Ethereum (ETH) Trading Benefits in 2019-2020

Ethereum (ETH) is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Unlike Bitcoin, Ethereum offers low transaction costs. In 2014, when the project was announced, its ICO raised $18 million in Bitcoin or $0.4 per ETH. The project went live in 2015, and in 2016 the market price reached $14 with a market capitalization of over $1 billion.

What Is Ethereum (ETH)?

It is a platform for the creation of decentralized online services based on blockchain and smart contracts. The concept of Ethereum was developed by the founder of Bitcoin Magazine Vitalik Buterin at the end of 2013, and the network was launched on July 30, 2015. Being an open source platform, Ethereum greatly simplifies the introduction of blockchain technology, thus attracting not only new startups but also the largest software developers, such as Microsoft or IBM.

To create a cryptocurrency (crypto asset) on Ethereum, you need first to create a smart contract, and then start paying registration fees for each transaction. For cryptocurrencies, smart contracts contain parameters of the crypto token and the logic behind it.

Trading: Benefits and Risks

There are three ways to make money off the ethereum cryptocurrency: speculation on stock exchanges, mining, and trading contracts for difference (CFDs). The first option has become outdated because the asset growth perspectives are not so large in 2019 as compared with the last year. Besides, the opening of short positions on the exchange requires a loan from a broker, which leads to additional risks without guarantees of earnings.

Mining is still relevant, but it is very expensive. It requires a lot of investment in equipment. Therefore, Crypto trading is the optimal way to make money on ethereum. As compared with speculation and mining, it has the following advantages:

  • An opportunity to earn at lower prices. Instead of a long position, you need to open a short one. The mechanism of…

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