Table of contents:
- 1 Sell Ethereum: Selling ETH profitably with a broker
- 1.1 USE EURO AND OTHER FIAT CURRENCIES TO SELL ETHEREUM
- 1.2 How to sell Ethereum? – This is how traders trade with brokers
- 1.3 ETHEREUM SELLING EXPERIENCE IN PRACTICE
- 1.4 EXAMPLE FROM THE PRACTICE
- 1.5 INTRADAY SAVES COSTS
- 1.6 Not only use ETH CFDs: Diversification is important for trading success
- 1.7 COMBINING CFDS AND SECURITIES AND EXPLOITING THE CRYPTO-MARKET
- 1.8 Sell Euro and use leverage to sell ethereum
- 1.9 CONSIDER THE RISK OF LEVERAGE
- 1.10 Sell Ethereum Taxes
- 1.11 TAX TREATMENT OF BROKERS WITH A DOMESTIC DOMICILE
- 1.12 TAX TREATMENT FOR BROKERS DOMICILED ABROAD
- 1.13 1 OMITTING EMOTIONS
- 1.14 2 PROTECT EQUITY
- 1.15 3 KEEPING A TRADING JOURNAL
- 1.16 Conclusion: Ethereum sell also with brokers with few euro possible
Sell Ethereum: Selling ETH profitably with a broker
Selling Ethereum is not only possible at crypto exchanges, but also at many brokers. Traders can use Euros to sell Ethereum and trade CFDs with little equity for example. When selling they speculate on falling prices and trade the position short. The advantages over an exchange are obvious: less equity, greater diversification possibilities and easier market access. For trading beginners, this is an optimal way to take advantage of the opportunities on the crypto-market. We show how to get started and give interesting tips for trading success.
- Ethereum selling is also easily possible with brokers
- Traders can even trade Crypto CFDs for free
- ETH CFDs with maximum leverage of 1:2 extremely lucrative
- When trading via brokers, traders do not need a wallet or a lot of equity capital
Sell Ethereum with less equity than Exchange
Traders can sell Ethereum directly and start trading on an exchange. However, this often involves a lot of effort, consisting of registering with the exchange, searching for a suitable wallet, linking to the wallet and, in general, buying the coins first. On the other hand, it is much easier if the traders sell Ethereum at a broker, because that is also possible. However, here everything revolves around speculation on the price development and less on the contact with the coins themselves.
USE EURO AND OTHER FIAT CURRENCIES TO SELL ETHEREUM
Traders can start with either a live account or a demo account with a crypto broker. While the demo account already has virtual funds available and the traders do not have to worry about anything, the live account requires a deposit. Traders can deposit with USD, Euro or other approved currencies and use different service providers. In order to use Euros to sell Ethereum, traders deposit the desired amount of equity into the trading account with credit cards, electronic purses or bank transfers, for example, and then they can get started. Often the value date takes a few days, depending on the service provider. Bank transfers in particular often take up to five working days, whereas credit card deposits are completed after a few hours or a maximum of one day.
Note: For selling Ethereum, traders cannot use PayPal with many brokers. The payment service provider is not available at many brokers due to various (negative) reasons. Nevertheless, Neteller and Skrill offer attractive alternatives.
How to sell Ethereum? – This is how traders trade with brokers
If the traders want to sell with a broker Ethereum, usually only contracts for difference are possible. Although some brokers also offer the possibility that the traders can trade the coins directly, the choice is relatively small. Let’s take a look at how selling the crypto currency works with CFDs. Traders speculate on falling prices when they want to sell Ethereum. First of all, the price analysis is necessary, because everything depends on its result. If the analysis shows, for example, that the price is in an upward trend in the near future, selling and speculating on falling prices will of course hardly be possible. However, if the chart presents itself in a downward trend, traders can sell Ethereum.
ETHEREUM SELLING EXPERIENCE IN PRACTICE
In order to better understand the individual processes and chances, the traders can practice the speculations on falling and rising prices first without risk with a free demo account and virtual assets. Brokers make trading with crypto CFDs available under conditions close to the market, so that even less experienced traders can first learn about the market mechanisms in a playful way and experience the risks of CFD trading without actual losses. Through these experiences the learning process becomes much more intensive, from which the traders profit in the best case in the following investment/trading with own capital.
EXAMPLE FROM THE PRACTICE
Traders expect the ETH to fall in the short term and put 200 ETH CFDs on it. Thus a short position is traded. The traders set the stop loss at 0.50 Euro above the entry price, which is 25.00 Euro. The target price is 20.50 Euro. At this point, the traders want to buy back the CFDs and close their position at the latest. A fictitious security deposit of 1,000 Euro must be deposited with the broker for the trading activities. This results in the following calculation:
The position size is 5,000 Euro and results from 200 CFDs x 25.00 Euro. The security deposit of 1,000 Euro is calculated as follows: 5,000 Euro x 20 percent (notional). The profit results when the price target is reached and amounts to 500 Euro: (25.00 – 22.50) x 200. However, a loss of 100 Euro is achieved if the position is stuffed: (25,00 – 25,50) x 200.
INTRADAY SAVES COSTS
If the traders trade their positions within one day, the total result is calculated from the difference of the entry price and the profit target/stop loss. Especially the crypto CFDs are suitable for intraday trading because of their volatility, as the prices can often change within a very short time due to supposedly unforeseen events. However, intraday trading has another advantage: traders save the costs of trading overnight.
Not only use ETH CFDs: Diversification is important for trading success
Many (inexperienced) traders often make the mistake of focusing exclusively on one crypto currency when trading CFDs. This may be recommended for a better overview at the beginning, but diversification suffers from it for a longer time. Traders should therefore try to exploit the crypto-market with different CFDs or even trade contracts for difference on other underlying assets. The greater the diversification, the broader the risk spread and the associated risk minimization. For example, traders can also combine Crypto CFDs and Crypto Stocks CFDs with each other to create even more diversification.
COMBINING CFDS AND SECURITIES AND EXPLOITING THE CRYPTO-MARKET
Meanwhile, brokers have countless financial instruments, which extend over CFDs, crypto securities or funds. Of course not every broker offers the whole range of instruments, but the offers are mostly similar. Traders can use the individual financial instruments according to their investment horizon and the investment strategy or combine them at best. For example, those who trade crypto CFDs on a short and medium term basis and are also looking for a suitable financial instrument for the long term investment horizon can invest in crypto securities. Traders have the opportunity to purchase shares of Bitcoin GROUP SE and work on long-term asset accumulation. But what happens if the share price drops in the short term? Resourceful traders know how to take advantage of this opportunity and trade for example a short position with the CFDs of the Bitcoin GROUP SE share. In this way, at best, the profits can be balanced or the losses limited in the short term.
Sell Euro and use leverage to sell ethereum
The purpose of trading activities with a broker is to generate the highest profits with as little equity as possible. The protection of equity capital should not be forgotten. Resourceful traders have long since recognized the advantages of the crypto broker, which are mainly in the leverage effect. CFDs not only offer the advantage that they have low entry requirements and can be traded with low equity. No, the traders can even multiply the equity capital through the leverage effect. Depending on the underlying assets, private traders can, for example, use a leverage of between 1:2 (for crypto CFDs) and 1:30 (for foreign exchange). The leverage in the market is enormous, because the equity is quadrupled and the traders can achieve higher profits.
CONSIDER THE RISK OF LEVERAGE
As tempting as the lever may look at first glance, traders should also calculate its increased risk. For example, if you use the maximum leverage in crypto CFDs, you double your actual capital in the market, but in the worst case you can also generate significantly higher losses. It is therefore important to use the leverage cleverly and really only if the traders know what they are doing there. In order to increase the security of trading decisions, traders can, for example, use the demo account and initially observe the leverage effect in a playful way without any actual risk.
Sell Ethereum Taxes
Many traders often do not even know what taxes they actually have to pay to the tax authorities. Even if the crypto-currencies are still not regulated and there is still no own jurisdiction at the tax authorities, the traders are not exempt from paying taxes. However, there are significant differences between trading activity on a crypto stock exchange and with brokers. For example, if the traders trade crypto CFDs, they have to pay the withholding tax. At best, the traders inform themselves at the responsible tax office, how and who will claim the tax in the declaration. There are significant differences between the brokers and the decisive factor is where they are based.
TAX TREATMENT OF BROKERS WITH A DOMESTIC DOMICILE
If the brokers have their headquarters in Germany, the capital investments are automatically taxed at 25 percent and this rate is paid to the tax office. Traders can claim an exemption order for more than 800 Euro or more than 1,600 Euro (for couples). The brokers automatically retain the taxes for the successful trades, so that the traders do not have to worry about anything.
TAX TREATMENT FOR BROKERS DOMICILED ABROAD
If the broker is based abroad, the traders can of course sell Ethereum. The resulting profits are paid without tax withholding to the trading account or later to the investors’ reference account. Taxation and notification to the tax office is then done by the traders themselves.
Trading tips: Avoid emotions and protect equity
The all-inclusive trading tip that helps every investor to trading success and enormous profits does not exist. However, there are some procedures that have proven themselves in practice for CFD trading that we would not like to withhold.
1 OMITTING EMOTIONS
For many investors, emotions are often a false advisor, because to react on the basis of a gut feeling or an impulse is rarely goal-oriented. Especially traders who have made profits often fall into a high feeling, which causes them to immediately start trading CFDs again. Of course, this can work out well, but without a previous analysis of the situation it often looks different in practice. Therefore, it is important that traders make their trading decisions without emotions if possible and at best use their individually designed investment strategy.
2 PROTECT EQUITY
Protecting equity is the top priority for every trader, regardless of the financial instruments he uses. Traders can use various tools to limit their losses and set individual limits. Equity protection also includes that traders never trade the entire balance on the trading account with one position.
3 KEEPING A TRADING JOURNAL
A Trading-Journal is not only for inexperienced investors a good assistance, but is used also by Trading professionals. In it the traders register their activities and can understand in this way completely exactly and transparency, when they were where, how and why at the market active. A later analysis is still more easily possible on basis of a Trading-Journal, above all if traders lead them for example in a Excel table.
Conclusion: Ethereum sell also with brokers with few euro possible
If the traders who sell Ethereum want to gain experience without risk, the brokers offer the possibility: traders can use a free demo account, equipped with virtual funds, to trade CFDs on falling prices. If you want to sell Ethereum, you open a short position and can even use a maximum leverage of 1:2 to multiply the capital invested in the market and thus, at best, achieve even higher profits. When trading via the demo account, these profits are of course only generated virtually. If the traders want more and want to make real profits, we recommend opening a live account with the broker. Account capitalization can be done with various service providers within a very short time, so that trading activities on the crypto-market are immediately within reach. The profits made must of course be taxed, although there are differences between the individual brokers with regard to their headquarters. If the broker is located abroad, the traders must take care of the tax issues themselves; with the domestic broker, the taxes are automatically paid.