Trading ETH to RUB
ETH/RUB consists of the second largest cryptocurrency Ether and the Russian Ruble (Rouble), the national currency of the Russian Federation.
When trading this pair, you can focus on the political risks, the prices of oil and natural gas as they have a certain impact on the RUB value. So, in periods of economic stability and when there are no adverse political events, traders can expect a fluctuation of a couple of per cent in ETH to RUB rate within a trading day. Monthly volatility of the pair may be up to 20 per cent.
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 for 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 $18 million (£14 million).
- At the end of 2015 Ethereum’s price was slightly below $1 (£0.8), 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 over $1 million, thanks to an automatic buy order set at $0.10 through which he purchased over 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 Ruble (RUB)?
The Russian Ruble (Rouble) or RUB is the national currency of the Russian Federation. It is perhaps one of the oldest currencies in circulation in Europe as it originates from the 13 century and has an 800 years long history. The currency experienced at least four redenominations in the last 100 years.
Which factors affect RUB’s value?
The value of the currency and consequently, the ETH to RUB rate may be under the influence of numerous domestic and international factors. An economic slowdown, hindered balance of payments, capital outflow and insufficient level of foreign investments harm the RUB value. Also, if you want to trade the pair, monitor the changes in oil prices because an increasing oil price may strengthen the RUB and vice versa.
Aside from economics, watch for the political situation and the relationship of Russia with other countries. For example, the introduction of sanctions against the Russian Federation had a negative effect on the RUB in the past.
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