The Beginner’s Guide to Ethereum
What is Ethereum?
Invented by Vitalik Buterin in 2013, Ethereum is a blockchain platform with smart contract functionality and cryptocurrency.
It is essentially a decentralized platform constructed for developers to build apps on. It is used to codify, secure, decentralize and trade just about anything: financial exchanges, domain names, voting, crowdfunding, company governance, contracts, agreements, and for intellectual property.
What is Ether?
Ether is the Ethereum platforms legal tender. Anyone that wants to build on or use the platform will require Ether to do so. Many people use the term Ethereum to refer to the currency alternatively, which can cause some confusion. Akin to Bitcoin, Ether has the ability to be traded or mined and is bought at any of the brokers found on our chart above.
Ethereum Vs. Bitcoin
Although Bitcoin and Ethereum are both Cryptocurrencies built on blockchain technology, they are different in a number of ways. These differences are each related to the refinement of the Ethereum protocol. Due to the way that Ethereum is mined, transactions happen to occur much faster than with Bitcoin. For instance, the typical “block” time for Ethereum is 12 seconds whereas with Bitcoin 10 minutes is needed. With Ethereum you can pay and clear transactions easily. Furthermore, Ethereum does not have the automatic restrictions placed on its supply growth in the same way that Bitcoin does.
How to Buy Ethereum
The easiest way to buy Ethereum is through Bitcoin exchanges that also offer Ethereum trading. So if you are asking yourself where to buy Ethereum, look for our top choices above.
The Benefits of Ethereum Decentralized Platform
Decentralized applications, of course, run on the blockchain, which benefits from all of its properties.
- Secure – There is no central point of failure, and it is secured using cryptography. All applications are strongly protected against hacking attacks and fraudulent activities.
- Immutability – Third parties do not have the ability to make any changes to the data.
- Corruption & tamper proof – Based on a network formed around the principle of consensus, these apps render censorship impossible.
- Zero downtime – Apps can not be switched off and will never go down.
Don’t Want to Buy Ethereum? Day Trade
For those interested in earning on the exchange rate, you should also invest in CFDs. The thought is that instead of buying Ethereum you can directly trade according to the exchange rate. Please keep in mind that CFDs are better suited to experienced traders and your capital is at risk.