sell it. 

You also have the option to trade on Ether using CFDs (contract for difference), which allows you to speculate on its price movements without owning the actual cryptocurrency. 

What Are the Features of Ethereum?

Ethereum offers a wide range of applications that cover various functions. To work with Ethereum, you can use a digital currency or cryptocurrency wallet to send or receive Ether and make payments for goods or services. Companies that accept digital currency can facilitate these transactions. 

One of the key features of Ethereum is the use of smart contracts. These are programmable contracts that automatically execute when certain conditions are met. Ethereum provides an easy way to execute these contracts using its cryptocurrency. 

Moreover, Ethereum supports non-fungible tokens, which allow artists and other individuals to directly sell artwork and other items of interest using smart contracts on the platform. 

Another benefit of using Ethereum is decentralised financing, which enables individuals to avoid centralised government control over their assets and property. It's important to note that Ethereum isn't just a cryptocurrency for sending money; it's a token that powers various programs and functionalities.

How to Buy and Sell ETH

How to buy and sell Ethereum

Buying and selling Ethereum doesn't differ much from working with other cryptocurrencies. Buying Ethereum crypto is as easy as taking the following steps: 

  • Choose a trading platform. Select a reliable one like StormGain.
  • Create an account. Sign up, provide the necessary details, and complete the verification process.
  • Deposit money. Fund your account using a bank account or debit card for fiat exchanges. For C2C exchanges, transfer cryptocurrency.
  • Start trading. Use the exchange to buy Ethereum and other cryptocurrencies. Confirm transactions and allow processing time.
  • Withdraw ETH. After purchasing ETH, withdraw it to your crypto wallet. Follow the platform's instructions for withdrawal.

Selling Ethereum is similar to buying it:

  • Transfer Ether from your wallet to your exchange Ethereum address.
  • Transaction time depends on fees and network traffic.
  • Use the "Sell" or "Deposit" buttons on the exchange to access wallets and addresses.
  • Ensure wallet compatibility for specific transactions.
  • Decide the amount to sell and the currency you want in return.
  • Complete the trade and view funds in your account.
  • Withdraw funds to your bank account if selling for fiat currency.

 

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What Moves the Price of Ether?

Ethereum aims to create a computing machine for decentralised apps powered by the Ether (ETH) token. Ether is considered the "currency for our digital future". Any new project utilising the Ethereum network can impact the value of Ether. Staying informed about new projects on the network is crucial for Ethereum traders.

Other factors that drive Ethereum's price include technological upgrades, such as Proof-of-Stake and scalability improvements, as well as new functions on the blockchain. Mainstream adoption by big companies also increases demand and can lead to higher prices. Another driver is the rise in popularity of decentralised finance (DeFi) apps and finance projects on the network. Unlike Bitcoin, the supply of ETH isn't capped, so an increase in supply could result in lower prices. While there are new blockchains claiming to offer better functionalities, Ethereum remains more popular for now.

Ethereum Trading Strategies

Maximise the daily volatility in Ether's prices by engaging in day trading CFDs. This trading style involves opening and closing positions within a day, minimising exposure to overnight market risks. You can only hold positions at the cut-off time to avoid incurring overnight funding charges. This strategy may suit you if you're interested in profiting from short-term price movements in Ether. 

Swing trading focuses on capitalising on short-term price patterns, operating under the belief that prices don't move in a single direction for an extended period. When swing trading Ether, the goal is to generate profits from upward and downward price movements within a narrow timeframe. 

Ether swing traders typically pay close attention to minor reversals in Ether prices. Adopting this strategy entails identifying these reversals and conducting trades to profit from smaller market movements rather than relying on broad trends. 

Scalping is a short-term trading strategy that aims to generate frequent small profits by prioritising a high-win rate. The underlying theory is that focusing on small profits through frequent trades makes it easier to build a substantial trading account than placing fewer trades and relying on long-term profit accumulation. Successful scalping requires a strict exit strategy, as rapid market movements can lead to losses that offset your profits, particularly in volatile cryptocurrency markets. 

To avoid overnight funding charges from eating into profits, most scalpers close their positions before the end of the day. 

Hedging Ether involves attempting to mitigate risk by balancing out your exposure to an existing position with an opposing position. The aim is to safeguard against unfavourable market movements in Ether. For example, if you hold Ether but are concerned about short-term cryptocurrency depreciation, you would open a short position. Any profits from the second position would offset the losses on the first if the market price for Ether fell. 

However, it's important to note that hedging incurs fees on both positions, which should be considered when calculating potential outcomes.

 

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How to Start Ethereum Trading

Before engaging in buying or selling Ethereum, it's crucial to understand the principles of Ethereum trading. One of the main factors to consider when participating in leveraged trading is the exchange rate between Ethereum and Bitcoin. Similar to traditional trading, crypto trading relies on technical analysis based on historical performance.

To maximise efficiency in Ethereum trading, it's essential to know the trading hours. So, what is the best time to buy Ethereum? ETH, like other cryptocurrencies, is traded continuously. However, weekday trading activity decreases from 23:00 to 00:00 (CET). During weekends and holidays, periods of low trading activity are more prolonged. It's strongly advised against trading during these times as it becomes highly unpredictable and risky. 

Choosing the right platform for trading is extremely important to minimise costs when dealing with cryptocurrency pairs and other assets. In the case of Ethereum trading on the Ethereum blockchain, substantial commissions are typically involved.

How to Trade ETH on StormGain Step by Step

How to trade ETH
How to trade ETH

Trade Ethereum easily using StormGain's app or web platform. Follow these steps to start making a profit.

Step 1. Sign up

Register and fund your account by using your email address and creating a password. 

Step 2. Adding Funds

Fund your account using a bank card or another crypto wallet. 

Step 3. Start Trading

Once your account is funded, start trading Ethereum on StormGain. 

Step 4. Follow Trading Signals

Use the trading signals provided in the mobile app to maximise your profit potential.

Ethereum (ETH) / Tether (USDT) Trading

 

 

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Why Trade Ethereum with StormGain?

Trade Ethereum with StormGain for convenience, security, availability, benefits, an individual approach, and support. Our all-in-one application provides tools for easy trading. Your data is secure with our use of the latest technologies. Trade anytime, anywhere, from any device. Enjoy low transaction fees and generous bonuses to maximise your earnings. We offer an individual approach and attractive partnership payment plans. Our experts can always answer your questions through Telegram or other official channels. Immediate assistance is guaranteed!

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FAQ

How do I trade in Ethereum?

You have two options to purchase Ethereum: using an exchange platform or a peer-to-peer buying option. Once you have Ethereum, you can utilise exchange platforms for spot or margin trades. Another option is to invest in an Ethereum derivative through a brokerage.

Is Ethereum Good for Day Trade?

Day trading Ethereum can be highly profitable due to its higher volatility than Bitcoin (BTC) and other cryptocurrencies.

Can You Trade Ethereum for Cash?

Ethereum can be exchanged for fiat currency, like dollars or euros. This process is known as cashing out and is determined by the exchange rate.

Is Ethereum Trading Safe?

There's no risk of Ethereum users falling into a cryptocurrency investment scam when trading on this platform. The Ethereum trading community has placed their trust in this platform for long-term investments. Even after earning four times their initial investment, some members have chosen to keep their earnings from this platform.

What Is the Best Time to Buy Ethereum Crypto?

The optimal time to purchase Ethereum crypto is during the weekend due to reduced transaction activity, resulting in a less volatile market. Consequently, you can acquire tokens at a more favourable price and purchase a larger quantity than on weekdays.

Does Ethereum Have a Future?

Ethereum's future looks promising. Experts and analysts predict that 2030 Ethereum could reach a price range of $7,400 to $12,200, with an average price of $9,800.

Where to buy Ethereum

StormGain is a top-tier cryptocurrency platform for leveraged trading and investment. To buy Bitcoin on StormGain, follow these steps: create an account, find the 'Buy crypto with credit card' option in the app or on a web platform, and utilise your debit/credit card to acquire cryptocurrency and deposit funds into your account.

Is it Better to Trade with Bitcoin or Ethereum?

When comparing the trading advantage of ETH and BTC in the crypto market, it's difficult to determine a clear winner. Both ETH and BTC are known for their volatility, and their market dominance can fluctuate significantly. Therefore, investing in these cryptocurrencies can be risky.

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