We understand whether it is worth buying Ethereum, where to buy it and how to use it
What is Ethereum?
Ether, Ethereum, Ethereum or ETH is the largest altcoin that runs on its own blockchain. In 2022, the Ethereum blockchain is also considered the alma mater of applications in DeFi.
Ether is the second most capitalized cryptocurrency in the world after Bitcoin. By August 2022, the capitalization of the coin is $193 billion. The token itself is traded in the region of $2,000.
Where to buy Ethereum?
Let’s see where you can buy Ethereum. If you decide to buy this cryptocurrency and then sell it or exchange it for any other, including the fiat currencies we are used to, you can easily do it on the Currency.com trading platform.
If you buy ethereum through Currency.com, you can store the currency directly on our exchange without worrying about your wallet. It’s ultra-high security with two-factor authentication.
But if you want to store a large amount of Ethereum for a long time, it is worth getting your own wallet. Cryptocurrency wallets are a bit like online banking services and are protected by a private key, a code that acts like your password and prevents others from accessing your account.
Perhaps the safest way to store Ethereum is through hardware wallets. Another completely safe way is to have a cold wallet. That is, they do not have constant access to the Internet, which significantly reduces the risk of hacking.
In addition to the exchange, you can also buy ether:
through an exchange
directly from the owner of the cryptocurrency via P2P;
using a bank card;
when exchanging stablecoins.
These and other methods will be discussed in more detail below.
How to buy ethereum: instructions
Ethereum works just like any standard cryptocurrency. They can pay for purchases in the world of cryptocurrencies, and in some countries in the traditional world.
The value of the altcoin has been rising since its launch in 2015, when its price was just 40 cents. Now, in August 2022, Ethereum is trading at about $2,000. And if you had invested only $100 in ETH back then, now you would have earned more than $400,000 by selling it.
Ethereum can be bought for dollars, euros, rubles and other fiat currencies, bitcoins, stablecoins, etc. Choose an exchange / exchanger with suitable trading pairs.
If you decide to invest in Ethereum, go through these five steps to get started:
Determine the level of risk. We never tire of reminding you that the cryptocurrency market is highly volatile, so all transactions here are risky. The cost of cryptocurrencies largely depends on the current news and the opinions of trendsetters: whether it is a mining ban in China or another tweet by Elon Musk. Always consider the rate of price change in this market, and do not invest more than you are willing to lose;
Choose a crypto exchange. Crypto assets are not traded on traditional exchanges – there are special platforms for them. With the development of the industry, more and more sellers appear, but it is better to entrust your funds to trusted companies such as Currency.com. To start trading Ethereum on the exchange, you need to register and pass data verification;
Top up your account. You can buy ether on Currency.com for dollars, euros, bitcoins or Tether (USDT). You can replenish your account with a card or bank transfer;
Buy ether. Another nice advantage of decentralized finance is the ability to trade on any day and time of the day. There are no holidays or “working hours”. To buy ether, click the appropriate button in your account and enter the number of coins you want to purchase. You do not have to buy the whole coin, you can take only a part;
Keep the ether. If you plan to constantly trade cryptocurrency and play on the difference in price, then leave the required amount of assets on the exchange’s hot wallet. If you want to store cryptocurrency for a long time and not perform any operations with it, it is safer to transfer it to a cold wallet.
How to buy ethereum through the exchange
Buying ETH through an exchange is one of the easiest and most convenient options. To do this, you just need to register on the selected site and replenish your account.
On the Currency.com marketplace, you can trade at any time and buy only a fraction of Ether. You can withdraw funds after verifying your account.
Advantages of buying ether through the exchange:
ease of use;
the risk of stumbling upon scammers is very low, as the security service of the exchange checks questionable profiles.
the opportunity to stumble upon the mirror of the exchange, behind which there are scammers. Therefore, be sure to check the trading platform before you start replenishing your account;
possible increased commissions when withdrawing funds.
How to buy ethereum through an exchange
Another way to buy cryptocurrency is through a P2P exchange. Here you directly buy cryptocurrency from its holder, that is, without an intermediary in the form of an exchange.
you can find a price for a cryptocurrency lower than on exchanges.
high risk of stumbling upon scammers and losing all savings;
A P2P exchange stores data about its users, which can fall into the hands of hackers when hacked.
Should I buy Ethereum?
Ether is the largest altcoin and the main competitor of bitcoin. Since the launch, the cryptocurrency has been growing, although, of course, it cannot do without corrections.
In addition, Ethereum is popular due to its blockchain, which powers many other coins. However, it is worth noting that with the development of the crypto industry, more and more cheaper and more technologically advanced companies appear. The “ether killers” include, for example, Solana and Polkadot.
Another optimistic growth factor for Ethereum could be its full transition to PoS. The community has been waiting for this event for several years. Switching from PoW will help process transactions faster, which can later be reflected favorably in the price. The Merge update is scheduled for the end of September 2022.
We can say that ether is a promising investment. However, do not forget that the crypto market is very volatile, and a “black swan” can appear at any moment. Therefore, just like before buying any other cryptocurrency, do your own research on the asset.
Ethereum vs. Bitcoin?
As you probably know, bitcoin uses blockchain technology to create a peer-to-peer monetary system that allows people to pay for purchases online at a lower cost than traditional fiat currencies. In the same way, we can use ethereum: the most popular altcoin can be used to pay for purchases and services.
However, the essential difference between the Ethereum cryptocurrency and most of its cryptocurrency competitors is that Ethereum is not a stand-alone coin, but an entire ecosystem for hosting applications on the blockchain. Simply put, if bitcoin is a payment method and an investment asset, then Ethereum is an application store where developers can publish their programs for consumers and companies.
Ethereum developers believe that there are too few applications in the world, and all of them are consolidated in the stores of a small number of monopoly companies, such as Amazon, Microsoft and Google. But the developers of this coin wanted to create their own version of the Internet, where large companies do not have such power.
Therefore, they decided to enable users around the world to develop decentralized applications using the Ethereum blockchain. In their opinion, if you store data in thousands of different places, then the level of security will increase, and there will be less fakes. In addition, it will also be cheaper for developers.
Smart contracts and applications
Agree, the idea of creating such an app store sounds innovative and exciting, but the developers are in no hurry to popularize Ethereum. The fact is that the network has a problem with the scalability of the blockchain: no one knows whether it will cope with the influx of users.
However, there are already popular applications on the Ethereum network that are based on the blockchain and are called dApps. Among them is MLB Crypto Baseball, an app that sells baseball souvenirs through an online store.
There is also a blockchain game called Cryptokitties where players buy virtual cats and then breed them and sell them to other users. Most dApps are related to finance (for example, there are several exchanges on the platform) or retail.
All this became possible thanks to the so-called smart contracts. In essence, such smart contracts are pieces of code that perform a specific action when a set of criteria are met. Such contracts work without third parties – for example, notaries or lawyers. If all parts of the agreement are met, the contract is automatically executed. In theory, such agreements are the way to reduce paperwork and transparency.
To ensure the decentralized operation of the Ethereum blockchain and provide developers with the ability to pay for hosting their applications, the team developed the Ethereum cryptocurrency. When you create an application, you must pay blockchain creators a share of the cryptocurrency to host your program.
Ethereum coins, as in the case of bitcoin, are created through mining. With the advent of the new Ethereum 2.0 protocol, the platform will move from the Proof-of-Work process to Proof-of-Stake
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.