Jan 23, · You can either deposit money to an exchange and trade it there, or you can sign up with a regulated cryptocurrency broker and discover the huge variety of bitcoin trading options. If you are only interested in trading bitcoin and other cryptocurrencies, then signing up with a . Jan 18, · Select either ETH/BTC or LTC/BTC to make the trade for Ether or Litecoin, for bitcoin, cryptoncoins.de: Jon Martindale. Mar 21, · Ethereum is considered to be the next bitcoin. In this article, we’re going to show you how to trade Ethereum. If you’re reading this article, you’re probably familiar or interested in trading cryptocurrencies. It’s never too late to start trading Ethereum. You can trade it for massive profits because ETH remains one of the most 5/5(1).
How to trade ethereum for bitcoinTrading Ethereum (ETH): How to Trade Ethereum?
All other coins, but Bitcoin are altcoins ex. There are several ways to make money with bitcoin. A few of them are: trading or long term investing. Bitcoin arose from the innovative work of Satoshi Nakamoto, who laid out the specification and operating methodology.
Satoshi did not create Bitcoin alone, as he worked with other developers on the project. As a result of this approach, Bitcoin operates as an open source and decentralized platform.
While many people have wondered whether Satoshi was a pseudonym or a true identity; the answer remains unknown. Bitcoin is definitely the outcome of a painstaking work that includes the footprints of several people.
Bitcoin is created when a computational difficulty is solved on the Bitcoin Blockchain, and this is rewarded through block rewards. Block rewards are given to miners who successfully completed the recognized process that gives rise to a Bitcoin.
Block rewards are not arbitrary as they are subject to a verification process built-in as a part of the Bitcoin algorithm. Bitcoin derives its price from the interplay of the forces of demand and supply. As people increasingly acquire it, the price soars and the inverse leads to a price drop as demand reduces. Bitcoin can then be seen in the likeness of gold or diamond that is scarce in supply. Bitcoin is limited in supply to the tune of only 21,,, and about 17,, of these are in supply at present.
It is not known if any change can be made successfully to the underlying framework of Bitcoin; otherwise, it has a fixed supply. Bitcoin has attracted lots of controversies in the course of the last few months as a result of concerns and misrepresentations.
The United States, Europe, and several countries have accepted Bitcoin as legit, and efforts are being made to regulate it. This is not to say that it faces opposition in a couple of countries. In China, Bitcoin is illegal, and South Korea has also imposed a couple of restrictions on it.
A few other countries have come up with laws to restrict its use. However, an overwhelming number of countries are open to Bitcoin. One important aspect of Bitcoin transactions is the fact that it also attracts transaction fees. While the fees charged might vary according to the processor, transacting in Bitcoin is not free.
When you buy Bitcoin, you have to pay trading fees, and if you exchange it for fiat money, you will incur charges. Bitcoin is stored in an account that you can liken to a Bank account. The difference is that unlike a Bank account, your Bitcoin account is a virtual Bitcoin wallet. There is a unique address for each Bitcoin wallet that is created, and you can use it globally. On a trading exchange, when you create your account, your Bitcoin wallet address is automatically created.
You can choose to leave your Bitcoin on the exchange for trading or withdraw it to a private Bitcoin wallet. There are hardware, online, mobile, paper, web, brain, multi-sig, desktop wallets for Bitcoin. There are different kinds of non-exchange wallets that you can use to store your Bitcoin for security purposes. Every wallet has a public wallet address and a private key used for accessing it. Your private key is like your password for emails. Bitcoin is safe if you have it stored in your private wallet.
There is a difference between storing your Bitcoin in your trading exchange wallet and a private wallet. Your trading exchange wallet is considered to be risky to store your Bitcoin. When hackers attack exchanges or there is a system breakdown, you can lose access to your Bitcoin. To prevent this, it is advisable to use a hardware wallet for storage.
Trezor and Ledgerwallet are two of the best known hardware Bitcoin wallets. You can also lose your Bitcoin if you send it to a wrong address. If you send Bitcoin to an unknown address, there is no way to claim it back at present. Bitcoin can be mined by anyone who is interested in doing so.
There are a few options when it comes to mining Bitcoin. You can decide to buy a mining gadget for that purpose and this is a common practice in many countries. However, if your exchange does not allow this, you have to setup alerts, so you are aware of market movements and can place trades manually.
Exchanges like Coinbase don't allow pending orders. To setup alerts, you can use TradingView. Alerts are only available in the Pro plan , but if you are an active trader, it is well worth it. Add it to your watchlist and click on it. The chart will come up. Then right click on the chart where you want to add an alert. This is what it would look like. You could also add another alert to let you know when prices are low and it might be a good time to buy.
Another potential risk with Ether trading is that not all exchanges allow you to store money in your local fiat currency. Or you may need to jump through a few hoops to be able to do that.
So if you sold some Ether that you own, you may have transfer the money back into your bank account in order to lock in your profits. The problem is that each time you transfer money to and from your bank, that can take up to a week! So what can you do about this? Well, that's where our friend Tether comes into play. As I wrote about here , Tether is not a cryptocurrency that you invest in or trade to make money. But Tether is fantastic for locking in your gains on an Ether trade.
Then when you are ready to buy Ether again, simply trade it back on the exchange. No extended waiting times. Ether trading is still in its infancy, so we don't have many reference points to do proper technical analysis. As I wrote about here , we have only seen the first big wave of cryptocurrency speculation, so I believe that there is still a lot of potential for the currency to go up. So before you break out your Gann Fan, Fibonacci retracement tool, or star charts…remember that we are trading a very immature market.
I believe that there is a lot of potential in this technology, but we also need to limit our risk. It could blow up tomorrow, or best case scenario, there will be a lot of volatility in the currency price. Therefore, simple support and resistance should be good enough to trade Ether. Buy low, sell high. As you can see, price has already bounced off this level. But based on our very, very limited data set, that seems like the best technical level to watch right now. Also notice the flash crash that happened in June.
You should setup an alert, in case that ever happens again. Again, I can't stress this enough…there will be a ton of volatility in Ether, so be sure to pick a strategy that matches your personality and get into trades for as cheap as possible.
Cryptocurrency trading is NOT for the faint of heart. Whew, this guide took awhile to write. So if you found it helpful, feel free to send me a tip in Ether, to this address:. Disclaimer: Some links on this page are affiliate links. We do make a commission if you purchase through these links, but it does not cost you anything extra and we only promote products and services that we personally use and wholeheartedly believe in. A portion of the proceeds are donated to my charity partners.
Hi, I'm Hugh. I'm an independent trader, educator and international speaker. I help traders develop their trading psychology and trading strategies.
Learn more about me here. I live in China and I want to trade ether. I could not find any reliable sources online on how to do this.
I want to try Polonex because of stop-loss feature; what is your assessment of Polonex? Can a person residing in China but not Chinese do this? Hi Hugh, Thanks for the terrific content, glad someone took some time to write a guide that is easy to understand and beginner friendly.
Any recommendations for courses or websites i can start learning and then trading? Thanks Kind regards Tony. Thank you for taking the time and putting all this effort in writing this truly great and very informative article. I was wondering if the same process applies to other cryptocurrencies such as EOS for example. Would one uses the same exchanges as the ones you mentioned Poloniex, Kraken, Coinbase, Bitfinex?
Your website is beautiful and easy to navigate with some very useful tips and articles. I rarely subscribe to anything, but here I will. Thanks for the kind words, glad you found it helpful. Yes, the same process applies to any other cryptocurrency. You just have to find an exchange that has the currency you want to trade. Thank you for your reply. Just bought my first ETH! But now I can start trading.
And all because of your invaluable advice. So again, thank you! When you feel more comfortable, you can get into the cryptocurrency market , and start investing in your future. For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE! Save my name, email, and website in this browser for the next time I comment.
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Securities and Exchange Commission vs. All Advance Beginner Experience. Importance of Crypto Market Capitalization. Interesting Details about a Bear Market. Ethereum — how did it come to life? Bitcoin or Ethereum? The Economy Within From the beginning, Ethereum wants to create a decentralized supercomputer on a global scale, which will consist of nodes from all over the world.
So, what Is Ether? Ethereum Trading Strategies Trading Ether can be in one of two categories: holding and active trading.