The emergence of altcoins is credited to the birth of the first cryptocurrency to be developed and introduced to the public – Bitcoin. Altcoins came from the term alternative coins, which categorises them as simply cryptocurrencies that are not Bitcoin. While Bitcoin remains at the top of the list when it comes to market cap, it’s difficult not to notice the rising number of altcoins in the market as an option to check out first before deciding which cryptos to invest and trade in a crypto platform.
The increasing number of cryptocurrencies in the market can leave investors and traders confused and take some time to decide, so if you’re one of these traders, don’t worry, as you are not alone. One important thing to note is that each currency provides unique advantages, benefits, and drawbacks that impact your career, so be sure to do your research and rethink your every move before making a final decision.
With the long list of cryptocurrencies in the market that is sorted by their market cap, succeeding Bitcoin has been the leading altcoin for the past few years – Ethereum. Whether you are a newbie who is still scouting for coins to invest in or an experienced trader looking for other options, particularly Ethereum, you’re in the right place. To give you some knowledge, we’ve come up with a guide about Ethereum and ways to trade it for great chances of success.
What is Ethereum?
Ethereum is the leading altcoin that allows its investors and traders to store their personal information and perform transactions without including third-party agents like banks or the government. Since its development in 2015, Ethereum has proven to be reliable crypto due to its constant development in the past years; it even gained the title of second-largest crypto when it comes to market cap.
Due to its success, many traders and investors just can’t hold back their noses and have shown great interest in this crypto, which has led to the major rise in the value of Ethereum. However, Ethereum is not an exception to the dark side of the market, which is directed to scammers and fraud. In fact, in 2018, scammers have tricked Ethereum owners into handing over their money worth $36 million. After this incident, more and more people have engaged in safe platforms like Bitcoin Loophole to seek assistance in finding the best and the most reliable brokers in town for a safe trading experience. Join Bitcoin Loophole with an initial deposit of $ 250 to fund your trades.
Ethereum Trading Strategies
If you plan on utilising Ethereum to gain or increase profits, it’s recommended to know the different trading strategies you can utilise to make the most out of this altcoin. Here we’ve compiled the different types of trading techniques you can use: make sure to select one which best aligns with your needs, goals, and capabilities.
Ethereum is not an exception to the volatile nature of the cryptocurrency market, which means there will be moments where the value of its digital coins is constantly changing between low and high values despite not being a part of the upward or downward trend of the market – this opens the opportunity for range trading. Research shows that the price action spends around 80% of the time in range trading.
Traders who utilise this strategy believe that the price action often holds within a stable and predictable range for a given period. For this type, traders would study and identify the borders of the range, including the support and resistance levels for Ethereum on the market. To fully utilise this technique, users must buy cryptos when the values are at their lowest and hold onto them until the values are high enough for selling.
Day trading is a common strategy and is popular among newbies and experts due to its minimum investment requirement. This method consists of buying and selling Ethereum while taking advantage of its short-term price fluctuations. However, you need to take into consideration the different factors that may affect your profit if you utilise a short-term approach to trade, such as fees and commissions.
In contrast to short-term methods, swing trading lasts for days or weeks. Traders who utilise this type of strategy are known to create more significant trades compared to day traders. The shared goal of these types of traders is to wait and catch the best swing in the market and ride it to a specific target or when the overall market momentum starts to reverse.
With the many potential choices in the market, it’s easy to think that trading in Ethereum is ideal for earning or increasing profit. However, keep in mind that the market is unpredictable due to its fluctuating nature, so make sure to rethink all your decisions to avoid suffering from losing huge amounts of money instantly.