If you invest in the world of cryptocurrency, Ethereum is a name you have probably heard of. It is currently the second largest cryptocurrency, behind Bitcoin. It is complex technology. However, there is the potential to maximise your return on investment if you do your research. If you are interested in buying and selling Ethereum, this short guide is here to lend a helping hand. Below – are three things all investors need to know about this digital currency. We cover what Ethereum is, where to buy Ethereum, and how it compares to the front runner, Bitcoin.
What Is Ethereum?
Ethereum is a blockchain-based platform best known for its cryptocurrency (ETH). The decentralised system is powered by the Ether token that allows users to trade cryptocurrencies, make transactions, and much more. The Ethereum network is a digital public ledger. Software stores and verifies financial agreements; intervention from a third party is unnecessary. You may be wondering, how does Ethereum work? It uses computing power to power the network. You may be surprised to know that Bitcoin inspired the introduction of Ethereum. Vitalik Buterin published an introductory whitepaper in 2014. He wanted to expand on Bitcoin’s blockchain technology by creating a platform that was decentralised and programmable. In 2015, that idea became a reality when the Ethereum blockchain was publicly launched.
Where To Buy Ethereum?
Now you know what ETH is, you may be wondering where to buy Ethereum from. Most investors will purchase this form of digital currency from a crypto exchange. There are plenty of these that exist. However, it pays to do your research. You should always purchase ETH from reputable sites. Failure to do so could put your investments at risk. By conducting a quick online search, you will find some of the most popular exchanges that investors use. There are also websites out there, like Paxful, that help you buy Ethereum at the best price. Their website compiles a list of the best offers, so you don’t have to go through the trouble of finding them. To buy Ethereum, you will need a cryptocurrency wallet. You can learn how to set one of these up by referring to an online tutorial.
How Does Ethereum Differ To Bitcoin?
What sets aside these two front-running cryptocurrencies? Bitcoin has held the number one spot for a while, but Ethereum is not long behind. The main difference is that Bitcoin is simply just a digital currency. Ethereum, on the other hand, is so much more. Many companies use this ledger technology daily. They use it to build new programmes. Although both cryptocurrencies operate on what is known as blockchain technology, Ethereum’s is a lot more vigorous. You can learn more about blockchain technology by referring to some online resources. The potential to build upon Ethereum’s blockchain technology is an exciting prospect for investors, which will certainly give Bitcoin a run for its money in the future. The potential this technology has to create a wide variety of unique innovations is something investors will not want to overlook. Watch out Bitcoin; Ethereum is coming to take that number one spot.