Should I Be Day Trading Ethereum?
Disclaimer: Day Trading Ethereum
First of all, let me just remind everyone that day trading Ethereum is something many people are already doing. However, every and all cryptocurrency markets are extremely fragile, and should be treated as so by day traders.
Now that that’s been said, let’s talk a little bit about day trading Ethereum, and why many investors think the new cryptocurrency will fail.
Is Day Trading Ethereum a Bad Idea?
As it stands now, Ethereum is the second largest cryptocurrency platform available today. Unfortunately, being ranked as such doesn’t protect you from the ups and downs that are the cryptocurrency markets. For example, Ethereum’s value dropped nearly 36 percent in the past year.
Many think this recent drop has hit it’s low point, and will begin to start climbing again any day now. However, many experts believe this currency has more room to fall, and will do so in the coming months.
What Experts Are Saying About Day Trading Ethereum
Above, we mentioned experts who believe Ethereum will continue to fall in the coming months. Among them is New York-based Tetras Capital, who has been taking short trades on Ethereum since May of 2018.
Last week, Tetras Capital even released a 41-page analysis report on Ethereum and why taking short trades is the right answer for traders.
Other experts shorting Ethereum include Timothy Young, former entrepreneur who made more than $100 million when he sold the company Socialcast in 2011.
“Ethereum has an incredible talent pool of developers,” Young said. “In the long term, I think they’ll solve a lot of scaling challenges. But in the short term, there’s a disconnect between the price and underlying technology.”
Neural Capital is also holding its short position moving forward.
Why The Negative Feelings?
Each of these different capital firms are betting against Ethereum. As we look at their reasoning, it becomes more and more clear that there are specific reasons behind the decision.
For example, Ethereum can only handle around 15 transactions per second. In contrast, Visa can handle more than 24,000 transactions per second.
“Just because something is a good idea doesn’t mean it’s a good investment,” said Tetras Capital founding partner Alex Sunnarborg.
Day Trading Ethereum – Our Conclusion
In conclusion, we here at Day Trade FEED believe you SHOULD be day trading Ethereum, just as long as you keep holding onto that short position. Ethereum seems like it’s heading downhill, so a short position (similar to that of the firms mentioned above) should be incredibly profitable as the market continues trending downward.
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