Gain Financial Freedom with Ethereum Trading
Ethereum is one of the most volatile altcoins, known to frequently outperform Bitcoin and other high-powered cryptocurrencies like Litecoin or Doge. To increase your awareness of the investment opportunities of Ethereum, we’ve compiled this guide, which features a few simple techniques to help you make money trading Ethereum. These approaches are versatile and applicable to traders of all experience levels.
- Buy & Hold – One of the oldest investment tricks in the books that has stood the test of time is the passive investment of buying and holding. With this investment approach, long-term is the name of the game, and strict discipline is the key to success. Theoretically, it helps to buy low and sell high, but Ethereum is such a high-demand cryptocurrency due to its correlation with Bitcoin that it’s challenging to find suitable entries. Therefore, consider using long-term support levels and focus on long-term gain.
- Crypto Arbitrage – This technique is a bit more challenging to pull off because it requires fast processing, near-instantaneous automation, and finding multiple exchanges where you can find enough of a spread difference to make the high-volume of arbitrage trades worthwhile. Therefore, you often seen crypto enthusiasts partner with high-frequency crypto trading providers with automated software that perform these trades monthly for a fixed fee or percentage of profits.
- Correlation Trading – Correlation trading can be effective. Still, it is far more powerful when combined with trending market queries. For example, instead of only checking to see if Ethereum has a strong positive correlation (which would indicate a trade opportunity following BTC’s market direction) or a strong negative correlation to Bitcoin (trade in the opposite direction of BTC), you can also see search demand, interest, and trader sentiment which adds market depth behind every investment.
One of the best platforms you can use to see if a product is trending or has high search demand is Google Trends, a free-market research site.