HomeHome SearchSearch MenuMenu Our productsOur products

5 powerful ways Ethereum is going to rule the investing and financial world

by , 15 April 2021
5 powerful ways Ethereum is going to rule the investing and financial world
Q. "I've started trading crypto-currencies and am a bit lost.

My portfolio is R100,000 and I want to buy Ethereum.

Could you give me a quick step by step calculation on how to work out how many CFDs I must buy and not risk more than 2% of my portfolio in the trade?

I thank you in advance."

________________________________________
 
Our Top 3 Recommendations for New Crypto Investors
 
Bitcoin hit a new all-time high over $61K. Its market cap surged over $1 trillion. And if you want to dive into an investment that's taking off - and is cheaper and easier than trading stocks or options... crypto is your answer.
 
These are tiny, under-the-radar names. All three are priced UNDER $10. It's never been easier to take your shot at huge returns - without forking over a fortune on your initial stake.
  
________________________________________
 
A. Hi Jerry,
 
It’s always the easiest to convert to US dollars instead of rands when dealing with crypto.
 
To calculate how many CFDs you'd want to buy and risk only 2%, let's start off with some trade specifics.
 
Portfolio value: R100,000
Risk percentage per trade: 2% (R2,000)
 
Entry price: $2,000
Stop loss: $1,500
 
Step #1: Convert the portfolio risk in US dollars
 
This is the amount of money you’re willing to risk in your trade, but converted to US dollars.
 
The current exchange of USD/ZAR is 1 / R14.62.
 
Portfolio risk in $ = (2% Risk ÷ USD/ZAR rate)
                          = (R2,000 ÷ R14.62)
                          = $136.79
 
Step #2: Calculate risk in trade
  
The risk in trade is the price difference (in US dollars) between the entry and stop loss prices.
 
Risk in trade = (Entry - Stop loss)
                   = ($2,000 - $1,500)
                   = $500
 
Step #2: Calculate the No. Of CFDs to buy
 
No. Of CFDS = (Portfolio risk in $ ÷ Risk in trade)
                   = ($136.79 ÷ $500)
                   = 0.27
 
This means you'll need to buy 0.27 CFDs in this example, in order to not risk more than 2% of your portfolio.
 
Note: Some brokers only offer a minimum of 0.2 CFDs, so make sure you check with them or re-adjust your stop loss level.
 
________________________________________
 
‘The next dash from cash has begun…'
  
In 2020, the ‘cash is trash’ trend sent gold, tech stocks and cryptos soaring…
 
Today, you’ll discover a roadmap for what could boom next — including what to invest in now!
 
________________________________________
 
Q. "You mentioned in last week's Ethereum article that the crypto has more uses than just a currency. Can you provide some examples of what else Ethereum is used for?"
 
I've been a major optimist with the potential of what Ethereum has to offer the world.
 
Unlike Bitcoin which only has its purpose in buying, selling and exchanging the coin, goods and services – Ethereum has a plethora of other features and uses.
 
Here are five incredible uses on how Ethereum will change the world
 
Use #1: You can buy/sell exchange and invest Ethereum as a currency
 
The first use is the obvious. Ethereum is used as a digital currency to buy, sell and exchange Ether for traders and investors.
 
Use #2: Build your empire
 
Ethereum also offers a platform where you can use smart contracts for  developers to build software and businesses using the Ethereum blockchain (Eth 2.0).
 
Use #3: Create and profit from dApps
 
You can also use the Ethereum block-chain as a decentralised feature to create dApps (decentralised apps) for your phone and computer.
 
You can build games, online stores, programmes and so on.
 
Use #4: Streamline your finance operations
 
With Ethereum you'll be offered options to create DeFi applications (Decentralised Finance) to create financial services. This will be done via different smart contracts and programmes.
 
And with DeFi you'll bypass many banks, brokerages, intermediaries, cut out the middle man and remove human error from these operations.
 
Use #5: Profit and make commissions from crypto art and digital assets
 
Already people have become multi-millionaires through the new technology called NFTs (Non Fungible Tokens).
 
You'll use your Ethereum to create, buy and sell NFTs. This is where you can literally sell your photos, images, videos, GIFs and any other digital property for a profit and earn commission at the same time. 
 
And with all these options to get involved with Ethereum, there's a huge demand for this crypto coin.
 
Which could send the price to the moon!
 
That's why I'm super bullish for Ethereum. To learn more about Ethereum and other alt coins that are super-hot, go here.
 
Trade well, 
 
Timon Rossolimos,
Analyst, Red Hot Storm Trader  


5 powerful ways Ethereum is going to rule the investing and financial world
Rate this article    
Note: 4.2 of 10 votes

Related articles



Related articles




Trending Topics