|
|
If you are not particularly keen on holding actual Ether but view it as a regular investment product, I would recommend trading Ether through CFD (Contract for Difference).
CFD, or Contract for Difference, is a highly popular financial derivative in the market. When trading Ether through CFDs, you are essentially signing a contract with the trading platform based on the future price trend of Ether. By engaging in actions such as selling high and buying low or buying low and selling high, you can profit from the price difference between the future and current Ether prices.
The key feature of trading Ether through CFDs is that it only constrains you to the future price of Ether and does not involve actual ownership. In other words, after purchasing Ether CFDs, you can enjoy trading profits from both the rise and fall of Ether prices without becoming an owner of Ether or having to pay the current high market price for Ether.
Apart from the ability to conduct quick transactions without physical possession, Ether CFDs offer several unique advantages:
1. **Bidirectional Trading:** Since ownership is not involved, you can choose to buy or sell. Even if you choose to sell Ether CFDs first, there's no need to borrow the actual asset for short selling.
2. **Leverage Mechanism:** Like regular CFDs, Ether CFDs operate with leverage using margin, allowing you to initiate contracts with a larger value even with minimal initial capital and potentially multiply your returns.
3. **Low Costs:** Costs associated with Ether CFDs include spreads, commissions, and overnight fees. However, these costs are typically small and do not significantly impact profits. For example, on the Mitrade platform, the dynamic spread for Ether CFDs is only 4.9, with zero commission. Overnight fees are only applicable for overnight positions.
4. **Diversified Investment:** While trading Ether CFDs, you need to open an account on a trading platform. However, this account can be used not only for investing in Ether but also for handling other cryptocurrencies like Bitcoin and Litecoin, or trading various financial instruments such as forex, futures, and indices—all without the need to open separate accounts for different financial instruments.
Trading Ether through CFDs not only provides the mentioned advantages but also offers a simpler and faster trading process compared to directly purchasing Ether. Using Mitrade as an example, the process for trading Ether CFDs involves only four steps, from account opening to completing the trade. |
|
Post time 24-1-2024 09:50:58