Ethereum to Hungarian Forint: trade the ETH to HUF pair and track its real-time price
Ethereum to Hungarian Forint is a crypto-to-fiat pair that tracks the relationship between a popular cryptocurrency, Ethereum (ETH), which serves as the base currency, and the Hungarian Forint, Hungary’s official currency, as the counter currency. The value of this pair expresses how many forints it takes to purchase one ETH or how many forints can be purchased with one ETH.
After World War II, Hungary decided to introduce the forint to bring some stability to its domestic economy. The forint is not among the most popular currencies in the world, yet Hungary is still an important economy in Europe that is yet to adopt the euro.
The modern forint was introduced as the country’s official currency in 1964 after a period of record-level inflation rates that forced the government to put previous currencies out of circulation.
Even though the country has engaged in certain economic reforms, the value of the forint against the euro has been declining for the last 3 years and the recent coronavirus health emergency has accelerated the decline by prompting a flight-to-safety reaction towards stronger currencies such as the US dollar and the Swiss Franc.
Traders can profit from subsequent declines in the value of the forint by taking a position in ETH/HUF. As a result of this macroeconomic deterioration, the value of ETH should go up in relation to the forint over time, even though the value of ETH could also be affected by the demand for the cryptocurrency.
One way to profit from the fluctuation in the price of ETH to HUF is to buy a Contract for Difference (CFD) that tracks the pair’s price movement. Traders can take long or short positions based on their predictions regarding the direction of the price movements and they can also boost their gains by taking on leverage to conduct their transactions.
Ethereum continues to gain territory as a popular digital currency, as it has been increasingly adopted by online gaming platforms, e-commerce businesses, and even some brick-and-mortar retailers who believe that the widespread adoption of cryptocurrencies as suitable payment methods is unstoppable.
The Ethereum Foundation blockchain was officially launched in 2015 and it was designed by Vitalik Buterin, a Russian-Canadian programmer who is also the founder of the Bitcoin Magazine.
Ethereum’s value is mainly driven by the adoption of its blockchain technology to power new IT solutions, along with its potential demand as a suitable payment method and financial asset.
Meanwhile, the deterioration of the European economy, the key market for Hungarian products, could further push down the value of the forint in relation to other currencies, as Hungary is highly dependent on its exports, which account for nearly 75 per cent of its Gross Domestic Product.
Traders can benefit from ETH/HUF price swings by taking long or short positions on this crypto-to-fiat pair using Capital.com’s proprietary trading platform which features a real-time price chart and changes a 0% commission on trades.