Ethereum is proving to be one of the most profitable technology investments of all time. Created in 2015, it has since grown by over 1,000%. Simply put, Ethereum is an open-source network, much more than just a digital currency. It is also listed on the Crypto Index 10.
Ethereum, a digital currency known as “ether,” could accelerate the decentralization of the global economy and potentially impact many other industries. Ethereum is backed by a diverse group of Fortune 500 companies, which came together in 2016 to discuss and consolidate their efforts to develop the Ethereum technology network. Ethereum, the currency used in exchange for cryptocurrency, can be volatile and can be a financial asset for traders.
Ethereum Trading Features
Short selling is defined as “buying high and selling low.” This allows the trader to profit when the market declines and then profit when it rebounds. In other words, short selling is motivated by the belief that the price index will decline, allowing the trader to buy back at a lower price to profit.
High Leverage: High leverage is a loan granted to the trader by a brokerage firm. This allows you to open much larger positions with a minimal investment. This can amplify your potential profits while magnifying your losses.
Automated trading is software that creates automatic orders and submits them to the forex market. This system can perform repetitive tasks at high speed. It can also offer social trading or copy trading to experienced traders with a proven track record.
Ethereum Price and Market Factors
It has been observed that Ethereum could be more than just a digital currency. Its value in the blockchain, in terms of a programming language, is significant and considered solid. Its goal is to differentiate itself from other currencies. With its growing application, demand for “ether” from developers is growing.
The price of Ethereum has recently increased, reaching all-time highs. Bitcoin is also on the rise, increasing investor interest in cryptocurrencies as a source of profit. Ethereum and Bitcoin are not considered competitors; both can benefit from the rise of one of them.
Random events can influence the rise or fall of Ethereum’s price, such as the sudden and massive collapse in its overall value in June 2017. The news of Ethereum’s crash came very quickly, just seconds after a massive selloff, which prompted other traders to liquidate their cryptocurrencies. However, within seconds, computer algorithms had bought back the funds, and the price recovered. As you can see, the volatility of cryptocurrencies can cause their prices to fluctuate in a matter of seconds.
The general public and investors alike have similar questions about the mechanisms of this phenomenon, how this rebound occurs, and its time frame. Any sharp increase in value can eventually lead to a price correction, as is the case in the cryptocurrency market or any other market, and momentum can also slow down at some point.
Thirty major banks, tech giants, and other organizations, including JPMorgan Chase, Microsoft, and Intel, have partnered to develop working versions of Ethereum’s software. Its ability to record and execute transactions without intermediaries makes this blockchain technology the most popular among businesses.