Trading ETH to HUF
ETH to HUF included Ether, one of the popular crypto, and Hungarian forint, the national currency of Hungary. The pair may be attractive for traders as its value is affected by the economic conditions across the EU. You can also make a profit based on economic or political disturbances in the Hungarian economy.
The Ethereum to HUF may have wider price swings during a trading day compared to other crypto/fiat currency pairs. Also, the movement of the ETH to HUF exchange rate throughout a month shows multiple small pullbacks and a couple of instances when the price breaks the support or the resistance levels.
What is Ethereum?
Ethereum was introduced in 2015 by a Russian-Canadian programmer Vitaly “Vitalik” Buterin. It is an open-source platform that utilises blockchain technology to create and execute distributed applications (DApps). Users can create or join so-called “smart contracts” directly without third parties, limiting the possibility of fraud.
Ethereum is commonly used as a name of the associated cryptocurrency but in fact Ethereum is the system or network while Ether or ETH is the native currency. Users need to have Ether when they want to execute a certain transaction through the system.
Some interesting facts about the ETH
- The Ethereum project was successfully crowdfunded in the middle of 2014 when it raised more than $18m (£14m).
- At the end of 2015 Ethereum’s price was slightly below $1 (£0.80), by mid-January 2018, it reached its current peak of $1,432 (£1,132).
- Unlike some other cryptocurrencies, there is no maximum supply cap for Ether.
- Ether can be created through “mining” – users receive a reward when they complete a mathematical task and verify transactions.
- The Ethereum Alliance (EEA) is an organisation developed to enhance the future usability of Ethereum.
- Most of the ICO (Initial Coin Offerings) are hosted on the Ethereum blockchain.
What affects Ethereum’s value?
The factors can be divided into two groups – the ETH related and those affecting the general cryptocurrency market.
Ethereum specific factors are:
- The demand for ETH, which is not driven solely by trading activities.
- The Acceptance of the Ethereum system by more established financial institutions.
- The increased adoption of smart contracts hosted on the Ethereum platform and the inflow of new users will increase the demand for ETH.
- The degree of mining profitability.
- Improvements in the Ethereum system in the future.
General factors related to the crypto world:
- Changes in regulatory laws and regulations regarding the legality and usage of cryptocurrencies.
- Potential market manipulation by large participants or so-called crypto whales.
- Speculative trading – on June 22, 2017, a multi-million dollar market sell order crashed the ETH price from above $300 (£240) down to $0.10 (£0.08) in a couple of seconds, although, the price did bounce back within minutes. One trader reportedly made more than $1m, thanks to an automatic buy order set at $0.10 through which he purchased more than 3,000 ETH.
- The number of crypto channels where ETH is available for trading also affect its value.
- The number and strength of ETH competitors.
What is the Hungarian forint (HUF)?
Hungarian forint or HUF was established in 1946, in a post-war era as the national currency of Hungary. The Hungarian forint enjoyed a rather stable exchange rate until the early 1990s when the process of transition towards market economy took place. However, today the HUF is a fully convertible currency which indicates that it can be traded without any limitations set by the monetary authorities such as the Central Bank.
What affects HUF’s value?
The Hungarian economy is characterised as open and export-oriented with some of the major trading partners coming from the EU such as Germany, Italy, France, Romania, Italy and so on. A few of the most important industries in Hungary are the manufacture of vehicles, automobile parts, tourism, electronics, information technology and medical technology. Consequently, factors which have an effect on the individual industries or the overall export levels may cause fluctuations in the HUF value. In addition, changes in the economic and political conditions in the EU will certainly have an impact on the HUF and respectively the ETH to HUF exchange rate, because a big portion of Hungarian exports is made toward EU countries.
Changes in economic or financial indicators or changes in the supply and demand will also affect the ETH/HUF exchange rate and the overall value of HUF. Namely, a large public debt can have an adverse influence on the value of the domestic currency. Additionally, when trading Ethereum to Hungarian Florint keep an eye on the political situation in Hungary, as there were politically driven situations that had some influence on economic conditions as well as on the HUF strength.
Also, traders should monitor the developments in the Hungarian Government plans to become part of the European Monetary Union and replace the Hungarian forint with the euro.
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