Differences between Investing vs Trading
Differences between Investing vs Trading
Ethereum is a decentralised cryptocurrency that is based on an open-source blockchain where smart contracts can be created. The Ethereum price is based on the currency, which is technically known as Ether (ETH). However, the name Ethereum is also often used to describe both the network and the native currency used on it.
Ethereum was introduced in 2015, with Vitalik Buterin and Gavin Wood among the co-creators. The versatility of this network can be seen by the fact that it can be used for financial transactions as well as for creating non-fungible tokens (NFTs) for sale. Many other cryptocurrencies have been launched using the Ethereum network.
Development work has continued, with the Ethereum 2.0 project providing a major upgrade to make transactions faster, through innovations such as moving from proof of work to proof of stake. ETH is commonly seen as being the second most important cryptocurrency behind Bitcoin, although some analysts believe that it has more potential for practical uses.
The Ethereum price is typically less volatile than other cryptocurrencies such as Bitcoin, but it still shows large increases and some significant falls over its history to date.
A number of factors influence the price of ETH, including the rolling out of updates and news stories about the sale of NFTs for record prices. Overall, its price appears to be more closely linked to technical advances that make the network more viable, rather than investor speculation. However, it may also reflect the overall market sentiment towards cryptocurrencies at certain times.
For the first couple of years of its existence, the ETH currency had a value of $10 or less for each token. This rose to over $1,000 in 2018 but fell back again later the same year.
2020 and 2021 saw the Ethereum price reach record levels of over $4,000, although it had fallen back somewhat by the end of that period.
Buying ETH is something that can be done on a cryptocurrency exchange or through a broker. Some investors may worry about the possible complexity of doing this, as the tokens need to be held in a secure wallet.
Ethereum CFDs offer an alternative approach, with no wallet or security keys needed. CFDs are based directly on the Ethereum price but use a more traditional type of investment vehicle with no need to buy ETH directly or store it.
This means that trading Ethereum CFDs has a similar risk of volatility to a purchase of the currency itself but may appear simpler to some investors, plus they can trade with leverage.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
How to trade Ethereum?
There are a few things to consider when trading ETHUSD and other Ethereum-based assets. First, because Ethereum is still a fairly new asset, it can be quite volatile. This means that prices can fluctuate rapidly and that investors need to be aware of the risks involved. Second, because there are currently more than 1,000 different cryptocurrencies in existence, it's important to choose a reliable exchange platform on which to trade ETHUSD. There are many reputable exchanges out there, but make sure to do your research before selecting one.
Finally, remember that cryptocurrency trading is a risky venture. Although it has the potential to generate significant profits, it also comes with its fair share of risks. As such, only invest what you can afford to lose and always trade responsibly.
When was Ethereum released?
Ethereum was first proposed in 2013 by Vitalik Buterin, a then 19-year-old Russian-Canadian programmer. He was inspired by Bitcoin's success and wanted to create a more versatile and accessible blockchain platform. After months of development and testing, Ethereum was finally launched on July 30, 2015. The Ethereum network has since grown exponentially, with millions of users and over a thousand applications built on top of it. Today, Ethereum is one of the most popular blockchain platforms in the world, and its native currency, Ether (ETH), is one of the top 10 cryptocurrencies by market capitalization.
What is the future of Ethereum?
As the second largest cryptocurrency by market capitalization, Ethereum (ETH) has a lot to offer investors. Not only is it one of the most popular cryptocurrencies, but it also boasts a large and active community. There are a number of factors that could impact the future price of ETHUSD. For one, the overall cryptocurrency market is still fairly new and highly volatile. This means that prices could swing wildly in either direction in the short-term.
Ultimately, the future of ETHUSD is impossible to predict with any certainty. However, investors should keep a close eye on the developments in both the cryptocurrency market and the Ethereum community to get a better sense of where this pair might be headed.
How to monitor the Ethereum?
There are a few things to consider when monitoring the Ethereum US Dollar (ETH/USD) rate. First, it is important to track the price of ETH against the US dollar on a regular basis. Second, you should also be aware of any news or events that could impact the value of ETH. Finally, you may want to use technical analysis to help you make decisions about when to buy or sell ETH. The easiest way to track the ETH/USD rate is through a cryptocurrency trading platform. You can use the charting tools to monitor the price action and set up price alerts on the platform, which will notify you if the ETH/USD pair reaches a certain price.
What is the Ethereum Shapella Upgrade?
Ether’s had an exceptional start to 2023, rallying by over 56% against the dollar. On April 12th, the latest blockchain network upgrade is due to take place. Crypto lovers say that the upgrade will further increase the appeal of the digital currency. Since The Merge, Ether has become a yielding asset due to the proof of stake changeover. Validators can earn returns.
Is the hype another selloff waiting to happen?
The hype cycle has become a common crypto pattern. Buy the rumours, sell the facts. In this case, the risk is tangible. Approximately 15% of the total ether supply is currently staked. K33 researchers found that 46% of all staked ETH is in profit. The network upgrade could unlock funds and incentivise some stakers to cash out and realise profits on some of the Ether holdings.
What is the Ethereum Profit Cycle about?
This is the first time since proof-of-work evolved into proof-of-stake that stakers will be able to stop staking. If all goes to plan, the event could prove the concept. That there are profits to be made from staking Ethereum and validating the blockchain.
This could potentially entice new capital into the Ether ecosystem. The Shapella upgrade, also known as the Shanghai hard fork, should be the final piece of the puzzle for Eth holders to freely stake and unstake Ether with the aim of generating returns.
Can recession impact Eth?
So far, crypto has largely behaved as a ‘high-beta’ asset. Crypto performance is highly correlated to broader risk sentiment and sensitive to dollar liquidity conditions.
If recession fears are realised, it would be surprising if Ether was not impacted. In the event of a broad cash crunch, the dollar would likely strengthen, and risk sentiment would likely be negatively affected.
If a recession is avoided and/or central banks, such as the US Federal Reserve begin cutting rates and easier monetary policy, then the dollar would likely weaken, and risk sentiment would likely be positively affected.
What is Two-Sided Regulatory Risks?
The regulators have been keeping a close eye on crypto for some time now. However, the official definitions have not been forthcoming. SEC Chairman Gary Gensler says that Ether is a security, especially since transitioning to proof-of-stake.
The New York Attorney General’s Office agrees, and sued KuCoin on the basis that the exchange is violating U.S. securities laws by offering tokens, including ether, that meet the definition of a security without registering with the proper regulatory bodies.
Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), argues that ether is a commodity and therefore falls under the agency’s remit.
Then there are those who believe that crypto, especially DeFi, threaten US national security. In an April 2023 report, Brian Nelson, Treasury’s undersecretary for terrorism and financial intelligence said that 'Illicit actors, including criminals, scammers, and North Korean cyber actors are using DeFi services in the process of laundering illicit funds. Capturing the potential benefits associated with DeFi services requires addressing these risks.'
Regulatory risk is a two-sided coin. On one hand, regulating crypto legitimises the asset class and potentially incentivises inflows. On the other hand, NOT regulating crypto can be used to suppress capital inflows into the cryptospace.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying crypto asset.