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Best Ethereum Brokers 2019
Based on the blockchain originally established by bitcoin, Ethereum is a decentralised software platform which aims to decentralise the way data is stored. One of the key features of Ethereum is smart contracts, which are self executing contracts that exist on the blockchain. This innovative technology has given birth to the cryptographic token Ether which is one of the most hotly sought after cryptocurrencies.
What is Ethereum?
When you sign up to a service or create an account with an app you are essentially handing over your data to a third party. This creates a number of questions; where does that data go? And what happens if the app you’re using goes bust tomorrow? You could have had notes or important information going down with it. Ethereum seeks to change that, returning the control of data to the user.
Ether is acquired by the process of mining; these miners are responsible for verifying groups of ether transaction, forming blocks in the process. These new blocks are then chained to previously created blocks, forming a chain. The miner in question who successfully verified the transaction will earn themselves a reward of Ether (or Ethereum). Thanks to this currency, a new type of tradable asset is available to investors.
How to Trade Ethereum
Creating the infrastructure required to successfully mine ether is extremely expensive both as an upfront cost and an ongoing investment. Not only do you need advanced computer hardware to mine successfully, you will also pay a premium in electricity costs. This is why Ethereum trading has become the next big thing and it has several advantages over traditional mining.
You don’t need to own Ethereum: By far the biggest advantage; there’s no actual need to have any cryptocurrency to start trading this asset. Simply create an account and if you're cryptocurrency broker offers this asset then you are good to trade.
You can use leverage: Leverage is a powerful tool which can help you obtain a position without all of the usually required capital. And this can produce significant profitable results. On the flip side, it can also produce significant losses. A risk management strategy should always be deployed when utilising leverage.
You can speculate on value: If you owned an ether token, you would practically only want the currency to keep rising in value - which is not easy to predict with the way cryptos fluctuate. Trade ethereum with a broker and you can hold long or short positions, giving you the chance to profit from a rise or fall in the market.
Ethereum Trading Strategies
There are several ways to approach trading with ether - we recommend practicing with each different strategy using a practice account before employing real funds.
Day Trading: Short term, flexible option which will allow you to open positions on sudden market events and close at the end of the day.
Scalping: An even more flexible option where you place infrequent trades on minor price movements; perfect for hedging your bets.
Automated Ethereum Trading: Using an electronic advisor or your own custom made software, you can tune the robot to respond to changeable market conditions.