Ethereum is the second-largest cryptocurrency in market capitalization and one of the most
popular cryptocurrencies among investors. Ether is traded on the forex market through brokers.
It’s easy to buy or sell it. As a commodity, the price of Ethereum can go up when its demand goes up and vice-versa. Several major forex brokers listed ETH/USD at the end of 2017, increasing its popularity and liquidity to new heights. Ethereum’s average daily trading volume exceeds $19 billion, and its market cap is approximately 362 billion. With so much trading, you can take advantage of these opportunities and trade ETH with forex brokers. Let’s see how you can trade this cryptocurrency.
What is Ethereum?
Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship, or third-party interference. In short, it is a blockchain-based platform on which decentralized applications (DApps) can be built. The currency of the Ethereum network is called ether, which is traded on cryptocurrency exchanges under the code ETH. Ether and Ethereum are thus often used interchangeably. The Ethereum platform goes beyond what most commonly used blockchains can do. It’s not only a distributed ledger but also has an integrated programming language that allows developers to write smart contracts and decentralized applications (DApps) where they can create their own arbitrary rules for ownership, transaction formats, and state transition functions.
Buy and Sell ETH in 3 Steps
There’s nothing quite as rewarding as holding a market-leading cryptocurrency like Ethereum in your portfolio. Here’s a quick guide for beginners who want to know how to buy and sell ETH in 3 steps:
Step 1: Choose a reliable broker
It would be best to have a regulated broker that offers Ethereum as a trading pair. Not all brokers provide this pair, so check before proceeding. We recommend using one of the most popular brokers in the industry. Ensure the platform is safe and regulated by several bodies, including CySEC, FCA, and ASIC, to ensure your money is in good hands.
Step 2: Open and fund your account
Once you have identified a broker that supports Ethereum trading, the next step is to open an account with them. This process varies from one broker to another, but it usually involves filling out some forms with personal information such as name, address, and phone number. In addition, most brokers will ask you for proof of ID such as a passport or driver’s license before they allow you to trade with them.
After successful verification, you need to fund your account before starting trading Ethereum. Choose your payment method, then click on ‘Deposit Funds.’ To fund your account, you can use various payment methods, including credit/debit cards, bank transfers, or e-wallet (e.g. Paypal).
Step 3: Place an order
Now that you know how to set up your account and have funded it, it’s time to place your first order. Click on “New Order.” Choose your currency pair—for example, ETH /EUR or ETH/USD. Next, choose a trade type (we recommend Market if you’re new to forex). Finally, click “Buy” or “Sell.” A confirmation window will pop up—check that everything looks good, and then click “Execute.”
Note: We recommend using a market order when you trade Ether coins. This order executes immediately and guarantees that your funds will be available to trade as soon as the transaction is complete. Limiting orders are more flexible, but they may take longer to execute and don’t always guarantee completion.
It is important to understand that cryptocurrency trading is highly speculative and comes with many risks. Despite these circumstances, the crypto market has become a new growth area for active traders. Researching and setting up a trading strategy can be more complicated than trading itself. Because there are so many different variables in the crypto exchange, the trading strategy must focus on specific metrics that apply to each currency and even token.