Ethereum Trading

Interested in Ethereum trading, but don’t know where to start?

Our guide below will help you understand the options available to you to quickly get you up to speed.

Ethereum Trading

Oliver Lucas
Senior Editor
July 25, 2018

We’ve made it easy for you to start investing in Ethereum trading in Australia, listing all of the major Australian Securities And Investment Commission (ASIC) regulated brokers so you can get started with a broker you can trust with your money.

We’ve compared all of the major Ethereum trading brokers in Australia and looked at how their platforms perform, the spreads available at each broker, whether or not they have education/learn to trade resources and more.

Best Ethereum Trading brokers in Australia

 

Ethereum background

Ethereum is one of a group of better known Cryptocurrencies which has driven interest around the world in trading digital currencies.

Powered by Blockchain technology, Ethereum has a number of similarities, as well as some fundamental differences to Bitcoin.

Ethereum is essentially an open software platform engineered on Blockchain technology which aims to give developers the ability to build apps and programmes driven by smart contracts.

The team behind Ethereum created the project as a new model for data storage and app development that seeks to lessen global dependency on major technology companies and corporations, thereby democratising the way the world interacts online.

The digital currency was launched in August 2014 with an online crowd sale helping fund development  and a total of 11.9 million coins pre-mined for launch. By June 2018 the total number of Ether that had been mined with over 100 million

Why trade Ethereum instead of buying?

There are numerous benefits to trading on Ethereum price movements rather than investing directly in the Cryptocurrency.

With Ethereum becoming harder and harder to buy, they have become increasingly expensive and out of reach of many average investors.

When you trade, instead of buying Ethereum, you speculate on which way you think the price will move and are able to profit from fluctuations in price volatility.

Because you trade on leverage, the initial sum you start trading with can be relatively small and is much cheaper than buying Ethereum directly.

You also won’t have to open a complicated digital wallet and will benefit from the experience and analysis provided by quality CFD brokers.

Markets are also available 24/7 and the best brokers offer cutting-edge mobile apps to help you trade on the go so you never miss an opportunity. When you trade CFDs online with a trusted broker you’ll also have the peace of mind of trading with a firm that is Australian Securities And Investment Commission (ASIC) regulated, guaranteeing you the highest possible standards.

For help choosing a quality Cryptocurrency broker, check out the comparison table above and find a broker that suits you.

We’ve tested and reviewed all of Australia’s best brokers so that you don’t have to and have lined up exciting offers for you to take advantage of. Check out our list of approved, verified Cryptocurrency brokers now to get started.

The advantages of Ethereum trading

  • Cryptocurrencies like Ethereum are currently some of the world’s most exciting markets to trade and as the digital currency boom continues, prices are set to rise even further over the next few years.
  • Starting in early 2013 the rising price of Ethereum has triggered a global surge in demand for Cryptocurrency and has driven record highs and impressive returns for investors.
  • So what exactly are the advantages of trading Cryptocurrencies and why do they make such an attractive investment proposition?

What are CFDs?

CFD means Contract For Difference, which is the product you for Ethereum trading on a broker. It’s a very simple way to make profit from the price movement without having to physically own the underlying crypto currency. You can trade on the price going up and down using a CFD and close the contract/ trade anytime.

Because Ethereum has become so expensive, when you buy the Cryptocurrency using a digital wallet, it can tie up a great deal of your capital. When you trade Ethereum CFDs however, you’re trading on leverage and can gain a similar exposure to the market for a might smaller upfront investment.

Is Ethereum a good investment?

Deciding whether or not to trade Ethereum online depends on what your investment goals are and your familiarity with the markets you want to trade. Some of the reasons that Australian investors trade Ethereum include:

  • High volatility – because Ethereum are much newer markets they can be more volatile with bigger price swings. This presents opportunities for traders to profit from price volatility.
  • Flexibility in how you trade – with traditional investment options you’d looks to invest and hold your investment as prices rise. By trading Cryptocurrencies through a CFD broker you can go long or short and profit whether the price rises or falls.
  • Trade at a time that suits you – Ethereum trading markets are open 24/7 so you’ll never miss a trading opportunity.
  • Trading on leverage – by trading CFDs on leverage you can gain a larger exposure to the market than you might otherwise be able to by either buying Crypto direct or through more traditional forms of investment.

What is the difference between Ethereum and Ether?

The name “Ethereum” refers to the open-source platform that powers the Ethereum network. “Ether” is the platform’s digital Cryptocurrency whose transactions and movement are recorded and authorised in the Ethereum Blockchain or digital ledger.

Ether coins are mined online in a similar way to Bitcoin though there is currently no set limit to the amount of Ether that can be mined.  Technically when you buy or sell Ethereum, you can trading in Ether, though the names are often used interchangeably.

Bitcoin vs Ethereum

While Bitcoin is arguably more globally renowned than Ethereum, the two digital currencies share a number of traits as well as key differences.

Both of powered by Blockchain technology and rely on a global network of computers to record, authorise and document transactions. Both Cryptocurrencies require a digital wallet to purchase or store coins.

Many analysts feel that Ethereum solves some of the problems which plague Bitcoin and that the digital Cryptocurrency could become even bigger in the future. Some key differences between the two include:

  • Ether’s block time (the amount of time it takes for coins to be mined) is considerably faster, on average around 15 seconds, compared to over 10 minutes for Bitcoin. This is important as one of the factors widely believed to hold back Bitcoin is the speed with which new coins can be created.
  • Ether’s mining process results in new coins being minted at a consistent, fast rate that remains undiminished. Because of its complexity, Bitcoin’s mining process halves every 4 years.
  • Transaction fees for Ether are in most cases lower than the equivalent fee for Bitcoin, increasing incentive for miners to help create new coins.
  • There are a finite total of 21 million Bitcoin available, whereas Ethereum has no hard cap on the amount of coins it may offer. While this may change, it offers Ethereum an advantage in that the incentive for the network to grow is far greater.

What impacts Ethereum prices

Like Bitcoin, Ether is a relatively new asset so traders and financial markets are still getting to grips with how it reacts to market events.

Unlike established currencies like the US dollar, Australian dollar or British pound, there is far less historical context for price movements that can help investors and traders predict market movements.

One of the most obvious elements impacting Ether prices is potential regulation by governments and countries. Because Cryptocurrencies are currently unregulated by big banks or national governments, they can be sensitive to proposals to introduce regulation.

Likewise advertising bans from the likes of Facebook and Google can impact on sentiment and investors should factor these into their strategy.

Ethereum background

Ethereum is one of a group of better known Cryptocurrencies which has driven interest around the world in trading digital currencies.

Powered by Blockchain technology, Ethereum has a number of similarities, as well as some fundamental differences to Bitcoin.

Ethereum is essentially an open software platform engineered on Blockchain technology which aims to give developers the ability to build apps and programmes driven by smart contracts.

The team behind Ethereum created the project as a new model for data storage and app development that seeks to lessen global dependency on major technology companies and corporations, thereby democratising the way the world interacts online.

The digital currency was launched in August 2014 with an online crowd sale helping fund development  and a total of 11.9 million coins pre-mined for launch. By June 2018 the total number of Ether that had been mined with over 100 million.