Table of contents:
- 1 Ethereum Wallet fortunately traders do not need to use Ethereum Wallet when trading CFDs
- 1.1 Ethereum Wallet: Trading with a broker is also possible without
- 1.2 DO NOT CREATE AN ETHEREUM WALLET AND STILL TRADE ETH
- 1.3 ETH CFDS SUCCESSFULLY TRADING WITHOUT ETHEREUM WALLET
- 1.4 ADVANTAGES OF ETHEREUM CFDS
- 1.5 Little equity required for CFD trading
- 1.6 PRICE ANALYSIS AND ETH CFDS WITHOUT ETHEREUM WALLET TRADING
- 1.7 INTRADAY TRADING OPTIMAL FOR HOBBY TRADERS
- 1.8 WORKING AS A HOBBY TRADER ON ASSET ACCUMULATION ALONGSIDE YOUR JOB: ETHEREUM CFDS AND ITS POSSIBILITIES
- 1.9 LIMIT RISK AND CALM ETH CFDS TRADING
- 1.10 Trading with a plan: use the flexibility of the crypto-market with CFDs
- 1.11 CFDS: LONG VS. SHORT
- 1.12 TIMEFRAME CRUCIAL FOR CFD TRADING
- 1.13 SWING TRADING STRATEGY FOR PARTICULARLY AMBITIOUS TRADERS
- 1.14 HEDGING TRADING STRATEGY
- 1.15 NO NEW LOSSES, BUT ALSO NO NEW GAINS
- 1.16 ETH CFDS TRADING ON THE BASIS OF NEWS
- 1.17 VIEW ON GOVERNMENTS AND THE ECONOMY
- 1.18 USING DATA FROM THE ECONOMIC CALENDAR
- 1.19 Analyze ETH course and trade CFDs in a targeted manner
- 1.20 USING CHART PATTERNS SPECIFICALLY FOR CFD TRADING
- 1.21 IMPORTANT CHART PATTERNS: HEAD AND SHOULDERS
- 1.22 OTHER PATTERNS: DOUBLE TOP AND TRIPLE TOP CHART PATTERNS
- 1.23 Not only ETH CFDs: Combination possibilities with brokers
- 1.24 COMBINE CRYPTO SHARES AND CRYPTO CFDS
- 1.25 Limit losses in CFDs for long-term success
- 1.26 USE THE BROKER’S ASSISTANCE
- 1.27 On the stopwatch: What is quicker – creating an Ethereum Wallet or broker registration?
- 1.28 CRYPTO BROKER HAS A CLEAR ADVANTAGE, BECAUSE…
- 1.29 KRYPTO STOCK EXCHANGES AND ETHEREUM WALLET HAVE LOST BECAUSE…
- 1.30 EQUITY CAPITAL REQUIREMENT: CRYPTO STOCK EXCHANGE VS. BROKER
- 1.31 MUCH HIGHER BROKER FLEXIBILITY
- 1.32 Conclusion: traders do not need Ethereum Wallet with brokers
Ethereum Wallet fortunately traders do not need to use Ethereum Wallet when trading CFDs
Creating an Ethereum Wallet often takes (too) long. As is well known, time is money, so many traders without Ethereum Wallet want to profit from the development of the crypto currency. There are faster ways, which make possible within few seconds the trade with ETH and other crypto currencies. Instead of opening an account at the stock exchange and laboriously finding a wallet solution to link it to the trading account, brokers offer the trading entry in a few seconds: Trading, open an account, trade ETH CFDs and in the best case take profits.
- Ethereum Wallet often has to be chosen with a lot of time and effort
- Traders usually do not need a crypto wallet at Broker
- ETH CFDs at the broker with complete flexibility
- ETH CFDs even possible with maximum leverage of 1:2
Ethereum Wallet: Trading with a broker is also possible without
Traders need an Ethereum Wallet if they want to trade the crypto currency directly at a stock exchange or earn money through Ethereum Mining and Faucets. The selection of a suitable Wallet is not always completely easy, because there are different variants, which do not always offer in addition the maximum safety measure. The users can choose from:
- Ethereum online Wallet
- Ethereum offline Wallet
Despite security measures, online wallets in particular always have a residual risk because they are provided with online access. In order to select a Wallet and to be able to create the Ethereum Wallet, the users often need some time. Time that can cost them perhaps profits with interesting market opportunities. Traders can also trade Ethereum and other crypto currencies without having to create an Ethereum Wallet. Instead, a one-time free registration with a broker is sufficient. Frequently for it not even own capital funds are needed, which many brokers make even for the simplified Trading entrance a free account with digital starting assets, the virtual play money, available.
DO NOT CREATE AN ETHEREUM WALLET AND STILL TRADE ETH
Choosing a digital wallet is often a challenge for many traders. Should the Ethereum Wallet be German or English and which wallet providers do I actually use? It is not uncommon for traders to spend unnecessarily much time selecting and often the time required for the registration process is added to the equation. Brokers usually provide the trading activity even without Ethereum Wallet, because the Ethereum Coins are not sold directly. Instead, traders have countless opportunities to invest in interesting crypto financial products.
ETH CFDS SUCCESSFULLY TRADING WITHOUT ETHEREUM WALLET
CFDs are one of the most popular financial instruments for crypto brokers. Since the boom of Bitcoin and Co., countless brokers have been providing the contracts for difference also for the crypto currencies. Since Ethereum is one of the best known Internet currencies with the highest market capitalization, it is hardly surprising that the ETH CFDs are also to be found as a matter of course with many brokers. Traders have the opportunity to register with the broker in no time at all to take advantage of CFDs with all their benefits. Above all, this includes the leverage effect, because ETH CFDs can be leveraged with a maximum of 1:2.
ADVANTAGES OF ETHEREUM CFDS
In addition to the applicable leverage effect, CFDs have countless other advantages:
Traders can trade different prices flexibly
Investors lower potential trading risk with CFDs (keyword diversification)
Little equity required for CFD trading
With the help of CFDs, the traders can, above all, confidently take advantage of the volatility of the Ethereum price. Like many other crypto-currencies, it often runs with enormous fluctuations and is repeatedly slowed down by a sideways trend. While the traders at crypto stock exchanges have difficulties to find the right time for trading especially in such market situations, the traders at a broker can act much easier with the help of CFDs. Rising, falling or sideways moving prices – flexibility in the market is not a problem for the trader at all and is actually desired. In fact, volatility offers investors much more opportunities, as they can take advantage of bullish and bearish market situations at will.
PRICE ANALYSIS AND ETH CFDS WITHOUT ETHEREUM WALLET TRADING
Price analysis is especially important for successful CFD traders. If the traders know how the price will develop in the near future, they can trade the positions on it very specifically. Generally, CFDs are mostly traded intraday, which is of course optimal for short-term trading activities. The advantage of intraday trading is that investors do not have to wait for long-term results or keep an eye on the market for days or even months. Instead, the result, profit or loss, will show up after a short time and at the end of the trading day, the traders know what their current equity level is. This allows short and medium-term trading strategies in particular to be implemented much more efficiently.
INTRADAY TRADING OPTIMAL FOR HOBBY TRADERS
The CFD trade or generally the trading activities with brokers become interesting for more and more hobby traders, because here there are at least attractive financial instruments and actually still a chance for profits. Of course, no trading activity is 100% promising in any case, because even the best trader has to expect losses at some point. In contrast to the low interest rates for overnight money or fixed-term deposits, however, the traders are much more flexible with a broker and can work on asset accumulation with the financial instruments offered and your investment strategy in a very targeted manner. If the hobby traders use the ETH CFDs for this purpose, they even have the chance to generate profits during their working hours. However, the contracts for difference are also risky derivatives, so that without optimal hedging an enormous loss can occur.
WORKING AS A HOBBY TRADER ON ASSET ACCUMULATION ALONGSIDE YOUR JOB: ETHEREUM CFDS AND ITS POSSIBILITIES
Hobby traders who are professionally active often do not have much time to deal with the selection of a suitable Ethereum Wallet, to analyze the market or to continuously follow the trading offers at crypto exchanges. They are often interested in quick measurable results, which can be realized especially with CFDs. With the help of the Contracts for Difference, the traders can, for example, take advantage of the opportunities on the crypto market in the morning before work and trade the ETH price. It hardly matters whether the price rises, falls or moves sideways. Once the traders have analyzed the price, the corresponding position can be traded long or short. Even short-term market fluctuations can be exploited in this way.
LIMIT RISK AND CALM ETH CFDS TRADING
In order to prevent the traders’ anxiety during the actual working day from becoming too great and surprisingly losses from occurring, there is the possibility to trade CFDs with risk protection. This is exactly what even the experienced traders recommend, because especially the volatility of the crypto-market can always surprise traders. Automatic Stop Loss and Take Profit positions not only contribute to a safe trading feeling, but they can also be opened very easily. Traders set their own limits when the position closes, thus securing profits but also limiting losses.
Trading with a plan: use the flexibility of the crypto-market with CFDs
Every good trader has his own individual trading strategy with which he works on asset building. Such a strategy can be short-, medium- or long-term. CFDs are especially suitable for short and medium term oriented traders with some risk tolerance. However, each strategy is of course individually dependent on the investors. In order to apply a strategy tailor-made, it is selected according to various criteria:
- Risk appetite
- Trading Experience
- Investment Horizon
With the right strategy, traders have the opportunity to keep a cool head even in difficult market situations and to act without emotionality. The strategy helps to find suitable times for entering and exiting the market and is like a false bottom for the trader.
CFDS: LONG VS. SHORT
Active traders often prefer to trade long and short positions in order to take advantage of the volatility of crypto-movements. For example, the long position is traded when traders expect the asset to appreciate in value over the life of the contract. Conversely, there are also short positions, of course, where traders expect a loss in value depending on the price forecast. For example, if traders have used the price analysis to forecast that the ETH will fall in the short term, they trade the position short. To hedge the positions, the traders simply set their limits and ensure that the positions are closed when they are reached (automatically with exact value).
TIMEFRAME CRUCIAL FOR CFD TRADING
For the price analysis, traders can choose from different time frames. These are important for trading decisions. Intraday trading is especially interesting for the traders because it allows them to take advantage of price changes within individual hours or even minutes. Long-term oriented traders can of course trade CFDs for several days, but this is not always profitable due to the additional fees. Furthermore, the volatility on the crypto market is often so pronounced that long-term forecasts are hardly possible on a sound basis.
SWING TRADING STRATEGY FOR PARTICULARLY AMBITIOUS TRADERS
Certainly, the hurdles for CFD trading are extremely low compared to other financial instruments, because the basics of contracts for difference are easy to learn. However, it is well known that practice makes perfect and experienced traders are often a little riskier and know how to stay in control even in supposedly difficult market situations. An interesting strategy to get even more out of the volatility of crypto currencies is the Swing Trading Strategy. Here, traders try to exploit the smallest price fluctuations, the swings, and thus profit within the shortest possible time. However, the market dynamics are so fast that permanent price observation is actually advantageous in this case. Hobby traders, who know that they cannot look at the prices during their working hours during trading hours, should therefore use the swing trading strategy with caution or, for example, use it during their vacation period.
HEDGING TRADING STRATEGY
Hedging is also another trading strategy that is mainly used for protection. The traders try to make new profits and to minimize/exclude other losses of value with their opened positions. How does this happen in practice? The traders trade with the hedging strategy by taking the opposite position. For example, if a position is opened on falling prices, traders hedge with another position on rising prices and vice versa. While one position will always incur a loss, the other position will incur a profit. Sounds illogical in theory, doesn’t it? A look at the practical application shows that the strategy has its raison d’être and protected many a trader from an enormous loss.
NO NEW LOSSES, BUT ALSO NO NEW GAINS
With the help of the hedging strategy, traders protect themselves against (new) losses. Especially when the ETH share price is subject to enormous volatility, the strategy for avoiding a total loss is worth its weight in gold. However, there is also a disadvantage, because no additional profits can be made. Therefore, this strategic approach is particularly suitable for investors who (still) show little willingness to take risks and who first familiarize themselves with CFD trading.
ETH CFDS TRADING ON THE BASIS OF NEWS
Traders can also trade the contracts for difference based on current news. This strategic approach is particularly useful for the crypto-market. Often volatility is triggered by current news (positive or negative), so that traders can react even better to such situations with regard to the news. For example, many brokers offer free news services and the information via push, SMS or e-mail. In addition, there is also information in economic calendars, which can also be interesting for trading activities based on the news situation.
VIEW ON GOVERNMENTS AND THE ECONOMY
With the Kryptowährungen it comes frequently to course changes, if for example governments or central banks publish medium reports to handling Bitcoin and CO. Also news about regulations, prohibitions or support of Internet currencies can trigger enormous exchange rate fluctuations. Well-informed traders can thus gain an advantage during trading activities. For example, if you take a look at the latest business news before trading or subscribe to specific news on the crypto-market, you are often one step ahead of many other investors.
USING DATA FROM THE ECONOMIC CALENDAR
Many brokers provide not only current news on various markets, but also information collected in the economic calendar. Here the traders can see, for example, if and when there are decisions of the central bank or which other economic news would be interesting. Often there are even forecasts, so that even less experienced traders can better estimate the changes or effects of this news on the market.
Analyze ETH course and trade CFDs in a targeted manner
If the traders want to create an Ethereum Wallet and use it to buy coins, for example, in order to sell them later on an Ethereum exchange, the price development also plays an important role. In order to find the optimal time for the Ethereum buy or sell, the traders must also look at the current market situation and try to identify a trend. Often this is not so easy with crypto exchanges due to the lack of (free) tools and indicators; especially for less experienced traders. Brokers offer much more and even provide trading platforms with countless free tools, so that traders are well prepared for price analysis.
USING CHART PATTERNS SPECIFICALLY FOR CFD TRADING
With the right tools and indicators, traders can identify patterns in the chart and trade them. This allows them to forecast future CFD price activity and identify position returns. Basically the chart patterns are classified into two categories:
- reversal pattern
- Continuation pattern
As the name suggests, the reversal patterns signal to the trader that the current trend is about to change. On the contrary, there are the continuation patterns, which send signals that the market is still very dynamic and the trend will probably continue for some time. However, many renowned traders do not just look at the patterns, but combine them with other features such as technical indicators, macroeconomic data).
IMPORTANT CHART PATTERNS: HEAD AND SHOULDERS
For example, traders can display some patterns on the chart, which undoubtedly include head and shoulders. The formation consists of three price peaks. The middle price peak is called the head and the two outer peaks form the shoulders, so the pattern is named after them. Traders use this pattern formation in the chart to make the assumption that prices are in an uptrend, but a trend reversal occurs because prices at the end of the pattern cannot test again. This lack of market conviction is therefore perceived as a bearish signal (in the downtrend). For example, traders now try to use short selling as a CFD strategy when this signal appears.
OTHER PATTERNS: DOUBLE TOP AND TRIPLE TOP CHART PATTERNS
Double Tops and Triple Tops are also among the interesting chart patterns. In double tops, traders assume that prices have risen twice to the same resistance level and failed. For traders, this is a signal that the price will not be able to break through the range in the future. Further patterns are for example the triangle diagram patterns in different variants.
Tip: Many brokers offer innovative trading platforms free of charge, which undoubtedly include the well-known MT4. With its help, traders can already use many free tools and indicators, making price analysis much easier.
Not only ETH CFDs: Combination possibilities with brokers
Trader can trade with brokers not only the difference contracts of different crypto currencies, but are set up clearly more flexibly by the interesting financial instruments. So for example also crypto shares or funds can be traded. Above all the Krypto shares enjoy increasing popularity, because they are industryspreading possible. More and more companies are discovering the advantages of block chain technology and are using it in their internal processes. For this reason, such securities are also included in the category of crypto securities. But traders can also invest in real crypto shares, such as the company shares of Bitcoin GROUP SE. This gives them the opportunity to work on long-term asset accumulation.
COMBINE CRYPTO SHARES AND CRYPTO CFDS
Investors not only have the option to trade the Crypto Shares and selectively the Crypto CFDs, but they can also combine both financial instruments. More importantly, resourceful traders even take advantage of this unique opportunity to limit short-term losses due to the possible downward trend in securities. For example, if you invest in Bitcoin GROUP SE shares and make short-term losses due to a downward trend, you can very cleverly trade CFDs on this security. The advantage: The traders take advantage of the downward trend and can even bring more capital into the market with little equity thanks to the increased leverage of maximum 1:5 and thus increase their profit opportunities. Nevertheless, CFDs on this underlying asset are also extremely risky, so that loss limitation is essential.
Limit losses in CFDs for long-term success
Contracts for Difference have a special attraction for investors, because they not only offer the prospect of enormous profits with little equity capital expenditure, but they also carry a certain risk. However, it is important for traders to keep the balance between risk and profits for a successful long-term strategy. Therefore, traders should never use too much leverage without practice and security and never lose sight of the need to limit losses. It is primarily about protecting equity and not primarily about taking profits. Those who consistently follow this approach, and act accordingly with their trading strategy, can be active in the long term without having to make additional payments to the broker.
USE THE BROKER’S ASSISTANCE
Many brokers offer traders optimal assistance in the form of a free demo account or training opportunities. Traders should seize this opportunity, because combining basic knowledge and practice leads to more confidence when making trading decisions. Less experienced traders often hesitate too long or are afraid of doing something wrong. Of course, trading with a broker is never 100 percent secure, but those who prepare themselves optimally and take advantage of the exercise opportunities themselves can act more confidently when making trading decisions and can successfully exploit even difficult market situations with particularly pronounced volatility at ETH.
On the stopwatch: What is quicker – creating an Ethereum Wallet or broker registration?
In practice, it can be observed that many traders do not have much time to deal with annoying questions such as registration, selecting a suitable Ethereum Wallet or other issues in this area. Therefore, we pressed the stopwatch and checked if the registration with the broker is really as fast as expected or if the opening of the crypto wallet and the trading account at the exchange is still ahead of the game.
CRYPTO BROKER HAS A CLEAR ADVANTAGE, BECAUSE…
Experience shows that the registration with the crypto broker is possible online via a form and takes only a few minutes. The traders have entered some personal data in no time and can open the account with one click. If the traders decide to start with their own capital, verification and deposit is of course still necessary. However, experience shows that this is also done within a very short time, so that the traders can theoretically start trading within a few hours. It is even faster if the traders first use the demo account to get started, because in this way trading is possible in seconds under near-market conditions. Those who want to can start immediately and open the live account later in order to actually make a profit from the trading activities.
KRYPTO STOCK EXCHANGES AND ETHEREUM WALLET HAVE LOST BECAUSE…
In the speed test, crypto exchanges and the wallet clearly lost out to a broker. The reason is easily explained: it simply takes too long until the traders can actually start trading. In order to be able to actually acquire ETH, the traders must take individual steps:
- Select a trading account at Krypto Börse
- Select Ethereum Wallet
- Create Ethereum Wallet
The registration at the crypto exchange alone often takes one or two days. The registration itself is not time-critical, as online forms are also available here. No, the verification period is decisive. If you decide to become a trader at the Crypto Börse, you have to verify your data after opening an account. Depending on the selected exchange, this can take up to two days. In the further course of time, the link to the crypto wallet is also required. Here too, users must first make a selection, as there are countless wallet solutions. Once the users have found the wallet, it must be created and linked to the trading account. This procedure is of course not suitable for traders who want to take advantage of the opportunities on the crypto market. Therefore, in our eyes, a crypto broker is clearly ahead in terms of speed and ease of use.
EQUITY CAPITAL REQUIREMENT: CRYPTO STOCK EXCHANGE VS. BROKER
When it comes to opening an account and the time to start trading, brokers are clearly ahead of the game. But what about flexibility and the required equity? For traders to be active on an exchange, they need equity capital. For example, if you want to buy ETH, you have to invest about 150 euros per coin, depending on the market price. With Bitcoin or other Kryptowährungen it can be even more. Against it the necessary own capital funds stand with the CFD Trading. The traders can already open a position starting from few euro, which is completely sufficient. Remember: the contracts for difference can be used with leverage, so that equity capital can be multiplied quickly with the maximum leverage of 1:2 in crypto CFDs. This advantage is not available for direct purchase on crypto exchanges.
MUCH HIGHER BROKER FLEXIBILITY
Also in terms of flexibility, many traders opt for the broker, because the financial instruments offered are much more versatile. The traders can not only use countless crypto CFDs, but also crypto shares or often funds as well as completely different financial instruments and underlying assets. However, most stock exchanges do not offer such possibilities, although the traders can of course trade many crypto currencies directly. However, diversification is much better possible with crypto brokers, which helps to spread the risk.
Conclusion: traders do not need Ethereum Wallet with brokers
The Ethereum Wallet is necessary when it comes to the direct purchase of coins. However, as traders create wallets for the Ethereum Wallet and need a lot of time to select the right exchange, this option is not always the right choice. For all traders, who would like to profit from the crypto, market also without large expenditure or fixed connection to the Coins, the trade offers are optimal with the broker. For example, traders can use crypto CFDs, crypto shares and other financial instruments to pursue their individual investment strategy with short, medium and long-term investment horizons. But it gets even better, as many brokers even provide free training, analysis and even a demo account for trading entry in seconds. This not only saves traders time, but also allows them to test their options with the CFDs without risk and even make their own profits with the additional live account. So why wait and not simply test the desired broker and the ETH CFDs now?