Crypto Trading: A Comprehensive Guide to Ethereum

Categories: Crypto Trading  

Tags: Ethereum  Ethereum Malaysia  Ethereum Trading Malaysia  eth malaysia  

Publish date: 2023-2-23

So you might have understood how cryptocurrency works and ready to start your journey by making the first purchase. However, you are wondering which cryptocurrency to buy and that's probably why you end up here during your research in understanding how some of the most popular cryptocurrency work.

Ethereum is a digital currency that has seen a lot of growth in recent years. In this guide, we'll cover everything you need to know about Ethereum trading and what is its advantage over other cryptocurrency CFD trading.

      • What is Ethereum?
      • What makes Ethereum Different from other Cryptocurrencies?
      • How does Ethereum Work?
      • What are the Advantages of Ethereum?
        • Security
        • Versatility
        • Volatility and Liquidity
        • Large Developers Network
      • Disadvantage of Ethereum
        • Risky Investment
        • Complicated Programming
      • Trading Ethereum CFD with FXCM
      • The Bottom Line

What is Ethereum?

Ethereum is an open-source, public online platform powered by blockchain technology and operating system featuring smart contract functionality. It was published by Vitalik Buterin in 2014 and launched in July 2015. It is a decentralized platform that allows users to create secure digital technologies. In addition, it has its own native cryptocurrency, ether (ETH), which can be used for many purposes including paying for goods and services.

Not only can it act as currency like other types of cryptocurrency, Ethereum is known for its versatility to act as a platform for creating new applications and transactions. Thousands of exciting games and financial tools run on Ethereum's blockchain, making it a popular choice for online payments. The security features of the blockchain make Ethereum a good choice for safe online transactions. Ethereum is designed to be scalable, programmable, and secure, making it the perfect platform for developers and enterprises looking to revolutionize how we go about our lives.

Ethereum allows developers to build and deploy decentralized applications. These applications are referred to as dApps (distributed applications). They run on the Ethereum network and leverage its capabilities such as distributed storage, decentralization, cryptography, and digital asset exchange.

  • What makes Ethereum Different from other Cryptocurrencies?

    Ethereum is different from other cryptocurrencies because it not only supports a digital currency, but also provides a platform for developers to build applications that use the Ethereum network and enable the creation of smart contracts.

    First, let's talk about the application built around the Ethereum network. These applications can store and transfer personal data or manage complex financial transactions. It also allows for deployment for external applications like Decentralized Finance (DeFi). This makes Ethereum more versatile than many other cryptocurrencies, due to allowing developers to create decentralized applications using the Ethereum blockchain.

    Additionally, Ethereum has implemented its own version of smart contracts, which are automated contracts that execute when certain conditions are met. Smart contracts can facilitate the negotiation and performance of any type of agreement, be it a legal contract or financial agreement. They verify and enforce the terms of the agreement by automating flows of value between counterparts. In simpler terms, it's an automated programmed agreement which operates on if-then logic, such as when x occurs, y action will be done.

    Due to the difference in Ethereum compared to other cryptocurrency, this makes Ethereum more secure and interesting than many other cryptocurrencies like Bitcoin.

    How does Ethereum Work?

    Ethereum works by leveraging blockchain technology. All transactions, data and applications are stored on the Ethereum blockchain. This blockchain is decentralized, meaning it is spread across a large number of computers, called nodes, all over the world. This ensures that no single entity can control the network or manipulate the data stored on it.

    Additionally, Ethereum uses a sophisticated scripting language (Solidity) to write smart contracts. These contracts are written in code and stored on the Ethereum blockchain. When certain conditions are met, these contracts will automatically execute an action, such as transferring money from one account to another or sending a message.

    In conclusion, Ethereum is a secure and versatile platform for digital payments, applications and smart contracts. It has low transaction fees, making it an attractive choice for investors. Additionally, its blockchain is highly secure and decentralized, making it difficult to hack or manipulate. Finally, its scripting language allows developers to easily create and deploy smart contracts.

    What are the Advantages of Ethereum?

    Ethereum has become a popular choice for people looking to make digital payments, due to its numerous advantages.


    Ethereum is built on blockchain technology, which is one of the most secure networks available today. The blockchain is decentralized and transactions are verified by miners, meaning that it is nearly impossible to hack or interfere with Ethereum transactions.


    Ethereum supports digital currency, allows developers to build applications inside its network, and moreover provides smart contracts to make sure transactions are more secure and reliable.

    Volatility and Liquidity

    Ethereum is known for its high volatility and liquidity. Its price changes rapidly, allowing users to benefit from quick profits in the market. Also, Ethereum is highly liquid, meaning it’s easy to convert the asset into cash or other cryptocurrencies.

    Large Developers Network

    Developers are a vital part of the Ethereum community, and their expertise gives the project an edge over competitors. With so many developers working on Ethereum, it's more likely that the platform will find success in bringing blockchain technology to the mainstream. This will lead to widespread adoption, making Ethereum one of the most irreplaceable cryptocurrencies out there.

    Disadvantage of Ethereum

    Risky Investment

    Ethereum can make a lot of profit in a short period of time due to its volatility, but the nature of high volatility also means high risk to lose the money. Like Bitcoin, it can be a double-edged sword in which you can make high returns with high risk. Thus, it is important to manage risk properly and have the right strategy in place before trading or investing into Ethereum.

    Complicated Programming Language

    Developers who want to create Ethereum-based applications and tokens need to be familiar with the new Solidity programming language. This language has some well-known security problems, which can make it difficult for developers to write secure contracts. In addition, many smart contracts are audited and still susceptible to vulnerability exploitation.

    Trading Ethereum CFD with FXCM

    After understanding more about Ethereum, it might spark your interest in crypto CFD trading. If you are wondering where you can trade Ethereum CFD, or any other cryptocurrency CFD like Bitcoin CFD, you should try trading crypto CFD with FXCM. Follow the steps below to start trading Ethereum CFD with FXCM.

    1. Register an account in FXCM

    You will find that FXCM is a great platform to trade Ethereum CFD, signing up for an account only takes a few simple steps.

    1. Deposit fund into the account

    Before you start trading, there must be some funds inside the account. In FXCM, you can trade on a high margin.

    1. Trade Ethereum CFD

    Start trading Ethereum CFD once you have funds inside your account. Do keep in mind that the right strategy should be in place to avoid risk.

    The Bottom Line

    Ethereum is a secure and versatile platform for digital payments, applications, and smart contracts. It is a decentralized platform powered by blockchain technology, making it highly secured while its scripting language allows developers to easily create and deploy smart contracts. Additionally, its volatile nature and high liquidity make it an attractive choice for investors. However, it is important to note that Ethereum is still a risky investment and the programming language can be complex to understand.

    So overall while it may have some disadvantages, Ethereum still offers a great deal of advantages over other cryptocurrencies, making it an attractive option for those looking to make digital payments. With its high security, versatility, scalability, and large network, Ethereum is one of the best options available when it comes to digital payments.