There are always pros and cons to everything in this world, and Ethereum Leverage Trading is not an exception. If you are still attempting to decide whether or not to trade ETH or whether it is too complicated a cryptocurrency, you may want to consider the following factors that can help you decide.
Up-to-Date
In the year 2017, Ethereum became the first platform that attempted to cover all new industries, including decentralized finance and non-fungible tokens. It is worth remembering that Ethereum was the first platform that enabled decentralized computation that enabled smart contracts.
Promising Aims
There is no doubt that Ethereum was created not in order to replace traditional currencies, but rather to create a platform that would enable immutable, programmatic contracts and decentralized applications. In contrast to Bitcoin, which is centered around BTC, Ethereum is centered around the development and creation of new technologies that will enable the improvement of online transactions and the creation of new ways to earn money. ETH Trading Platform is a more interesting platform for developers who have a wide range of skills and will therefore continue to develop for a very long time.
Big Names
In spite of the fact that it may seem that Ethereum is only relevant to newcomers who want to develop a token or dApp on the Ethereum platform, it is much more than that. Microsoft, Cisco, Intel, J.P. Morgan, UBS, and Santander are all highly interested in the network.
A good example of such a platform is Microsoft’s Azure Cloud, which offers an Ethereum-based Coco Framework, which allows customers to use alternative database structures.
ETH becomes more reliable for traders and investors as more big names adopt Ethereum technology.
Strong Network
In spite of the fact that over 280,000 tokens have been created on the Ethereum blockchain, if ETH disappears, it will result in the collapse of the cryptocurrency market.
High Volatility
The Ethereum price is highly volatile. For a beginner, it might seem scary to deal with such volatility. However, it isn’t that scary at all. Significant price fluctuations are risky for sure, but if you have a reliable cryptocurrency trading strategy, you can take advantage of it.
Relatively Low Price
Although Ethereum is second in the list of top cryptocurrencies by market cap, it has a relatively low price compared to Bitcoin. The all-time high is just $4,891.70 (November 16, 2021), while Bitcoin has already reached more than $60,000. However, a trader’s first deposit is crucial to the crypto price, which will determine whether to open a long-term or a short-term position.
Why You Shouldn’t Trade Ethereum
It is important to be aware of the disadvantages that you may face when trading Ether even though Ethereum is a promising and reliable network with ETH expected to exist for years to come. By doing this, you will be better able to pay attention to certain things and make the right decisions.
A High Level of Network Congestion
It’s essential to know all network issues as if investors worry about Ethereum’s reliability, the price can plummet significantly. Ethereum’s network has a high level of congestion due to its usage by over 280,000 tokens.
The Proof-of-Stake Transition
There is a plan for Ethereum to switch to Proof-of-Stake (PoS) in 2022 from Proof-of-Work (PoW). Although the transition is positive because PoS has numerous advantages over PoW, including a more efficient resource use for providing the function it provides, it will also lead to increased price fluctuations and uncertainty.
Hacking Attacks
The Ethereum network can have pitfalls since it is more about technology than cryptocurrency. Smart contracts for Ethereum have been proven and checked, but some have failed or been hacked. These events are usually reported in the news and lead to increased volatility and a decrease in the price. For ETH traders to stay on top of the news, they need to check it constantly.
