Ethereum is an open platform that enables developers to build and deploy decentralised applications (dApps). The easiest way to think of Ethereum is as a programmable Bitcoin. Ethereum allows participants to run decentralised blockchain applications called smart contracts. Mar 21, · Ethereum is a different type of blockchain the same like Bitcoin has its own blockchain. The Ethereum blockchain has its own currency which is called Ether. The difference between Ethereum and Bitcoin is the proof of stake. And the fact that Ethereum has real people behind it.5/5(1). Based on our study of Ethereum and Bitcoin's fundamentals, liquidity and volatility, we can say with confidence that these assets are the best ones to trade. It's hard to imagine an asset with more liquidity than ETH and BTC. Volatility, in turn, is slightly higher for ETH than it is for BTC.
Ethereum no bitcoin tradeEthereum Could Soon Rally Up to % Against BTC as Strength Mounts
In other words, we need to have an MFI reading below the 20 level. An extreme MFI reading below 20 suggests that there is very heavy money outflow from Ethereum. As history has repeatedly shown, this information can be used as a contrarian indicator. The MFI indicator is not a standalone indicator. So, in order to use the MFI indicator, we need to check it against other technical indicators.
These are the reason why we also use the MACD indicator. The second rule is to wait for the MACD histogram to turn positive. This is a confirmation that the bullish momentum is starting to build up. Now, we have two rules in place, but these are still not enough to trigger an entry. Indicator-based strategies are very unpredictable.
As an extra measure of caution, we also like to wait for the MFI indicator to break above the 50 level before to buy Ethereum. A reading above the 50 level represents an inflow of money into Ethereum. This is the moment when smart money is stepping into the market. We want to trade alongside smart money to really make a profit trading the cryptocurrency market. In order to minimize our potential loss, we want to place our protective stop loss very close to the market price.
At the same time at a price where it should really invalidate our trade signal. For the Ethereum strategy, the ideal place to hide the stop loss is just below the previous swing low. You can always add a buffer to protect yourself in case of a false breakout. When it comes to our Ethereum take profit trading strategy we want to cash some profits at the first sign that the market is about to turn against us.
Otherwise, we risk given back some of our hard earned gains. The first indication that the market is about to turn is when the Money Flow Index enters into overbought territory. In other words, when the MFI breaks above 80 levels, we take profits. Use the same rules for a SELL trade — but in reverse. In the figure below, you can see an actual SELL trade example.
As you can imagine, the best way to get ETH is to buy it. There are countless cryptocurrency exchanges that will allow you to buy ETH depending where you live and how you would like to pay.
You can find some of the top cryptocurrency exchanges and how to buy them here. As you familiarize yourself with Ethereum and how it functions, who accepts it as currency, etc. There are a handful of companies that accept Ethereum as a form of currency from airlines to pizza shops. Some quick components to remember when it comes to Ethereum is that it is:. Ethereum has fundamental advantages that hopefully will help Ethereum price suppress Bitcoin in the coming years. Trading Ethereum should only be done with money you can afford to lose.
Nobody really knows what the potential is and what the future holds. Please leave a comment below if you have any questions on how to trade ethereum! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.
Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. Forex Trading for Beginners.
Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Info tradingstrategyguides. Facebook Twitter Youtube Instagram. Best Places to Buy and Sell Cryptocurrency? What is Ethereum? How to Trade Ethereum Buying Ethereum can be extremely simple. You can buy Ethereum directly with fiat money from the major cryptocurrency exchanges.
Top Ethereum Trading Apps Similar to many other blockchains, Ethereum has a native currency called Ether ETH which is that is completely digital which allows it to be sent to anyone around the world with the click of a button, making payments with the ETH currency incredibly efficient and easy. Trezor: Trezor is one one of the top Ethereum hardware wallets with a high level of security and 2-factor authentication.
Users have access to special features like advanced cryptography, and even allows you to edit transaction before sending them out. Coinbase Wallet: Is an Ethereum is another popular mobile browser with a token wallet, chat, and dApp portal. MyEtherWallet: MyEtherWallet is one of the top Ether wallet where users can access their tokens, loans and investments.
Balance: Balance allows users to see their account in Open Finance while keeping track of your tokens, loans and investments. All we need for this trading strategy is two technical indicators: The MACD — This is a momentum indicator that can help us spot a trend.
It measures the money flow into or out of a cryptocurrency. We can use the MFI indicator to trigger entries and to take profits. Step 1: Wait until the Money Flow Index drop below the 20 level. The next important thing we need to establish is where to place our protective stop loss. See below… Step 4: After Place Protective Stop Loss below the Previous Swing low In order to minimize our potential loss, we want to place our protective stop loss very close to the market price.
The next logical thing we need to establish for the Ethereum system is where to take profits. Conclusion Subscribe to Trading Strategy Guides.
Author at Trading Strategy Guides Website. Search Our Site Search for:. Close dialog. More importantly, though, the Bitcoin and Ethereum networks are different with respect to their overall aims. While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value , Ethereum was intended as a platform to facilitate immutable, programmatic contracts, and applications via its own currency.
BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system, but rather to facilitate and monetize the operation of the Ethereum smart contract and decentralized application dapp platform. Ethereum is another use-case for a blockchain that supports the Bitcoin network, and theoretically should not really compete with Bitcoin.
However, the popularity of ether has pushed it into competition with all cryptocurrencies, especially from the perspective of traders. For most of its history since the mid launch, ether has been close behind bitcoin on rankings of the top cryptocurrencies by market cap.
Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. Other Cryptocurrencies. Bitcoin Value and Price. Cryptocurrency Bitcoin. Key Takeaways Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.
With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes. Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications. Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.
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