ETH is the second largest cryptocurrency by market capitalization, after BTC. Ethereum idea was presented to the public back in 2013. She owns more than 50% of all bitcoins in the world. What sets Ethereum apart from others is its smart contract functionality. This reduces transaction costs and helps provide additional security. Smart contracts stored on the Ethereum blockchain act as exchange mechanisms that can conduct direct transactions between trusted agents. Ethereum’s success is largely due to this technology. The Ethereum project currency serves not only as a tradable cryptocurrency, but it is also used by application developers to pay for services and transaction fees on the Ethereum network. ETH has grown by almost 3000% in 2017, making it one of the best cryptocurrencies to invest in. Traders can buy Ethereum on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Ethereum System Works
People use Ethereum to make payments around the world, as a store of value or as collateral. As we said above, Ethereum is much more than just a cryptocurrency. It is a platform that uses smart contracts. It is decentralized as it uses blockchain technology. Smart contracts are actually applications that work exactly as they are programmed. Thanks to blockchain, there is no downtime, censorship, fraud, or any third party interference.
As the Ethereum home page states, «These applications run on a custom blockchain, an extremely powerful shared global infrastructure that can move value and represent ownership of property».
Since the inception of Ethereum, the price of the cryptocurrency has undergone many changes. It is unrealistic to predict the future price precisely, but you can make a forecast by carefully analyzing the information about it yourself. Since the rate of any currency, first of all, depends on the demand for it, it is worth paying attention to precisely those factors due to which the interest of investors is growing. In the case of Ethereum, the following key features can be distinguished that it provides:
- Smart contracts have advanced features;
- ICO – Investors often prefer ETH when choosing projects;
- Organize a decentralized asset exchange;
- Platforms for banks and investment funds;
- High speed of transactions.
Main Benefits of Ethereum CFDs
Like other cryptocurrencies, Ethereum exhibits high volatility, which makes it attractive to active traders. If you are knowledgeable about Ethereum and may already be trading it, you can now turn your knowledge and experience into profit by selling and buying Ethereum with CFDs. You can trade with one of the best CFDs brokers. Ethereum is a really great platform that actually uses the blockchain much better than, for example, Bitcoin. This is why many analysts are predicting that Ethereum is here to stay and trade for a long time with a rising price trend. Now such giants as IBM, Microsoft, Acronis, JPMorgan, UBS, Banco Santander, Intel, MasterCard and also some banks support Ethereum technology. A number of American universities are also showing interest in these technologies. In general, as is the case with other currencies, the usual law of supply and demand works here. Moreover, rising market values often reflect growing investor confidence. If investor confidence falls, this leads to massive selling and depreciation of market value – just like with a regular currency, only with more volatility.