When it comes to cryptocurrency, most people are talking about Bitcoin, but another currency, Ethereum has also recently had a massive rise in value.
I wanted to write about some of the different options you have for making money with Ethereum. Sure, you may have missed the recent growth spurt, but that doesn’t mean there isn’t money to be made.
This strategy doesn’t require a lot of effort. All that’s required is you holding onto the currency in the belief that the value will rise. Because the value has increased recently, the chances that the price will continue to double over and over is obviously reduced. Will it continue to increase in value? I like everybody else can’t be certain. If you want to know more Ehtereum and what it’s used for and why it might be valuable, check out this post which has some details.
If you’re looking to store bitcoin in the hope that it will increase in value over time, make sure you take adequate precautions to keep it safe. Don’t be the fool that left their valuable crytocurrency on a hard drive that fails.
Trading Ethereum CFDs
The good thing about CFDs is that you can speculate on the price both rising and falling. The price of Ethereum is very volatile and moves about much more than many other commodities. Volatility means there are opportunities to profit using CFDs. If you believe the price of Ethereum would go down you would sell or go short, and if you believed the opposite you would go long or buy.
More brokers are starting to offer trading of cryptocurrency cfds and i’m sure it will be commonplace soon.
Exchanging the Currency
On a cryptocurrency exchange, you’re able to buy and sell currencies trading them against each other. Because these currencies move around a lot, there is opportunity to make significant returns. There are many different strategies to use when trading cryptocurrencies against one another, but i’m no expert in this, so won’t offer any advice. Just watch out for dodgy exchanges – in the past exchanges have shut down, taking everyones currency with them. I’ve used Poloniex in the past, and found them to be quite good, albeit with a horrible interface.
Token sales or ICOs (initial coin offerings) are like IPOs on the stock exchange. But instead of a company raising fiat currency, they raise money using cryptocurrency. Ehtereum is a popular currency for buying into these token sales.
Tokens are then offered, often using the Ethereum platform, which allows a transparent and secure way to dole out tokens. ICO are obviously quite risky as you are often investing in unproven technology. But more and more traditional investors are starting to look into these investments. Over the coming year there will be many ICOs.
So these are just some of the ways you could be using your Ethereum to make money. I’m not sure if the price will continue to rise. I’m not sure if software will continue to be developed for the Ethereum platform. But I do know that there are plenty of opportunities out there for making money. Let me know in the comments what your plans for using Ethereum are. Are you going long? Are you shorting the currency? Other ides? Let me know.