The Ethereum/EOS cryptocurrency pair presents an interesting new option for crypto traders who are looking to diversify their portfolios. While both are cryptocurrencies, and could be affected by market-wide trends, they can also show differences in volatility and move in opposite directions in the market. Therefore, traders who believe Ethereum will rise in value against EOS could open a long (BUY) position, while those who believe the ETH EOS chart will tip in favor of EOS could open a short (SELL) position.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This is not investment advice.
EOS and Ethereum: Giving developers access to blockchain
While blockchain technology came to the attention of the mainstream due to the increasing hype around cryptocurrencies, it has numerous other uses. The first wide-scale project was Bitcoin, which leveraged the emerging technology to create a protocol for a new kind of currency. However, blockchain has since been used for many other applications. Ethereum was the first blockchain platform to give developers access to the technology, enabling them to create blockchain applications of their own.
Vitalik Buterin, founder of Ethereum, set out to create a platform that could be used to develop smart blockchain contracts, decentralized apps (Dapps) and even other cryptocurrencies. The platform’s token, Ether, rose in popularity as the excitement around Ethereum grew, and established itself as the world’s second-largest cryptocurrency by market cap. Naturally, other platforms were quick to follow and Ethereum was soon joined by other blockchain development platforms, such as EOS.
The vision of the people behind EOS was similar to that of Buterin’s, but they wanted to take it a step further. Instead of just creating a platform, they set out to create a blockchain operating system, called EOS.IO, giving developers a more advanced and intuitive tool for blockchain development. On that promise alone, block.one (the company behind EOS.IO) was able to raise $4 billion in what is considered the largest Initial Coin Offering (ICO) in the short history of blockchain. While the focus was supposedly put on the yet-to-be-launched EOS.IO operating system, the massive amount of funds secured through the EOS ICO, positioned the new cryptocurrency as one of the largest in the world.
Volatility and vulnerability
Any cryptocurrency trader will tell you that tokens can become extremely volatile. While there is some correlation between a cryptocurrency’s market cap and its stability, it is not uncommon for cryptos to display significant price swings, even in the double-digits, in the course of a single day. Therefore, when following the ETH/EOS price, which represents the value of a single Ether token measured in EOS, it is possible to see significant price fluctuations.
On the other hand, the cryptocurrency market is still somewhat contained in itself, meaning prices often move in tandem. When the market moves in one direction in its entirety, the ETH EOS pair could remain stagnant. However, when monitoring the Ethereum and EOS charts separately, it is apparent that even when the two cryptocurrencies move in the same direction, they still have differences in gain or loss percentages, which makes the ETH/EOS pair a possible trading and investment opportunity.
How to trade ETH/EOS on eToro
As part of eToro’s mission to give its clients exposure to a variety of markets and financial instruments, several new cryptocurrency pairs have been launched recently. These new pairs enable investors to add more depth to their crypto portfolios, by pinning leading cryptocurrencies against each other. By investing in the ETHEOS pair, traders and investors could diversify their crypto portfolios, while still remaining within the crypto domain. The ETH/EOS pair is available for trading and investing on eToro, as part of its selection of crypto assets.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This is not investment advice.