Ethereum to Romanian Leu: trade ETH to RON pair and track its real-time price
Ethereum to Romanian Leu is a crypto-to-fiat pair that tracks the relationship between a popular cryptocurrency, Ethereum (ETH), which serves as the base currency, and Romania’s official currency, the leu. The value of ETH/RON reflects how many leus can be obtained from selling one ETH or how many RON it would take to purchase one ETH.
While the Romanian economy is not among the largest economies in Europe, it is still an important trading partner for many countries including Italy, Germany, and France. Additionally, the country’s economy is the 40th largest in the world, and it has been evolving positively lately.
According to recent estimates from the European Commission, Romania’s GDP was set to grow 3.8 per cent by the end of 2020. Nevertheless, the country’s growth will probably be handicapped by the current coronavirus health emergency.
Meanwhile, the leu has been Romania’s official currency since 1860, after going through four reforms. Its demand is commonly determined by the evolution of the country’s trade balance and by monetary policy decisions from the National Bank of Romania, which is the country’s central bank.
Profiting from ETH/RON depends on the trader’s capacity to predict potential fluctuations in these fundamental drivers, even though the value of ETH also plays a role in determining the price of ETH to RON.
In this regard, traders can anticipate fluctuations in the price of the cryptocurrency by analysing the level of adoption of its blockchain-based environment, along with the demand for the crypto token as both a payment method and a financial asset.
Traders can benefit from potential price swings in ETH/RON by using Contracts for Different (CFDs), which are derivative instruments that provide an alternative to holding the underlying financial assets. They are often cheaper and more easily accessible, and they also provide the possibility of conducting leveraged operations.
By anticipating potential changes in the fundamentals backing each individual currency of this pair, traders can profit from ETH/RON by taking either short on long positions.
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’s also the founder of the Bitcoin Magazine.
Romania has delayed its adoption of the euro and while that continues to be the case the leu will float freely in the financial markets. This means that traders can take advantage of the current turmoil to predict potential price changes in the leu, and ultimately in the value of ETH to RON.
So far, the trend seems to indicate that weaker currencies will continue to experience significant devaluations vs. stronger ones, even though the actual impact will depend on the degree of exposure of the countries’ domestic economies to the effects of the global economic slowdown triggered by the virus.
Traders can benefit from ETH/RON 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 zero per cent commission on trades.