Buying Ethereum? Consider Using a CFD

Ether (or Ethereum), the world’s  second-largest cryptocurrency, has been all the rage recently,  generating quite the following and showing a significant increase in  value. This recent attention has many people wanting to enter the Ether  market and invest in Ethereum. However, since it is not a traditional currency, access to it could  be restricted and it might present some dangers that do not occur with  other financial assets. Fortunately, there’s a way to trade Ethereum  without buying it. It’s called CFD trading and it offers several  advantages over traditional ownership. 

Trade Ethereum Now

All trading involves risk. Only risk capital you’re prepared to lose. This post is not investment advice.

What is Ethereum? Ethereum, is a blockchain-based platform which enables people around  the world to to develop various online applications based on the  technology. Since some applications require a payment method, Ether was  created as the platform’s currency. However, with the popularity of  Bitcoin and other similar cryptocurrencies, Ether soon took upon a life  of its own and currency traders began buying and selling it for  investment purposes.

How can I buy Ethereum? Ether owners are divided into two groups: miners and purchasers.  Those who purchased the currency either did it when it launched as part  of a crowdfunding campaign or bought it from other owners. Miners are  those who allocate some computing power in order to process Ether  transactions, and are rewarded with fragments of the currency.

However,  Obtaining and owning Ether requires some tech skills and a digital  wallet – which is why so many traders opt for the CFD option. When you  trade Ether using CFD, you engage in a contract with a platform (such as  eToro)  in which you don’t actually own the currency, but rather enter an  agreement at the end of which you settle the difference between  yourselves. If prices went up between the time you opened and closed the  position, you are get the profits, if they go down, the margin is  deducted from your account.  

What are the advantages of buying Ethereum via CFD?  

1. Liquidity: Ethereum is not a commonly used currency, therefore it is  not always easy to sell. Moreover, some Ether transactions take time to  process. With a CFD you can open and close positions almost  instantaneously, since you don’t own the actual currency.
2. A variety of trading options: Just like any other asset, when buying  Ethereum on eToro, you can open a “sell” (short) position, which will  generate a profit if the price of Ether goes down. You could also set  Stop Loss and Take Profit orders, which will close the position if a  certain profit or loss point is reached.
3. Security: While the Ethereum platform is encrypted, it is still  exposed to hackers. For example, in 2016, a hacker stole $50 million  worth of Ether from the platform. When using in a CFD with eToro, your  money is safe in the hands of a secure, regulated trading platform.

Should I invest in Ethereum? Just like any other asset, there’s no one right answer. The market is  unpredictable and sudden changes could create massive gains or losses  in Ethereum price over a short period of time. While some say that Ether  is “the next Bitcoin,” others show less faith in the relatively new  cryptocurrency. However, it is definitely a highly volatile asset,  changing on a daily basis. Therefore, those who can accurately predict  the direction in which it is headed will make a profit. 

Trade Ethereum Now

All trading involves risk. Only risk capital you’re prepared to lose. The information above is not investment advice.