Ethereum is both a functional decentralized environment and a cryptocurrency that has been able to revolutionize the IT industry. The creators of Ethereum at the start of the system bet on Bitcoin standards, so the crypto is somewhat similar to it.
It is worth noting that the peak of cryptocurrency popularity in the market came from 2016 to 2017, just when Ethereum entered the market, which led to the creation of projects and startups, as well as attracted large investments.
Ethereum instantly took a leading position and in its popularity is in second place after Bitcoin.
The difference between Ethereum and Bitcoin
Despite the similarities in blockchain, Ethereum differs from Bitcoin in advanced functionality, and its platform is used for pseudo-anonymous transactions. Essentially, Ethereum is a full-fledged environment for working with a decentralized Dapps application using smart transactions.
Bitcoin is based on electronic payment transactions, and Ethereum specializes in smart contracts.
Compared to Bitcoin, Ethereum does not have serious flaws, and its payment potential is very popular due to the fast processing of information and transactions. As a rule, users do not have problems buying a currency. The main drawback of the crypto is its platform dependence, if the best option enters the market, the cost of tokens will decrease. But the economic situation in the country and the dollar exchange rate on the crypt does not affect.
Ethereum does not provide for emission, it depreciates the crypt, giving you thought about developing a new mechanism that burns tokens.
Consider all aspects of Ethereum.
- It supports almost all programming languages and complex algorithms, and smart contracts are used in any field.
- The platform remains open for updates, upgrades and improvements.
- All innovations and updates are announced in advance.
- The platform remains open to new developments.
- The currency remains centralized, regardless of an autonomous decentralized organization.
- The platform skips imperfect transactions.
- There is no clear documentation.
How to buy Ethereum
Since 2017, cryptocurrency has taken a leading position among other currencies, which gave it the opportunity to appear in exchangers and exchanges. There are several ways to get Ethereum:
- Buy currency on exchanges for fiat funds or cryptocurrency.
- In the exchanger.
- Mine yourself.
The simplest and most affordable are the first two options. To complete a transaction on the exchange, you need to carefully study the exchange rate of Ethereum and register on the exchange. Then replenish your trading account and place an order. After the transaction, the coins will be credited to the exchange account, from which they can be withdrawn to your cryptocurrency wallet.
When buying crypto in exchangers, you should take into account the transaction fee, as well as a less favorable rate than on the exchange. Despite their shortcomings, exchangers are very popular because of the simplicity and convenience.
Cryptomats are less popular, they do not support all types of currencies, so users have to make a double deal if there is no suitable currency and only then buy a crypt.
In order to mine Ethereum, investments are needed. Crypt is mined on farms working with GeForce and Radeon video cards, but after the platform switched to PoS, this method of obtaining currency became unprofitable. Today, most mining users use the HASHFLARE service, signing a 12-month contract with it for the price of 0.8 US dollars. For cloud mining, the platform uses equipment all over the world, but as practice shows, this method of obtaining crypto is long, so amateurs are engaged in it. But experienced users prefer to buy Ethereum on exchanges and exchangers.
The best option for obtaining Ethereum is the WELLCOINEX service, which allows you to purchase a crypto at a favorable rate with a minimum amount of commission. At the same time, the platform ensures transaction security and transaction speed. After the exchange, crypto instantly arrives at the wallet specified by the user.
Note that to store Ethereum, the user must open the crypto wallet. For this, the Ledger Nano S program is ideal, hacking of which is impossible. The uniqueness of this wallet is that it is similar in effect to a flash drive and does not connect to the Internet. After receiving the crypto, it can be sent to the Ledger Nano S by indicating the wallet number.
You can also use MyEtherWallet, the wallet does not need to be downloaded, it works online, but the private key needs to be stored on a computer device. As a rule, users can use a hardware, desktop, paper, mobile and web wallet to store cryptocurrencies, including Ethereum.
Is it worth investing in Ethereum in 2020?
Investing in Ethereum should be considered in the long run. The peak of its popularity is planned for 2019-2021. Today, one crypto can easily earn over $ 130, but in a couple of years its value can increase by more than three times. Judging by the experts’ forecast, in 2020 the price of Ethereum will increase to 300-600 US dollars, despite a sharp drop in the currency in 2018 to $ 80 Quandy Louis, the founder of the crypto makes optimistic forecasts for the Ethereum account, based on the rapid development of EEA, in which large organizations are constantly entering. Today it includes: “Santander”, “Sberbank”, “Intel”, “Morgan” and “Microsoft”. According to experts, the crypt can significantly increase by the end of 2020, reaching a value of 600-1000 US dollars. Therefore, by investing in crypto today, users in the future can get stunning profits.