0

What are the Benefits of Ethereum Trading?

7 Min Read
Last Updated March 27th 2021

Ethereum trading enables traders to speculate on whether the price of Ethereum will rise or fall in value, without the need of taking ownership of ETH.

Ethereum is well-known to help individuals to work on building decentralised applications. Applications that are included are voting systems, security programs, and payment methods. Similar to Bitcoin, Ethereum operates freely and is not owned by any central authority such as a government or a financial institution.

Vitalik Buterin is the person behind the idea that brought the Ethereum project to life. In 2015, with the help of its co-operators, the first version of the platform was launched. Since then, it has experienced a steady popularity growth while also serving as a platform to pave the way for new Bitcoin alternatives.

Why Trade Ethereum?

Trading Ethereum has proved to be profitable. Ethereum trading allows traders to speculate on whether the ETH price will rise or fall in value, without ever taking ownership of it.

There are a wide array of benefits when you consider trading Ethereum, and here are a few that we have found.

The Benefits of Ethereum Trading Include:

1. Ethereum may be the future

2. Its popularity is increasing

3. Ethereum has also found its use in purchasing goods

4. Valuations are on the rise

5. Ethereum can be traded in the majority of the exchanges

6. Its Availability

7. Ethereum is the DeFi king

 

1. Ethereum may be the future

Ethereum, Bitcoin and various other digital currencies have a very high potential and they can end up transforming the financial system similar to what Uber and Airbnb have done in their respective field and have the same immense impact in their respective industry. With trust in traditional markets getting lower by the day and in the transitory period after the financial crisis that happened a decade ago, more and more people are getting interested in the online market world.

2. Its popularity is increasing

Over the past couple of years, Ethereum has increasingly established itself as the second-largest digital currency. Its idea came to fruition by Vitalik Buterin who came up with it in 2013 when he was only 19 years of age. It is thought that at the current time, millions of people are setting up this cryptocurrency on their crypto wallets. However, it can be argued that its most important element is the fact the network can run various third-party applications.

3. Ethereum has also found its use in purchasing goods

The number of organizations that will start embracing Ethereum is also expected to increase over the next few years. For example, the online retailer based near Salt Lake City called Overstock.com announced during the summer that customers could buy from their store, including bedding, furniture, DIY among other items, and use cryptocurrencies payment. Ethereum’s blockchain is expanding and getting adopted widely. This will only have a positive impact on its price and therefore, could benefit the traders.

Read Also: What Will Drive The Ethereum Price In 2021?

4. Valuations are on the rise

The valuation of Ethereum’s currency, known as Ether, in a similar way to Bitcoin, has risen over recent months when people have started to embrace the world of digital currencies. Ether’s issuance is limited to 18 million per year, and the digital currency has been traded publicly since 2016 and at the current moment, one Ether is worth $1233.

Read More: Ethereum Price Analysis for 2021

5. You can trade Ethereum in the majority of the exchanges

Ethereum is offered as an exchange option on platforms of a vast number of cryptocurrency exchanges, so you have the flexibility of choice in this regard. Ethereum is listed from the most prominent crypto exchanges to the least known ones. You can trade Ethereum on eToro also, which is the best social trading platform worldwide.

6. Its Availability

In contrast to Bitcoin, Ether doesn’t have a supply limit. Moreover, Ether’s availability can fluctuate over time as many Ether units will continue to be added and lost during a specific amount of time. 

7. Ethereum is the DeFi king

Decentralized finance, (DeFi) is growing exponentially and Ethereum is at the top of it. While DeFi adoption keeps expanding, therefore it might affect the price of Ethereum as there could be more demand to invest in the cryptocurrency. This is a positive factor for traders as there could be more liquidity. 

Should I Buy Or Trade Ethereum?

It is important that you completely understand the difference between the two before you decide to buy or trade Ethereum. 

You might be interested in buying Ethereum if…

  • You want to take full ownership of the amount of Ethereum you buy
  • You’re happy to pay capital gains tax on any profits
  • You want to be owner of the cryptocurrency that is at the top of Decentralized Finance (DeFi)
  • You want to be part of the large HODLer crypto community
  • You are a believer of Ethereum’s blockchain mission (decentralization)

You might be interested in trading Ethereum if...

  • You’re interested in crypto that has lower fees. Ether’s transaction fees are generally lower than those of Bitcoin.
  • You need Flexibility as Ethereum is a complete package which makes it easy to create complex networks and contracts for various services and products. 
  • You’re looking for a blockchain with a clear roadmap as Ethereum contains a sturdy roadmap with clear standards on the developments and also improvements that are expected over the coming year. Many other cryptocurrencies, unfortunately, lack this feature.
  • Corporate Interest is an element of interest as many companies are now working with Ethereum to improve the ecosystem. A similar level of support is encountered only with few other blockchains.

eToro – The Best Cryptocurrency Platform To Trade Ethereum

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Key Points:

  • Ethereum trading enables traders to speculate on whether the price of Ethereum will rise or fall in value
  • Ethereum is well-known as a digital platform that makes it possible for individuals to work on building decentralised applications.
  • Ethereum operates freely and is not owned by any central authority, such as a government or a financial institution.
  • Ethereum relies on blockchain technology to work, and it is an open software platform. Many computers around the globe host this blockchain, making it a decentralized platform.
  • The Ethereum blockchain shares many similarities with Bitcoin; for example, it keeps the transaction history recorded. 
  • Ethereum is being used to purchase goods just as Bitcoin. 
  • Ethereum’s blockchain adoption keeps expanding, which can go only in favour of traders.
  • Ethereum, Bitcoin, and various other digital currencies have very high potential and can transform the financial system.
  • Over the past couple of years, Ethereum has increasingly established itself as the second-largest digital currency.
  • Ethereum is being accepted as payment by an increasing number of organizations– and as people become more acquainted with cryptocurrencies, the number of organizations that will start embracing Ether is also expected to increase over the next few years.
Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.