Ethereum Trading Platforms: The Definitive Guide [2021]

Ethereum rapidly grew to prominence when it launched in 2014 and brought with it novel concepts relating to the way the cryptocurrency could be used in a more complex way than simply storing and transferring value, which was the only real use case up until that point in time.

As the prominence of Ethereum grew within the cryptocurrency market, more and more trading platforms began to list Ether and allow traders to be able to buy and sell it freely, with this seeing the price of Ethereum’s native token growing rapidly over the following years to a point to where it is one of the best investment opportunities that have been available over the past half a decade.

With this in mind, this guide breaks down the state of the cryptocurrency market in relation to Ethereum and takes a look at Ethereum trading platforms in 2021, starting with a deep dive into what Ethereum is and what Ethereum trading platforms actually are, then moving on to look at if Ethereum is a good crypto to trade and invest in this year, breaking down some of the best Ethereum trading platforms, and then looking at some of the best Ethereum trading strategies available in 2021 to finish off.

What is Ethereum?

Ethereum Basics

Ethereum is an open-source/blockchain-based protocol and software that since launching in 2015 has changed the way users invest and launch decentralized economies of their own similar to the way BTC reshaped financial economies around the world and how consumers and traders transact and invest.

Launching over five years after the release of Bitcoin this crypto has since become known for its ease of use and high versatility but also for having the second-largest market cap of any other coin with Bitcoin being its only successor and with greater uses than Bitcoin is now among the most traded of all coins.

Ethereum is an open-source blockchain and decentralized crypto boasting smart-contract functionality and is a developer-driven coin used to power millions of applications and platforms across the net and while known to most as a profitable coin is known to its developers as the ‘programmable blockchain’.

This crypto enables much more than the transfer of value and rivals its market-cap successor as it does not just act as a vehicle for exchanging value with others but gives developers and people the ability to launch coins and projects of their own which will be more efficient to do upon the release of ETH 2.0.

What is the History of Ethereum?

Ethereum is one of the thousands of altcoins (coins other than Bitcoin) that exist and when introduced in 2015 with the goal to make transactions easier and cheaper than BTC to make in addition to making it easier for visionaries to incept coins of their own, Eth ushered in the era of decentralized applications.

Ethereum launched six years after the release of BTC and is now its greatest market competitor and rival as Bitcoin was only designed to be a storage of wealth and way to transact whereas the history of ETH is conceptually unique in that while it’s usable as a way to transact with others lets people build on it too.

This crypto has surged in popularity since its release to the public and its history is as impressive as the hundred-million-dollar market cap milestone that for the first time it reached this year and with greater numbers of developers building upon its blockchain is expected by some to even one day surpass BTC.

Ethereum was first proposed in 2013 by programmer/visionary Vitalik Buterin and its concept started to gain momentum when its first round of crowd-funding began in 2014 to then go live in July 2015 with an initial supply of 72 million coins and is now a developer-favorite coin capable of running scripts or apps.

How is Ethereum Different to Bitcoin?

Bitcoin was conceptualized in 2008 when an anonymous person or team of programmers known as Satoshi Nakamoto announced its creation on a forum over a decade ago and was developed to give people a new way to transact and invest without needing to rely on governments/central authorities.

Understanding the concept of Bitcoin and the fact its intent is only to be a way to transact sheds light on the difference between it and Ethereum as ETH is much more than a vessel for the transfer of value but an enabler to creation with open-source technology anyone can use to launch applications of their own.

Earnings from Bitcoin are to be had either trading or mining it whereas Ethereum can be profitable for both those that trade them and build applications that use them and unlike the blockchain of Bitcoin is open-source for all to use and provides greater opportunities for people to earn and the market to grow.

Ethereum and its network is also more efficient than that of Bitcoin’s as ETH-associated fees in recent times are often lower than BTC-made transfers and with the release of Ethereum 2.0 soon approaching will improve even more as this improved and soon-to-arrive version will reduce network energy usage.

What are Ethereum Trading Platforms?

What Actually Are Ethereum Trading Platforms?

Ethereum trading platforms are sites that support them to be exchanged and stored and since launching six years ago is available for trade on more platforms now than ever before though trading sites are not the same in terms of trade fees and security so the one used to trade on should be cautiously selected.

Trading platforms have cluttered the market with some lacking security and others having high-trade fee structures while others are known for good protection and competitive rates and those that support the exchange of Ethereum should use effective security measures which should be reviewed before trading.

Ethereum-trading sites are essentially sites that broker the sale or purchase of the coin to users which is facilitated across a decentralized and peer-to-peer environment comprised of traders that trade against one another twenty-four hours a day in hopes of being on the profitable side of opened/closed orders.

These trading platforms often support many coins alongside Ethereum with charts/graphs and trading tools too that when strategically used can let traders leverage ETH for profit in even periods of falling values which makes them great for newcomer and experienced traders with strong foresight ability.

Why Do People Use Ethereum Trading Platforms?

Trading platforms have been around ever since companies going public for trade became a means for companies and the investors backing them to reap profits and Ethereum-trading platforms follow the same premise and concept with similar tools and financial products that make trades easier to conduct.

Platforms specializing in the exchange of cryptos are safer today given the billions of dollars they process and years of their existence that allowed market-maturity to compel new regulations that now regulate and monitor these sites to ensure those buying Ethereum or other cryptos do so in safe environments.

People use Ethereum trading platforms and crypto exchanges as the ease at which cryptos are bought and sold makes the overall process simple for even first-time traders with no crypto-buying experience and the fact most offer advanced trading tools adds to the many reasons people use these platforms.

Ethereum trading sites are also used for the security they offer as some store ETH outside their network with insurance policies in place that cover assets stored in the network in the event assets are stolen as a result of a cyber-attack and this protection gives the peace-of-mind ETH traders need to wisely invest.

Are Ethereum Trading Platforms Sophisticated?

Ethereum trading platforms are no more complicated to navigate and trade on than conventional sites that allow assets to be traded though may be at first for newcomers to the market that have never used a crypto-trading platform but most are simple to use thanks to many prioritizing user-friendly designs.

Trading platforms that support Ethereum offer trading tools and products, as well as graphs and charts, that not only make profitable trades easier to conduct but more efficient and despite many sites having advanced platforms/complex tools, most have another that is simpler for inexperienced users to use.

Ethereum-trading sites are how consumers and traders/investors acquire the asset which either comes through the services of a broker or from another person liquidating their position in real-time and this may sound complicated to untrained users though Ethereum exchanges handle this in the background.

Pursuing markets or investment opportunities for the first time can be overwhelming and for some may seem to be a sophisticated-filled process but exchanges supporting ETH are designed to be simple but is best users study the menu/tools and FAQ of a given platform to learn the site before choosing to trade.

Is Ethereum a Good Crypto to Trade and Invest in This Year?

Big Price Increase Potential - So Far Sluggish Start

Ethereum may not have taken off at the start of the year as much as some anticipated though it reached its all-time-high market cap this year partially due to the growing number of those trading it and building on its blockchain but also because of the soon-to-be-released upgrade formally known as Ethereum 2.0.

Sluggish is the term used by some to describe the pace at which Ethereum started its year though this is perceivably a misconception given the refreshing-high valuations this asset has reached multiple times since the start of the year alone and with its new release around the corner is expected to quickly grow.

Despite the negative light some holders and traders cast the coin into there is no doubting the potential and rise in popularity of this coin that not only allows people to securely transact/trade but developers that want to launch coins and decentralized economies of their own on Ether’s open-source blockchain.

Upside/profit potential is immense and positive-growth speculation has never been greater according to popular opinion and as Ethereum blossoms and assumes its new version to be more efficient and easier to build on will climb in value in 2021 and beyond as more apps build on its highly capable blockchain.

Ethereum 2.0

Ethereum 2.0 is one of the most anticipated releases and developments to reach the crypto-verse scene perhaps since the release of Bitcoin itself and for reasons from it becoming more efficient and stable to being cheaper to transact and the release of ETH 2.0 is believed by most to push values to all-time highs.

This new version of Ethereum will still hold the traits people enjoy though its technology and blockchain will become more scalable and secure while more sustainable by those supporting the network and this, combined with being more energy-efficient, is wonderful news for Ether-enthused developers as well.

Ethereum 2.0 is a highly anticipated upgrade to the current Ethereum blockchain and aims to increase the speed/efficiency and scalability of the network by addressing and resolving bottlenecks that will let more transactions/operations be processed and at greater speeds and will release no later than 2021.

DeFi Built On Top of Ethereum Boosting Value

DeFi is an acronym meaning decentralized finance and is a popular term used in the crypto-realm that refers to decentralized token and economies, and given that Ether runs on an open-source blockchain is great for prospective investors wanting to invest in a cryptocurrency having strong upside potential.

Decentralized finance technology has removed the reliance that people for decades had on banks or other central-authority figures and while Ethereum is decentralized like most other cryptos is unique due to its blockchain that makes it easy for those with even no coding experience to launch a crypto.

Applications built on Ethereum run quickly and efficiently with most offering real-world solutions or products/services that were once only purchasable using fiat currencies and the growing number of developers building atop its blockchain has caused values to soar given the many that took notice.

Crypto values are driven by community speculation and its proof-of-concept though are also influenced by its ability to adapt to developer needs as the more DeFi applications built on a coin the more people will use the coin to transact for services/products which causes values to rise over time due to demand.

What are the Best Ethereum Trading Platforms of 2021?

PrimeXBT

PrimeXBT is one of the world's leading cryptocurrency trading platforms, and is the fastest with the fastest growing cryptocurrency trading platform to be in the market over the past few years where it has gone from launching an early age 2018 to today managing up to $7 billion of global trade each and every day, putting it in the top tier of the currency trading platforms in operation.

Since its launch, PrimeXBT has provided traders and investors with direct access to the Ethereum market and has provided the ability for traders not only to be able to buy and sell ETH in a robust and secure environment, but also to be able to access some of the world's leading crypto margin trading in order to trade ETH with up to 100X leverage and a range of powerful margin trading tools.

PrimeXBT also provides the
lowest fee schedule of any major cryptocurrency trading platform on the market in 2021 with a flat rate of just 0.05% being applied to all trades, irrespective of the asset class being traded on the size of the trade, and as well as this PrimeXBT's industry-leading margin trading tools expand not only to Ethereum but also to other cryptos such as BTC, ETH, LTC, and EOS.

PrimeXBT is also renowned for being one of the most secure cryptocurrency trading platforms on the market in 2021 and packs a range of bank-grade security measures into its platform that have ensured that it has never been hacked including the cold storage of digital assets with multi-signature technology and hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher.

Binance

Binance is one of the most popular Ethereum-trading platforms around and as of 2018 were known as the biggest exchange by market cap in the world which is a notable achievement given it launched not even a year earlier and today is known for low fees but also great coin selections and stellar security.

This exchange reached the net mid-2017 and since amassed a devoted user base of traders/investors that have caused daily-average trading volumes to surpass a billion dollars and with round-the-clock network monitoring overseen by some of the best security analysts in the industry are safe to trade on.

ETH is more affordable to trade on Binance than most other platforms as they charge a friendly 0.1% fee when opening and closing positions which users can perform at even lower rates if using their inherent coin known as Binance Coin (BNB) to perform trades and with high market liquidity are secure/trusted.

Despite being relatively new to the scene with four or so years in the market this exchange has excelled and popularized quickly as their ever-growing selection of coins that now nears two-thousand combined with industry-low fees and advanced trading tools makes it viable platform for those of all experience.

Bitfinex

Referred to as one of the most trusted exchanges with secure environments that rival any other is the exchange that since launching in 2012 underwent a series of changes to improve the security/support and supported coin types and with high market liquidity is one of the most popular Ether-trading sites.

Bitfinex is known as a safe and established exchange but also an advanced Ethereum-trading platform meeting the needs and goals of even highly-experienced traders that need access to pro-level trading tools and features that enable markets heading in all directions to be leveraged for gains and profits.

One reason Bitfinex is mainstream is their graphical-trading experience and easy-to-use interface that makes executing trades/speculating movements an enjoyable process and with over fifteen-thousand worth of Bitcoin trades executed per day uses state-of-the-art security measures to protect client assets.

Profiting from crypto/Ethereum trading can be a fulfilling and exciting experience and with Ether being one of the most-traded coins on the platform is great for those that frequently open/close positions as their high user base and market liquidity enables their users to quickly convert open orders to fiat-cash.

What are the Best Ethereum Trading Strategies?

Ethereum Day Trading

Ethereum day trading is the practice and art of profitably opening and closing short-term positions that in some cases will require traders to open and close an order within the same twenty-four-hour trading period and daily price movements compelled by high volatility has made day-trading profitable to many.

Day trading is a popular investment strategy that for years has been used in other markets as a way to capitalize from short-term volatility and price movements and while riskier than investing is a great way to produce quick gains and fast profits which can be had from assets having even little-to-no movement.

Ethereum is the second-most-valued crypto in the world in terms of market cap and given its explosive growth and long-term usability across the millions of applications that rely on its blockchain is a great coin to day-trade as it is not uncommon for daily fluctuations to meet weekly low and high valuations.

Given its nine-figure market cap and millions of daily users its potential to produce day-trading profits is greater now than ever and can even be a good strategy for new and fund-limited buyers wanting to earn percentage-worthy returns though it is wisest to never invest liquidity that cannot affordably be lost.

Ethereum Swing Trading

Ethereum swing trading is the art of accurately speculating movements in price and is when someone purchases Ethereum and holds it for one or more days in an effort to profit from the change or swings in price and while held longer than day-traded assets are sold quicker than buy-and-hold strategy traders.

ETH has experienced diabolic patterns in movement since launching six years ago with prices going up over time but fluctuating in both directions ever since and like most assets can be strategically traded by reviewing high-low valuations as part of the swing-trading strategy to determine good entry/exit points.

Speculating is a major part of any profitable investment strategy but especially in crypto markets where assets, including Ethereum, are valued based on the belief and speculation of investors and traders and not physical assets that back them and swing trading is most profitable when these trends are learned.

Gauging the direction Ethereum will go and the price it will reach can be hard to forecast and even for those with years of crypto-trading experience under their belt though with time can learn the market and its surrounding developments to speculate with greater certainty to make swing trading profitable.

Ethereum Algo Trading

Ethereum algo trading is part of the strategy known as algorithmic investing and in crypto markets refers to those using software or artificial intelligence to either speculate prices or conduct trades and many of these algo-trading crypto bots are even open-source to let developers tailor features as they need them.

Algo trading has become increasingly popular as they offer useful features that make trading easier and less consuming to the time and mental health of traders as they can execute orders automatically which means those using the software do not need to stare at a screen awaiting the perfect moment to strike.

Emotions in trading markets can quickly infiltrate the good judgment of investors and cause assets to be under-sold during moments of volatility and this is one reason algo-trading has become so popular as it eliminates the day-to-date emotional roller coaster caused by manual trades to make trading securer.

Algo-trading software bots are not only essential to reducing stress and increasing profits but are vital to the crypto economy as a whole as they alone attract huge volumes of trades a day and are useful to all as they make calculations at greater speeds/consistency with Zenbot and Gekko among the most-used.

What are the Best Ways to Make Money with Ethereum Other Than Trading?

Ethereum Investing

Investing in Ethereum is not the same as trading the asset as investors ‘buy and HODL’ while traders aim to reap short-term gains by opening and closing positions quickly and during times where prices fall but those that invest do not give in to the volatility and believe long-term growth is to be had and will hold.

Investing is an ideal strategy for high-liquidity users of all experience levels that can afford to leave funds in the market over an extended period of time which not only affords the opportunity to profit over long runs but depletes the daily stresses that often accompanies day-trading and short-holding strategies.

Making money by investing in Ethereum is a safer pursuit than trading and especially for new traders as it is a part of risk-mitigation in that it reduces the chance of up-front loss as the held Ethereum will not be sold based on daily changes and not until at least a year or longer once values begin to shine/peak.

Ethereum investing is a sure-fire way to reduce the risk of loss and is a strategy used by many as it is a low-stress method not requiring day-to-day involvement in the market and as a set-and-forget strategy has compelled people from around the world, measuring in the millions, to begin investing in Ethereum.

Ethereum Mining

Earning profits and gains from Ethereum is achieved through the trading or mining of them where users either buy them and earn from their rise in value or from earning rewards and compensation by mining and processing transactions on its blockchain and both are viable strategies depending on user goals.

Mining is essential to its economy as its decentralized blockchain relies on users to process transactions instead of the banks and institutions that people once relied on which now gives the power of earning transactional fees to everyday people instead of the banks that long controlled payments and assets.

Ethereum mining not only allows Ether to move from one wallet to the next thanks to millions of people from all parts of the world that process its transactions but also enables those in any country with stable internet connections to qualify as a miner and is a way to create Ether-sourced income without trading.

Cryptos are revolutionary and since the technology conceptualized to reality ten years ago transformed the way consumers transact and investors trade but also evolved how users earn income and given the digital landscape they exist in is easier than ever for anyone, anywhere, to begin mining and earning.

Ethereum Referral Programs

Referral programs are a great way to earn money from Ethereum without ever needed to trade them as these allow users to refer people to crypto-trading platforms for commissions that can vary from site to site based on the number of referred by the affiliate and the actions/deposits of the referred customer.

Ethereum referral programs are great ways to earn amounts of Ether and are especially useful to those wanting to earn money from the crypto market without ever having to invest or risk funds of their own and earning from these programs becomes even easier for those with websites/experience in the niche.

Crypto-trading platforms have flourished over the past decade with growth these past few years being the most noticeable which impartially is attributed to the growing number of retail/institutional users joining these sites but also due to enticing referral programs that have let affiliates and platforms grow.

One of the niceties of such referral programs is that some can passively earn from them with sustained and targeted traffic sources and some of these programs even offer marketing material to help those promoting them to produce more conversions/referrals and is the best way aside from trading to earn.

In Summary

As we move into the crypto bull run of 2021, there is a huge potential for Ethereum to be one of the standout projects this year and for Ether to be one of the tokens that sees the highest percentage gains in price over the coming 6 to 12 months, with ETH 2.0 being just on the horizon and about to be released, and many of the transactions that are conducted for decentralized finance occurring in the Ethereum blockchain as well.

There are many different platforms in the cryptocurrency space that provide access to ETH and the ability to trade different ETH markets as well, however the three platforms we have selected represent some of the best cryptocurrency trading platforms with the most powerful features and best security measures, and for Ethereum trading and investing they stand out above the rest.

If you would like to learn more about the platforms we have selected in order to be able to buy and sell ETH in 2021, check out PrimeXBT, Binance, and Bitfinex.