Due to outstanding features and valuable practical applications such as quick online payment, low cost, no management by any organization or state, high liquidity, and digital nature, cryptocurrencies, most prominently Bitcoin and Ethereum, are becoming more and more popular.
Although it is a late-comer, Ethereum has thrived. Since the beginning of 2017, the price of Ethereum has increased nearly 40 times, from 8 USD to 300 USD. So what is Ethereum (ETH)? How to own Ethereum, and how much money is enough to invest in a fund for Ethereum? Find out via the article below.
What is Ethereum (ETH)?
Ethereum (ETH), also known as Bitcoin 2.0, is a blockchain distributed computing platform running through Smart Contract functionality. Ethereum virtual currency can perform transactions, peer-to-peer network contracts through the virtual currency unit Ether. Moreover, ETH is also considered a helpful application platform and creates its own distributed financial ecosystem.
Ethereum was introduced in late 2013 by a crypto programmer named Vitalik Buterin. With the idea of developing ETH to overcome the disadvantages that bitcoin encounters, such as slow confirmation times, and at the same time encouraging users not to mine individually, but to focus on mining through “mines”. Ethereum coins thrive to this day thanks to the fundraising around June to August 2014, and also during that time, the capitalization of Ethereum reached 25 million USD in the first sale.
The value of the Ethereum coin is determined entirely by the mining source from the miners. Like Bitcoin, the amount of Ethereum is finite; the more people want to own it, the higher its value will increase. The current version of Ethereum is Homestead which uses a proof-of-work algorithm. According to the developer, each new block created will take 15s – 17s, equivalent to 5 ETH.
Most notable, Ethereum is an open market, allowing users to buy and sell easily, exchanging in cash or bitcoin through exchanges or between groups, organizations, and individuals.
What is Smart Contract?
Smart Contract is a somewhat confusing term for people without technical knowledge. You can simply understand Smart Contract is a deterministic exchange mechanism controlled by digital means to execute transactions directly between entities without the parties’ trust.
For example, when you sign a contract for the sale of real estate, it is necessary to have a responsible 3rd party mediator such as the land department to avoid fraud cases and have trust. But with Smart Contract, we can eliminate the 3rd party intermediary and transact directly with each other without worrying about being scammed at all. These contracts are defined by programming and run exactly as intended without censorship.
How to buy Ether?
As far as I know, there are currently three ways for you to own Ethereum cryptocurrency:
You simply spend money to buy ETH coins on markets and exchanges. This is also the simplest and fastest way to get ETH. Remitano exchange is the most reputable, safe, and cheapest exchange now. I also often buy and sell Ethereum here.
This way is not for those new to Ethereum, and it requires you to have technical knowledge about computers. You will have to invest a few tens to several hundred million to buy ETH miners to solve complex algorithms to receive ETH rewards.
Where To Store Ethereum (ETH Coin)?
There are many options for you when it comes to storing ETH coins. Here are some wallets you can use to store Ethereum:
- Online Wallet: Blockchain Wallet, Coinbase, MyEtherWallet
- Cold wallet: Ledger Nano S wallet, Trezor
- Exchange wallets: Wallets on exchanges like Binance, Huobi, OKEx,…
The wallet I most often use is Blockchain or Coinbase, while cold wallets are safe but not very convenient. Exchange wallets are only used when you regularly trade with other coins (Trading), but if you keep it for a long time and leave it alone, you should use Blockchain or Coinbase wallets or cold wallets.
How To Sell Ethereum And Cash Out
Before starting to participate in Ethereum trading, investors need to create a Buyselleth account. Below is a detailed guide on how to sell Ethereum.
Step 1: Investors should click on the “Sell now” button in red. Like the purchase price of Ethereum coins, the selling price of Ethereum coins will also fluctuate according to the market.
Step 2: Investors who want to sell Ethereum coins will enter the amount they want to sell and Ethereum wallet address information.
Step 3: After confirming the buyer, the seller will transfer the Ethereum money to the buyer according to the Ethereum wallet address. After the successful transaction, the money will be transferred to your account.
So your Ethereum sale transaction has been successful.
Should You Invest In Ethereum In 2021?
Yes – in my opinion, it is still advisable to invest in Ethereum. Considering the overall cryptocurrency market, it is still a very potential place to invest in the future. Of course, price fluctuations can make you lose money, thú it is risky to invest in, and you have to take some time to get used to it. But this is also an opportunity for you to make a lot of money.
When deciding to invest in a certain coin, you must also have a choice and evaluation. Ethereum is the largest coin after Bitcoin. The price volatility is also less than other small coins. Moreover, Ethereum is a development platform for many different coins and tokens, not to mention businesses and brands worldwide using Ethereum’s Blockchain like Microsoft.
The Ethereum development team is also working non-stop to perfect the platform, which is also a good sign for you to believe in the future of the world’s second cryptocurrency.
Hopefully, the above article has brought the most useful information about the Ethereum coin for you. For me, Ethereum is still a potential investment in the future, especially when the ETH price is quite reasonable to participate in the market. However, Crypto is a risky investment field, but also full of opportunities to make money. Thus, you should invest with excess capital and be responsible for your investment.