Trading with bitcoin or ethereum
Trade Bitcoin and Ethereum Perpetual Contracts Trade8 is the #1 platform designed for high-frequency, programmatic crypto traders. Use our API to long or short BTC/USD and ETH/USD perpetual contracts with deep liquidity and adjustable leverage. Mar 21, · Ethereum has fundamental advantages that hopefully will help Ethereum price suppress Bitcoin in the coming years. Trading Ethereum should only be done with money you can afford to lose. This is because the whole cryptocurrency market it’s mostly based off of speculation. Nobody really knows what the potential is and what the future holds.5/5(1). Why is Ethereum important to traders? Ethereum is an open platform that enables developers to build and deploy decentralised applications (dApps). The easiest way to think of Ethereum is as a programmable Bitcoin. Ethereum allows participants to run .
Trading with bitcoin or ethereumEthereum vs Bitcoin: which project has the upper hand in ?
In other words, we can use the MFI indicator to measure buying and selling pressure. The easiest way to interpret the MFI indicator is that a reading above the 50 level represents an inflow of money into the cryptocurrency. A reading below the 50 level represents an outflow of funds from the cryptocurrency.
The other critical MFI thresholds are 20 and An MFI reading of 20 is considered bullish and oversold. A reading above the 80 level is considered bearish and overbought. The MFI measures the market sentiment giving you signs. These signs are whether the cryptocurrency is oversold or overbought and to what degree. Using the MFI indicator is probably the most useful measurement of sentiment available to traders.
The first rule is that you always want to wait for the Money Flow Index to be in oversold territory. In other words, we need to have an MFI reading below the 20 level. An extreme MFI reading below 20 suggests that there is very heavy money outflow from Ethereum. As history has repeatedly shown, this information can be used as a contrarian indicator.
The MFI indicator is not a standalone indicator. So, in order to use the MFI indicator, we need to check it against other technical indicators. These are the reason why we also use the MACD indicator.
The second rule is to wait for the MACD histogram to turn positive. This is a confirmation that the bullish momentum is starting to build up.
Now, we have two rules in place, but these are still not enough to trigger an entry. Indicator-based strategies are very unpredictable. As an extra measure of caution, we also like to wait for the MFI indicator to break above the 50 level before to buy Ethereum. A reading above the 50 level represents an inflow of money into Ethereum.
This is the moment when smart money is stepping into the market. We want to trade alongside smart money to really make a profit trading the cryptocurrency market. In order to minimize our potential loss, we want to place our protective stop loss very close to the market price. At the same time at a price where it should really invalidate our trade signal. For the Ethereum strategy, the ideal place to hide the stop loss is just below the previous swing low.
You can always add a buffer to protect yourself in case of a false breakout. When it comes to our Ethereum take profit trading strategy we want to cash some profits at the first sign that the market is about to turn against us. Otherwise, we risk given back some of our hard earned gains. The first indication that the market is about to turn is when the Money Flow Index enters into overbought territory. In other words, when the MFI breaks above 80 levels, we take profits.
Use the same rules for a SELL trade — but in reverse. In the figure below, you can see an actual SELL trade example. As you can imagine, the best way to get ETH is to buy it. There are countless cryptocurrency exchanges that will allow you to buy ETH depending where you live and how you would like to pay.
You can find some of the top cryptocurrency exchanges and how to buy them here. As you familiarize yourself with Ethereum and how it functions, who accepts it as currency, etc. There are a handful of companies that accept Ethereum as a form of currency from airlines to pizza shops. Some quick components to remember when it comes to Ethereum is that it is:.
Ethereum has fundamental advantages that hopefully will help Ethereum price suppress Bitcoin in the coming years. Trading Ethereum should only be done with money you can afford to lose. Nobody really knows what the potential is and what the future holds. Please leave a comment below if you have any questions on how to trade ethereum! Please Share this Trading Strategy Below and keep it for your own personal use!
Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. Forex Trading for Beginners. Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again. The login page will open in a new tab.
After logging in you can close it and return to this page. Info tradingstrategyguides. Facebook Twitter Youtube Instagram. Best Places to Buy and Sell Cryptocurrency? What is Ethereum? How to Trade Ethereum Buying Ethereum can be extremely simple. You can buy Ethereum directly with fiat money from the major cryptocurrency exchanges. Top Ethereum Trading Apps Similar to many other blockchains, Ethereum has a native currency called Ether ETH which is that is completely digital which allows it to be sent to anyone around the world with the click of a button, making payments with the ETH currency incredibly efficient and easy.
Trezor: Trezor is one one of the top Ethereum hardware wallets with a high level of security and 2-factor authentication. Users have access to special features like advanced cryptography, and even allows you to edit transaction before sending them out. Coinbase Wallet: Is an Ethereum is another popular mobile browser with a token wallet, chat, and dApp portal. MyEtherWallet: MyEtherWallet is one of the top Ether wallet where users can access their tokens, loans and investments.
Balance: Balance allows users to see their account in Open Finance while keeping track of your tokens, loans and investments. All we need for this trading strategy is two technical indicators: The MACD — This is a momentum indicator that can help us spot a trend. The Ethereum network, however, is in the process of migrating to a proof-of-stake PoS consensus.
The transition is meant to address the scalability issues that have plagued Ethereum for many years. In PoS, miners are replaced with validators, who stake their coins to secure the network.
The Ethereum community chose to go with the Casper PoS protocol, which has a punishment mechanism to prevent malicious behaviour. Arguably, supply is the key difference between Bitcoin and Ethereum networks.
Bitcoin has a limited supply, with only 21 million coins set to be mined. This adds a scarcity element to the bitcoin economics. Furthermore, the new supply of BTC is reduced roughly every four years, through a process called halving. Ethereum, on the other hand, has no hard cap on the amount of ETH that can be created.
As it attempts to be a decentralised app store, supporting an entire ecosystem of applications, capping the supply would be counterintuitive. The concept of transaction fees is another differentiating feature in the Ethereum versus Bitcoin comparison. On the Bitcoin network, transaction fees are paid for each and every transaction. These fees go to the miners who then validate transactions and place them into a block.
Ethereum network uses the concept of gas, priced in ETH , instead of transaction fees. Every interaction with the Ethereum blockchain requires a certain amount of computational effort. Gas is used to pay for that computation.
Simple send orders, for example, require little effort. Complex interactions with smart contracts, on the other hand, are very gas-intensive.
So the cost of an Ethereum transaction depends on its complexity and the gas price, which is set by the miners. Block size is important in comparing Bitcoin vs Ethereum. It plays a key role in determining the transaction costs, confirmation times and scalability of a blockchain. Historic oil price drop Don't miss your trading opportunities. Blocks on the Bitcoin network are currently 1 MB. Disagreements over the block size eventually led to the creation of Bitcoin Cash as the fork of Bitcoin.
Bitcoin Cash increased the block size to 8 MB, while Bitcoin maintained its block size at 1 MB and implemented the Segregated Witness SegWit soft fork to increase the number of transactions that can fit into a block. On the Ethereum network, the block size is measured in gas and each block is limited to The gas limit was increased as recently as June , from 10 million, to alleviate the stress on the network, increase processing capacity and reduce fees.
The sell-off coincided with a broad decline in asset prices, from stocks to gold , partially attributed to a rally in the US dollar. So, what are some of the recent news and developments related to Ethereum and Bitcoin? For quite some time, the main focus of the Ethereum community has been on the PoS migration.
It should be able to address the scalability concerns and high transaction fees of the network. The most recent estimates put the launch of the Beacon Chain at the end of or beginning of More recently, the emergence of decentralised finance DeFi applications have pushed transactions and fees on Ethereum to all-time highs.
Not only that, but the total amount of gas used on Ethereum is more than double the peak of level, while the price of gas is almost five times higher. Another exciting development has been the introduction of tokenised Bitcoin on the Ethereum network. Remember, the two projects operate on different blockchains that are not compatible.
This represents just 0. As always, predicting asset prices is a thankless task. Instead, we can look at the fundamentals of both networks to assess their future potential. BTC , for instance, is underpinned by strong institutional interest and limited supply acts as an inflation hedge, ever more valuable in the world of easy monetary policies.
ETH , on the other hand, supports a growing ecosystem of decentralised applications and the transition to PoS will further cement its position as the only meaningful smart contracts platform. On fundamentals, both cryptocurrencies are well-positioned for future growth. According to a stock-to-flow price model, BTC is closely following the trend of the previous two halvings. So, which coin should you invest in right now, Ethereum or Bitcoin? Overall, both cryptocurrencies could be attractive investment opportunities and have a place in an investment portfolio.
But as always, investors should exercise caution and do their research before investing in any crypto project. There are several ways to invest in Bitcoin or Ethereum, as well as other cryptocurrencies.
A CFD is a derivative product where a broker agrees to pay a trader the difference in the value of an underlying security between two dates; the opening and closing dates of the contract. You can either hold a long position, speculating that the price will rise, or a short position, speculating that the price will fall.
Besides, when trading ETH and BTC via CFDs, you have greater flexibility as you are not tied to the asset: you have merely bought or sold a derivative contract without having to hold the coins themselves.
However, note that CFDs are a leveraged product. Therefore profits, as well as losses, are magnified. Learn more about CFD trading with our free online courses and find out how to trade crypto CFDs with our comprehensive guide. Indices Forex Commodities Cryptocurrencies.