After its launch in 2013, Ethereum has quickly become the second largest cryptocurrency after Bitcoin. There are now over 1500 different cryptocurrencies and the number can increase anytime; but Ether has managed to maintain its place in the top most traded cryptocurrencies over the years. Find out more below about what makes it so special and how effective you can trade it with a professional broker like TradeFW!
The Ethereum cryptocurrency was first proposed in 2013, by programmer Vitalik Buterin; and it was officially launched on 30 July 2015, after an online crowdsale that took place between July and August 2014. Buterin claimed that Bitcoin needed a scripting language for application development; so when nothing changed – he, along with Joseph Lubin and Gavin Wood, created Ethereum.
One year later after its official debut, as a consequence to the exploitation of a flaw in The DAO (a decentralized autonomous organization) project’s smart contract software and a theft of $50 million worth of Ether; the cryptocurrency was split into two separate blockchains: Ethereum (ETH), the new version that took the forked blockchain; and Ethereum Classic (ETC), the original version, continued on the original blockchain.
Ethereum is designed as an open-source software platform, which is block chained and can host smart contracts and Decentralized Apps. DApps can run without the need for human interference; while Smart contracts are contracts programmed to run by themselves, without a ‘middleman’.
Ether is the actual cryptocurrency with the blockchain generated by the Ethereum platform we mentioned above. The blockchain design is similar to the Bitcoin one, as it functions as a ledger -accumulating and adding transactions in chronological order. However, the difference between the two is that Ethereum’s nodes store the most recent state of each smart contract, in addition to all of the ether transactions.
Moreover, Ethereum has five forks, as the result of new features added to the original blockchain by other developers. The forks are:
- Ether Inc. – ETI: forked on 12 March 2018; 1 ETH = 1 ETI.
- EtherZero – ETZ: forked on 19 January, 2018; 1 ETH = 1 ETZ.
- EthereumFog – ETF: forked on 1st January 2018, 1 ETH = 1 ETF.
- Ethereum Modification – EMO: forked on 15 December, 2017; 1 ETH = 1 EMO.
- EtherGold – ETG: forked on 14 December, 2017; 1 ETH = 1 ETG.
How to trade Ethereum – one of the most popular cryptocurrencies
Like most cryptocurrencies, Ethereum can be traded on three main exchange types:
- Trading platforms are websites that connect buyers and sellers but users cannot communicate with each other.
- Online Brokers sell cryptocurrencies on their online platform in exchange of a fee or commission.
- Peer to peer platforms (P2P platforms) are websites that allow buyers and sellers to connect and communicate with each other.
Going with an online broker is the most efficient way, mostly because you will be able to trade Ethereum in a safe and professional trading environment, which can substantially increase your chances of succeeding. For example, TradeFW is a renowned cryptocurrency broker, registered and authorized to operate by the Cyprus Securities and Exchange Commission (CySEC). It holds the funds of its customers in segregated accounts, offers them negative balance protection; as well as the possibility to withdraw their money in a timely manner. In addition, the latest technology available on their website, like the MT4 trading platform and tools – are exactly the two advantages of a broker that could assist you in finding real financial opportunities.
Cryptocurrency trading is not very different than Forex trading, commodities, or other markets – as the prices of the digital coins go up and down, allowing you to make quick profits from the market trends. Given the volatility of this market, when you invest in Ethereum, your profits depend on buying and selling with pinpoint accuracy. Fortunately, with an expert broker, like TradeFW, you will be able to take advantage of all the great opportunities the market has to offer – thanks to an incredibly fast execution of the platform.
There are even some strategies that you could use in this situation, like the Pin Bar strategy, which helps you identify reversals in the market. If you’re not a huge fan of the price movements in the short-term, then you can opt for the Buy & Hold strategy and store the cryptocurrency over a long period of time and trade it whenever you think it is the best moment.
Why you should consider investing in Ethereum
Ethereum gained momentum shortly after it was launched and even if it went through some rough patches, like the DAO event, it maintained its place within the top most traded cryptocurrencies. Its unique features, like the platform that holds DApps and smart contracts, are the ones that differentiate it from its peers and make it the first choice of many investors. With a reputable and trustworthy broker like TradeFW, investing in Ethereum will be one of the most lucrative and enjoyable experiences.