Trade ether for Bitcoin (often abbreviated BTC was the early representative of what we call cryptocurrencies today, a biological process asset class that shares some characteristics with traditional currencies except they are purely digital, and creation and ownership cogent evidence is based on cryptocoin365.delly the grammatical. Feb 21, · One key difference between Ether and Bitcoin is: Now let's dig a little deeper into Ether trading and look at technical and fundamental analysis. Technical Analysis of Ether. Ether trading is still in its infancy, so we don't have many reference points to do proper technical analysis. Mar 21, · How to Trade Ethereum the Next Bitcoin. Ethereum is considered to be the next bitcoin. In this article, we’re going to show you how to trade Ethereum. If you’re reading this article, you’re probably familiar or interested in trading cryptocurrencies. It’s never too late to start trading Ethereum. You can trade it for massive profits 5/5(1).
How to trade bitcoin for etherHow to Trade Ethereum: The Beginner's Guide to Ether Trading « Trading Heroes
Since Ethereum can be programmed, developers use Ethereum to build new kinds of decentralized applications dApps that offer an array of features to help track and manage currency. Once "dApps" are uploaded to Ethereum, they are able to control digital assets that can create new types of financial apps. The apps also branch to additional platforms such as cryptocurrency wallets, decentralized markets, and even games.
It redefines how traditional blockchains function. Checkout more Ethereum based apps here! This will help us make profitable trading decisions. All we need for this trading strategy is two technical indicators:. The MACD is one of the most common indicators used by traders around the world. It works in a variety of different markets and is used to spot trades before they happen. The MFI indicator is based on price action.
It incorporates Volume in its calculation, which is quite similar to other oscillators. In other words, we can use the MFI indicator to measure buying and selling pressure. The easiest way to interpret the MFI indicator is that a reading above the 50 level represents an inflow of money into the cryptocurrency.
A reading below the 50 level represents an outflow of funds from the cryptocurrency. The other critical MFI thresholds are 20 and An MFI reading of 20 is considered bullish and oversold.
A reading above the 80 level is considered bearish and overbought. The MFI measures the market sentiment giving you signs. These signs are whether the cryptocurrency is oversold or overbought and to what degree. Using the MFI indicator is probably the most useful measurement of sentiment available to traders.
The first rule is that you always want to wait for the Money Flow Index to be in oversold territory. 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. There are many Ethereum-based platforms that help users create their trading account in minutes. Search for the right platform, sign up with the website, create your digital trading account, and deposit some funds.
Alternatively, you can also opt for an exchange account. However, it can take days and even weeks to get your exchange account request approved. Once your trading account is created, it is time to develop a perfect and flexible trading plan. So, you are all set to get started with the first position. But, have you researched Ethereum and its latest development news?
You must stay up-to-date with the current and trending news around Ether and Ethereum. This estimation and analysis will help you make informed trading decisions. Search for the Ether trading platform and access the deal ticket. Choose the amount you want to trade, fix stop limits to reduce risks , and press the buy or sell button to process your first Ether trade.
Writer November 5, Open an Account To be able to process your payment in Ether, you need to open a leveraged trading account.
Create an Ether Trading Plan Once your trading account is created, it is time to develop a perfect and flexible trading plan. Develop the trading plan according to your final objectives and monthly goals Choose the market you want to trade and stay up-to-date with the latest trends and news on that market. Decide the total risk you are ready to bear on the overall Ethereum trading. Based on this information, estimate the risk-reward ratio.