Ethereum is backed by Ether, a cryptocurrency whose value is expected to grow alongside the platform. Ethereum surpassed a market cap of $400 billion for the first time in May 2021.
Here is the information if you want to know about Ethereum, how it works, and tips on trading ETH on Swyftx.
What is Ethereum?
Ethereum is a decentralized blockchain platform. It runs smart contracts, which are applications that run as programmed without any issues like fraud or third-party interference.
Ethereum can build Decentralized Applications (DApps) and Initial Coin Offerings (ICOs). VitalikButerin created it in 2014. Ethereum is the second-largest cryptocurrency after Bitcoin. It is one of the most popular cryptocurrencies. Investors can trade ETH on Swyftx, the easiest way to buy and sell crypto in New Zealand.
How Does ETH Trading Work?
The first step to buying Ethereum is to create an account on a cryptocurrency exchange platform. Many different exchanges are available, so choosing a reliable and good reputation is essential. Some things to look for include:
- Security Features
When you create a new account on an exchange, you will be asked to set up two-factor authentication (also known as ‘two-step verification). It gives extra security by requiring you to enter a code from your phone whenever you want to log in or make a trade.
Different exchanges charge different fees for their services. It is essential to compare the fees charged by other exchanges before choosing one to use.
- Payment Methods
Some exchanges only accept specific payment methods, such as bank transfers or credit cards. Ensure that the exchange you choose agrees with the payment method you want to use.
- Supported Countries
Ensure that the exchange you choose is available in your country. Creating an account on an exchange is a straightforward process. Once you have chosen an exchange, go to its website and click on the ‘Sign Up’ or ‘Create Account’ button.
You will be asked to provide personal details, such as your name and email address. Once you have given the required information, your account will be created, and you will be able to start trading.
How to Buy Ethereum?
Once you have created an account on an exchange, you can start buying Ethereum. The process for buying Ethereum is similar to buying Bitcoin:
- Find the market for the Ethereum currency pair you want to trade (ETH/BTC, ETH/USD, ETH/EUR, etc.).
- Place an order to buy Ethereum at a specific price (called a “limit order”).
- Wait until your order is filled.
- Withdraw your Ethereum to a secure wallet.
The main difference between buying Ethereum and Bitcoin is that Ethereum’s price is often more volatile than Bitcoin’s. That means that you could potentially make (or lose) a lot of money if the price of Ethereum swings up or down. It is essential to do your research before buying any cryptocurrency and only invest money you can afford to lose.
What are the Tips to Start Trading?
- Do Your Research
It is essential to research when it comes to cryptocurrency trading. The market is still relatively new and constantly changing. You need to understand how the market works before investing any money.
- Use A Reputable Exchange
Many different exchanges are available, so it is essential to choose a reliable one. It would be better to use an exchange regulated by a financial authority. It will help protect your money and ensure that the platform is safe.
- Create A Trading Plan
Before you start trading, it is essential to have a plan. It is easy to feel lost in the sea of information without a plan. You need to set realistic goals and strategies. Your trading plan should include:
- Your investment goals
- The amount of money you are willing to invest
- The time frame in which you want to achieve your goals
- The types of trades you will make (buy, sell, hold)
- Your risk tolerance
Creating a plan is the best way to ensure you will make consistent profits in the long run.
- Start Small
When you start, it is crucial to trade small amounts of money. You can increase the amount you trade as you become more comfortable and understand the market better.
It can be tempting to trade large amounts of money when you see the price of Ethereum going up. However, it is essential to remember that the price can go down and up.
Ethereum is a complex platform with a variety of use cases. You should find a reputable cryptocurrency exchange that offers a user-friendly platform, various payment methods, and 24/seven customer support. It is essential to do research before investing in ETH. Read More