This article is dedicated to Ethereum forecasting. Why are they important for cryptocurrency traders? In the next few paragraphs, we will answer this question clearly. The guide that we created talks about how and why it is essential to keep under control the factors that affect the performance of this cryptocurrency.
By reading it, you will find very valuable information for your investments. Among these, there are also those brokers such as eToro, IQ Option, which are perfect platforms where you can invest in a legal and secure way.
2020 Ethereum Forecasts and its Strong Points
To understand how and why to make Ethereum forecastings, it is essential to understand what you are investing with. The Ethereum project was born on the initiative of the very young Vitalik Butherin. This cryptocurrency, also known on the markets as ETH, immediately established itself as one of the main alternatives to Bitcoin.
Compared to the king of digital currencies, Ethereum is characterized by very innovative peculiarities. The main one is undoubtedly smart contracts. Smart contracts are applications that work exactly as expected by the developer’s project and all without any possibility of external interference. They can be used in many situations, from the management of rental contracts to election systems.
When talking about the strengths of Ethereum, it is also worth mentioning the fact that this digital currency represents the starting point for the creation of others. Even if the scenario is promising, it is impossible for the value of Ethereum to grow infinitely. No cryptocurrency can experience such a situation.
Why it is convenient to trade with Ethereum via CFDs
Fortunately, if you make correct Ethereum predictions you can earn money even in case of a loss of cryptocurrency value. How is this possible? Thanks to CFDs (Contracts for Difference), instruments that allow you to invest without actually buying the asset and protecting yourself from the risk associated with volatility.
Made available by some of the main online trading platforms, they allow you to choose between opening a long position (buy), a solution to consider if you expect an increase in the value of the asset, or a short one (short sale). This last choice, which is highly speculative, should instead be taken into account if you expect a decrease in the value of the Ethereum cryptocurrency.
From this short scheme, it is clear the importance of making quality Ethereum forecasts. In this way, it is in fact possible to invest in this cryptocurrency. In the next paragraphs, we will study together some tools that can help to optimize the Ethereum forecast.
Ethereum forecasts today: how to get them
Buying Ethereum in the true sense of the word is not a useful strategy to invest in this cryptocurrency. In fact, digital currencies are extremely volatile, i.e. the prices of cryptocurrencies change quickly. After a while, they lose value. Those who have actually bought them know this and for this reason have faced very serious economic problems.
In order to invest effectively, you need to go beyond this approach and earn money based on the natural changes in the price of cryptocurrency. As already mentioned, it is necessary to make valid Ethereum forecasts. This is not always easy. There are many factors that need to be taken into account, including, for example, interest from companies and banks.
It takes time to keep track of all the relevant information. To optimize it, you can refer to forecasts made by traders who have already achieved results by investing in Ethereum. How can you get them? The main reference is eToro (click here to visit the site).
eToro’s Copy Trading Service
Being a legal online broker since 2007 that is free of fees, eToro stands out for the possibility to copy exactly and automatically what has already been done by successful investors, who are so-called gurus. The mechanism in question, known as Copy Trading allows you to rely on the Ethereum forecasts of those who managed to get results by trading on this cryptocurrency.
Copy Trading is a patented mechanism unique in the world, which also allows those who start from scratch to invest effectively. However, you must be very careful and avoid considering this as a money machine. To be successful with Ethereum trading on eToro (click here to get a free account) you must act with common sense and diversify.
This simply means to not “falling in love” with a single guru and focus on at least a dozen investors. In addition, it is very important to monitor their performance and, in cases where one or more gurus do not perform well in terms of strategies, be ready to remove them from the list.
Making the most of the eToro Community
At this point you may be wondering how you can control the strategy data of traders registered at eToro. The broker provides its users with free bulletin boards, which work exactly like the social network Facebook. Through them, every eToro member has the opportunity to share their strategies with the rest of the community.
To find investors of interest, you can use the internal search engine. The internal search engine allows you to select gurus based on different criteria, from the asset, in this case the Ethereum cryptocurrency, to the country and the number of copiers, as an essential indicator to understand the effectiveness of a guru.
All this information can also be viewed with the demo account. This tool gives you the opportunity to practice without risking anything. Equal in every way to the real money account, its only feature is that it makes virtual money available. For this reason, you can do all the trades you want without risking anything and practice without time limits in Ethereum trading.
After a while, however, the time comes to make the leap to the level by opening the account with real money. In order to activate it, you need to make a minimum deposit of at least 200 euros (which you can easily pay with your credit card).Click here to sign up and to copy the Ethereum forecasts of the best traders in the world
Ethereum and Bitcoin Forecast
Before concluding this article, it is obligatory to talk about one of the simplest and most effective systems to make predictions on the price of Ethereum: take advantage of the correlation with Bitcoin.
In fact, it is a method quite well known by traders, even beginners, to make Ripple, Ethereum or other alternative cryptocurrency predictions.
What does this method consist of? It starts from the observation that the price of Ethereum depends, to a large extent, on that of Bitcoin. If the price of Bitcoin increases, then the price of Ethereum increases and when the price of Bitcoin decreases, then the price of Ethereum decreases.
Observing the price of Bitcoin is easy to make predictions also on Ethereum. Sure, it is also necessary to consider if there are particular stories in that moment on Ethereum, but the basic principle works rather well.
Some beginner traders, however, prefer to trade with alternative cryptocurrency rather than Bitcoin because this method to make predictions is not usable to make predictions on Bitcoin.
Buying cryptocurrency in the true sense of the word is not the best choice to make. Sure, it is legal and even simple, but it is an option considered only by idealists, who hope to arrive at a financial system not controlled by the banks one day.
To really gain from digital currencies like Ethereum, you have to take advantage of the price changes that are so problematic for those who actually buy and, depending on which direction you think you can take the trend, open a long or short position.
Fundamental in this regard are Ethereum forecasts. Thanks to resources such as eToro Copy Trading (click here to open an account), they can be exploited based on what successful investors have already done. This mechanism allows even those who start from scratch to trade with cryptocurrency.
The opportunities for those who want to get quality Ethereum forecasts do not end here!
Remember that, despite the presence of these tools, online trading remains risky. For this reason, before starting to trade concretely, it is advisable to practice with the demo account. Once you have opened a real money account, you should work with Money Management. This is a strategy based on the division of capital into several parts and the choice to assign each of them to a single operation, avoiding to bet more than 5%.
How did you get these tips on the Ethereum forecast? Hoping to have satisfied all your technical curiosities, we ask you, if you want, to share this guide with your Facebook contacts and those of the other socials you are subscribed to. So that other people in the same situation as you can find out why the Ethereum forecasts are important and know all the tricks to manage them!