Within the cryptocurrency market, every time we have a greater number of digital currencies with which to carry out our operations. Bitcoin is the cryptocurrency par excellence, however, we must also highlight the presence of Ethereum in this market.
Ethereum is the second virtual currency in terms of popularity, since it has been climbing positions to become a cryptocurrency widely used by users, among other things, because it presents good value in the market.
Because Bitcoin has been saturated on some occasions due to the multiple transactions that are made with this cryptocurrency, today we present Ethereum, a very complete digital currency, easy to use and with which we can obtain a large number of benefits.
For this reason, in the following text, we tell you everything you need to know if you want to carry out operations with Ethereum in an appropriate manner.
- 1 What is Ethereum?
- 2 How to buy Ethereum
- 3 How to invest in Ethereum?
- 4 Ethereum wallets
- 5 Where to store Ethereum?
- 6 Ethereum mining
- 7 Conclusions
What is Ethereum?
Surely if you have been working with cryptocurrencies for a while you ever wondered what Ethereum is exactly, because we are used to hear about Bitcoin and the truth is that the digital currency market is much wider of what we can think. At the moment we start analyzing Ethereum, we must have two concepts clear.
On the one hand, Ethereum refers to a cryptocurrency with which we can carry out operations, although the currency is also known as Ether and, on the other hand, Ethereum gives its name to the cryptocurrency system, which allows us to perform all the actions that we want with her.
When has Ethereum born?
The Ethereum project was started in 2013 by Vitalik Buterin, although it was not until a year later that it began to take shape and gain more popularity. Specifically, in 2014 Ethereum already had a large number of users who used their services to operate and in addition, transactions with this cryptocurrency were also increasing.
In spite of this, Bitcoin is still the majority digital currency, but Ethereum has already slipped into the second position in the ranking.
Initially, its founder had in mind to send a cryptocurrency to the market that would serve as a complement to Bitcoin, but step by step he realized that the primitive cryptocurrency system had certain shortcomings, especially in aspects related to the speed of execution of operations or security measures.
It is true that Bitcoin’s blockchain system is quite safe, but Buterin created its own Ethereum blockchain, endowing both the system and the digital currency itself with exclusive features.
Besides all this, we also have to say that Ethereum is one of the few virtual currencies that is broken down into 6 smaller values. In this case, each value corresponds to 1,000 times what would be the next unit, so the scale would be in Finney, Szabo, Shannon, Babbage, Lovelice and Wei.
In any case, all of them are still present in a decentralized market, since cryptocurrencies are not regulated by any public entity, so the value they take will always depend on the law of supply and demand imposed by users.
Ethereum Virtual Machine (EVM)
Likewise, Ethereum also corresponds to a system of its own with which we can carry out operations. It is a very special machine known as Ethereum Virtual Machine (EVM), which has the ability to create exclusive codes, called Bytecode, which are responsible for developing the famous smart contracts.
These are a specific feature presented by Ethereum, since smart contracts have been created from a programming language with a very high level and also have an open source. Smart contracts are used to carry out numerous actions, such as voting systems or digital currency exchanges, which is precisely what interests us.
To create these contracts and be able to operate with Ethereum, the system presents us with a totally independent and innovative platform, which offers us multiple tools to perform all the movements that we need. In this sense, it should be noted that this platform is based on 4 basic pillars, such as having a static content, it also has dynamic messages, it gives users a lot of confidence and, in addition, it presents an integrated and quite functional software.
Thanks to all this, if we decide to work with Ethereum we must know that the system uses a tree-like structure to make it easier for users to carry out operations. This structure favors the creation of many more transactions in a shorter time, which makes it easier for us to have more blocks quickly.
How to buy Ethereum
After knowing a bit more about this cryptocurrency, we asked ourselves how to buy Ethereum and the reality is that we have realized that there are many ways to buy this digital currency.
Logically, we have to say that most of the routes we have found are also available for Bitcoin, but we have more and more opportunities to acquire Ethereum in a fast and safe way, since this cryptocurrency has become very popular and is being very used by users.
Let’s see what are all of these avenues to which we are referring.
First of all, if we are willing to buy Ethereum, the first thing we have to say is that in the network, there are multiple specialized platforms that provide us with these services. These are known as exchanges that, as we know, are places of exchange where we can carry out these actions with cryptocurrencies.
But in addition, many of them also allow us to buy these digital currencies, adding the amount we want to acquire to the system and making the payment in it. The usual in these cases is that the platforms oblige us to register in the support and from there, we can perform the appropriate operations.
Without a doubt, buying Ethereum online is one of the most common practices among users, since we have a large number of media that offer us all kinds of services to carry out these actions. Among the many exchanges that we have found that allow us to do all this, one of the most popular is Coinbase.
We are used to being able to withdraw money from any ATM, well, now we can also buy Ethereum through them.
We do not have as many available as those who work with fiduciary currencies, but it is true that every time we have a greater number of them distributed by different countries of the world, which will allow us to acquire our cryptocurrencies if we make the corresponding payment.
The first cryptocurrency ATMs that were launched were destined for Bitcoins, but now, we have many of them that offer us the possibility of obtaining Ethereum quickly and easily.
Another way we have available to buy Ethereum is the physical stores. These are specialized establishments where we can carry out purchase operations, always bearing in mind that in order to carry them out, we must present the corresponding documentation.
In this sense, we must fill out a form with our personal data, as well as demonstrate that we have a purse to store our cryptocurrencies. Once we have carried out these steps, we can buy Ethereum, as long as we pay for the amount that corresponds.
Every time there are more physical stores spread around the world and with them, it happens just like with the ATMs, which started to be very popular because they allowed us to operate with Bitcoins and now, they have included other cryptocurrencies to expand the range of possibilities, being the second most important digital currency Ethereum.
Among the many possibilities that we have found to be able to buy Ethereum, we must name other sites that are available and that are very useful to perform these actions. We are referring, for example, to Cex.io, which is a Bitcoin exchange site that has added the Ethereum purchase service, provided that the payment is made through our bank card.
On the other hand, we also have Coinhouse, a company that works within the scope of the European Union and that is a broker that specializes in the purchase and sale of Bitcoin and Ethereum.
Also, we can not forget to comment that to buy this cryptocurrency, we can make the payment in different ways, either with the credit card, also through a bank transfer or we can even make use of cash, as well as some online payment programs, such as PayPal.
How to invest in Ethereum?
It is evident that Ethereum has become a very popular cryptocurrency and for this reason we have multiple ways to buy this digital currency. But in addition to the purchase process, it is important that we know how we can invest in Ethereum since, as we have mentioned, it can be a good investment alternative and with which we can obtain a large number of benefits.
What we should be clear is that, before making any movement with this cryptocurrency, we will have to make a virtual wallet that allows us to store them, but this will not be very complicated, so our operations will become a real success if we carry out the appropriate steps.
Taking into account that Ethereum is a very complete cryptocurrency, let’s see what two ways we have available to be able to make our investments.
1. Ethereum exchanges
As we know, exchanges play a very important role when working with cryptocurrencies, since they are the places that we have available to carry out the corresponding exchanges. In this sense, we also have to say that through the services provided by the exchanges, we will have the opportunity to invest in Ethereum, since we will have enough tools to do so.
In this case, in order to carry out these actions, we must register properly in the exchange, that is, fill in the typical form where we enter our personal data and all the information requested, and then the system will send a message to our email to verify our identity and the corresponding account.
Once all this is done, we can start investing in Ethereum with the exchange we have chosen, bearing in mind that it will be the support itself that determines the price of the transaction, so it is recommended that we inform ourselves properly when it is necessary. the best time to invest or the position that the cryptocurrency has in the market.
2. Contract for difference (CFDs)
Contracts for difference (CFDs) are usually very advantageous because they allow us to bet on any asset without having to physically acquire them. In this case, it is usual for these contracts to be available in markets such as stocks or commodities, however, now we can also invest in them using cryptocurrencies.
Among the many digital currencies we have available, Ethereum is among the main ones, which is why users have opted to use this option to make their investments.
One of the biggest advantages that we have if we choose Contracts for difference, is that we will be able to enjoy a good financial leverage and also, it is one of the fastest and simplest systems, so the benefits can come in any moment.
All the operations that we carry out with the CFDs will be executed almost instantaneously and allow us to include several types of orders such as the case of Stop-loss or Take-profit.
Among the ways we have available to invest in Ethereum, we have to make a final mention to the brokers. These financial supports offer us all kinds of services to carry out our investments and, for some time now, they have included exclusive tools so that we have the opportunity to operate with cryptocurrencies.
The brokers are the supports that allow us to operate through the Contracts for difference that we have explained previously, but also have very complete services that offer us the possibility of operating directly in this market.
With which, they are very beneficial systems for us, since they provide us with many facilities and also, with which we can obtain a large number of profits.
Whenever we want to work with cryptocurrencies, we are going to need an Ethereum wallet, since these wallets are what allow us to store all the digital currencies that we have accumulated.
In this case, we have to say that the first virtual portfolios that were launched to the market, were destined to be able to work with Bitcoin, but step by step other exclusive Bitcoin wallets have been added or, failing that, they have also included the Ethereum as a cryptocurrency with which to operate.
Today, there are many wallets that offer us very complete services to perform these movements, but we have decided to present those wallets that have the best tools, without forgetting that each of them has its own address and also with a QR code, we must use whenever we are going to perform any type of operation through them.
Coinbase: for Bitcoins as well as for Ethereum and other popular cryptocurrencies, Coinbase is one of the best wallets that we can find in the market. It is an online wallet with which we can carry out all the operations that we need directly from the network.
It was created in 2012 in the United States and since then, offers these services to users and has been adding a greater number of cryptocurrencies to its list. In addition to being able to store digital currency, Coinbase also allows us to buy and sell cryptocurrencies, so it is a fairly complete support in this regard.
Among the many advantages that we can highlight Coinbase, undoubtedly, one of the most significant is that we can carry out a cold storage process, so we will have our funds safe and we will not be exposed to great risks.
MyEtherWallet: one of the exclusive wallets of Ethereum is MyEthereWallet, since it was created solely to be able to work with this cryptocurrency. As with Coinbase, this wallet is also online, so we can operate from the network.
The truth is that MyEtherWallet only offers us the storage service, although it has some suitable tools so that we can operate with Ethereum without any kind of problem.
But we must emphasize that, although we do not have the possibility of carrying out other operations with MyEtherWallet, the wallet is compatible with a large number of systems to acquire these cryptocurrencies, for this reason, it works with Changelly or Shapeshift, among others.
Exodus: it is one of the most popular wallets that exists today in the cryptocurrency market, among other things, because it offers good services and excellent tools so that we can enjoy all the advantages of a desktop wallet.
In this case, to work with it, we must download the application that will be installed quickly on our PC. The only requirement is that our computer must have a specific operating system, which can be Windows, Mac or Linux.
Exodus allows us to operate with a large number of cryptocurrencies, among which is Ethereum and also, we can also carry out exchanges, provided they are between digital currencies, since it does not allow to do the same with fiduciary coins.
Another of the things that we must emphasize of Exodus, is that it makes the backup copies that are necessary.
Jaxx: The great peculiarity of Jaxx’s wallet is that it can be used both for desk and mobile phone and also allows us to carry out operations with a large number of cryptocurrencies. In this matter, we must emphasize that this wallet is very used because it offers us the possibility of storage outside the network, so we will have our funds well stored.
Of course, it is not advisable to use this type of wallet if we are going to work with very high amounts of cryptocurrencies, which exceed 200 euros, approximately.
Trezor: the last wallet we are going to refer to is Trezor, since it is one of the best wallets we can use if we need a physical element. It is a kind of USB where we can store our cryptocurrencies and the best thing of all is that it connects quickly to our computer to be able to carry out all the operations that we need.
In this case, Trezor only offers us the storage service, so we will not be able to buy or sell cryptocurrencies with this wallet, but it is one of the safest, so it is advisable to use it if we are going to operate with large quantities of Ethereum , that exceed 2,000 euros.
Where to store Ethereum?
Logically, the wallets are the best supports that we have available to store cryptocurrencies, since they are elements that are destined for this and have exclusive tools that will be very useful to perform these operations.
However, although most of us use the Ethereum wallets for it, we must also say that there are other elements, which allow us to store digital currency without any problem, although they are less common.
Do you want to know what they are?
Although we have already talked about the wallets, in this case, we have to refer to a special wallet, the blockchain. We say this because, initially, this portfolio was only available for Bitcoins, but in recent months, has included the possibility of doing the same with Ethereum, so we have one more possibility of storage.
It is one of the safest purses there is, since it is based on this system, but it must also be said that it has a great reputation in the market, since it has been in operation for many years and is also very easy to use.
The best thing is that it allows us to perform all the operations that we need directly from the main support panel and also has a system that is 100% in many languages, so we will be able to understand it much better.
On the cloud
Another option that we can use to store Ethereum is in the cloud. As we know, it is a virtual platform located in the network where we can perform the operations we need. In this case, we must highlight iExec, which is a network of suppliers that creates a virtual structure, in order to perform all the actions that we need at any time.
Although cloud storage is fast and convenient, we must bear in mind that it is not the safest, since there are many more risks in the network than in other storage media.
To finish our guide, let’s briefly review what Ethereum mining is. It is about the mining process of this cryptocurrency, something fundamental that we must know, since the miners are the devices that are responsible for creating the chain of blocks and verify transactions.
In this sense, to be able to perform mining with Ethereum:
- Must have a good computer which has an adequate CPU to be able to perform these movements
- It is necessary to have a good quality and also large storage capacity RAM
- we must provide the PC with an adequate GPU, which is a graphics card that allows deciphering the codes in a much simpler way
To start the mining process, you have to install the corresponding software and then choose the pool that suits us best. When we talk about pool, we are referring to mining pools, where many miners are grouped to perform a greater number of operations in the shortest possible time.
The easiest method to start is to use the MinerGate program, which has its own mining software and can be used with both CPU and GPU. On the other hand, in case we are more expert miners, then the ideal is to use Ethminer or the popular Genoil software.
The usual thing is that most users carry out the process of mining through the computer, although there are those who prefer to do it through the cloud.
In short, after having carefully analyzed Ethereum, there is no doubt that it is a very good cryptocurrency so that we can carry out our operations. Among other things, we must emphasize that it has its own system and also offers us excellent security measures to operate with the best guarantees.
Ethereum is the second cryptocurrency with the highest value in the market, for this reason, it has become very popular among users and usually reports multiple benefits. If you are looking for a cryptocurrency with great possibilities, we can see that Ethereum becomes a support that has great hopes for the future.
It is a good option for all types of people and investors, given that it is growing and has a great capacity to go far. The next time we look for a cryptocurrency with which to start working smoothly and in a solid way, we would not do badly to think about Ethereum in view of everything that has been achieved so far.