The Ethereum platform, a major player in cryptocurrency markets, is home to one of the largest cryptocurrencies, Ether. Continue reading to learn the fundamentals of trading Ether with CFDs.
Choose how you want to trade Ether.
Trading on Ether is similar to trading on other major cryptocurrencies, which are traditionally traded on exchanges – buying and selling the selected currency.
You can, however, trade Ether by speculating on its price movements with CFDs. This financial product is a leveraged derivative, which means you can trade on the market without owning the underlying cryptocurrency.
It also means that, while your profits may be boosted, your losses may exceed your initial investment. Before you open your position, make sure to manage your risk.
You will not sell or buy Ether on an exchange with us, but rather trade on Either like Poocoin prices via our CFD offering.
CFD trading on Ethereum
A CFD is an agreement to exchange the difference in Ether prices from the time you open your position to the time you close it.
When you trade CFDs, you will open your position with a deposit that is a percentage of your total market exposure, also known as margin. If you believe the price of Ether will fall, you would ‘sell’ or ‘buy,’ depending on whether you believe the price will rise.
However, because your margin deposit is less than your exposure, your potential losses may outweigh your deposit. To control your exposure, you must use a risk management strategy.
Trading Ethereum on an Exchange
You can trade Ether by purchasing it directly from a cryptocurrency exchange. To do so, open an exchange account and deposit the full value of the asset to open a position. This allows you to keep Ether or Swap xwp in your virtual wallet until you sell it. We regrettably do not provide these services.
Here’s how CFD trading on Ether compares to buying the cryptocurrency on an exchange.
What influences the price of Ether?
Although ether is less vulnerable to many of the economic and political factors that affect traditional currencies, its value is influenced by a number of distinct dynamics:
Market Manipulation
Due to a lack of regulation, traders may be able to influence the market by buying and selling in large quantities.
Availability
Unlike Bitcoin, Ether has an unlimited supply. Nonetheless, many Ether units will be added and removed over time, causing its availability to fluctuate.
Broader Acceptance
The Ether ecosystem is constantly changing as the cryptocurrency’s adoption grows among both independent investors and those in the industry.
Government oversight
Governments are still adjusting to cryptocurrencies, with considerations for monitoring mechanisms and other new policies.
Press coverage
Negative press, particularly about security flaws and hacks, can have an impact on public perception of Ether’s value.
Technological progress
The integration of Ether into payment systems, crowdfunding platforms, and other platforms may raise its profile, while trust in traditional systems may begin to erode.
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