Cryptocurrency has always enticed the world in more ways than one. This new form of currency created a buzz when it was invented in 2009, with Bitcoin being the pioneer.
What is Ethereum?
Ethereum represents a cryptocurrency blockchain platform that uses decentralized digital currency Ether (ETH) or Ethereum. ETH cryptocurrency you can buy, sell and exchange directly, without an intermediary bank.
What is the difference between Ethereum and Ether?
Ethereum is an independent decentralized network, and Ether is a cryptocurrency. You can equate Ethereum and Ether with a real economy and its currency for better understanding. For example, in the US economy, we use USD to make payments. Similarly, in the Ethereum economy, we use Ether to make payments. In addition o being a cryptocurrency, you can also use Ether to pay for software services in the Ethereum platform.
Ethereum Price today
Ethereum chart is presented below:
Ethereum Classic Price Prediction
Based on the previous price historical data, Ethereum Classic Price Prediction shows the rising trend and for the next 6 months, we can expect to reach a $4000 ETH/USD price level. ETH/USD exchange rate is in a rising trend because of US dollar inflation, and increasing demand for cryptocurrencies in the last 5 years.
However, cryptocurrencies do not follow macro trends as other currencies or stocks and have high volatility. Price prediction can be highly inaccurate.
Ethereum Trading Tips
- Risk per trade less than 1% of your portfolio because Ethereum volatility is high. In the last 365 days, the ETH/USD price increased 20 times.
- Analyze the US dollar chart before you trade ETH/USD. A strong dollar will decrease ETH/USD value.
- Monitor important US dollar news.
- Monitor US dollar interest rate as the most important economic parameter than an influence on ETH/USD.
- Draw trend lines on the Daily chart and follow the main trend.
- Do not trade using emotions.
Understand risk-management: Cryptocurrencies involve a lot of risks, and it is important to manage them properly. Risk Management is the first and foremost thing to consider before dealing in cryptocurrency. To start with, invest a small amount. You can increase your capital amount once you start understanding the concept of it and have gained more experience. It is always suggested that you start with minimum or no leverage. The most important thing in trading risk management is your thought process and approach. Experts have said that you will gain confidence in your approach once you have experience in this field.
Technical analysis will help: If you are a new crypto trader, you must resort to technical analysis to predict the price trends. Many technical analysis tools are available on different trading platforms; one of the famous platforms is MT5. These markets are volatile, and technical analysis will help you decide when to enter the market or exit.
Do not underestimate fundamental analysis: Fundamental forces can affect prices in the trading market. With their help, you can make your moves by factoring in various forces that can affect the value of Ether. The fundamental factors include software applications, decisions by the development team, public response, etc.
Control your Emotions: Trading has no place for emotions. You need to have a practical approach, but it is easier said than done. Before you begin trading, train yourself to accept that cryptocurrency is a volatile asset, and things probably won’t go as expected. The rise can be as good as 50% in a day, and the next day it can be as low as 30%. It is always observed that high volatility increases the chances of entry as well as exits. Experts say never make your emotions like fear, excitement, or anger take over your mind in trading. You should always use a demo account to test the waters and make a well-planned move. Your target should not be making big profits, but to make small profits.
Don’t forget to create a balanced portfolio: Once you enter the Ether market, the urge to explore other currencies will be deemed natural. This is not a bad idea to venture out, but you need to be extra cautious while picking up the coins. Make sure that you do not invest all of your capital in a single coin. People who have been trading for a long time use cryptocurrency to hedge their Forex portfolio. This is because digital coins never get impacted by inflation.
Crypto trading is equally exciting and confusing. However, it can be rewarding if your strategy is right. If you are still unsure about what to do next, it is always a better option to consult an expert, especially when trading a highly volatile asset. Keep your emotions in check, understand the network and its currency, and be cautious while investing money; we are sure that you would be able to get the best of Ethereum trading.