Ethereum is the second most eminent cryptocurrency in the market, right after bitcoin. That is because it can act as your money and be the store of value for you. But unlike most virtual currencies, it also refers to the decentralized computing network built on blockchain technology.
If you are thinking about investing in cryptocurrency like Ethereum, know about the intricate details first. From its essential features and returns to how it works, you need to know everything before investing. And do not forget to stay connected with the crypto news Singapore for the latest updates.
Vitalik Buterin is the programmer who invented Ethereum in 2013. However, the development started in 2014, and the network was live from 2015. It is more of a blockchain network along with another associated cryptocurrency called Ether.
You can think of Ethereum to be just like your smartphone as it offers a platform to the developers to create multiple applications. So while you buy and trade here, the developers can create apps to smooth the entire trading process. And these applications can be diverse, from lending to payment apps, just like your smart gadget.
How Does It Work?
Well, just like other cryptocurrencies, Ethereum, too, works on blockchain technology. It is a decentralized and distributed public ledger that stores and verifies all other transactions. Every individual participating in this network will have an identical copy of the ledger and easily track all their dealings.
Also, there is no centralized entity managing the entire network. Instead, the distributed ledger holders are responsible for managing these records. Blockchain transactions utilize cryptography for securing their network and verifying the following transactions.
The system’s heart works with the continual addition of blocks only when people confirm their transactions correctly. After that, every participant receives cryptocurrency tokens which are also known as Ether for the Ethereum system.
Like bitcoin, you can utilize these tokens to purchase and sell goods or services as per choice. And it’s a de-facto speculative investment as it offers you excellent returns due to its sudden rapid gains in recent years.
But the real USP of this type of crypto is that it allows you to build your personal applications. And these apps are great for storing personal data, transfer or handle complicated financial transactions.
Is There Any Difference Between Ethereum and Ether?
Ether is the digital currency that you can utilize in your financial transactions or as investments. However, Ethereum refers to the blockchain network on which you can use this digital currency for transactions. But the functionality of Ethereum doesn’t end here.
Apart from using digital currency, Ethereum also allows you to store and access data while running other decentralized apps. So you no longer have to struggle with the servers being controlled by Amazon or Google. Instead, you can get control over your data and use the other features without the need for any central authority.
One of the important use cases involving Ether and Ethereum is smart contracts or self-executing contracts. Like any other contract, both parties agree to deliver their services or goods for the future. However, in this case, you do not require any lawyers like the conventional contracts.
On Ethereum, both parties can code the contract without involving any third party. Once you meet the conditions of the agreement, it can self-execute itself and deliver the Ether to the appropriate involved party.
Ethereum Investment Benefits
The advantages of investing in Ethereum are:
Continues To Grow
One of the underlying reasons people are investing in Ethereum is that it continues to grow every day. It has been successfully establishing itself to be the second-highest cryptocurrency worldwide. Due to such growth, you can always expect better returns for your investments. Since 2016, the value of Ether has constantly been rising and is currently more than $3000.
Wide Range of Functionalities
Besides being the digital currency, it is also helpful for multiple sorts of financial transactions, storing data, and executing smart contracts.
The large community of developers is continually updating the network and release new updates along with other applications. Such updates are crucial for enabling millions of users to use the blockchain network and make investments hassle-free.
How Can You Buy Ethereum?
Firstly, understand that you cannot buy Ethereum. It is a misconception that many newbies have regarding the Ethereum network. You can purchase cryptocurrency coins, and in this case, it is the Ether. However, given the overall popularity of Ethereum, it is pretty easy to buy Ether:
Select The Crypto Exchange
The first step would require selecting the cryptocurrency exchange. Different platforms are available for both buying and selling different types of cryptocurrencies. To name a few, you can refer to Binance, Coinbase, and Kraken. But if you are interested in getting only Ether, you can try contacting an online brokerage too. Remember, you might have to pay some trading processing charges universally.
Once you select the platform, it is time to deposit cash in the platform, or you can link your bank account. It is essential to fund the purchases of Ether.
Once you successfully link the account for funding, you can use your money to purchase Ether. After you get the coins in your account, hold them or sell or even exchange them, depending on your financial decisions.
However, do remember you need to pay taxes when you make such transactions. Also, storing the Ether in your trading digital wallet possesses security risks. Therefore, securely store these coins in a cold wallet or transfer them to safe accounts to avoid fraud.
Please note that the prices of Ether fluctuate every day depending on the share market trends. Therefore, you need to follow the crypto news Singapore to know the prices correctly before purchasing any cryptocurrency.
If you need a reliable website to follow crypto updates, check Coins133.com. It is a reputed information-sharing portal that offers you quick, real-time updates about cryptocurrency and share trends. Check it now for the latest crypto news.