If you wonder what Ethereum is, very simple, it is an open platform based on blockchain technology , which allows you to create and share decentralized applications .
Ethereum is more than just a cryptocurrency and can offer much more than you think, so keep reading.
What sets Ethereum apart from other cryptocurrencies is that it only works on an inflation scale similar to normal currencies .
So if you are serious about investing in cryptocurrencies , you should know how to buy Ethereum and if you are interested in generating or mining coins , this can be a very good solution.
So is it similar to Bitcoin? Yes and no. Both Bitcoin and Ethereum are based on the same technology , called blocks , but that’s where their similarity ends.
Bitcoin offers a single application , a peer-to-peer electronic currency system , that allows online payments (it’s pure currency ).
In addition, this platform uses the technology of blocks , to track who owns the coins , while the technology of blockchain (used by ethereum ), serves as a platform to run any decentralized application .
This decentralized payment network allows the conclusion of anonymous transactions and, therefore, online payments , without the need to use the services of a bank or other financial institutions .
This is common software that can be used by everyone, but is resistant to manipulation attempts . In short, the possibilities for Ethereum are endless.
The maximum number of Ethereum coins is currently unknown. Because this platform is based on the PoW protocol , the reward for digging the entire block is 5 Ether . This value is constant and immutable , and blocks are extracted every 15 seconds.
At the other systems like blockchain , ethereum has a cryptocurrency native called Ether ( ETH ), which is digital money and can be sent anywhere in the world at all times.
ETH supply is not controlled by any government or company, it is decentralized and limited . People around the world use ETH to make payments, as a deposit of value or as collateral.
The ETH blockchain was launched on July 30, 2015, making Ethereum a very comprehensive platform based on blockchain technology .
In addition to the possibility of using it as a means of payment , it allows anyone who wants to create an application to make it available online.
It is used, among other cases, to conclude smart contracts and create applications using a decentralized point-to-point network.
This network consisting of user-created nodes is called EVM ( Ethereum Virtual Machine ). It allows crowdfunding through ICO (initial coin offering) and the creation of decentralized and autonomous organizations (DAO).
What does Ethereum offer?
Ethereum is sometimes called “Bitcoin 2.0” and is actually an alternative to Bitcoin as a cryptocurrency .
Bitcoin allows participation in the global financial network, while Ethereum allows participation in the global computer network .
This is done by intelligent contracts, which are scripts code that can be implemented in the chain blocks ethereum .
Ethereum blockchain offers many functionalities, such as:
- Tokens (ERC-20, ERC-223, ERC-721, ERC-777).
- DAO (autonomous decentralized organization).
- EVM ( Ethereum virtual machine ).
The Ethereum network is based on the Proof of Work consensus algorithm , which means that transactions are approved, and added, to new blocks in the blockchain network by miners.
The Ether does not have a limited supply , which means that it is inflationary. There is no typical maximum block size on the Ethereum blockchain . Instead, each block requires a specific amount of Gas.
The blocking time will depend on the difficulty of digging, which is determined by an algorithm called Geth , which seeks to keep the interval between blocks of transactions , in the range of 10 to 19 seconds.
During the transaction or implementation of smart contracts , a transaction fee is charged in the form of Ether , calculated using Gas Units.
This number will depend on the computing power necessary to complete the transaction. The price of Gas is calculated in Gwei or nanoether (1 ETH = billion Gwei / nanoether).
For the needs of the Ethereum platform , a new programming language ( Solidity ) has been created , in which smart contracts are written
Ethereum and Ether
People often use the terms Ethereum and Ether interchangeably. However, they are very different.
Ethereum is the smart contract network , while Ether is the token or currency needed to power it.
With the emergence of new technologies and names, most people use ” Ethereum ” and the currency code ETH .
What is a smart contract?
A smart contract is a computer code , which promotes the exchange of values, such as money, content, shares or even property rights .
These contracts are automatically executed when their terms are met . They handle the application, management, performance, and payment, like a computer program that works on its own.
Ethereum aims to make everyday life more efficient and profitable , by automating processes and eliminating intermediaries in the systems we use.
This could be for the legal, financial, computer and other systems. While Bitcoin is a currency (a wealth store and a means of payment), Ethereum is a software platform .
Bitcoin stores a list of balances and transactions on its blockchain , while the Ethereum blockchain is designed to store different types of data.
This data can be accessed and used by computer programs running on the Ethereum blockchain . These programs are called decentralized applications or dapps.
On Ethereum you can buy, sell, trade, and store on platforms , just like Bitcoin .
The creators of Ethereum never intended it to be a currency like Bitcoin and the consistency of supply is not guaranteed.
Who created Ethereum
Ethereum was created in 2014 by Vitalik’a Buterin , a researcher at cryptocurrency and Russian programmer. He created it as a platform for the creation and operation of Smart Contract , who in 2013 worked on Bitcoin .
Vitalik Buterin was born in Kolomno, Moscow Oblast in Russia, in 1994. At the age of 6, his family emigrated to Canada , so that his parents could find a better workplace.
While in Canada’s third grade primary school, Buterin was put into a class for gifted children and began to understand that he was drawn to math, programming, and economics .
Buterin attended the Abelard private school in Toronto for 4 years and said that “it turned out to be one of the most interesting and productive years of my life.” Buterin learned about Bitcoin from her father at the age of 17.
In 2013, he published a white paper proposing Ethereum . He attended the University of Waterloo, but retired in 2014, when he received a Thiel scholarship for $ 100,000 and began working full time at Ethereum .
This platform is entirely based on blockchain technology , which is used to enter into smart contracts , as well as to create applications , using a decentralized peer-to-peer network.
Ethereum has been designed with high security standards and full transparency . They are promoted by the Enterprise Ethereum Alliance , which brings together both growing startups and large American corporations.
The NGO Fundación Ethereum , sold the first Ether ( ETH ) tokens in the form of crowdfunding, to raise funds to start the project. These sales lasted from July 20, 2014 to September 2, 2014.
At that time, 31,529 BTC was raised , which was equivalent to $ 18,439,086 at the time. In addition, 60 million ETH were distributed during the ICO.
The financing of the new company was thanks to investors. The system launched on July 30, 2015, where there were 11.5 million coins for sale ( Ethereum Coin ).
For several months, Ethereum has also seen significant price increases , making it a fairly profitable investment in Ethereum value .
In December 2016, $ 7-8 was paid for Ethereum , but in January slow growth of the cryptocurrency began .
The price rose steadily ($ 9, $ 10 and then $ 11), and so on until the end of February. Only then did the Ethereum course skyrocket , breaking records almost daily.
On March 12, this cryptocurrency broke the $ 20 barrier for the first time and for the next dozen days, she made a real jump, up to the price of $ 45 . Another milestone was the magical $ 50 level, broken on March 24.
Then Ethereum increased in March and April 2017. Since then, for just a few days in April, Ethereum prices fell below $ 45.
This in turn means an increase of 273.7 percent, in the last three months and 350 percent in 2 months.
Thanks to the jumps that have occurred in the last months, the capitalization of Ethereum or Ethereum price , is already 4 . 5 billion dollars.
Of course, this is not the case with Bitcoin , which has recently equaled the price level with gold and despite subsequent declines, its valuation is still many times higher than Ethereum .
Ethereum is in the cryptocurrency market and its peak came in January 2018, reaching a rate of $ 1,121 for an Ether . It is the second cryptocurrency , after Bitcoin , with the largest market capitalization.
This platform has been designed in accordance with high standards of security and transparency . As we explain, they are promoted by the Enterprise Ethereum Alliance , which brings together both startups and large American corporations .
Like the Bitcoin system , Ethereum operates on the basis of a decentralized payment network , which allows for anonymous online payments , without having to use the services of a bank or a third party.
Who supports Ethereum
Why is Ethereum increasing in popularity, when it seems that Bitcoin is succeeding?
Paradoxically, Bitcoin’s problems were one of the reasons for the growth of its competitor.
As Mati Greenspan , senior cryptocurrency analyst at eToro says, “The problems with Bitcoin’s scalability is one of the reasons to drive transactions on Ethereum .”
Such problems can limit the expansion of the network. The cryptocurrency community is currently working to resolve these issues, making Ethereum appear to be a more effective and scalable alternative .
Most of the assets that contributed to the Ether price boom , come directly from Bitcoin investments . However, as Greenspan points out , there are two main growth factors for Ethereum .
The first is undoubtedly the Hyperledger project , which brings together more than 100 major global financial institutions and aims to create a global currency settlement system .
An option is being considered, for the project to be based on a blockchain system inspired by Ethereum , says the expert.
The second factor that he mentions is the updating of the Casper system , which allows faster and more efficient settlements in this currency .
In Ethereum blocks , instead of “mining” or “digging” coins , users work to get a coin .
Programmers also use the Ethereum currency , to pay for services on the network of this platform.
Trade CFDs (Contract for Difference) in cryptocurrencies without risk
The best way to practice trading cryptocurrency CFDs is to open a free trading account in a demo version.
Both novice and advanced investors can use the demo account , because it provides full support for live transactions .
You will have all the real-time analysis and live market information , but without putting your own capital at risk.
You have probably heard, that you can trade on Ethereum ( ETH / USD), on the Admiral Markets platform .
We recommend that you open a demo account and see what cryptocurrency trading looks like .
Wondering what is blockchain?
It’s a very simple thing, Blockchain is a transaction book , which tracks all the transactions that have been made on a specific network.
When a block is full, a new one is created . The blocks are added to the chain in chronological order.
Each computer connected to a specific network (for example, Ethereum or Bitcoin ), downloads a copy of the blockchain .
The technology Blockchain is resistant to cyber attacks, in which security is ensured through encryption.
The technology Blockchain based on an encrypted cryptographic framework does not need any intermediary institution, to check the transaction data or confirm its participants.
Thanks to this, its operating costs are incomparably lower, compared to other systems and, in addition, the performance is enormous .
In the case of cryptocurrency blockchain of ethereum , each transaction is stored in blocks . All property rights and transactions made on the Ethereum network are stored there.
For several months, Ethereum has also seen significant price increases, making it a fairly profitable investment .
Why Ethereum Has Value
Why did Ethereum’s price skyrocket so much? The answer is quick but somewhat complicated. Investors have become more aware!
As the society gains more insight and digs into cryptocurrency quotes like Ether and Bitcoin , the volume of transactions and interest increases.
Both cryptocurrency of Bitcoin , as cryptocurrency of ethereum , are in the spotlight, making appointments criptomonedas are gaining value rapidly . Of course, as in all markets, what goes up can also fall.
Just as the fantastic gains in 2017 were fueled by a kind of multiplier effect, from the rise in prices that fueled investor demand (which in turn caused prices to rise), led to increased demand .
When in 2018 the market started to decline we noticed the opposite of this mechanism. The price adjustment resulted in an increase in investor supply , which led to lower prices and a further reduction in demand.
Ether is completely safe, but you must remember volatility and liquidity . If they disappear, the instrument becomes more risky.
Is Ethereum safe?
The Ethereum implementation process is divided into stages . The second stage of the Ethereum project , under the name of “Homestead”, is still ongoing.
The 4 anticipated stages of Ethereum network development are, in turn, Frontier, Homestead, Metropolis and Serenity.
Ethereum Homestead customers use it without problems. Before that, they used the beta version, without further interference for several months. However, Ethereum is still an experimental technology .
This platform allows programs to run in a virtual machine , so something may still go wrong. For example, you may find that a smart contract is misspelled and contains errors.
How volatile is Ethereum?
First of all, we need to know that cryptocurrency markets are much more illiquid than stock markets , which means that the biggest players in the market can cause more movement.
Investors in the so-called “ Smart Money ” group generally buy low and sell long positions when the price reaches high levels.
Therefore, merchants should avoid buying at high levels. Ethereum is subject to a much wider range of price fluctuations , relative to the Forex market .
Investors invest capital in the market, betting that demand will accelerate future growth.
At this point, all cryptocurrencies , including Ether CFDs , are subject to significant speculative activity and have very small historical databases, making this asset class very unstable.
If you want to trade CFDs in Ether and other cryptocurrencies, you have to get used to volatility. For this reason, you can first download the platform and open a demo account .
It also checks the volatility protection settings , which can help minimize risk during trading.
Is Ethereum related to dollar value?
The value of Ethereum is not linked to the value of another currency, nor is it determined against another currency .
As in the case of stocks or real estate, the value of Ethereum is determined by offers to buy and sell on the free market.
The Ethereum price changes in real time, depending on the number of people, who want to buy or sell this currency at any given time.
Why does the value change?
Ethereum is an exchangeable currency for Bitcoins , dollars, Ethereum to euro , yen and other currencies , in real time and 24 hours a day.
The price of ethereum can change from one day to another, as it depends on the actual number of offers from buying and selling .
The principle is the same as for securities listed on the stock exchange , where the current price may decrease or increase depending on supply and demand.
The value of the ethereum can be quite variable compared with coins (like the US dollar), because it still is a technology that is in a stage early development and has a relatively low market liquidity.
Does Ethereum work similarly to bitcoin ??
Ethereum tends to work similarly to Bitcoin as it allows users to send and receive tokens , which have a specific value on an open network.
However, Ethereum is not only a form of money, it is also a way to enter into smart contracts .
There are investors who believe that the prices of cryptocurrencies will return to the highest levels . One of the factors in favor of Ether is the potential of the Ethereum platform . As early as 2019, we began to see signs of institutional adoption of this technology .
In early 2019, the banking giant JP Morgan , appeared on the front pages of newspapers when he presented the cryptocurrency JPM announced as the first cryptocurrency backed by a US bank .
Many news sites have recognized that this new digital token uses blockchain technology , but has often failed to mention that JPM’s black currency , Qurom , is actually a corporate version of Ethereum .
Of course, where all this will lead is not very clear, but this particular example of the actual use of Ethereum technology may help to revive trust in Ether .
That said, we must emphasize that the vast majority of cryptocurrency trading , including Ether transactions , is pure speculation and the current usability value for users is close to zero.
Few people use blockchain protocols , unlike many others who trade cryptocurrencies . We can also expect regulations on trading, issuing, and maintaining new crypto currencies .
Where to buy Ethereum
Like all cryptocurrencies , learning how to buy Ethereum requires some preparation to help you acquire and store your coins .
Here we detail the steps:
- Create a wallet
- Choose the purchasing platform you want to use: direct trade, cryptocurrency brokers or trading platforms.
- Confirm your identity on the selected platform.
- Choose and configure a payment method , such as VISA, debit card or PayPal.
- Ready! You already know how to buy Ethereum
For any online job, whether you’re a person placing business orders or one who invests in cryptocurrencies , you need to make sure that the money exchange is secure.
The priority in the business of ethereum , is to create an online wallet , which will put our currency and trust in the s ecurity .
Coinbase and MyEtherWallet are very popular online wallets . You can even register an Ethernet wallet through the Ethereum website .
Once you have created your wallet and purchased Ethereum through the exchange, you can safely transfer all your purchases to your wallet .
It is recommended that as properly set up an online wallet also consider investing in a wallet offline (wallet hardware), where we can store most of our coins .
While online wallets are relatively secure, a wallet without an internet connection completely eliminates the risk of a hacker attack .
So when you use your wallet online to learn how to buy Ethereum , keep only the amount you need to exchange it. Move most of your coin to your offline wallet or hardware and store it in a safe place .
How to get Ether and where to save it?
The easiest way to get Ether , is buying in the market criptomonedas or bitomat and then send it to our wallet private, which only have access.
The wallets are applications that facilitate receiving and sending ETH (as well as tokens , if the chain block ethereum ) and interaction with applications based on ethereum .
Ether , as the second most popular cryptocurrency in the world, is available on most digital currency exchanges , including the most popular ones like Binance and Coinbase .
The tokens based, for example, in the popular ERC20, also typically buy for ETH as part of ICO or STO .
Some of the most popular wallets are:
It was established in 2015 and became one of the first wallets with a graphical user interface (GUI) , for the Ethereum network .
It was created in 2016 as a browser wallet . It works as a plug-in for Firefox or Google Chrome and is also in all Brave Browser browsers .
The wallet was created in 2015 and only supports Bitcoins . In 2016, it expanded its offering to Ether and in early 2017, it was possible to send tokens based on the Ethereum blockchain .
ETH is also compatible with the most popular hardware wallets on the market.
How to configure your first wallet in MyEtherWallet?
- Enter com .
- Click on “Create a new wallet “.
- Then they will inform you that only you will have access to the funds and, in case of lost or forgotten access passwords, your assets will be lost .
As for the variants to login, there are three options :
- MEWconnect . Download the MyEtherWallet (MEW) wallet to a mobile or computer (recommended for beginners).
- Using the keystore file . The created password will generate a file that you will need to log in .
- By mnemonic phrase . A wallet will be generated for you through the “seed” generated by MyEtherWallet , which you must save or remember.
After completing each of the variants, you will be able to log into your first wallet on the Ethereum network .
You will see a menu that can also be accessed, from the main page, by clicking on the second option: ” Access my wallet “.
After selecting the “ Software” option , the wallet login door will be displayed , where you will select the method to do so.
In the case of Keystore File , you will attach the file and enter the password . The second option also requires that we provide the password and mnemonic that we wrote earlier.
The last option is to simply log in with the private key .
Ethereum digging: the basics
Ethereum until February 2018 could only be excavated using a graphics processor (GPU), but the Chinese company Bitmain managed to build the ASIC Antminer F3 excavator model , which will be used to excavate Ethash .
To dig Ether , you need a computer configuration, or na graphics card high power and wallet in which receive ETH excavated .
The next step will be to find a mining group , as it will be very difficult and unprofitable to dig alone.
How to choose a trading platform for Ethereum
After setting up your wallet , the next step in learning how to buy Ethereum is to register on the stock exchange .
There are many international exchange platforms on the market. First, find the shape that best suits your needs. In that case, there are several options to buy Ethereum :
Direct trade (peer-to-peer)
This option generally involves buying Ether directly from the seller , without an intermediary (such as an exchange).
The seller gives the Ethers the exchange rate established by him and at this price you will have to agree. Then the coin goes directly to your wallet .
People who choose to do this generally know someone from whom they can buy currency.
There are countries where there are certain rules , regarding the buying and selling of cryptocurrencies , which makes direct trading the most profitable option.
The disadvantage of direct trade is that the buyer does not have much control over the exchange rate.
However, there is also no agent transaction fee , making the process more direct.
For those who want to learn how to buy Ethereum , but don’t want to immediately jump into deep water, cryptocurrency brokers provide an easy start.
Unlike the trading platform, where buyers and sellers place their offers , cryptocurrency brokers set an exchange rate , based on what buyers and sellers agree to.
Please note that cryptocurrency brokers will charge a bonus of 5% to 10% of the transaction.
The brokers criptomonedas not provide much price flexibility, such as trading platforms , but may eliminate some complications that arose during the process.
Hence, the commission you are going to pay. Since this is the easiest option, many people who want to learn how to buy Ethereum can choose this route and sign up with popular brokers like Coinbase.
Trading platforms like Kraken are generally considered a market to buy, sell, and make money from a cryptocurrency . Here, buyers and sellers can present offers at the desired price.
This can include a specific price or price range , depending on the market value of cryptocurrencies like Ether .
Those who have not yet learned to buy Ethereum , may find it quite complicated, but many see this option as very interesting .
In order for someone to match the price with your offer, they generally have to wait a few seconds to several minutes.
By using transaction platforms, you can also find out how much people are willing to pay for cryptocurrencies like Ethereum and thus gain practical knowledge.
Both on the trading platforms and through the brokers, Ether can be purchased by exchanging other crypto currencies , such as Bitcoin, Litecoin, or Ripple.
You can also attach a debit or credit card , a bank account, or even a PayPal account , allowing you to buy Ether directly in traditional currency .
One of the things to keep in mind when learning to buy Ethereum is the transaction fees . The fee associated with a trading platform is generally included in a cryptocurrency .
Before accepting the fee , make sure you have converted the value of the fee in cryptocurrency to the traditional currency .
Ethereum buying tips
Once you know where to buy Ethereum , you must also learn how to secure your currency .
There are some safety tips and tricks to keep in mind when learning to buy Ethereum .
While buying, selling, and different ways to make money online can be very exciting, security is paramount . You don’t want to lose your investment in cryptocurrencies !
Protect your wallets and exchange accounts
When you set up your accounts for the first time, add all possible security options to them .
This will provide additional protection and allow you to freely plan your strategy on how to buy Ethereum .
It is also worth remembering that you should change your password regularly. It is recommended to do this every 6 months or at least once a year.
Another recommendation is to log into your wallets , only in a secure environment . It may be an exaggeration, but such simple actions help to secure your investment.
Many wallets online, offline, wallets hardware and exchange accounts also have the option of 2 – factor authentication .
When you enable this option as an additional security coverage , anyone who tries to access your account illegally will encounter a barrier in the form of verification , using a mobile phone or another computer.
Backup all wallets and enable recovery options
In addition to adding security measures , it’s a good idea to back up all wallets and enable recovery options for offline or hardware wallets .
All wallets and exchanges are designed to provide the highest possible security , but little can be done if your computer or hardware wallet becomes infected with malware, is damaged, stolen, or misplaced.
Access can be recovered by backing up the wallet and running the data recovery options .
Even if such scenarios sound incredible and seem impossible , it pays to do everything possible to make your investments safe .
Confirm your identity on the stock exchange
Most trading platforms and brokers allow free account registration . However, you will not be able to buy and sell cryptocurrencies , until you confirm your identity.
There are several reasons for this. The first is the security of each account. The second aspect is that, thanks to this exchange, we can confirm that each user is a verifiable person , not a robot or a person who creates false accounts .
Most exchanges will require 2 items to confirm your identity : a copy of your current ID and a current photo.
There may also be additional specifications , such as writing the name of the exchange on a piece of paper next to you, and then taking a photo of yourself.
After sending the documents and confirming the request, you will have full access to the exchange platform. Then you can add a payment option and buy Ethereum first-hand.
Ether is the second largest cryptocurrency on the market. In that case, Ethereum will have a bright future, thanks to its structure based on application development.
Learning how to buy Ethereum can create great investment opportunities . What are you waiting to do it?
Ethereum is considered, as the second largest cryptocurrency speaking of capitalization . ETH cost $ 1,431, with a market capitalization greater than $ 140 billion and today, its price is around $ 129.93.
Ethereum is full of possibilities. It can have the power to create new ideas , evolving all the time.
Recently, the United Nations announced that they would use Ethereum to distribute funds to refugees from the World Food Program. The use of blockchain eliminates intermediaries!
Also, with Ethereum , companies don’t need to be controlled by a single person or group.
Known as a decentralized application , next-generation developers are creating innovative applications with the ability to replace everything from businesses and services to governments.