Plus500 is a popular CFD broker that support Ethereum trading on its platform. This cryptocurrency is traded as a CFD instrument with 1:2 leverage. Apart from ETH trading, Plus500 also features on its platform 12 other digital coins – Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, IOTA, Monero, EOS, Neo, Stellar, Cardano, Tron. Now we are going to review the trading conditions that Plus500 has for Ethereum and we are going to guide you step by step how to open you first ETH trade.
- Website: https://www.plus500.com/trading/Cryptocurrencies 76.4% of retail CFD accounts lose money.
Ethereum on the Plus500 platform
In order to start trading Ethereum at Plus500.com, you need to do the following.
Create an account – Either a demo or a real account
Verify your account
In case you want to trade with real money, make a deposit (the minimum deposit is $100).
Open the Plus500 trading application, click the tab „trade“ > Crypto currencies > Ethereum
Decide whether the price of Ethereum will rise or fall. With short position, you predict a decline in the price. With buy position (sometimes also called a long position) you assume that the price will go up.
Now you are all set and done. Please carefully monitor your Ethereum trade and react to the price movement, you can freely use a stop loss or a take profit functions on the Plus500 platform. These two tools will close the trade for you once the price reaches a certain level which you have entered in the options of the trade.
Ethereum at Plus500 – spreads and overnight fees
Plus500 has a very tight spread on Ethereum, on 02.04.2019 the spread was only $1.45. This fee might differ on different days, but it is very likely it’s going to be very similar. Plus500 also charges an overnight fee if you do not close your position at the end of the trading day. This fee is now on the buy positions for Ethereum -0,0506% and for sell positions +0,0397%. This amount is either added or subtracted from your investment according to the direction you chose. There are no commissions on Ethereum or any other trading asset.
Plus500 – Current chart of Ethereum
For whom is suitable ETH trading?
Ethereum at Plus500 is suitable for day traders as well as for crypto swing traders. Day traders can get into the trade, make a good amount of pips (if their prediction is correct) and get out. A volatile market is a perfect environment for them, but they also need to be extra cautious with their price speculations as they can also lose money. The fact that Ethereum market is highly volatile also proves its history in which the Ethereum price changed during a single day by an incredible 30%.
How Ethereum works?
Ethereum is just like Bitcoin based on innovation blockchain technology. But unlike Bitcoin, it does not have to be necessarily used just as an online payment platform. Its usage is much more extensive, Ethereum allows developers to build and create apps in the blockchain. Thereby they can potentially make from Ethereum even more valuable commodity. Apps which run on the Ethereum platform are fully decentralised. In other words, they can not be targeted by hackers or repressive governments. Applications run on the network by anyone, who is running the Ethereum software.
Main differences between Bitcoin and Ethereum
- Ethereum has infinite supply – With Bitcoin, there will come a day when the BTC is mined out (This is expected to happen in 2040). But Ether does not have any maximal limits, supply is created by app developers and people who Ethereum mine.
- Ethereum is more rapid – BTC transactions take about 10 minutes. However, transactions of Ether are proceeded only in 15 seconds, making the Ether and the market more liquid and volatile.
What I like about this cryptocurrency
Almost anyone nowadays knows about Bitcoin, but only a fraction of people know about Ethereum. It is only recently when Ethereum started to get a little bit more into people’s awareness. The more people know about this currency the more people trade it. And with new investors and speculators on the market, the demand for this cryptocurrency raises. The fact that Ethereum really has a promising future can also suggest a list of companies that stay behind the world’s second largest cryptocurrency in the whole world.
76.4% of retail CFD accounts lose money.