Ethereum CFDs

Opinions are divided on whether this latest uptrend can last. The price swing of Ethereum is quite similar to conventional currencies and how you can take advantage of it will depend a lot on your trading strategies. The affiliate programme is not permitted in Spain for the commercialisation of investment services and client acquisitions by unauthorised third parties.

So, when trading CFDs on cryptos, you can either go long or short for your trading approach, depending on what you expect to happen to the price. On regular exchanges, you could only buy (go long) a specific amount of your favorite digital coins and hold it before selling if prices go up. Ethereum plays second fiddle to the Gold of cryptocurrencies, Bitcoin, with many of its applications yet to be unveiled. It has only lasted less than a decade (created in 2015) and has taken the financial market by storm with over 1000%.

Price chart of ETHUSD in real time mode

The crypto market operates 24/7, so you can trade ETH at any time. However, when trading this cryptocurrency, you need to be cautious and control possible losses. In addition to technical analysis, it is important to keep track of news about Ethereum and the cryptocurrency industry, as various events can affect the value of Ethereum. There are just two ways of trading the Ethereum cryptocurrency.

The Standard Account offers commission-free trading with spreads from just one pip. The broker also offers demo trading accounts and Islamic swap-free accounts. Initially, you could only buy them on exchanges, using a digital wallet for storage until you wanted to start selling.

Benefits of Ethereum smart contracts

You can equally purchase ETH with Bitcoin, and resell ETH for BTC. Also, when trading crypto CFDs you can use leverage to open positions with less capital, but also with increased risks. For managing your risks and keeping your investment under more control, you have access to market orders such as stop loss or take profit. When you trade on Ether via CFDs, you’re using derivatives to speculate on Ether’s price movements, and you never take ownership of actual cryptocurrency. This means you can go long or short, and the accuracy of your prediction and the size of the market movement will determine your profit or loss.

• The Standard Account offers commission-free trading with spreads from just one pip.
• Bitcoin also had a positive major fundamental event going its way during the year, which was the Bitcoin halving that effectively decreased miners’ incentives, which consequently reduces the coin’s supply.
• In 2014, 7 million Ether – around $2.2 million – was sold in the Ethereum presale within the first 12 hours.
• 6,300+ global shares with commissions from $5 on Australian shares.

Calculate your hypothetical P&L if you had opened a CFD trade on a certain date (select a date) and closed on a different date (select a date). When you use a CFD broker, you can often use a wider variety of payment options — helping you fund your account more conveniently. In essence, you can make money when the market moves in both directions.

How to trade crypto

These transactions require a digital currency to run on, and Ether tokens are the currency that powers this platform. In this article, we will look at how to trade Ethereum simply online as a CFD. When you trade Ethereum with a CFD broker you can use it as a leveraged product, just like Forex. You can open a trading account with a recommended broker within just a couple of minutes and start trading immediately. When you trade Ethereum, rather than buying it outright you are actually speculating on the price, rather than buying the underlying stock.

Ether is the fuel or “gas” used to pay for transactions made on the Ethereum platform. Ether gives participants a reason to contribute resources used by the platform, thereby ensuring a robust network. Further, it provides developers with incentive to write efficient code, as inefficient software programs are more expensive. FP Markets was founded in 2005 and is headquartered in Sydney, Australia. While it is suitable for beginners, education resources are limited. For example, if the governments adopt stricter regulatory measures, BTC prices can be affected.

Ether (ETH/USD, ETH/AUD, ETH/EUR)

Bitcoin had broken above 2017 highs in December 2020, but at $750, Ethereum was still way below its 2017 highs of circa $1440. Despite this, the coin started 2021 positively, following the cue of Bitcoin as well as receiving a boost from a fundamental tailwind. Bitcoin overcame a brief period of retracement and continued to surge higher and higher as institutional money flowed into the cryptocurrency markets. Ethereum edged higher just below its previous all-time-high but it managed to break above this price in early February 2021 ahead of the launch of Ethereum Futures on the CME (Chicago Mercantile Exchange). Ethereum was no longer under the shadow of Bitcoin and could now attract its own investors as a core crypto coin, not just a secondary one. Ethereum is often considered to be a competitor of Bitcoin, but this is not strictly the case.

6,300+ global shares with commissions from $5 on Australian shares. You don’t need to own Ethereum to be able to trade its price. Plus500AE Ltd is authorised and regulated Ethereum cfd by the Dubai Financial Services Authority (F005651). Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039).

Bitcoin doesn’t appear to be ripe for a bullish break just yet

You pay a specific amount for the asset and get paid depending on the asset’s price when you sell the contract — as long as the market has gone your way, you earn a profit. Take full control of your cryptocurrency https://investmentsanalysis.info/ trading with our online platform. We offer unique price alerts, interactive charts, and a suite of risk management and research tools. A challenger to Bitcoin’s cryptocurrency supremacy, Ether can now be traded.

This means that platforms such as MT5, cTrader and web traders can be used to trade ETH. It also allows the trader to trade on margin (to use leverage), however Ethereum is extremely volatile and increasing leverage increases risk. Over the past 12 months 69% of NSFX Limited’s retail investor accounts lose money when trading CFDs with NSFX Limited.