Bitcoin seems to run the market until you start trading yourself. Then you begin to see all other cryptocurrencies that are valuable and bound to last maybe even longer than bitcoin. One of them is Ethereum, for sure.
Although everyone's talking about bitcoin, trading ethereum becomes far more interesting once you learn how it came to life, its idea, and how it's right behind bitcoin in liquidity, meaning you can virtually without problems trade it around the world. Nowadays, Ether tends to fluctuate a lot, which automatically means lots of opportunities for traders, since forex works 24/7 worldwide.
Ether is the first who wanted to deliver smart contracts, therefore having a better chance to stay on the market than Bitcoin. The idea behind the project "Ethereum" was to be more than just a payment method. Since blockchain is decentralized, it was easier for people worldwide to create the same type of apps and make paying simpler and more accessible. That's why back in 2015, the project fully came to life.
The difference between Bitcoin and Ethereum
At first glance, we could say they are both cryptocurrencies deferring from different creators, but there is much more to that. Bitcoin's and Ether's goals are entirely different. Bitcoin was made as a completely different currency and aspired to be another way to exchange and store value. Ethereum, on the other side, wanted to make a supercomputer, giving everyone an equal chance to create a blockchain, decentralized applications using its currency. Smart contracts and dapps are their primary goal, not an alternative monetary system like it happens to be with Bitcoin.
In theory, Ethereum and Bitcoin should not be competitors, since Ethereum can also support the Bitcoin network through their blockchain usage. They only became "opponents" because of people trusting Ether and investing in it, thus pushing it into the cryptocurrency market. Traders strongly believe Ether is here to stay, and it was always really close to Bitcoin, but not necessarily in value. Bitcoin's ecosystem is much larger, making it almost ten times valuable than Ethereum.
How to trade Ethereum
There are two ways you can trade Ethereum: holding and active trading.
Holding is the most common strategy traders use in the stock market. "Holding" is the most practical way of trading since you don't have to put too much effort into it, and you are in for the long run if you decide to run with this one. The term "holding" can already tell you the idea behind it; once you invest in the desired stock, you don't sell it right away. You wait for the right moment, see how it grows (or maybe not, so you wait for more), and seize the right moment to sell it. If you decide only to hold it and wait until the value rises more and more, you're still on the winning side. Another good thing is that the transaction fees will be virtually lower since you will not be making frequent trades.
Yes, holding is a good strategy, but you should not just forget about it. Remember how we mentioned that fluctuations with Ethereum are often? That is why you continuously learn about it, even though you decide to hold it. As time goes by, you should be able to tell whether you should buy more or sell it, especially if you are an experienced trader. Just be patient and don't act out of impulse.
Active trading is a strategy that active traders use because they have more experience and willingness to be continuously informed. Inactive trading, you can also use the software, so they can analyze the market for you. The main challenge is to buy when the price is low and sell when the price gets high. Our recommendation is to adopt the "holding" strategy first if you are a beginner. Once you are skilled enough and ready to stick to the plan, you can easily switch to active trading. Until then, stay informed, learn, and observe the market.