Welcome to our guide to Ethereum trading. This is the second-largest crypto and we think that you might benefit from choosing to buy Ethereum rather than Bitcoin. Keep reading to see the key reasons why.
Ethereum was created to be the cryptocurrency that powers the Ethereum blockchain. While it was never supposed to be a rival for Bitcoin, many people choose to buy Ethereum as a result of its fast transaction times. So take a look below to see the best Ethereum trading practices for this fascinating cryptocurrency.
Ethereum trading actually has its origins on the Ethereum network. This was created in 2013 and it was supposed to offer a great new way to use blockchain technology in a way that was about so much more than money. While people buy Bitcoin as an alternative to using regular fiat currencies, the Ethereum network was pioneered to feature smart contract technology. This meant that the network could store computer code and be used for a variety of other applications.
The creators of Ethereum – Vitalik Buterin and Gavin Wood – were quick to create the network’s own currency, the Ether coin (ETH). This was created to power the transactions over the Ethereum network. The Ether coin proved to be a massive success when the Ethereum network was launched in 2015. As such it has often been viewed as being the best crypto to invest in behind Bitcoin.
It was never meant to be this way. The coins were simply meant to be the network currency, but Ethereum has proven to be successful outside of the network. While it continues to power the applications stored on the Ethereum network, it seems that more people are interested in Ethereum trading instead. Just so you know, the Ether coin is normally labelled as Ethereum on most crypto trading sites.
There is little doubting the fact that Bitcoin is the world’s most popular cryptocurrency. But Ethereum is actually the most-used blockchain currently available. The spin-off of this is that many more people are starting to buy Ethereum to power their transactions on the network.
The rise in value of Ethereum has meant that it’s started to become a tradable asset in its own right so that people can buy Ethereum just as they’d buy Litecoin or any other altcoin. All of which has meant that the value of Ethereum has risen to the point where it has become the second-largest crypto by market cap.
Such attention hasn’t all been for the good of Ethereum trading. This was seen when hackers stole $50 million of Ether coins from the Ethereum network in 2016. As a result, a decision was made to implement a fork so as to overcome the security breaches. This has introduced a range of new security features that include ‘proof of stake’ technology. All of which should encourage the growth of secure Ethereum trading.
The Ether coin was unleashed upon the Ethereum network in summer 2015. This saw over 70 million Ether coins being put into circulation. However, it’s important to note that there will be a limitless supply of Ethereum which puts it at odds with other cryptocurrencies and marks a big difference with Binance Coin trading.
The fact that there is a limitless supply of Ethereum hasn’t harmed the market cap of the crypto which stands at a very credible $208 billion as of February. Like most cryptos, Ethereum has its fair share of volatility. This has seen the price of Ethereum rise from an all-time high of $1,874.93 to sink down to as little as $81 – definitely something to factor in if you are considering whether to buy Ethereum.
Such volatility hasn’t put off too many people from trying some Ethereum trading. At the time of writing this guide there were over 1.22 million transactions in Ether coins in the previous 24-hour time period. Not bad for a coin that was only supposed to be used on the Ethereum application network.
Ethereum trading works in a pretty similar way to other cryptocurrencies. You could use it to buy XRP or any other crypto so as to benefit from the fluctuations on the market. Or you could hang onto your Ether coins as more of a long-term investment strategy.
While you might want to try Ethereum trading for buying anything from fiat currencies to commodities, it’s important to note that these coins are still fundamentally used on the Ethereum network. This is because the coins are the only way that you’ll be able to pay for the transaction fees that occur here.
Ether coins are also the currency that’s generated by miners as they add blocks to the Ethereum blockchain. They are part of the proof of work system used to encourage the miners to process each transaction and maintain the growth of the Ethereum network. By picking up these Ether coins, a miner can simply use them to trade with other cryptocurrencies, buy online goods and services, or send it directly to another Ethereum account.
All of the above transactions will be verified on the Ethereum blockchain. The fact that each transaction is independently verified means that users might experience relatively high transaction fees. These could rise up to an average fee price of $9 which is more than you might experience were you to buy Bitcoin Cash.
While the Ethereum network has many positives, the fact that it can be endlessly customised has meant that it has proven to be liable to security breaches. Nowhere was this better seen than in 2016 when a $55 million hack almost brought the entire network down. Thankfully Ethereum’s efforts to implement a fork and introduce a range of extra security features has meant that it is viewed to be a safe option for anybody looking to get started in cryptocurrency trading.
You don’t need to be a dedicated miner on the Ethereum network to get your Ether coins. We’ve found that it’s actually pretty simple to benefit from the skyrocketing value of this top cryptocurrency. Take a look below and see just how simple it is to get started with your Ethereum trading.
As Ethereum is the planet’s second most popular crypto, it almost goes without saying that these coins will feature at all good cryptocurrency trading sites. But don’t make the mistake of signing up to the first crypto trading website that you come across. This is because there can be a fair amount of variation in how these sites work in regards to things like transaction fees and so on. Plus we should note that there are a handful of trading sites that operate without any kind of regulation and therefore won’t provide you with much in the way of customer protection. As a result, we’ve made sure that we carry our in-depth Ethereum trading reviews. Just read these reviews to see exactly how each crypto trading website operates. The perfect way to see whether the trading site is right for your needs.
Once you’ve picked your trading site, you’ll just need to create an account. This is usually a fairly stress-free process as you merely have to supply your email address and then come up with a secure password. After you have done this, you will just need to get your account verified. This will require you to supply a few more personal details. Expect to have to provide evidence of things like your home address and date of birth. Once you’ve submitted this, it shouldn’t take long for the trading site to authorise your details so that you can start trading.
You’ll need to make a deposit to start trading at the crypto trading website. This can usually be done through a regular fiat currency from a card or bank transfer, or direct from your cryptocurrency wallet. Be sure to find a crypto trading site that accepts Indian rupees as this will help you to keep those currency conversion fees to a minimum.
Finally you’ll just need to head to the site’s main trading page and take a look at all of the statistics that show you how Ethereum has been trading. Expect to see up to date figures on important facts like market cap, price movement in the past 24 hours and so on. Once you know when to strike, you should be able to click on a Trade button, decide how many Ether coins you want to buy and find them swiftly being added to your wallet.
The majority of Ethereum predictions suggest that this crypto is going to continue its rapid rate of growth. The fact that the value of Ether coins have grown by well over 1,000% since their initial unveiling has meant that this is yet another crypto success story.
We’re expecting to see the Ethereum price to continue to show a fair amount of volatility in the coming months. This is the nature of most cryptocurrencies and it’s worth noting that the price of Ether coins fluctuated by as much as $100 in the 24-hour period preceding this review.
In fact, in the last month, Ethereum has once again broken its all-time record high. At the time of writing this Ethereum review in February 2021, Ether coins had a value of $1,807.78. It’s fairly obvious that it’s just a matter of time before Ethereum breaks more records in its trading value.
[Reputation and customer feedback – Are there any Ethereum trading scams?]
Ethereum has struggled to shake off the bad press that it received as a result of that massive hack in 2016. After all, this nearly brought down the whole network, and it’s little surprise to find that many people may choose other ways to buy crypto online than Ethereum.
Such security concerns were increased when Ethereum had to introduce two further forks in the crypto after this initial hack. While such forks might have dented the appeal of Ethereum, it at least shows that the network founders are determined to tackle such security breaches head-on. We should note that Ethereum still suffers less in the way of scams compared to what you’d experience as a Bitcoin user.
The fact that Ethereum is the world’s biggest blockchain network should give you all the reasons that you need to invest in Ether. After all, this is the only way that people can pay the transaction fees on the network. So as long as the Ethereum network continues to flourish, then we can expect to see that value of Ethereum coins continuing to soar.
Like most cryptocurrencies, the value of Ether coins has shown some rapid drops as well as some sustained highs. This volatility is something that you should definitely consider before you opt to buy Ethereum, and we should note that we are not regulated to offer financial investment advice.
Plus we should note that Ethereum has suffered far more large-scale security setbacks when compared to most other cryptos. While Ethereum has managed to overcome these hacks with increased security protocols, it’s yet another reminder that no cryptocurrency is going to be 100% secure.
Despite these concerns, it’s fairly obvious that Ethereum remains the only credible alternative to Bitcoin for many people looking to get into cryptocurrencies. After all, Ethereum coins have grown in value by over 1,000% since they first came on the scene. All of which could provide you with plenty of reason to buy Ethereum coins.