Finally, the long-anticipated Constantinople and St Petersburg Hard Fork was uploaded to the blockchain which in turn lead to a hot debate about some of its features. With so much attention going on around the coin, now is the right time for you to know more about this cryptocurrency and possibly invest in it. This article will guide you the steps necessary to trade Ethereum on Bybit as well as some of the value the coin may have for you.
What is Ethereum
Though launched 6 years ago, many people still don’t know exactly what is Ethereum. It uses a blockchain technology that offers a platform for developers to create decentralized applications. Ether, the currency that is used as a fuel in this platform, was first introduced to reward the miners who process the data transactions on the Ethereum network.
Just like Bitcoin, Ethereum is also a store of value and medium of transaction. Ethereum seeks to replace the old model of servers or clouds as centralized third parties with a mode where nodes are provided by volunteers. The technology behind that makes decentralization possible as well as smart contracts. A smart contract can, for example, define the rules and penalties of an agreement and automatically enforce these terms, which can avoid conflicts effectively.
One unique feature of Ethereum is that it has an unlimited supply. It is worth mentioning that before its actual launch, a fund campaign was first raised to introduce this project to the world. Some of the most active and vocal fund-raising contributors explained some of the features and function of Ethereum and its potential for decentralized applications. As a result, over $14 millions were raised during the campaign, which serves as a good indication for the traction and interest it raised from the investors. The funds collected became the driving factor behind the initial supply, and it was decided that Ethereum will be continuously produced every year at a fixed cap or 18 million new coins.
This decision is good news because if the money on the network gets more and more expensive, it will become harder to host and use the applications, which is negative for the Ethereum overall development as not only a cryptocurrency but also a decentralized platform.
Ethereum perpetual contract on Bybit
We just gave you a general explanation on what is Ethereum as well as a brief history of its launch, but now comes the part that made you read this article, we will explain how to trade and make money using ETH. To trade Ethereum, you have several options: Ethereum futures, Ethereum perpetual contract, coin to coin spot trading, options, coin to fiat trading, and hopefully more to come. While many exchanges provide such services, today we will focus on trading Ethereum perpetual contract on Bybit, a crypto derivative exchange.
But first, what is a perpetual contract? It is one of the most popular products in recent years among traders, for it enables them to use a maximum of 100x leverage and open a position to go either long or short without an expiry date. This means that you can hold your position as long as you want, which ensures you can maximize your profits and plan for the long run. Of course, your profits are also related to your trading strategies, what Bybit offers is a fairer, safer and faster platform for you to test out your strategies and hopefully win the jackpot.
The Ethereum perpetual contract on Bybit has several features. First of all, it has an adjustable 100x leverage that enables you to open a position with a larger value using a small margin. If you put an initial margin of 1 BTC with 20x leverage, your contract value would be 20 BTC. But remember that higher risks come with a higher possibility of huge profits. So be careful when you choose relatively high leverage.
Secondly, many traders are worried about their position being liquidated due to malicious market manipulation. On Bybit, a liquidation is triggered by the current spot price instead of the last traded price on the platform, which efficiently protects traders’ assets. After all, it is hard to manipulate the entire spot market.
This is why Bybit introduces itself as a crypto derivative platform. Many famous investors and crypto fans view the Ethereum perpetual contract as a promising derivative. It is never too late to start trading Ethereum. Go to their official website, the registration process is simple and so is their trading interface. You can find all the information you want in its help center or through a live chat with their customer support.
This concludes today’s article on trading Ethereum on Bybit and features of Ethereum perpetual contract Bybit provides. We hope you learned a lot, enjoyed the read, and stay tuned for more great content.