What is Ethereum?
Ethereum is the second largest cryptocurrency after Bitcoin. The idea of Ethereum first appeared back in 2013. A Bitcoin enthusiast, Vitalik Buterin, prepared a white paper on an alternative platform that allows for the development of all types of decentralised apps and fulfilment of smart contracts without human interaction. The platform was named Ethereum. Two years later the system was launched giving life to its cryptocurrency asset called Ether (ETH).
Ether acts as a fuel for the Ethereum system and is exchanged for platform improvement services. The cryptocurrency serves as a reward for miners who ensure the Ethereum network is efficient, safe and secure.
Ether is a finite asset. The total supply equals to 60 million digital coins with 18 million units made per year.
Bitcoin vs Ethereum
Decentralised platform for smart contracts and Dapps
Bitcoin was designed as a safe peer-to-peer payment network
Written in Turing language that includes a few other languages
Why trade Ethereum with Capital.com?
Capital.com is a smart trading platform that offers CFDs (contracts for difference) on major cryptocurrencies including Ether. Giving you fast access to the cryptocurrency market, Capital.com offers a superior arsenal of features.
- Trading the differenceBuying or selling a contract for difference on any asset, you don’t become the owner of the asset. You speculate on its price difference.
- Open short and long positionsTake advantage of rising and falling prices and apply various market strategies when trading BTC on CFD.
- Trading on leverageYou can trade with up to 1:5 level of leverage on cryptocurrencies and invest bigger amounts than you initially deposited.
- Personalised newsfeedSmartFeed is an in-built innovative feature with advanced AI technologies at its core. It follows your trading behaviour, analyses your investment decisions and detects common trading biases that can steer you off the right track. As soon as the SmartFeed identifies a bias in your strategy, it offers you a wealth of personalised content to ensure you trade smart.
- Trading from chartsWith the desktop platform you can place orders directly from the charts as soon as you see a trend. All your active orders and deals will be displayed on charts instantly.
- Technical indicatorsThe Capital.com web platform enables clients to conduct a full-scale trading forecast using Trend, Oscillators, Volume and Volatility indicators.
- Enhanced safetyCapital.com guarantees withdrawals within 24 hours. Also, all clients’ money is kept across segregated bank accounts separately from the company’s funds.
How to trade Ethereum CFDs?
CFD trading allows investors to enter the crypto market without having to buy an asset itself. Instead, with Capital.com they can take advantage of price movements and trade major cryptocurrencies from a web browser and from mobile.
- Step 1To start, you have to decide which market direction Ethereum will take over a short period – CFD implies a short-time investment.
- Step 2If you believe the cryptocurrency will skyrocket in price, it is reasonable to go long or buy a CFD. If you think Ethereum will sink, then sell a CFD, or go short. Trading always involves risks, so make sure you set stop losses before placing a trade.
- Step 3As soon as you open a position, you receive data, follow Ethereum rates and Ethereum charts in real-time and see how your trade performs. If your predictions were correct, you make profits on the price swings. And vice versa, if you were wrong about the Ethereum price, you suffer losses.
Assume you want to enter a CFD contract on Ethereum that is trading at $720/$721. Backed by the results of a trading analysis and market forecast, you decide that the cryptocurrency will jump in price very soon. You go long and buy 100 CFDs on Ethereum at price of $721.
Indeed, the Ethereum price grows by $10. Now Ethereum is quoted at $730/$731. You close the position by selling 100 CFDs at price of $730.
100 (the quantity of your position) X $9 (price difference) = $900
Your profit is $900.
Explore the CFD crypto market.