How to play Ethereum? Latest ETH Introduction and Investment Guide

What is Ethereum?

Developed by Canadian engineer Vitalik Buterin and launched in 2015, Ethereum aims to expand Bitcoin's capabilities and explore more application scenarios by operating “smart contracts.” Currently, Ethereum is one of the most popular blockchain networks after Bitcoin.

Ethereum uses Ethereum Virtual Machine (“EVM”) technology to execute highly complex algorithmic code. Technicians implant programming languages into models and write applications that run into them, or “dApps,” to create application scenarios on the web.

What is Ethereum (ETH)?

Ether, or ETH, is the native cryptocurrency on the Ethereum blockchain, and investors can view it not only as virtual currency for trading, but it also plays an important role in decentralized applications and smart contracts, such as payment of transaction fees and various network fees. Currently, Ethereum is the second largest cryptocurrency by market capitalization, second only to Bitcoin.

Difference between Ethereum and Bitcoin

How is Ethereum (ETH) trending?

Wondering if there is still room for a rise in the future of Ethereum, from the perspective of its trajectory, the ETH is up 85% in almost a year, coupled with the news that Trump is on the market again, a huge advantage for the cryptocurrency, and the market is consistently optimistic about its prospects.

In addition, you can also pay attention to 2 main directions:

1. Technology Upgrade

Ethereum technology continues to innovate, from the time of issuing about 18 million Ether annually to a massive reduction in issuance after upgrading to Ethereum 2.0 in 2022, plus the introduction of a shrinkage mechanism for the targeted destruction of Ether, leading to a certain degree of scarcity.

Therefore, the Ethereum Foundation later developed an upgrade plan for Ethereum 2.0.

2. Ecosystem

Ethereum has one of the largest and most active developer communities in the world. Due to its smart contract capabilities, flexible development environment, and rich resource support, Ethereum attracts a large number of developers to create and deploy various application scenarios on its platform, such as NFTs, game props, and more.

Is Ethereum (ETH) Worth Investing In?

Ethereum has grown rapidly and has been considered the second largest cryptocurrency since its inception. Despite high volatility in the price of Ether, it has reached 84% in almost 5 years, but historical data shows that its value and hedging value are constantly increasing.

In addition, in recent years, the market has begun to question the ability of fiat currencies to hedge their value, believing that the current situation of fiat currency printing is turning high-risk, high-return virtual currencies into safe value investments.

How to play Ethereum (ETH)?

As mentioned above, the application scene for Ethereum is relatively broad, and the ways in which it is invested is also very diverse, with decentralization, for example, becoming a stakeholder reward, DeFi liquidity mining, trading NFTs, and more. But if you want to start a few or more traditional ways of investing, there are 3 types:

Spot buy and sell Ethereum

Buy and sell live and you hold Ethereum directly and earn spreads through low and high trades. The game is simple, you don't have to worry about the risk of a blowout, only the return rate will not be too high.

Ethereum Sustainability Agreement

You can also trade on a perpetual contract. It is a special derivative that has no maturity date, and as long as the position is not forced to close, the investor can hold the position forever. But given the huge price volatility of cryptocurrencies, plus you can choose to use leverage to increase your gains while increasing your risk, it's easy to set a stop loss position. In Hong Kong, trading has not yet been licensed by the Securities and Exchange Commission.

Ethereum ETF

Since the US Securities Exchange (SEC) approved the listing of Bitcoin spot ETFs in early 2024, nine more Ethereum (Ethereum, ETH) spot exchange-traded funds (ETFs) have been approved for listing in the year. Ether ETFs on the US equity market include:

• 21Shares Core Ethereum ETF（CETH）： $21Shares Core Ethereum ETF(CETH.US)$

• Grayscale Ethereum Mini Trust（ETH）： $Grayscale Ethereum Mini Trust(ETH.US)$

• iShares Ethereum Trust（ETHA）： $iShares Ethereum Trust ETF(ETHA.US)$

• Franklin Ethereum ETF（EZET）： $Franklin Ethereum Trust(EZET.US)$

• VanEck Ethereum ETF（ETHV）： $VanEck Ethereum ETF(ETHV.US)$

• Bitwise Ethereum ETF（ETHW）： $Bitwise Ethereum ETF(ETHW.US)$

• Fidelity Ethereum Fund（FETH）： $Fidelity Ethereum Fund(FETH.US)$

• Invesco Galaxy Ethereum ETF（QETH）： $Invesco Galaxy Ethereum ETF(QETH.US)$

• Grayscale Ethereum Trust（ETHE）： $Grayscale Ethereum Trust(ETHE.US)$

And investing in an Ether Spot ETF is not holding Ether directly, but rather holding a fund stake and tracking the price performance of a basket of Ether or Indices. Investors can buy at a lower price, with relatively low volatility risk. In addition, trading in Ethereum in Hong Kong is open to professional investors and retail traders.

How to trade Ethereum (ETH) in Hong Kong

To trade cryptocurrencies such as Ethereum, the most important thing is to choose a secure licensed broker or bank.

While trading cryptocurrencies, cryptocurrency futures ETFs, futures ETFs and related proprietary stocks cannot be traded, Futu offers transactions in fiat currencies. Users who need to purchase USDT can directly purchase Bitcoin and USD directly using HKD or USD.

How to Trade Bitcoin with Futures

1. After opening an account, activate the Crypto trading function, go to the [Accounts] page, click on [Cash Comprehensive Account], and open [Account Management] in [More], [Activate Trade Varieties] in [More], and select [Cryptocurrencies] in [Unactivated].

2. Before starting a cryptocurrency account, a “virtual asset risk assessment, virtual asset holding limit assessment, virtual asset knowledge test”, and identity verification are required. After submitting the application, start up in about 5 minutes and a successful launch will receive a system message and message.

3. Before trading cryptocurrency, please allow time to deposit funds into your cryptocurrency account. Go to the [Accounts] page, click on [Cash Integrated Account - Cryptocurrency], select [Funds Transfer] or [Deposit Funds], then select the settlement currency type and enter the amount to trade after your account.

4. Enter the Market Set-Buy Cryptocurrency section, select the type of currency you offer to trade, click “Trade” in the lower left corner, and you can start selling. (How to trade cryptocurrencies on Futubull)

5. If you intend to invest in an Ethereum ETF, you can search for Ethereum ETFs in the search bar to track more cryptocurrency ETFs. You can also learn about the size of each ETF's assets and basic information such as management fees, dividend policies, etc., for your investment decisions.