Ethereum Trading

Ethereum trading involves the buying and selling of ETH for profit. Learn how to trade Ethereum efficiently using one of the world’s leading cryptocurrency bots.

What is Ethereum Trading?

Ethereum trading involves buying and selling ETH; the native asset of the Ethereum blockchain, for profit. The official trading symbol  for Ethereum is $ETH. As an Ethereum trader, you will be engaged in the buying and selling of ETH to generate profits. This is possible through spot and derivative markets. Some exchanges will offer access to both, while brokers will primarily allow you to trade ETH CFDs. These are financial instruments are attached to the actual asset. While spot markets allow you to access the actual asset, where you buy it cheaply and sell when the price rises to lock in your profit. Derivative markets will allow you to profit even if the price is going down by shorting the asset. This is a key difference since you can only profit on spot markets if the price rises, while with derivative markets, you profit if the price rises or falls. Additionally, in the latter case, you get to trade with leverage which boosts your capital, increasing your exposure within a given market. This results in higher risk, but can generate higher rewards and are generally used in shorter timeframes.

How To Trade Ethereum

Suppose you are wondering how to day trade Ethereum, how to trade Ethereum in the UK or any other place in the world. Then this is the section you should pay attention to. It will outline how Ethereum trading works in detail and help you get started on your journey. The first step involves creating an account on a platform that offers you access to ETH or its CFDs. If you want to deal with the actual asset, there are exchanges where you will buy the asset on spot markets. You have to analyze the market and purchase when the price is low. Hold onto the asset for a while and sell if the price rises, before repeating the process. However, there are many factors you need to consider if you opt for the spot market. The security of the coins lies with you; therefore, you will have to invest in a hardware wallet to store your funds safely offline once you buy. 

Sometimes it can take a while before the price of your assets is in a profitable position. However, if this is too much hassle, you can trade ETH derivatives using brokers and some select exchanges. With the former, all you need is to create an account and fund it with at least $100 to $250. As for exchanges, it is possible to trade even with as low as $10. You will be trading with leverage, which boosts your capital and profitability. Also, you can long and short the market, something that isn’t possible with spot markets. However, you need to conduct technical and fundamental analysis to determine which direction to take. Plus, you have to keep tracking the market, which can be overwhelming. In such instances, you can opt to employ the services of automated trading robots such as DemaTrading, offers. They can be a tool and allow you to preset parameters and execute trades for you around the clock 24/7.

Learn Ethereum Trading

Before you embark on your trading journey, you will have to invest some time and resources into learning Ethereum trading. This process can be overwelming for newcomers. By researching and utilizing free resources provided by various trading platforms or using Google and YouTube to research further you can gain further knowledge and knowhow about how the market moves. However, if you need something more structured, you will have to buy a paid course that is reputable. 

How To Invest In Ethereum

Another closely associated subject to ETH trading is Ethereum investing for the longhaul. If you are a beginner, it’s normal to wonder how to invest in Ethereum and when to invest in Ethereum? Investing is associated with buying the asset and holding it long-term. It’s not a must you buy a coin at the start and you can buy small fractions in different periods of time and build your portfolio. As the project grows, so will the value of your portfolio. The process is called DCA: Dollar Cost Averaging and is used to counter the highly volatile price action. This can take years; therefore, you will only use money you don’t need anytime soon. Also, given the risk of leaving your coins on an exchange, you will have to invest in a safe hardware wallet to store the funds offline. 

Ethereum Price Movement

If you are an investor or trader, you need to keep track of how your assets perform; therefore, it’s crucial to monitor Ethereum price movement. This can be done using market trackers such as Coinmarketcap.com and CoinGecko. These trackers even have portfolio trackers build-in that give a broad overview of your total investments.

Ethereum Trading Strategy

When it comes to the Ethereum trading strategy, you can use a few to exploit the volatile price of ETH for profit. It is vital to understand how to conduct technical and fundamental analysis to know when to buy and sell coins. For who doesn’t exactly understand this or doesn’t have the time to, then bots are a great option. Instead of trying to buying low and sell your assets high on a spot market or long and short the market, the bots from DemaTrading keep track of your portfolio. This can be done through day trading, swing trading, range trading and so on manually or by using bots that track beforehand set metrics. Also, you can scalp where you enter and exit a position within minutes. Lastly there is arbitrage trading, where you exploit price differences on various exchanges to turn a profit. The goal is to buy where ETH is selling low and resell where it’s priced highest, but note that these trades require high volumes to realise a profit. 

FAQs

How much do I need to invest in Ethereum?

There is no limit. Most exchanges will allow you to purchase coins worth as low as $10 due to network fees.

When is the right time to trade Ethereum?

There is no right or wrong time to trade the Ethereum market. You need to analyze the market and take positions at appropriate moments.

Can I automate my Ethereum trades on Binance?

Yes. A trading robot such as DemaTrading has a Binance module that allows you to link your account with the bot, and it will manage your portfolio and execute trades for you. And you don’t have to worry since full custody of the funds lies with you.

Do you want to learn more about Ethereum trading? Then sign up for our newsletter.  Already started with Ethereum trading but still have a lot of questions? Then you should join our Discord channel.

To Your Trading Succes,
The DemaTrading Crew ❤️🤖