Dec 15, · Bitcoin, Ethereum, Trading A crypto trader and analyst known for turning a couple thousand dollars into $, in a summer trading competition says he’s ready for Ethereum to outpace Bitcoin in the new year. Bitcoin and Ethereum are the most popular cryptocurrencies and are rated the top two cryptocurrencies by market capitalisation. For a trader, it's important to know the difference between them to take advantage of the market. As you may know, a trader's strategy is very different from that of an investor. Dec 07, · Bitcoin has a Desirable Correlation to the Market Bitcoin is considered an uncorrelated asset, meaning that there appears to be no link between the performance of the traditional stock and bond markets and that of Bitcoin. This is desirable for traders looking to .
Trade ethereum bitcoin5 Things to Know Before Investing in Bitcoin ( Updated)
So in order to understand how valuable Ether will become in the future, we need to keep an eye on the applications that are coming out of China. There are several good exchanges out there, so do your research.
The exchange you use will depend on where you live, governing laws and personal preference. Luckily, many exchanges allow you to purchase Ether directly. Other smaller cryptocurrencies require you buy Bitcoin first, then exchange it for your target cryptocurrency. Here is a list of the more reputable exchanges out there.
I don't know how long that offer will last, so if that link doesn't work, you missed out. You may have to provide some proof of identification when you sign up on some of these exchanges. This is to prevent money laundering, so just to it. These are more for if you have other currencies that you want to convert to Ether.
In that case, these exchanges make it super easy to do the conversion. No password to remember and you don't have to provide any personal information. It feels pretty sketchy when you first do it, but I have never had a problem with it. Next, fund your account with a credit card or bank transfer. Usually, the credit card option is faster so I would recommend using that.
Getting money into your account with a bank transfer can take as long as a week. The upside with a bank transfer is that your deposit limits will usually be higher. Since there is a lot of upside potential in cryptocurrencies, there are many traders that are taking a buy and hold approach.
So if that is your strategy, you would just buy some Ether and store it in a safe place. Well, there are two options, paper wallets or hardware wallets.
I would not recommend storing Ether in mobile apps, computer wallets, exchanges or online wallets for any length of time. Those options are great for short-term transactions, but are not safe for long-term storage. Once your currency is on paper, store it away in a safe place.
When you are ready to cash in the currency, use an online wallet or mobile wallet app to get the coins from the paper to your exchange of choice, or your bank. Some exchanges may give you the ability to go straight from the paper wallet to the exchange's online wallet. To get the detailed Ether paper wallet guide, read this.
Another good option for buy and hold investors is the hardware wallet. Trezor is the most popular one right now. The ideal buy and hold solution would probably be a combination of paper wallets and a hardware wallet. But it's just a personal preference. Learn more about the Trezor here. Active trading is a little tough because not all exchanges give you the ability to set pending orders and stop losses, like with Forex brokers. But exchanges like Poloniex do allow you to set stop-limit orders.
However, if your exchange does not allow this, you have to setup alerts, so you are aware of market movements and can place trades manually.
Exchanges like Coinbase don't allow pending orders. To setup alerts, you can use TradingView. Alerts are only available in the Pro plan , but if you are an active trader, it is well worth it. Add it to your watchlist and click on it. The chart will come up. Then right click on the chart where you want to add an alert. This is what it would look like. You could also add another alert to let you know when prices are low and it might be a good time to buy.
Another potential risk with Ether trading is that not all exchanges allow you to store money in your local fiat currency. Or you may need to jump through a few hoops to be able to do that. So if you sold some Ether that you own, you may have transfer the money back into your bank account in order to lock in your profits. The problem is that each time you transfer money to and from your bank, that can take up to a week!
So what can you do about this? Well, that's where our friend Tether comes into play. As I wrote about here , Tether is not a cryptocurrency that you invest in or trade to make money. But Tether is fantastic for locking in your gains on an Ether trade. Then when you are ready to buy Ether again, simply trade it back on the exchange.
No extended waiting times. Ether trading is still in its infancy, so we don't have many reference points to do proper technical analysis. As I wrote about here , we have only seen the first big wave of cryptocurrency speculation, so I believe that there is still a lot of potential for the currency to go up. So before you break out your Gann Fan, Fibonacci retracement tool, or star charts…remember that we are trading a very immature market.
I believe that there is a lot of potential in this technology, but we also need to limit our risk. It could blow up tomorrow, or best case scenario, there will be a lot of volatility in the currency price. Therefore, simple support and resistance should be good enough to trade Ether.
Buy low, sell high. As you can see, price has already bounced off this level. But based on our very, very limited data set, that seems like the best technical level to watch right now. Also notice the flash crash that happened in June.
You should setup an alert, in case that ever happens again. Again, I can't stress this enough…there will be a ton of volatility in Ether, so be sure to pick a strategy that matches your personality and get into trades for as cheap as possible. Cryptocurrency trading is NOT for the faint of heart.
Whew, this guide took awhile to write. So if you found it helpful, feel free to send me a tip in Ether, to this address:. Disclaimer: Some links on this page are affiliate links.
We do make a commission if you purchase through these links, but it does not cost you anything extra and we only promote products and services that we personally use and wholeheartedly believe in. A portion of the proceeds are donated to my charity partners. Hi, I'm Hugh.
I'm an independent trader, educator and international speaker. I help traders develop their trading psychology and trading strategies. Learn more about me here. I live in China and I want to trade ether. I could not find any reliable sources online on how to do this.
I want to try Polonex because of stop-loss feature; what is your assessment of Polonex? Can a person residing in China but not Chinese do this? Hi Hugh, Thanks for the terrific content, glad someone took some time to write a guide that is easy to understand and beginner friendly. Any recommendations for courses or websites i can start learning and then trading? Thanks Kind regards Tony. Thank you for taking the time and putting all this effort in writing this truly great and very informative article.
I was wondering if the same process applies to other cryptocurrencies such as EOS for example. Would one uses the same exchanges as the ones you mentioned Poloniex, Kraken, Coinbase, Bitfinex?
Your website is beautiful and easy to navigate with some very useful tips and articles. I rarely subscribe to anything, but here I will. Thanks for the kind words, glad you found it helpful. Yes, the same process applies to any other cryptocurrency. You just have to find an exchange that has the currency you want to trade.
Thank you for your reply. Just bought my first ETH! But now I can start trading. Bullish divergence is one of my favourite indicators with great hit rate. As you can see on the chart, there is a forming and likely confirmed bullish divergence on 4H timeframe. It's also important to note that the current candle circled in black is a hammer so it enforces the hypothesis of an up coming reversal.
You can take a shot at candle close or wait a Every day the big picture become more clear! Want to see the price close back above red line, thats the trigger for my long entry. But the good news is it can't get much worse! The 1st gap was D The 2nd gap was D 1st gap x 1. Midterm forecast: While the price is above the support 0. We make sure when the resistance at 0. If the support at 0. Technical analysis: While the RSI downtrend 1 is not broken, bearish wave in price would continue.
A peak is Key patterns to look for when attempting to gain insight into potential future price action. Videos only.