Binance’s fees are quite expensive in comparison to other platforms like PrimeXBT, however, BNB can be used to make trading somewhat less expensive, although it is important to understand that even with the discount in price trading is still not cheap here.
Binance continues to increase the number of assets listed on their platform, and as that number grows Ethereum traders will have more options available also in the future.
There are many ways to trade cryptocurrencies like Ethereum and although obvious favorites like buy low, sell high, and long term holding or “HODLing” are used by many traders, there is a spectrum of different strategies that can be used.
HODLing is a popular catchphrase within cryptocurrency circles that means to buy an asset and hold it for a long time, no matter whether the price goes up or down.
Maybe surprisingly to many that are new to cryptocurrency, hodling has been historically one of the most successful strategies, although there are many other strategies that deliver higher returns for lower risk.
This is obviously the easiest strategy possible, however, so if you don’t mind waiting a year, or two, or three for a payoff and don’t want to learn about trading, this might make sense.
Margin Trading: Shorting, Leveraging
Margin trading is the use of borrowed money to create trades that are not normally available, and platforms such as PrimeXBT specialize in Ethereum margin trading, as well as margin trading for many other cryptocurrencies.
The two main types of margin trading are shorting and leveraging.
Shorting is the process of borrowing funds and selling them, then waiting for the price to be lower in order to rebuy at less than the original cost.
This strategy allows traders to profit from downward price actions, instead of always having to try to buy low and sell high.
Leveraging is borrowing funds and then creating trades that are much larger than normally available. You can leverage by 50x for example, and then for…