How to start trading Ethereum (ETH) with Capital.com?
To start investing in Ethereum (ETH) with Capital.com, Open Capital.com CFD Account and log in to the Capital.com Official Website.
Then you need to make a deposit to your account before starting trading Ethereum (ETH).
On the Capital.com trading platform, you can trade ETH (ETH) CFDs anytime, anywhere.
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Why is Ethereum so important?
Ethereum is an open platform that allows the building and deployment of decentralized applications (dApps). In short, Ethereum is programmatic Bitcoin. Ethereum (Ethereum) supports users to create and apply smart contracts on the chain. This type of contract is highly secure , and its perfect digital history makes it auditable, trustless, and non-interceptible. There is no possibility of downtime, censorship or fraud in the programming of smart contracts.
Smart contracts aim to realize the digitization of legal contracts. Smart contracts can store data record information, events, associations, balances, and any other information needed for real-world contracts. The Ethereum blockchain and smart contracts form a globally shared supercomputer that can transfer assets, represent ownership, tokenize assets, and digitize complex financial applications. This allows developers to create markets, share ledgers or digital institutions, and no longer affect constancy due to the participation of third parties.
Ether is the cryptocurrency on the Ethereum blockchain , but many people directly use Ethereum to refer to Ether. Ethereum (Ethereum) is regarded as a public token for obtaining blockchain services, mainly for decentralized development system services. The value of most cryptocurrencies is related to their project, even if the project uses a non-default token.
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How to trade Ether Contracts for Difference (CFD)?
In the cryptocurrency market, you have two trading methods. The first is to buy directly on a cryptocurrency exchange, for example: buy ether (ETH) on the CEX.IO exchange, and trade the ownership of the ether. This type of transaction is regarded as a long-term investment, and is mostly used to hoard coins and wait for the price to skyrocket and then sell them for profit.
The second trading method is to choose a cryptocurrency contract for difference (CFD) and speculate on price changes. CFDs are financial instruments and are a type of contract signed by brokers and traders. Both parties to the contract agree to pay the other party the change in price on the expiry date of the contract based on the opening and closing price of a certain security. Traders can choose to open long positions (forecasting price increases) or short positions (forecasting price drops). For example, you can choose the ETH/USD trading pair to speculate on the price trend of ETH. Because of the short duration of the difference plus contract, this trading method is regarded as a short-term investment.
So, what is the biggest difference between buying cryptocurrency and trading cryptocurrency CFDs? The purchased cryptocurrency will be stored in the wallet, and the CFD transaction is the position in the account, which is supervised by the financial regulator. Trading CFDs is not restricted by trading assets, and only one contract is bought/sold, so it has greater flexibility. Moreover, CFDs are mature and regulated financial products.
Now, all you need to do is choose a trustworthy CFD broker. In just three minutes, you can register for a Capital.com trading account for free and start your cryptocurrency CFD trading journey. Since its launch, Capital.com’s trading platform has won numerous awards and is the best trading assistant for CFD investors.
What is Ethereum? What is cryptocurrency?
ETH (Ethereum) is the cryptocurrency of the Ethereum (Ethereum) platform, and it is also a public token. Ethereum provides users with access to the decentralized development system Ethereum. Cryptocurrencies can be divided into the following two types: one is public tokens, which are used to obtain service usage rights for projects and security tokens or to replace the value of the underlying asset; the other is payment tokens, such as Bitcoin (BTC).
Encrypted currency is a digital asset that serves as a medium of exchange. Encryption technology is used to ensure the security of transactions, control supply and guarantee transfers. In short, cryptocurrency is a decentralized electronic currency. All kinds of cryptocurrencies can be stored in “electronic wallets”. For example, you can deposit Ether in online wallets, offline wallets, or even in hardware.
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The history of Ethereum
The concept of Ethereum was first proposed at the end of 2013. At that time, a programmer wanted to develop a decentralized application on top of the blockchain network, allowing more people to participate in joint development before creating their own blockchain. .
In March 2017, a number of blockchain startups, survey teams and Fortune 500 companies announced the official establishment of the Enterprise Ethereum Alliance (EEA), which aims to promote the development of Ethereum enterprises through the cooperation of FinTech, finance and technology industries.
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What is a wallet? Why use it to store cryptocurrency?
Before buying Ethereum, you need a place to store it, which is the wallet. The wallet is composed of two elements: a private key and a public address. Only by entering the personal private key can you enter the wallet and access the Ethereum address stored in the wallet, which is the public key. The existence of the wallet guarantees the security of cryptocurrencies such as Ethereum.
In essence, traders use the public key to make Ethereum transfers, and only the private key can obtain the public key information. Some traders choose to store their tokens in the wallet provided by the cryptocurrency exchange, because the exchange’s application makes buying and selling and trading cryptocurrencies more convenient and faster.
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Is there any risk in hoarding coins? What is the risk?
Cryptocurrency exchanges and electronic wallets cannot completely prevent online theft. The notorious Mt Gox Bitcoin exchange is the best proof. Mt Gox used to be the world’s largest bitcoin exchange, but later lost all bitcoin due to a security breach and declared bankruptcy in 2014.
The hacker stole a total of 850,000 bitcoins from the Mt Gox exchange, which is approximately US$450 million in February 2014 prices. It is believed that the exchange’s e-wallet private key was stolen as early as 2011.
However, Bitcoin CFD transactions do not require an electronic wallet, which avoids the risk of private keys being stolen.
Is there a “bubble” in the cryptocurrency market?
The financial term “market bubble” refers to the fact that the price of an asset is too high to exceed its own value.
For example, the dot-com bubble of 1995-2001 is a typical example. At that time, the stocks of technology companies skyrocketed only because of market sentiment, and had nothing to do with the company’s earnings and development potential. In March 2000, the Internet bubble burst. The problem now is that we cannot determine the true value of cryptocurrencies. Even if a large number of investors treat cryptocurrency as an asset, its essence is not an asset. At present, cryptocurrency has not been used as a means of circulation, which has hindered currency valuation. In any case, we should be cautious and rational when dealing with emerging technologies. It is more likely that the value of Bitcoin and Bitcoin has not been overestimated; if there is a bubble, it is also those new cryptocurrencies that are spawned by market sentiment.
It can be said that the cryptocurrency market is similar to the Internet bubble of the year. The value of high-quality stocks (such as Amazon) actually exists; but companies such as Pets.com that completed IPO to liquidation in just 268 days are obviously useless. Its table. Therefore, whether the market is overheating can only be judged by time. In either case, you can use CFDs to go long/short the market. From the end of 2017 to the beginning of 2018, the price of Bitcoin soared to $20,000, followed by other cryptocurrencies. From January to February 2018, the cryptocurrency market collapsed across the board. The price of Bitcoin plummeted by 65%, and most cryptocurrencies collapsed. Obviously, there was a bubble in the cryptocurrency market. This makes traders wonder whether there will be another bubble.
The value of most cryptocurrencies comes from their development potential and whether they can promote social development in the future. However, if there is no institutional recognition, the potential value is still just the potential value. This is another issue worth considering.
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What is ETC?
In May 2016, The DAO Venture Capital Fund was established on Ethereum and raised approximately US$168 million. Aimed at project investment through smart contracts. In the same month, the security breach of the DAO Fund was disclosed, which may lead to the theft of Ether. In June, hackers used leaked security vulnerabilities to steal 3.6 million Ether (worth approximately US$50 million) in the DAO account.
The members of the Ethereum community and the DAO decided to perform a hard fork (permanent divergence of the blockchain) on the Ethereum code, thereby using a new smart contract to restore the Ether to the original account. Some members of the Ethereum community oppose the hard fork, believing that “untamperable” is the core of the blockchain. They decided to continue to use the unforked version of Ethereum, which is ETC (Ethereum Classic).
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Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...