Join the Crypto Trading Revolution

Ethereum, unlike its predecessor and current cryptocurrency market leader (Bitcoin), is built on a much more advanced and diverse blockchain. The Bitcoin blockchain is limited to providing a network for the Bitcoin currency to be verified and recorded, whereas the Ethereum blockchain is a platform that allows for the development of advanced applications beyond the scope of digital currencies. In fact, Etherium is such a promising technology that it has been adopted by major investment banks and several Fortune 500 companies. Companies are using the technology to build various business-oriented software solutions.

What is Ethereum?

Ethereum is an advanced blockchain technology built on Ether cryptocurrency. Ethereum and Ether are often used interchangeably. Created in 2014 by Vitalik Buterin, Ethereum has managed, in a short time, to establish itself as the second-best performing cryptocurrency among a plethora of other popular cryptos such as Litecoin, Ripple and Monero. Ethereum reached an all-time-high of $1,958 in 2021.

Also noteworthy is the currency’s initial growth rate that managed to hit the 1000 USD mark in less than 3 years from going live. With the easier mainstream adoption of Ethereum and its diversity in terms of potential business applications, Ether is well on its way to overcome Bitcoin eventually and become the leading digital currency of our age.

The volatile nature of cryptocurrencies, in general, provides great financial opportunities for those looking to invest in Ether trading.

How to Trade Ethereum

Ethereum trading in the Forex market enjoys all the advantages of trading CFDs. You do not need to own the underlying asset to be able to speculate on its price and therefore, you can start trading CFDs on Ethereum and other cryptocurrencies as soon as you sign up for an account with CMTrading.

Ether pricing is driven by the market sentiment on crypto as a whole and Bitcoin in particular. When Bitcoin and other cryptocurrencies perform well, so does Ethereum. On the other hand, when major currencies like the USD, EUR and GBP stumble due to negative market outlook, the value of Ethereum goes up.

Due to Ethereum’s positive and negative correlation with other cryptocurrencies, fundamentals can prove way more valuable in terms of predicting future price movements. If you keep a close eye on the movements of digital currencies and crypto technology, you will have a good idea where Ethereum is headed and how it reacts to bullish or bearish news reports.

CMTrading clients are given access to exclusive reports regarding the latest crypto trends to stay ahead of the competition. An invaluable set of tools are available on every account that allows for better risk management, timely notifications on trading performance as well as emergency volatility warnings to protect your account from sudden price surges and dips.

Should You Trade Ethereum?

In a nutshell, trading Ethereum, as well as any other available cryptocurrencies, can be a worthwhile investment. Of course, this is true if you start by doing your research and put in the effort to develop a solid strategy that locks small profits and minimizes your exposure to risk. While you are starting out, consistency is key in succeeding, and if you can stay in the game there will be endless opportunities to take riskier but more rewarding trades.

There are a lot of success stories with crypto but there is also a certain level of uncertainty surrounding digital currencies. That is why it’s much safer to trade CFDs on cryptocurrencies instead of buying the underlying currency. With a forex broker acting as your go-between, you will never have to worry about losing your currency or getting them stolen.

A regulated broker does not only enable you to trade Ethereum safely but is also required to comply with specific requirements set by financial authorities that are meant to put the trader first.

How to Buy Ethereum 

The most common way to buy Ethereum is by using a cryptocurrency exchange via CMTrading. Exchanges offer several ways to purchase and trade Ethereum. Some allow for decentralized and margin trading. Certain exchanges will focus on person-to-person and spot trading of Ether. 

A cryptocurrency exchange allows you to deposit currency, such as US Dollars or Euros, in exchange for Ether. It’s important you research and choose a reliable exchange platform. Not only will this help you avoid potential scams but also hidden fees and exorbitant commission rates. 

You can also buy Ethereum directly from other traders. You can do this by placing a private advertisement stating your intent to purchase Ethereum. Alternatively, you can use peer-to-peer exchanges to look for offers to buy and sell coins. Through these methods you will be directly in touch with the purchaser/seller. This allows you to set a price and you can even arrange for face-to-face meeting with your buyer/seller and exchange funds 

Where to Trade Ethereum 

There are several ways to trade Ethereum. 

Cryptocurrencies are particularly well suited to decentralized trading. A decentralized exchange is a peer-to-peer online service that allows direct transactions between two interested parties. The trades are recorded via a blockchain which can observe transactions in real-time. The decentralized nature of this technology eliminates the need to have a centralized entity, such as a bank, to settle transactions.  

The current price of any cryptocurrency is called its spot price. It is the price at which a currency can be bought or sold. Buyers and sellers create the spot price by posting buy and sell orders. In liquid markets such as crypto, the spot price can change in seconds as orders get filled and new ones enter the marketplace. 

If you don’t want to trade Ethereum on an exchange platform, you can trade Ethereum financial derivatives via CMTrading CFDs. This is akin to trading in gold on the stock market – you don’t buy the asset yourself, but you buy shares in an Ether derivative where the share price increases or decreases as the price of the crypto increases and decreases. Ethereum derivatives are shares that are linked to the price of Ethereum on the exchange platforms. Using CMTrading CFDs, allows you to take advantage of shifts in the pricing of Ethereum without actually owning any of this digital currency. 

Тrading Ethereum with CMTrading

CMTrading has made cryptocurrencies including Ethereum trading available on its platform to provide clients with yet another lucrative investment opportunity and a chance to profit from these promising digital currencies as tradable financial instruments.

We also offer unique advantages:

  • Buy or Sell Ethereum, Ripple, Litecoin and Bitcoin and profit whether their price goes up or down.
  • Get better value out of each trade with our low spread offering on all cryptocurrency pairs, starting at 0.01 pips.
  • Maximize the trading power of your account and increase your Ethereum trading profits with a favorable 5:1 leverage.
  • Trade the crypto markets in compliance with the fully regulated framework of the Financial Services Conduct Authority (FSCA) South Africa.

Discover new opportunities by trading Ethereum with CMTrading, the best performing broker in South Africa!