Ethereum, a DeFi open-source blockchain network, is a platform for various crypto assets. But the native altcoin Ether is no less a bright project product. However, on which cryptocurrency exchange to trade Ethereum, and most importantly, how to do it? Read on to find answers to these and other questions about ETH coin.
What is the ETH coin?
ETH or Ether or “gas” that powers the network is the utility digital asset of the Ethereum platform with a market cap of $157 065 027 772. There are approximately 122 373 863 ETH coins and no maximum supply. Every action on the Ethereum network requires a certain amount of computing power. This fee is paid in Ethers, so its participant needs at least a small amount of ETH to use the network.
Ethereum, like Bitcoin, acts as payment and investment but is provided by transactions in the Ethereum platform, where you can build your payment system with unique investment and interest payment rules.
Basics of trading
Lately, confirmation of transactions in Ethereum occurs without solving mathematical issues on the video cards. Ethereum has switched to data validation through virtual voting, so crypto mining is no longer relevant for this token. Then why is it needed?
Unlike Bitcoin, Ethereum is much more functional and open due to the smart contracts system. Ethereum allows not only sending and holding funds but also creating smart contracts and executing them, as well as rewarding a network validator for staking.
A smart contract is a digital agreement. It exists within the Ethereum system, and a computer program based on the mathematical system guarantees its execution.
In Ether’s case, the choice of the platform on which to buy and sell cryptocurrency is immensely wide. Since this coin is one of the top 2 most popular cryptocurrencies, you can choose the crypto exchange to your liking without effort. The WhiteBIT crypto exchange also allows providing transactions with Ether. For example, you can convert ETH to BTC. Also, here you can follow the cryptocurrency price in real time.
Margin trading
In addition to regular ETH crypto trading, you can try margin trading on the WhiteBIT crypto platform with leverage up to x20.
Leverage is the ratio of the loan amount to the margin, which is the amount of the trader’s personal funds that must be invested for the deal to occur.
Choose leverage on the platform:
- open an account and go to the Trade section in the upper left corner;
- select “Margin” from the drop-down list;
- сlick “Margin” to see the drop-down list of leverage to choose from “1x”, “2x”, “3x”, “5x”, “10x”, and “20x”.
Margin is the number of pledge funds required to open a margin position. Users can trade with a larger balance by pledging fewer funds.
Futures trading
WhiteBIT also offers traders to diversify everyday crypto trading with futures. Futures are financial contracts to buy or sell an asset on a fixed date in the future at a fixed price. It benefits investors by allowing them to offset or take on the risk of asset price changes over time.
A perpetual futures contract is a futures contract without a fixed execution date. You can hold your position open for as long as necessary. It is similar to margin trading mechanics since you can open Long and Short positions and use leverage. The main difference is that you pay fees for using borrowed funds, not to the exchange but to each other.
The perspectives of ETH
Investing in cryptocurrency is always a risk you must treat responsibly. However, to have a general idea of where the asset will move, it is necessary to follow the project news, the crypto price chart, and the crypto world situation.
Ethereum is becoming an increasingly sought-after asset in the crypto market. The capitalization of the first altcoin in 2021 was $455 billion. Some point to the potential for ETH to grow compared to BTC, associated with the relative newness of the blockchain.
Fundamental crypto
Ether is a building block in a huge number of cryptocurrency houses today. Considering how much this asset and the Ethereum platform have done for the Blockchain world, it is hard to imagine this crypto fortress’s sharp and irreversible fall. However, when trading ETH, you must remember any cryptocurrency’s risks and choose the most comfortable way to interact with gas.
