Are you interested in buying Ethereum but don’t know how or where to do so? If so, you have come to the right place. As you probably know, Ethereum’s price has greatly increased in the last few months of 2017 and is currently approaching its historical maximum. If you would like to buy and sell Ethereum CFDs with the broker Plus500 without paying any commissions, click here. By using CFDs, you will be able to turn a profit whether Ethereum’s price increases or decreases. If you would rather learn more about this cryptocurrency before deciding to invest in it, please feel free to read the remainder of this article which will be discussing Ethereum in greater detail (remember that CFDs are a leverage product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved).
Ethereum is a cryptocurrency which was created in 2015 and which quickly gained popularity around the world. In fact, this cryptocurrency’s popularity and value have both experienced a meteoric rise. Its value increased much faster than that of the world’s predominant digital currency – Bitcoin. Ethereum is based on innovative blockchain technology and makes use of smart contracts which have redefined the way in which money is sent and transactions are completed.
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Buying Ethereum from within the UK and any other country
In this section, we will be summarizing the information you will need to know in order to purchase Ethereum from within the UK, Ireland, Australia and many other countries. This method is valid for almost any country in the world; it doesn’t matter if you are located in Mexico, England, Argentina, Germany, Colombia…this method will work for anyone.
The following are step-by-step instructions for buying and selling Ethereum CFDs.
- Click here to open an account with Plus500, a reliable broker that allows Ethereum trading
- Click on the button labeled “Start trading now”
- Enter your personal information into the required fields and click the “create account” button
- Your account will now be ready for use
If you decide to start trading after having created your account, you will need to make the minimum initial deposit of 100 euros or dollars. Please note that this deposit is not required; opening an account is free of charge and does not entail any obligations. You can create a free account, without any obligations or commitments of any kind, and leave it open until you are ready to start trading with real money.
At this point, you will have created a real money account that you can use for trading with Ethereum. After you have created an account, which only takes around 2 minutes, you will simply need to search for Ethereum among Plus500’s tradable assets and decide whether you would prefer to buy or sell this cryptocurrency. Yes, you have the option to sell Ethereum – even before having bought any – this is called short-selling. Plus500 is a broker that allows CFD trading, meaning that you have the option of turning a profit whether Ethereum’s price increases or decreases if you have opened the proper trading position. Another aspect to point out concerning CFDs is that they allow for trading with leverage. That is to say that, if you have deposited 100 euros and choose to trade using a 1:10 leverage, you will be able to trade as if you were investing 1 000 euros instead of 100. This has the clear advantage that if you are sure about your investment, and you choose to do so, you can trade with more money than you have in your account. The downside is obvious however, you could also lose money quite quickly. You should always be aware that your money is at risk.
Cryptocurrencies are a new payment method – a perfect solution for exchanging money for goods and services in a fast and efficient way. Ethereum (also referred to as ETH) is a decentralized, open source blockchain-based cryptocurrency. As such it serves as a network which underpins all of the contracts made using the currency. However, in order to buy or sell Ethereum by means of CFDs, you will first need to acquire some ETH. Obviously, nobody offers Ethereum for free. Therefore, you will need to pay to acquire some Ethereum. Every broker accepts different payment methods. Since in this particular case we are interested in describing how to acquire Ethereum with Plus500, we will be taking a look at the payment methods it accepts.
PayPal doesn’t really need any introduction. If you are interested in purchasing Ethereum, you will probably already be aware of PayPal which is the most commonly used payment processor on the internet. A great number of online businesses around the world accept PayPal. That is why it is indispensable that PayPal be accepted by Plus500.
Visa and Mastercard
If PayPal does not need any introduction, credit and debit cards need even less of an introduction. Almost everyone has either a Visa or Mastercard credit/debit card. In the same way that you can use these cards at almost any business on the market, these credit/debit cards can also be used to deposit funds into your Plus500 trading account.
Skrill has been one of the fastest growing payment processors on the internet these last few years. Skrill transactions only take a few seconds to process. It is an easy-to-use alternative and these days it is one of the most widely used electronic payment wallets. If you have a Skrill account, you can use it to deposit money into your Plus500 trading account.
Practically everyone in the world has a bank account and it is possible to transfer money from your bank account into your broker’s trading account. The disadvantage of this method is that it can take a few days for transactions to be processed. Therefore, if you want to start trading Ethereum right away, you will need to select an alternate payment method.
What factors determine Ethereum’s value?
Just like with other cryptocurrencies such as Bitcoin, there is a finite quantity of ETH available and the maximum number of Ether coins will be reached sooner or later. The total number of Ethers that will be created, as defined in 2014, is 60 million. Of those 60 million, 12 million will be distributed to various participants. Another portion of these 60 million went towards supporting the Ethereum foundation, another went towards Ethereum’s developers and contributors and another went towards the currency’s development fund.
Ethereum, like almost all of the assets traded on the market, follows upwards and downwards trends and its price is based on supply and demand. That is to say, if there are many people who are interested in buying a particular asset and few people interested in selling it at a given price, it is likely that its price will increase.
As far as Ethereum is concerned, it is easy to determine part of the supply and demand equation. We already know Ethereum’s supply since the maximum number of Ethers is limited to 60 million, as we already mentioned. However, we still need to try to establish what the demand for this cryptocurrency will be, which is impossible to determine with any kind of certainty. It is impossible to know how many people are interested in buying Ethereum at any given time and what price they are willing to pay. This is where the individual predictions of each trader come into play. Do you think that Ethereum will be used more in the future than it is today? Will it be used less? Will its price go up or down? You will have to perform your own analysis and form your own opinions.
As with all currencies, Ethereum coins can also be divided into smaller fractions. Just like the euro has euro cents, Ethers can also be divided into smaller units, respectively called: afinney, szabo, shannon, babbage, lovelace y wei. Each of these units is worth 1 000 times more than the preceding unit. For example, 1 000 wei is equivalent to 1 lovelace.
Now that we have briefly discussed Ethereum’s characteristics, we will now explore how to select a trustworthy and affordable broker in order to perform trading operations with Ethereum and to hold this cryptocurrency in your investment account.
Trustworthy and inexpensive broker
If you are interested in buying and selling Etherum via CFDs, you will require an online broker. But not all brokers are the same. In the first place, not all brokers include cryptocurrencies among their tradable assets. Keep in mind that cryptocurrencies are quite new products and many brokers still haven’t adopted them. Therefore, very few brokers allow Ethereum, Bitcoin Cash, Monero, Zcash, Litecoin, Bitcoin Gold, Dash, Nem, Ripple or Bitcoin trading.
Among the few brokers that allow Ethereum trading, Plus500 is the best in our opinion. In the first place, Plus500 is regulated by CySEC and by the FCA – UK regulatory bodies. Moreover, Plus500 is also regulated by Australia’s AFSL. In addition, Plus500 is a publicly traded entity on the stock market, more specifically on London’s AIM market. This is not a guarantee of trustworthiness, but one thing seems certain, Plus500 is not a scam, it is one of the most serious brokers on the market.
Another reason for which Plus500 seems like an interesting alternative is that it does not charge any commissions. In fact, you can buy and sell Ethereum without paying any commissions. That is not to say that trading is free, no broker offers free trading. What it means is that there are no fees to pay when trading; instead, trading involves spreads which are the difference in price between what an asset can be bought and sold for. The lower the spread, the better it is for the trader.
Free Demo account
There is one last aspect regarding this broker that we would like to discuss, the fact that it allows its users to practice, risk-free, with a trading simulator. This simulator is a demo account which reproduces the exact same trading conditions as a real money account. Except for only being available in English, this demo account has no limitations. That is to say, not only will the demo account allow you try out Ethereum trading, but also Bitcoin trading and trading of commodities, stocks, and currencies on the Forex market.
You can use the demo account to do whatever you want; you could practice trading with Ethereum as a currency or you could simply try buying and selling Ethereum and observe how its price evolves. Since the demo-account is risk-free, you can use it to try out various investment strategies or use it to familiarize yourself with the trading platform and to fully understand how it works before switching to a real money trading account. As such, a lot of people use the demo account to enhance their trading experience. For example, on social networks such as Twitter, Facebook and Linkedin, we have read comments from people saying that they use the demo account to practice a trading strategy before switching over to their real money trading account.
We have explained some of the basic issues concerning Ethereum. Now it is up to you to decide whether or not to invest in it and how you would like to to do so. Ethereum’s price has increased a great deal in the last few months and its market value has not ceased to increase either; that is not to say that it will continue to do so indefinitely. If you consider that Ethereum’s price will continue to rise, it could make sense for you to buy. If on the other hand, you think that its price will decrease, it would make more sense for you to sell. That is why it is important that you make up your mind for yourself. Furthermore, you should remember that while it is possible to turn a profit, it is also possible to lose money trading.
If you are interested in CFDs and you would like to start trading, you can buy and sell Ethereum CFDs with Plus500 without paying any commissions by following this link (remember that CFDs are a leverage product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved).