Ethereum is a decentralized system, and it offers a wide range of benefits, including instant money transactions across borders.
The coin’s current market capitalization is $43 billion and is trading at $383.06.
This article will discuss how to trade Ethereum and the reasons why traders opt to invest in the token today.
How to Trade Ethereum
Before you consider investing in Ethereum, you must first understand where you can buy and trade the coin.
One of the best platforms that allow you to trade Ethereum is PrimeXBT. This is a cutting-edge online trading platform that offers all the trading features including those that allow users to exchange other cryptocurrency assets, fiat currency, and more for BTC.
Users are allowed to purchase BTC with a credit or debit card to fund their accounts and start trading Ethereum.
You can also find other reputable exchanges. You should consider the security features of all exchanges before settling on one. Good security protects your funds from theft.
Most platforms offer analytical tools to help you make informed trading moves. You should first understand these features to ensure you don’t lose a lot of money. Fortunately for beginners, many exchanges have demo accounts where you can practice before trading live.
This is where a trader decides to increase their trade to exceed the capital they have. Users who want to margin trade look for platforms like PrimeXBT that can provide the funds to open bigger Ethereum positions.
When you open a bigger position, you can earn higher profits if the position goes the right way. However, this magnifies the losses, and it can be perilous for beginners who don’t understand how to trade ETH using margin trading.
Reasons for Trading Ethereum
Ethereum finally broke its long $200-$250 daily close range. Historical data shows that such daily close-range transitions take place between psychological support levels.
Currently, Ethereum is on a ‘sweet spot’ where, in most cases, polarization is witnessed. There is a high probability that the coin’s price may go well above $300, and this would be happening for the 42nd time according to historical data.
DeFi Exploding to New Highs
The exploding DeFi market has contributed significantly to Ethereum’s rise in the past few months. Since May, the total value of DeFi protocols has increased to $3.75 billion. Other popular protocols such as Maker, Curve Finance, and Aave have received massive user adoption since mid-June.
The DeFi rise has fueled other submarkets within Ethereum. For instance, Anthony Sassano, the Set Protocol marketing lead, stated that the weekly dex volume increased to $1.5 billion. Other markets within the Ethereum ecosystem have shown a substantial increase, which continues to boost Ethereum’s price.
Ethereum 2.0 is expected to act as a catalyst for Ethereum’s price in the new future. Positive progress on Ethereum 2.0 has continued to boost the platform’s influence in the cryptocurrency market, which has attracted thousands of users. The Ethereum 2.0 may fuel ETH’s price to new heights, as crypto enthusiasts expect better developments in this ecosystem.
Similar to Bitcoin, predictions about Ethereum’s price in the near future continue to impart confidence among users. The coin’s price has experienced a constant increase in the past few months, as more users continue to join the network. Currently, at $300, the recent developments around Ethereum will boost adoption, thus increase the coin’s price.
Ethereum Can Be Used for Payments
As more companies continue to accept Bitcoin as payment, more have accepted Ether. This acceptance is expected to increase as the Ethereum platform develops more solutions, and users continue to accept cryptocurrencies. Users will continue to use Ethereum for payments, even as massive adoption takes place in different industries.
The numerous developments on the Ethereum platform will drive this massive adoption, and this will significantly boost the coin’s price in the future.
Ethereum is the second-largest cryptocurrency with a promising future. The numerous developments on the Ethereum platform and massive adoption in different industries have given users confidence in the cryptocurrency. This has seen the coin’s price increase consistently in the past seven months and by the look of its things will only get better moving forward.