There are various reasons why cryptocurrency prices fluctuate, for example:

• Rising demand
• Scarcity (e.g. the supply of Bitcoin is limited to 21 Million)
• Coin’s utility (e.g. Ether is necessary to use the Ethereum platform)
• Mass adoption (e.g. in case of usage in real-world applications)
• Inflation of fiat currencies
• Production / mining costs
• Political factors (e.g. regulation)

It’s also worth noting that while cryptocurrencies are currently rising in value, it also can be the other way around. We saw this, for example, after the hype in 2017. Just like in other markets (e.g. stock market), there are market cycles. After huge rallies, it’s very likely that we’ll also see major corrections again.

I’m also not aware of any “real” publicly traded cryptocurrency ETFs that actually hold coins. As far as I know, VanEck has tried a couple of times to launch a Bitcoin ETF, but their application was rejected by the SEC. Now, VanEck has recently filed an application with the U.S. Securities and Exchange Commission (SEC) for a “VanEck Bitcoin Trust”. We will see if their application will be approved this time, now that BTC is in the focus of institutional investors.

However, there are alternatives to cryptocurrency ETFs if you’re looking for something that you can trade on a regular stock exchange. For example, you could look into Grayscale Bitcoin Trust (OTC: GBTC) and CoinShares offers Exchange Traded Products (ETPs) on Bitcoin, Ether, Litecoin & Ripple (XRP). Here is a 1-year chart showing that GBTC, for example, is currently following the Bitcoin price pretty closely:

There are plenty of trustworthy cryptocurrency exchanges available. For example: Binance, Kraken, Coinbase, Bitfinex, etc. CoinMarketCap provides an overview of the top cryptocurrency spot exchanges, ranked by various metrics such as transaction volumes. If you choose any of the top exchanges, you usually don’t have to worry about scams or fraudulent business practices. Personally, I use Coinbase to buy / sell cryptocurrency.

If you’re located in the U.S., you now also may be able to use PayPal to buy and sell cryptocurrencies. In case you are new to cryptocurrency, note that while Bitcoin is currently making new all-time highs, the market is very volatile. If you’re looking to invest larger amounts, it would also be recommended to transfer your coins away from the particular exchange and instead store them in a dedicated software or hardware wallet (e.g. Ledger Nano X).

I certainly don’t have a crystal ball and estimating how much Ether might rise or fall in value would be a complete moonshot. However, Ethereum is seeing good demand, mainly because of the growing DeFi (Decentralized Finance) market.

In addition, there also is the upcoming Ethereum 2.0 upgrade, which will make Ethereum more scalable, more secure, and more sustainable. In one of my posts, I linked to the recent earnings webcast of HIVE Blockchain Technologies (Ethereum mining company). They also talk about the potential of Ethereum, in case you want to dive into it.

I’ve not done business with Plus500 before, so I’m not familiar with their offerings and fee structure. However, as far as I know, Plus500 is a CFD broker. That means whatever you trade there is not crypto, but a “Contract for Difference” (CFD). CFDs are financial instruments and contracts for the difference between your entry and exit from a trade. That means for example, if you buy a CFD for $100 and sell it for $200, you have the contractual right to the difference of $100. The price of the CFD for an asset is usually close to the price of the asset itself and most CFD brokers allow leverage.

I quickly checked the Plus500 website and found no indication that they actually offer cryptocurrency trading. It really seems they are a CFD broker only, so the order you placed likely was for CFDs on Ethereum, not Ethereum itself. The money you lost could either be related to fees you paid to Plus500, or your order may have already been executed and the Ethereum price may have dropped since then.

However, as mentioned above, what you’re buying through Plus500 are CFDs, not cryptocurrency. If you want to buy cryptocurrency, you can open an account at a cryptocurrency exchange and place your order there. Personally, I use Coinbase to buy cryptocurrency. They are one of the world’s largest cryptocurrency exchanges and offer most coins as well as secure offline storage incl. dedicated cryptocurrency wallet app.