Cryptocurrency trading is becoming popular these days. Many see it as a future replacement of fiat currency. The most popular cryptocurrency is Bitcoin. However, traders also trade Ethereum and Litecoin. The article will throw light on what is ethereum trading? And how to start trading in ethereum?
What is ethereum?
The native virtual currency of the Ethereum platform is Ethereum. It is also defined as the utility token as it offers access to the decentralised operating system of Ethereum. We can divide cryptocurrencies into two major categories:
Security tokens: They are something that symbolises payment tokens such as Bitcoin or an underlying asset.
Utility tokens: These are something that offers access to the assistance offered by a specific project.
How to store ethereum?
Before purchasing Ethereum, you require a proper place or space to store it. A cryptocurrency wallet basically serves this purpose. It mainly comprises two things: a public key and a private key. The private key of a wallet is different for different users and allows access to the Etherreum address saved in the wallet, also referred to as the public key.
This wallet is something that enables any cryptocurrency or Ethereum to be a safe medium of exchange. Typically, traders can transfer Ethereum coins to specific wallets by a public key, which only the owner can access using the private key.
What are the trading hours for Ethereum?
You can trade Ethereum 24/7 with some popular brokerage firms such as T1markets, PrimeFin and Brokereo.
All these are reliable and regulated platforms working under the guidelines of top financial authorities. They facilitate trading on all top cryptocurrencies, including bitcoin, litecoin, altcoins, bitcoin cash and several others. The minimum deposit to start trade with them is just $250 without any commission on trading.
How to trade Ethereum CFDs effectively?
There are certain things you should consider while trading Ethereum:
1) Never make a mistake in choosing a brokerage firm. A well-regulated firm is usually regarded as a safe venture to invest wit
2) If you are a novice, it is better to go with a virtual account and practice trade before entering the real trading world
3) Always use a stop-loss order to limit your losses and protect your trade from sudden price shift
4) Learn to use technical and fundamental tools before entering the market
5) It is better to go with low leverage at the initial stage as leverage is a double-ended sword and can magnify your losses along with profits
How to start Ethereum trading?
To start trading in Ethereum cfds, you are required to open a brokerage account with a reliable financial service provider. The process is easy and requires five valuable minutes. Follows the account opening steps provided below:
1) Use an authentic link to open the website of the broker and check everything before entering details
2) Sign up by providing name, country and email address for verification
3) Once you enter OTP, the website will direct you to a documents session where you need to upload some mandatory documents, including:
- Address proof: This includes bills or any other document containing your permanent address and recent photo
- Identity proof: You need to upload your passport or national id card if you lost or do not have a passport
- Bank and financial statements: These statements must not be older than six months
4) Select the account which suits your trading objectives, experience level, profit goals, financial conditions and pocket best
5) Choose the market and cryptocurrency (Ethereum)
6) Deposit the minimum amount to start trading
The Bottom Line
Trading Ethereum seems to be simple. However, it is not. Ethreum trading requires great expertise and continuous monitoring of prices. One sudden news in the market can lead to a sharp drop in the prices. Thus, make each move vigilantly and follow authentic websites, news channels, research tools, technical and fundamental tools to make a potential decision.