Table of contents:
- 1 Ethereum invest: ETH CFDs offer a lot of leeway & profit opportunities
- 1.1 Trading at the broker with speculation on the price or with crypto securities
- 1.2 How can you invest in Ethereum? – the financial instruments at the broker
- 1.3 INVESTING IN ETHEREUM WITH LEVERAGE
- 1.4 How to invest in Ethereum and find the right market situation?
- 1.5 ANALYZE PRICE WITH MT4 AND TOOLS
- 1.6 How can I invest in Ethereum and protect myself?
- 1.7 HOBBY TRADERS SHOULD USE AUTOMATIC POSITIONS
- 1.8 How much equity do I need to invest in Ethereum?
- 1.9 TRADING WITH BROKERS USUALLY CHEAPER THAN ON THE STOCK EXCHANGE
- 1.10 Investing in Ethereum without any previous knowledge, is that possible?
- 1.11 TIPPS BY TRADING PROFESSIONALS USE
- 1.12 Investing directly in Ethereum or speculating on price?
- 1.13 WHERE DO TRADERS HAVE MORE CHANCES?
- 1.14 Conclusion: Ethereum Invest – Broker & CFDs the better choice from many aspects
Ethereum invest: ETH CFDs offer a lot of leeway & profit opportunities
Anyone wishing to invest in Ethereum can do so by contacting a broker or a stock exchange, for example. For all traders who want to limit the risk and celebrate maximum success with little equity, we recommend the ETH CFDs test. To do so, they simply register free of charge with the broker of their choice and open an account, for which they often do not even need equity capital. Traders can also invest in Ethereum with virtual assets and the demo account and test their chances with the crypto CFDs and later realize the real profits with equity and a live trading account.
- Invest in Ethereum with CFDs with brokers
- Leverage for crypto CFDs is a maximum of 1:2 for private traders
- Little equity required for CFD trading
- Traders can often even start with a free demo account with the broker
Ethereum investing made easy: the numerous possibilities with CFDs
If traders want to invest in Ethereum, there is more than one way to do so. There is a choice:
- direct purchase at crypto exchanges
Trading at the broker with speculation on the price or with crypto securities
Many traders prefer to trade with a crypto broker, as they often have many more options with these providers and often require significantly less equity. To invest in Ethereum, traders need the following from the broker:
- Trading account
- Equity, if any
- The right chance on the crypto market
Opening an account is very easy and, from experience, is completed within a few minutes. Online forms are available at a broker’s office, which allow registration within a few seconds. Often there is also the choice between a live account with own capital and a demo account. For example, if traders use the demo account first to bridge the time until the account capitalization on their own account, the start of trading is possible within a few minutes. In order to invest in Ethereum, you need to get the right offers from the broker. However, since ETH is one of the best-known crypto currencies with the highest market capitalization, ETH CFDs can be found with almost all major renowned providers. In addition, traders can often trade other crypto CFDs or financial instruments to the crypto-market to achieve an optimal diversification of their portfolio.
How can you invest in Ethereum? – the financial instruments at the broker
The Ethereum Investment is often possible with the broker with the contracts for difference, but partly also through funds. Some brokers even provide shares around the crypto-market, although Ethereum does not have its own company shares. Nevertheless, CFDs give traders numerous opportunities to take full advantage of price developments, which are often volatile. Those who want to can trade CFDs on falling and rising prices and even on a sideways trend. This offers investors the entire spectrum of versatility around the crypto-market. Whoever wants to combine several Crypto CFDs with each other to optimize even more of the profit potential.
INVESTING IN ETHEREUM WITH LEVERAGE
Contracts for Difference have a special feature that many traders like to use: leverage. If traders want to trade CFDs, they only need to deposit a security deposit and can thus save equity. Due to the leverage effect, the capital on the market is nevertheless significantly increased, so that in the best case, higher profits are generated. The maximum leverage for private traders is 1:2 for crypto CFDs; professional investors can act with a higher leverage. If traders decide to trade, for example, shares CFDs in addition to crypto CFDs, the leverage is also increased for private traders and is a maximum of 1:5. Other underlying assets of CFDs can even be traded with a maximum of 1:30.
How to invest in Ethereum and find the right market situation?
If the traders choose ETH CFDs for their trading activities, there is hardly a market situation that cannot be successfully exploited. However, everything stands and falls with the price analysis. When making their trading decision, traders should know how prices will develop in the near future. To do this, they can use technical and/or fundamental analysis, although technical analysis is much easier to use even for less experienced traders. With technical analysis, traders look at historical data and use this information to forecast future trends. The shorter the timeframe chosen for this, the more solid the Ethereum forecast will be. Especially in view of the occurring volatility in Ethereum and other crypto currencies, we recommend to analyze and trade CFDs with a short timeframe.
ANALYZE PRICE WITH MT4 AND TOOLS
Traders often have the opportunity to perform price analysis using a variety of tools, including free tools and indicators. For this purpose, brokers provide not only innovative trading platforms, but also various tools. For example, if a broker has the well-known Metatrader, traders will find 30 popular technical indicators, more than 20 analytical objects and much more. This makes the price analysis even easier. Frequently, brokers even provide a mobile application, so that traders can comfortably invest in Ethereum with their smartphone or tablet when the right development takes place.
How can I invest in Ethereum and protect myself?
Of course, no trader wants to take unnecessary risks in his trading activities. CFD trading in particular offers traders an unspeakable number of possibilities, but contracts for difference are also among the riskiest derivatives. If you are not careful and the position is not sufficiently hedged, your equity can be lost quickly. In order to prevent traders from suffering a total loss, we recommend that they hedge their positions and always trade with stop loss and take profit positions. In this way the traders themselves determine the limits for profits and losses and decide when the position is (automatically) closed.
HOBBY TRADERS SHOULD USE AUTOMATIC POSITIONS
Often traders trade as a hobby, so that they have hardly any time to constantly observe the market or analyze prices besides their actual job. Meanwhile the brokers offer many free notification possibilities with chancenreichen market developments, nevertheless the Trader cannot convert these always and everywhere immediately. Therefore, with stop loss and take profit positions, traders can control their trading activities much better. For example, if you analyze the market before you work and open a position, you can at best look forward to profits at the end of the day. However, to ensure that losses do not outweigh profits and to protect profits, brokers offer the possibility to trade stop loss and take profit positions automatically. This allows traders to determine how to take profits and limit losses, depending on their risk appetite and capital expenditure.
How much equity do I need to invest in Ethereum?
Many traders are concerned about the amount of equity they need, because they often do not know what they need to invest. Basically, brokers offer every trader the opportunity to become active with little equity. Of course it depends on which financial instruments the traders want to trade. Those who decide to invest in Ethereum with CFDs often need only a few Euros to open a position. Thanks to the applicable leverage, even little equity becomes a lot on the market, because if you use the maximum leverage of 1:2 with the Crypto CFDs, your equity doubles in no time at all. However, if the traders decide to purchase crypto securities, not only a security deposit is due, but the entire purchase price for the share at once.
TRADING WITH BROKERS USUALLY CHEAPER THAN ON THE STOCK EXCHANGE
How to invest in Ethereum? – In answering this question, we have already mentioned the possibilities of brokers and stock exchanges. It turns out that traders with their trading activities on an exchange often require more equity capital than with brokers. For example, if you want to buy ETH directly from a stock exchange, you will have to pay about 150 euros or more to buy one coin, depending on the market situation. At the all-time high of the crypto currency on January 13, 2018, the price for a coin was more than 1,200 euros. If the traders decide instead to invest in ETH CFDs, they need a fraction, because most brokers have no or only low minimum requirements for the trading capital.
Investing in Ethereum without any previous knowledge, is that possible?
More and more investors are finding their way to brokers as they are looking for alternatives to traditional financial instruments (including overnight or time deposits). This is why more and more brokers are tailoring their trading offer to less experienced traders. Anyone who wants to invest in Ethereum is welcome everywhere where trading in the crypto-currency is offered. Of course, brokers also know that less experienced traders are often shy to invest in the volatile crypto market. To provide some support, the brokers therefore not only offer attractive trading conditions, but also services, tips and much more. Those who want to can often even use the free demo account with virtual credit for an unlimited period of time. In addition there is basic information to the individual crypto currencies, the course analysis and much more besides.
TIPPS BY TRADING PROFESSIONALS USE
Dealers without experience are often grateful for any help and support. Many trading professionals therefore make their knowledge available free of charge in cooperation with brokers and regularly through training or webinars as well as analyses free of charge. This makes it easier even for less experienced traders to understand the crypto-market and analyze prices. Those who want to can even combine the theoretical basics with an offered free demo account and thus make the learning effect much more effective. The near-market conditions on the demo account are best suited to find realistic trading conditions and to practice trading easily and without risk. Later on, of course, it is very easy to switch to the live account or a parallel guided tour.
Investing directly in Ethereum or speculating on price?
Since there are of course several ways for traders to invest in Ethereum, we want to compare the options to show where trading is better suited for whom. If the traders intend to actually own the coins and use ETH as a means of payment or exchange, for example, the only option is often to go to the Crypto Exchange. Many brokers do not offer direct trading of the coins at all, but only the crypto financial instruments such as CFDs or securities. What traders should know, however, when they become active on the stock exchange: You need a crypto wallet to store the coins. Since there are different wallet variants, the choice is not always easy at first. There is also the danger that hackers could manipulate the wallet and steal the coins.
WHERE DO TRADERS HAVE MORE CHANCES?
The question also arises where traders have more chances: Crypto stock exchange or broker? The answer to this question depends on the trading strategy and investment horizon and the plan with the crypto currency itself. If investors are interested in generating profits as quickly as possible, crypto stock exchanges are disadvantageous. Since the traders can often only sell the coins profitably after a longer period of time, CFDs are more flexible and can be used for short promising price developments. Furthermore, traders should take into account that the direct purchase of coins from the wallet costs taxes. Only after a holding period of one year are the profits no longer relevant for tax purposes.
Conclusion: Ethereum Invest – Broker & CFDs the better choice from many aspects
Traders can invest in Ethereum with stock exchanges and brokers, although the conditions for doing so vary considerably. While traders need a wallet in addition to trading, an account and (a lot of) equity when they are active on the exchange, they simply need a trading account with a broker. Since many brokers even provide a free demo account, often not even equity capital is required for the first trading steps. If the Trader would like to obtain profits with the trade of the crypto currency, own capital funds must be deposited. Also here the hurdles fail clearly smaller than with stock exchanges, because the trade with Krypto CFDs is for example clearly more favorable than the direct purchase of the Coins with the stock exchanges. If the traders decide to use alternative crypto financial instruments such as securities with the broker, a higher equity capital expenditure is of course also required. However, CFDs are almost predestined to take advantage of the volatile prices of Ethereum and Co. Due to the leverage effect of maximum 1:2 it is possible to make a lot on the market even from little equity capital and thus increase the possible profits significantly. So why not simply try the chances with the ETH CFDs and start with a free (demo) account with a broker?