Ethereum is among the top 10 digital currencies on the cryptocurrency market, according to market cap. As of April 2019, the market price of Ethereum was $152 per unit. With Ethereum blockchain network driving developments in the Crypto industry, majority of the investors see Ethereum as more promising than Bitcoin, and the reason why we will talk about Investing In Ethereum.
The different financial institutions, including the Fortune 500 companies are making use of Ethereum to run their payment networks. If this is your first time in the crypto world, and you are interested in investing in Ethereum, this guide was curated with you in mind.
This guide will give you a heads-up and help you understanding the process of investing in Ethereum. Before we go too far, let’s quickly define what Ethereum is.
What is Ethereum (ETH)?
Ethereum is a virtual currency in the cryptocurrency market, and it was created by Vitalik Buterin in 2013 but went live in July 2015. Before the emergence of Ethereum, developers were on the lookout for digital currencies that would stand at par with Bitcoin. With ETH, developers can now create decentralized apps that are not controlled by the government or any single individual.
Advantages of Ethereum Technology
The following are some advantages of ETH technology:
- Ethereum apps cannot be turned off.
- ETH has more applications than Bitcoin
- No individual or government can alter ETH data.
- Ethereum apps cannot be censored and are protected against hackers and fraud using cryptography technology.
How to Trade Ethereum
Investing in Ethereum doesn't have to be difficult. As with Bitcoin investment, the process is virtually the same. It would be best if you had the following in place before you can trade Ethereum:
- A trading device: This includes a smartphone, laptop, or a personal computer. Any trading device you are using should have a reliable battery.
- Internet connection: A strong internet connection is very crucial if you must trade Ethereum. You need always to be connected to know when and how the market moves.
- Trading Education: Let's face it; there is no way you can trade like a professional without some forms or levels of trading education. Enroll in a trading class and gather all the information you need to make better trading decisions.
- Trading robot or Expert Advisors: While EA or trading robot is not mandatory, you need this software to automate your Ethereum trades. The chances are that you don't have all day sitting in front of your laptop monitoring the market - an EA or a robot can track the market on your behalf, and even help you make trade decisions.
You can proceed with the following step-by-step guide to invest in Ethereum, provided you have the above handy:
Step #1: Identify A Trading Platform
The first step to trading Ethereum is to identify a trading platform. There are lots of trading platforms right now offering Ethereum Investing services. Some factors to keep in mind while identifying an online trading platform are regulations, ease of making deposit/withdrawal, trading platforms, and responsive customer support. Other factors to consider are trading Instruments, availability of tradeable instruments, and much more.
Step #2: Open a trading account
After identifying a trading platform, the next step is to open a trading account with them. The account opening process is usually simple and straightforward. All that is required of you is to complete an account opening form and upload some documents for verification. Be aware that each exchange has different trading accounts for Ethereum traders; so, choose the account type that suits your investment preferences.
Step #3: Fund Your Trading Account
Once you have successfully set up a trading account, the next step is to deposit some money into your trading account. Please note that each account type has a minimum balance that each trader should maintain. If you have $100 or $50 to start trading Ethereum, deposit the same to fund your account.
Step #4: Start Trading
Everything is now set for you to start trading Ethereum. Every exchange has what is known as a trading interface, so be sure to master the trading interface of the exchange you choose. Importantly, always review your transaction before opening a trade position.
Step #5. Withdraw ETH into a Wallet
After buying ETH, you can withdraw it into a digital wallet for your control. There are different digital wallets for digital currencies. So, do your research to determine the type of wallet that would suit your trade preferences.
Why Invest In Ethereum With T1Markets?
We have one simple agenda on the crypto ecosystem – to provide a user-friendly platform where newbies and experienced traders can access different cryptocurrencies. We are also bent on simplifying the Ethereum investment process so that you can diversify your investment portfolio without lifting a finger.
Some of the reasons why our traders prefer us over other online brokers are:
- Trading Platform: Our trading platform is equipped with a wide variety of trading tools – from trading charts to different technical indicators, and everything in between. As a registered trader on our platform, we would provide you with the support to automate your Ethereum trades.
- Regulation: Our trading platform is highly regulated. This means every buying and selling activity is done in a safe environment. We also have up our game by adopting sophisticated measures to protect traders' investment.
- Ease Of withdrawal: The ease of withdrawal our traders enjoy is second to none in the industry. Once you submit a withdrawal request, you will receive your earnings in one business day.
- Trading assets: Regardless of the financial instruments you are interested in, we have got you covered. We feature more than 350 tradeable assets on our platform – this is to allow you to diversify your portfolio.
- Transaction Fees: We do not charge our traders cut-throat transaction fees. We understand that traders have labored to earn their revenue; as such, our fees are very decent compared to other online brokers on the market.
How to Trade Ethereum With T1Markets
Investing in Ethereum on the T1Markets platform is very simple and straightforward. Here is how to go about it:
- Click on “open an account” and choose your language.
- After filling the form, tick the first box, which is to confirm you are 18 or above years old. And you could also agree to receive product/service updates by ticking the 2nd
- Submit the form, and wait for the confirmation email.
- After confirming through the email, you can proceed towards making your first deposit.
- After deposit, you can start trading.
Frequently Asked Questions
Why Ethereum is a popular option?
Compared to other cryptocurrencies on the blockchain, Ethereum is very popular due to the market cap. Ethereum is one of the largest blockchain technology right now. And despite the fluctuations in the price of Ethereum, it remains one of the preferred options by many.
Ways to earn Ethereum?
As with other investment options, investing in Ethereum can be useful if you know how to trade the market and follow market directions. While, there are other ways to earn it, which can be via faucets, staking, and mining.
How much do I need to invest in Ethereum?
Unlike stocks, commodities, gold, and indices, one advantage of trading Ethereum is the low amount required to start trading. Investing in Ethereum doesn't require thousands of dollars - In fact, you can start trading with as low as $250.
Final Words
Investing in Ethereum can work with the right knowledge, skills, and trading tools. However, as with any investment, Bitcoin investment, or investing in Ethereum also has its own risks. You need to work-out your risk tolerance and put in place measures to help you mitigate risks so that you don't lose your trading capital.
We advise that you start trading with a demo account before switching to a live account. There are so many benefits of trading with a demo account, some of which include building up your trading skills, becoming more confident to risk your capital, and learning how to use technical indicators, among others. Using a demo account also guarantees that you won't lose your trading capital to market forces.
At T1Markets, we have a range of trading tools to support our traders. Whether you want to invest in Ethereum as a day trader or you prefer being a Scalper, it is easier through our platform.
