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Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your risk.

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Trading Articles

ETH/EUR trading: the fundamentals of Ethereum/Euro CFDs

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Ethereum is an open access, decentralised blockchain through which users can send tokens (ETHs) and run applications. The more in-depth definition of Ethereum requires us to look at its history.

Ethereum’s whitepaper was written and published in 2014 by Vitalik Buterin. In 2015, with the help of Joe Lubin, Buterin launched the Ethereum blockchain. These dates matter because Ethereum was the second blockchain and cryptocurrency to launch after Bitcoin.

We won’t go into the finer details of these two cryptos in our guide to ETH/EUR, other than to say Ethereum makes smart contracts possible. These digital contracts have self-executing agreements coded into them. That means transactions are only completed once obligations from both sides (sender and receiver) are fulfilled.

The significance of smart contracts

Smart contracts not only allow users to send tokens (i.e. funds) via the network, they allow developers to create decentralised apps (dApps). These apps have led to the rise of decentralised finance (defi) and other services that don’t require authorisation or control from a third-party source. That means Ethereum is much more of an ecosystem than Bitcoin.

It’s not just a network through which decentralised financial transactions are processed. Trading ETH/EUR CFDs has become popular in recent years. With the internet changing and Web3 on the horizon, Ethereum blockchain is expected to continue leading from the front.

And, with all processes on the blockchain being powered by its native token, ETH remains an important cryptocurrency by default. For traders, this means thinking about Ethereum in Euro you can buy/sell is an important question.


Why ETH/EUR?

Entering the Ethereum Euro forex market isn’t risk-free. Even though Ethereum as a network and cryptocurrency is hugely popular and important within the decentralised space, it doesn’t mean its value is set. Trading ETH/EUR CFDs is like any other financial instrument.

One day the price of Ethereum in Euro could increase, and the next it could decrease. So, you need to follow the basics of CFD trading when you’re assessing the Ethereum price and decide whether to execute an ETH/EUR trade.

Now that’s out of the here are some of the risks and potential rewards to Ether/Euro CFD trading:

Reasons to trade Ethereum/Euro CFDs

  • Ethereum is the second largest blockchain and plays hosts to dApps that will power the new dynamics of the internet i.e. Web3 (Web 3.0).
  • ETH is the second-largest cryptocurrency by market cap.
  • Since launching, the Ethereum price has gone from less than €1 to more than €4,000 (at its peak), which is an increase of over 350,000%.
  • Ethereum is a well-established blockchain that’s become integral to the crypto industry. Therefore, ETH/EUR markets are more stable than other cryptocurrency forex pairs.

The risks of trading Ethereum/Euro CFDs

  • The price of ETH and, therefore, the Ethereum price in Euro is, like all cryptocurrencies, volatile. Even though it’s more stable than other cryptos, ETH/EUR is prone to dramatic swings.
  • Although a major blockchain, Ethereum suffers from overuse issues, i.e. the network struggles when dealing with a high volume of transactions. This can affect the ETH/EUR price, but a significant upgrade designed to tackle this issue is pending.
  • Trading CFDs and forex is inherently risky. It doesn’t matter if you’re looking at the Ethereum price in Euro live or you’re sizing up EUR/GBP, nothing is guaranteed in the forex market.

ETH/EUR price compared to other cryptocurrencies

Look at the Ethereum price over time compared to other cryptocurrencies and you can see that, overall, it’s increased in value. In fact, throughout its history, the ETH rate has largely moved in step with Bitcoin. When the BTC rate increases, it’s usually the case that the ETH price and vice versa. This means that BTC and ETH tend to set the tone for the entire crypto market.

If these two cryptocurrencies are doing well, then other less popular tokens are likely to do well. Therefore, from a trading perspective, you can use the Ethereum price in Euro to gauge the current state of the crypto market. And, it could be the case that, over time, ETH/EUR CFDs are more stable than lesser-known tokens.

Why? Because ETH, along with BTC, dominates and defines the market. This may not always be the case. Cryptocurrencies, like all tradable assets, are unpredictable. Situations where the ETH price might not rise in line with BTC or the market in general include:

  1. Network issues: the Ethereum network has sometimes struggled to process a higher than usual volume of transactions. This leads to higher gas fees (transaction fees) which, in turn, can impact the price of ETH.
  2. Upgrades and faults: All blockchains are subject to glitches that can affect their efficiency and, in turn, a token’s value. Ethereum is no different. Moreover, if the rollout of upgrades doesn’t happen in time or as expected, this can hurt a token’s value, even if other cryptos are thriving.
  3. Sell offs: Because ETH is a popular cryptocurrency, there are a lot of whales in the market (i.e. people/companies with large holdings). If whales suddenly decide to sell for whatever reason, it can affect the price of Ethereum beyond what’s happening within the crypto market as a whole.

Different types of ETH to trade

Given that Ethereum is one of the largest blockchains in the world and its native token, ETH, is so significant within the market, it’s hardly surprising you can trade with it in a variety of ways. Looking at Ethereum in Euro terms is a popular way to trade, but it’s not the only one. When you create an account at Skilling, you can trade Ethereum CFD in the following ways:

  • ETH – You trade ETH as a single entity (i.e. not as a currency pair). By trading Ethereum CFDs, you can take long or short positions.
  • ETC/USD – You can trade Ethereum Classic (an offshoot of Ethereum) against the US Dollar using the ETC/USD currency pair.

ETH/EUR CFD trading vs. investing

Should you invest in ETH or trade it? That’s a matter of personal preference. The aim of investing is to buy the underlying asset and hold it. You can do this when you believe the value of an asset will increase over time. If you bought ETH tokens, you’d be investing with the idea that the Ethereum price would increase.

Trading Ethereum through something like forex CFDs such as ETH/EUR means you’re aiming to buy and sell more frequently. Because you’re trading virtual contracts (CFDs) instead of owning the underlying asset (i.e. ETH tokens), you can go long or short. That means you can speculate on the price of Ethereum increasing or decreasing.

Indeed, by taking a more short-term approach and moving between long and short positions, you could capitalise on the volatility of Ethereum/Euro markets. Again, nothing is guaranteed. However, ETH/EUR CFDs could give you more flexibility to react and trade in line with market conditions than if you invested and bought Ethereum tokens.

Start trading online

Now you’ve got a grounding in the basics of Ethereum and how to trade ETH/EUR, the next thing to do is increase your skills before putting them into action. You can use the following links to learn more about various aspects of trading. From there, use our sign-up link to join Skilling and enter the ETH/EUR market.

  1. Learn about stocks and shares.
  2. Learn about forex.
  3. Learn about trading fees and charges.

Click here to join Skilling and trade ETH/EUR CFDs.

Not investment advice. Past Performance is not indicative of future results. Trading cryptocurrency may not be available depending on your country of residence.

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