Since its invention in 2015, Ethereum has proven to be one of the most used and traded cryptocurrencies. Ethereum has shown its value not only as a medium of transaction and a store of value but also as an open source network that provides the possibility for decentralized applications. Therefore, many people have found good opportunities in Ethereum investment. In this article, we have prepared an overview of everything you need to know about Ethereum trading: its liquidity, the market, and the price.
How the Ethereum Market Developed
Currently, the Ethereum market is supported by many of the same exchanges that were initially built for Bitcoin trading. However, the new coin works differently from the Bitcoin market. For example, Bitcoin grew in value from very humble beginnings the gargantuan it is today as the number of participants in the network expanded, while Ethereum developed by launching a pre-sale of tokens in 2014 to raise funds. Eventually, said pre-sale raised more than $14 million.
The funds collected became the driving factor behind the initial supply. Contributors to the sale received 60 million Ether and another 12 million Ether went to the development fund. The reward for each block mined was set at 5 ETH, and a maximum of 18 million ETH could come into existence each year after the event.
Ethereum Trading is Profitable
Ethereum is an open platform where developers can create their own decentralized applications and initiate their own tokens. The smart contract system is the technology behind Ethereum which allows it to run any algorithms and thus vastly shortens the transaction time. This feature increases its value as a medium of transaction.
Investors who missed the first bull run of Ethereum may think that it is too late to buy, or that further growth might not at the same degree. Ethereum market is relatively new, but it has the potential to influence financial markets and others; growing exponentially in the process.
Ethereum Trading is profitable not only because of its better function in transactions or its performance as a store of value. The volatility of the market is an opportunity for traders to gain profits in a short or long time. How is it so? Please read further to understand the features of Ethereum and what affects its price.
Ethereum is now one of the most traded cryptocurrency on the market with a market cap of $15.082 billion. With its reveling potential, more and more investors have stepped into the market because they are interested in the underlying projects. They choose either to hodl Ethereum or trade it. According to CoinMarketCap, Ethereum trading volume in the last 24 hours reacher $5 billion. A high trading volume helps to increase the liquidity of the coin, meaning that it makes this asset easier to convert it into cash.
What’s more, public awareness of this asset is also growing. News and events about Ethereum are frequently reported, which lays the foundation for the public to accept it as a worthy investment. This is also closely connected with the supply and demand of Ethereum, affecting its price and sometimes enabling traders to make a fortune.
Ethereum price and Factors
Ethereum price is crucial for investors and traders who want to enter the market. Right now, Ethereum is traded at around $144. The factors that influence its price can be mainly seen as originating from its demand and supply.
What drives up the demand could be a rise in other cryptocurrencies, an Ethereum project being launched, or any other related events. When the demand exceeds its supply, the price is surely lifted. Besides, a network attack could cause its price to fall. In 2016, the DAO attack aroused the attention of the crypto world. Hackers found a mistake in the DAO and took advantage of it. After that, the Ethereum price greatly dropped not only because the attack stole a huge amount of money, but also because it caused public panic. However, when the DAO attack was resolved, and the project started, with investment flowing in, the price also went up accordingly.
This concludes today’s article explaining everything you need to know about Ethereum trading, and giving a basic overview of how the Ethereum market developed and some Ethereum features. We hope you learned a lot, enjoyed the read, and stay tuned for more great content.