Trading ETH to TRY
The geographical location of Turkey means that its currency can be under the influence of many political and economic events which in turn may affect the ETH to TRY exchange rate.
Another appealing feature of ETH to TRY is that there are regular price swings which could generate great rewards. For example, Ethereum to TRY price may swing up to 5 per cent in a single month.
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 Turkish Lira (TRY)?
Turkish lira or TRY is the official currency of the Republic of Turkey and it was set as the primary currency in 1844. The stability of TRY is under the governance of the Central Bank of the Republic of Turkey, which defines and implements the country's monetary policy. The Turkish lira has gone through major crises in the past. The lira as we know it today was defined in 2005 and it has been of particular interest for traders ever since.
What affects TRY’s value?
One of the characteristics which make this currency interesting is the geographical position of the country itself. The majority of Turkish land is located in Asia, whereas a minor portion is positioned in Europe. Due to its location, it has developed close relationships with countries from the two continents. Accordingly, the currency (as well as the ETH/TRY) can be directly affected by political and economic actions occurring at either of the continents.
Turkey is also a major exporter of goods worldwide and any event which can have a positive or negative effect on the Turkish exports will affect the TRY and accordingly change the ETH to TRY value.
Also, a decrease in tourism can impact the fiat currency because this sector has crucial importance in the Turkish economy. Changes in the level of investment activities is yet another aspect which should be considered by traders when analysing the Ethereum to TRY or any other pair related to TRY. In general, traders should monitor the domestic and external factors which influence the currency. Examples of events that indirectly impacted the TRY value in the past are the terrorist’s attacks, the influx of refugees in Turkey, political confrontation with the EU or Russia and so on. As you can see, Bitcoin to Turkish lira value can be affected by a variety of things coming directly from two continents and from other markets.
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