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Thursday, May 6, 2021
Home Cryptocurrencies Simplifying Ethereum: A Quick Snapshot

Simplifying Ethereum: A Quick Snapshot

Introduction

In the past few years, the global Cryptocurrency ecosystem has seen exponential growth. Not only people have become more aware of the trading system, but they’ve also actively started investing in various kinds of cryptocurrencies. 

Most people have heard about Bitcoin, the most popular cryptocurrency. However, Ethereum is the second-best (and in some cases) the preferred Bitcoin alternative. Since the past few years, many companies have actively started using Ethereum as a way of transacting online. In this blog, we will discuss in detail this cryptocurrency and how you can buy Ethereum easily. In the latter part, we will discuss how different is this currency from that of Bitcoin:  

What is Ethereum Cryptocurrency?

Ether (ETH) is the currency that denotes Ethereum. Ethereum is the second-most popular cryptocurrency that runs on a blockchain and smart contracts. This blockchain is secured by a group of miners working together. It is proposed and developed by Vitalik Buterin in the year 2013. However, in 2015, the public network of Ethereum came into existence. Ethereum uses the same technology as Bitcoin. But it processes trade through a token system, which is known as Ether. 

Unlike Bitcoin and Litecoin, the two arch-nemeses, Ethereum has much higher industrial and intrinsic values. To trade in Ethereum, you must have a digital wallet. Further, you will need different centralized and decentralized exchanges. In the past couple of years, it has managed to create a lot of buzz around the investors. And this is mainly to the rise in valuation, popularity, and the increasing number of exchanges. 

There are various types of exchanges available on the internet. You can choose to trade on any of these exchanges to buy or sell Ethereum cryptocurrency. One of the biggest reasons why people are more interested in buying Ethereum is because of its affordability. As compared to Bitcoin, Ethereum is cheaper. 

The current price of Bitcoin is around $2,700 per unit whereas Ether stood at just $320. So, you can see there are many benefits of trading in Ethereum as compared to other cryptocurrencies. As per CointMarketCap, the total market cap of Ethereum has increased from $151.4 billion to $ 1,323 billion. 

How to Invest in Ethereum?

As mentioned above, you can buy Ethereum only through decentralized exchanges and wallets. You can choose to purchase a wallet as per your choice. 

There are basically four types of wallets available: 

  • Hard wallet to keep your cryptocurrency safe (offline)
  • Mobile application-based, access from anywhere in the world 
  • Web wallet for accessing and managing your account through a secure web browser
  • Desktop application if you want to manage your funds via a computer system or laptop 

So, the first prerequisite is to locate the nearby exchanges to see whether it is applicable in your region or not. After you’ve selected and completed the sign-up process for purchasing the Ether, you’re good to go. While trading in Ether, make sure you treat it as a currency and not shares or stocks. This is one of the major things you should keep in mind while dealing with this cryptocurrency. The next step is to approach the exchange for buying the Ether. 

As per your choice and the amount of risk you’re ready to take, you can choose to purchase the cryptocurrency. You can then withdraw the currency and transfer the amount to your bank account or wallet once the trading is done. It is as simple as that. 

Conclusion

Whether you’re investing in Ethereum for the first or tenth time, you’ll need to be careful about your decisions. Although investing in Ethereum is not risk-free, but it is worth your time and efforts. Today, companies and individuals are treating this cryptocurrency as a reliable one. And this is more than enough to make it one of the most trustable cryptocurrencies. However, not everything most people do can be safe all the time. At the end of the day, it is the internet we’re talking about. There are no regulations for such investments. So, you should take caution before proceeding further in buying or selling Ethereum or any Cryptocurrency for that matter.

Staff
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