Supposing you do not have knowledge of what is Ethereum and how it can benefit you. If you have been looking for that information on how it works around the crypto Ethereum then worry no more. MGC Logic covers the basics of blockchain technology and everything that involves Ethereum. This guide will break down the insights on the blockchain while focusing more on the digital currency Ethereum and how Ethereum trading can be carried out.
What is Ethereum?
Although Bitcoin is normally associated with blockchain technology, it has many other components just like emails are associated with the internet whereas we know the internet has with it lots of other stuff to offer. Ethereum is a blockchain based cryptocurrency with the aim to remove the third parties that could access your information from online sites. It works by producing smart contracts to be used by people. These are agreement programs that are installed in the system and are auto-executing. The technology operates on an if, then logic.
What is Ethereum Trading?
Ethereum trading is the buying and selling of the ether coin in financial markets. You make money if you buy at low prices and sell when the prices shoot. Ethereum trading is considered safe because there is no virtual wallet. You will not have to pay for a store to keep for you the cryptocurrencies so it is cost effective.
Basic Trading Rules
In Addition to our Trading Academy, below are some of the basic rules that you can follow if you are a beginner to avoid losing out all your money.
- Embrace diversification. You are advised not to place all your eggs in a single basket. In as much as the potential to earn a huge sum of money lies with the huge investment you make on a coin, but so is the risk supposing your prediction goes astray. You will end up losing all your cash while aiming at higher profits. Invest that cash on other coins and have the risk spread all over. This way when one coin makes losses, the other might cover up for the loss if your prediction was okay for the others.
- Ethereum trading is not for greedy people. It has been observed that most people’s desire to get more profit rises with the price of the coin. If you are such a person then it will be hard for you to trade successfully. This is because if the coin does not get to where you expected then you’ll turn all the profit you had into losses.
- Invest what you can afford to lose. This basically means that even if you make losses in the trades your life will not be over. That is even when suicidal thoughts appear.
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