Ethereum has turned into a popular cryptocurrency alternative to Bitcoin over the last year. However, as opposed to Bitcoin and rival foreign currency Litecoin, Ethereum has been used by many companies and online companies as a way to transact (and more). Even if someone wants to invest in Ethereum, the first question arise in his mind is how to invest in ethereum?
In the cryptocurrency battles, I like to view Ethereum such as the diamond of the currencies — it has both an inbuilt value and a commercial value. Compare this to Bitcoin, which operates like gold – not much commercial value, but people purchase it and sell it depending on its intrinsic value towards the holder. Here is a graph if you want to compare the rate of Ethereum to Bitcoin over last 6 months.
Given the recognition of Ethereum, many individuals are curious about what it actually is, just how it’s different than Bitcoin, as well as how to invest in ethereum. It’s also important to notice the risks of investing, as well as the potential to mine this and create your personal wealth of Ether (the actual monetary unit of Ethereum).
Before we jump in, it’s important to note that to check out, use, and invest in Ethereum, you need a digital wallet. We recommend Coinbase mainly because it’s free, has a great app, and they give you a reward for depositing $100. Take a look.
What Is Ethereum?
Ethereum is basically software that can be decentralized and allows programmers and programmers to run the code of any program. Wait, what? I thought Ethereum was money… well they have a monetary aspect.
The thing is, Bitcoin uses a technology known as blockchain specifically for conducting the financial transaction – it’s a straight currency. Ethereum uses blockchain technology to allow the creation of applications that may be executed in the cloud, can be protected from manipulation, and much more (some stuff obtaining too technical for me here). However, a bi-product of the is that Ethereum utilizes a token called Ether, which usually is like Bitcoin, to work. This is the monetary value portion of Ethereum.
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Because of its unique skills, Ethereum has attracted all kinds of attention – from financing to real estate, to traders, software developers, hardware producers, and more.
How Is Ethereum Different From Bitcoin – Ethereum vs Bitcoin
Even as we mentioned above, Bitcoin was designed to become a currency. It uses the same underlying technology principles, yet uses them to facilitate financial transactions.
Ethereum, on the other hand, was created to facilitate software control using a token system known as Ether. That Ether is becoming more valuable as a result of people becoming interested in the technology. That Ether is what people want to invest in.
However, there are a great number of apps being developed upon Ethereum, and even some main financial companies are getting involved in the space. It could be interesting to find out what develops from this within the next few years.
Finally, Ethereum is a lot cheaper than Bitcoin. Bitcoin currently trades for over $2, 600 per unit, whilst Ether trades at just $318.
How to invest in Ethereum (Ether)
If you’re thinking about investing in Ethereum, and particularly Ether, you need a digital pocket. Ethereum doesn’t trade upon any major stock system. You can go to your online discount broker and buy Ethereum. You have to convert it into your wallet.
If you want to invest in ethereum, we all recommend using Coinbase being a digital wallet because really incredibly easy to use, allows you to spend money on Bitcoin and Litecoin too, and they will give you a bonus pertaining to signing up. If you sign up with this link you’ll get a $10 in Bitcoin reward if you deposit $100.
You need to remember that Ether (ETH) is usually a currency, and should become treated as such by traders. You don’t buy stocks of Ether like you might stocks or ETFs. Rather, you are exchanging your hard earned dollars for Ether tokens. You will find no dividends, no pay-out odds. Your only hope is usually that in the future, other people around the Internet will pay you even more for your tokens than you bought them for.