Jul 09, · After Bitcoin, Ethereum is the most traded cryptocurrency at the moment. Ethereum is a fast and cheaper cryptocurrency, compared to Bitcoin. If you want to know, how to trade Ethereum follow the guide below. How Ethereum Trading Works. Trading Ethereum is not that complicated as you may think. All you have to do is to follow a few simple steps. So after you buy Ethereum with Bitcoin, you can securely store it in the private wallet. CoinSwitch provides a user-friendly and intuitive user interface, which lets you track your trade-in real-time so you can perform Bitcoin to Ethererum exchange safely. Bitcoin Vs Ethereum. Bitcoin and Ethereum differ in their purpose and in many technical /5(). Why is Ethereum important to traders? Ethereum is an open platform that enables developers to build and deploy decentralised applications (dApps). The easiest way to think of Ethereum is as a programmable Bitcoin. Ethereum allows participants to run .
How to trade ethereum to bitcoinHow to Trade Bitcoin for Ethereum, LiteCoin and Other Cryptocurrencies | Digital Trends
The developers of this coin intended to create their own version of the internet, where large companies do not have that much power. Therefore, they decided to enable users around the world to develop decentralized applications using the Ethereum blockchain. Their developers use the system as a working tool. This approach attracts a large number of clients. Due to the Solidity software language, in which the Ethereum platform is written, it compares favourably with other cryptocurrencies.
Expanding the scope of Ethereum leads to an increase in demand. The dynamics of Ethereum cryptocurrency depends on the attention of its potential customers entirely. In recent times, the price of Ethereum has risen drastically and reached all-time highs. With the rise in the price and popularity of Bitcoin, traders are also turning to other cryptocurrencies to make a profit. Ethereum and Bitcoin do not compete in any way, and therefore the growth of one currency can lead to the growth of another.
Various news may affect the Ethereum price. For example, in June , the price of Ethereum crashed after news of an algorithm failure.
As a result, traders began to sell off their positions and thus made it worse, so the Ethereum price fell. Then the algorithms were restored, and the price went up again. The volatility of digital currencies is huge, and their rate can make a difference every moment. Currently, both ordinary people and investors closely followed the course of ETH, wondering how long the leap in digital currency would be.
Ethereum also works as a standard cryptocurrency, and you can use it in a variety of ways, even if you have no intention of running your own application. As with Bitcoin, you can use Ethereum to pay for anything from art to pizza. Many people believe in investing in Ethereum, believing that it could one day become the world's leading app hosting platform and the digital currency value will fly up.
If you decide to buy this cryptocurrency, and then sell it or exchange it for any other, including popular currencies, you can do this through the wallet. Cryptocurrency wallets are a bit like online banking and are protected with a private key. It is a code that acts as your password and prevents others from accessing your account. Just a year ago, it was a problem for the Ethereum cryptocurrency market to find a wallet to store it.
The developers offered only a few types of wallets, which were hard to manage. However, after electronic currency rightfully won second place after bitcoin, and many other ether wallets have appeared that can not only store savings but also exchange them, as well as carry out settlement operations with other users.
To create a wallet, it is necessary to decide on the location of its placement on your own computer or on the network. Then choose the most suitable one. The virtual currency ETH is considered one of the most interesting altcoins in the cryptocurrency market today.
In fact, it is the second-largest digital currency after Bitcoin in terms of capitalization. Its price continues to increase at an insane rate and causes increased interest among investors, miners, and financial traders. To get profit on the growth of ETH, you can use several options: trading on exchanges, mining, and invest in Ethereum in Forex.
Against all the nuances of mining and speculation on crypto-exchanges, Ethereum trading on Forex looks the most attractive. Firstly, a trader does not need to actually buy coins, but just conclude a CFD contract that allows earning a profit on the difference in the rate.
That is, even if a small rollback occurs in the ETH market, having predicted such an event in advance, a trader can also take advantage of the fall in the rate of the digital currency.
Neither miners nor investors and stock speculators can boast of such an opportunity. Secondly, Ethereum is a new trading instrument on which even the most ordinary trading systems of technical analysis can bring return. You can hold a long position or a short position. There are notable differences between buying cryptocurrency and trading cryptocurrency CFDs.
When you buy cryptocurrency, you should store it in the wallet. However, CFDs trading sets out the position is carried out in the trading account, which is controlled by the financial authority.
You have more flexibility when you trade CFDs as you are not tied to an asset. You just bought or sold a derivative contract. Ethereum is a platform for developing decentralized applications. The first rule is that you always want to wait for the Money Flow Index to be in oversold territory. In other words, we need to have an MFI reading below the 20 level. An extreme MFI reading below 20 suggests that there is very heavy money outflow from Ethereum.
As history has repeatedly shown, this information can be used as a contrarian indicator. The MFI indicator is not a standalone indicator. So, in order to use the MFI indicator, we need to check it against other technical indicators. These are the reason why we also use the MACD indicator. The second rule is to wait for the MACD histogram to turn positive. This is a confirmation that the bullish momentum is starting to build up. Now, we have two rules in place, but these are still not enough to trigger an entry.
Indicator-based strategies are very unpredictable. As an extra measure of caution, we also like to wait for the MFI indicator to break above the 50 level before to buy Ethereum. A reading above the 50 level represents an inflow of money into Ethereum. This is the moment when smart money is stepping into the market. We want to trade alongside smart money to really make a profit trading the cryptocurrency market.
In order to minimize our potential loss, we want to place our protective stop loss very close to the market price. At the same time at a price where it should really invalidate our trade signal. For the Ethereum strategy, the ideal place to hide the stop loss is just below the previous swing low. You can always add a buffer to protect yourself in case of a false breakout. When it comes to our Ethereum take profit trading strategy we want to cash some profits at the first sign that the market is about to turn against us.
Otherwise, we risk given back some of our hard earned gains. The first indication that the market is about to turn is when the Money Flow Index enters into overbought territory. In other words, when the MFI breaks above 80 levels, we take profits.
Use the same rules for a SELL trade — but in reverse. In the figure below, you can see an actual SELL trade example. As you can imagine, the best way to get ETH is to buy it.
There are countless cryptocurrency exchanges that will allow you to buy ETH depending where you live and how you would like to pay. You can find some of the top cryptocurrency exchanges and how to buy them here. As you familiarize yourself with Ethereum and how it functions, who accepts it as currency, etc.
There are a handful of companies that accept Ethereum as a form of currency from airlines to pizza shops. Some quick components to remember when it comes to Ethereum is that it is:. Ethereum has fundamental advantages that hopefully will help Ethereum price suppress Bitcoin in the coming years.
Trading Ethereum should only be done with money you can afford to lose. Nobody really knows what the potential is and what the future holds.
Please leave a comment below if you have any questions on how to trade ethereum! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.
Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. Forex Trading for Beginners. Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again.
The login page will open in a new tab. After logging in you can close it and return to this page. Consider it a more high-risk investment than even its brethren currencies. Dash — Another older cryptocurrency formerly known as Darkcoin, Dash is built on the same framework as bitcoin, but fixes some its glaring issues. Other currencies potentially worth considering are Monero, ZCash, and Ripple, but as with all cryptocurrency investments, do your research first and be aware that very few represent a stable investment.
For a look at how all of these currencies are trading at any one time, live trackers like LiveCoinWatch and CryptoCompare can keep you abreast of the situation.
The most automated and hands-off method for trading bitcoin for another cryptocurrency is through an established exchange. Some may not offer trades for the cryptocurrency you are interested in, or provide wallets for that particular currency. For a look at all of the many options available to you, Bitcoin. That said, here are a couple of popular options and the steps you need to take to trade currencies on them.
The main trading page features live trackers for the major currencies traded on the site. It is unlikely to be instantaneous, but it should be complete within a 24 hour period, especially if you are buying at market value.
There are a few more advanced features that you can play with if you want, but they go beyond the scope of this introductory guide. ShapeShift technically operates as an exchange, though it fits more of a middle ground between something like Coinbase and the more direct trade platforms. The important point to note with ShapeShift though, is that it does not deal in fiat currencies like USD. That means you will need to go somewhere else to buy or sell cryptocurrencies, but it makes it perfect for trading one cryptocurrency for another.
The next screen will give you a wallet address to deposit your bitcoin into. Although transactions are typically fast on ShapeShift, it, like other exchanges methods, is susceptible to market traffic, so may take longer to make the trade at busier times.