Pros of Ethereum
- Second biggest cryptocurrency by market cap
- Ether transactions take just seconds to complete
- Decentralised tamper-proof blockchain technology
- Supply of ETC not capped like other cryptos
Cons of Ethereum
- Massive $50 million Ethereum hack in 2016
History – How Ethereum trading got started
Ethereum was first dreamt up by a young Russian-Canadian called Vitalik Buterin in 2013. He saw the potential of the blockchain technology used by Bitcoin to be much more than about money. Instead, Buterin and his colleague Gavin Wood got to work in making Ethereum into a fully decentralised open-source blockchain that included smart contract technology.
The Ethereum network went live in 2015 and it quickly proved to be successful in showing that blockchain technology could be about so much more than Bitcoin trading. This is because the network could be used to store computer code that would have a range of other applications.
In order to power these applications and smart contracts, Ethereum devised its own network currency – the Ether (ETC). This wasn’t created in a bid to provide competition for the likes of Bitcoin. But Ether has gradually become one of the world’s leading cryptocurrencies by market cap.
Recent times have seen a variety of different kinds of Ethereum trading. Some people would make payments with Ether, or use it as a store of value like they would with Binance Coin trading. So while this crypto was pioneered to simply power the applications on the Ethereum network, it has grown to become something much larger than that.
Development – Ethereum prices skyrocket
While Bitcoin still captures the headlines of mainstream media, Ethereum has quietly grown to become the most actively used blockchain in the world. This has gone hand in hand with the many people who buy Ethereum cryptos to help Ether become the second-largest cryptocurrency by market cap.
There were 72 million pre-mined Ether coins released when the Ethereum network went live in July 2015. Since then the Ethereum Virtual Machine has become renowned for the decentralised nature of how it runs applications for finance and a range of other activities
However, the Ethereum brand had to significantly upgrade its blockchain technology following a devastating hacking attempt that stole $50 million in Ether in 2016. This saw Ethereum hard forking its blockchain to reverse the theft.
From here the brand has introduced a number of important upgrades such as Ethereum 2.0. This introduced a variety of new measures such as sharding and ‘proof of stake’ to ensure that Ethereum trading could carry on as normal.
Statistics & Major Facts – Why Ethereum trading is so different
So one of the major reasons why so many people want to buy Ethereum is because there is a limitless supply of this crypto. As of January 2021, the total supply of Ether was over 114 million.
While the market cap of Ether is dwarfed by that of Bitcoin, it still stands at a very credible $147 billion. This shows that Ethereum trading vastly outranks the likes of XRP trading by a significant degree.
Like most cryptocurrencies, Ether has a fair amount of volatility with its current rate standing at 1.56. But with an average daily transaction count in excess of 1.2 million, it shows that Ether still represents one of the most popular ways to buy crypto online.
All of the above is remarkable because Ether was never devised to be an alternative monetary system like Bitcoin. Instead, it was hoped to be a digital currency that powered the Ethereum decentralised application network. All of which shows that Ethereum trading can have some surprisingly positive effects.
Security, Features, Use Cases – Why people do more than just buy Ethereum
There are many ways that you can use the Ether cryptocurrency. Many people will buy Ethereum from trading sites and then either hold onto it as its value grows, or trade it for other cryptos, currencies or assets.
But many of these Ether coins have stayed within the Ethereum network. This is because Ether is the currency generated by the Ethereum protocol to incentivise miners to add blocks to the blockchain. As such, the Ether tokens have become part of a proof of work system, and as it stands the crypto is the only way that transaction fees can be paid for within the network.
All of this encourages miners to continue processing all new transactions which in turn keeps the Ethereum blockchain growing. Once a miner has an Ether coin, they can send it to any other ETH account or trade it just as they would enjoy some Bitcoin Cash trading.
The fact that each instance of Ethereum trading takes place on the blockchain means that it is secure by design. All of the transactions will be recorded and verified. Unfortunately, this might come at the cost of some relatively high transaction fees. Just to let you know, the average transaction fee for Ether was over $9 at the time of writing this crypto review. This is a fair amount higher than that which you’d get with some other cryptocurrencies.
Some people have noted that as Ethereum offers a much higher level of customisation when compared to other blockchains, it might be more susceptible to security breaches.
The most visible example of this came in the hacking attack of 2016. But Ethereum was quick to fight back with a fast decision to fork the network and reverse the hack. While this measure proved effective, the hack has remained in the minds of many people who are considering whether they should buy Ethereum.
How To Trade – Getting started with your Ethereum trading
By now you should realise that many people have found Ether to be a great trading option. But what’s the best way of buying and selling this cryptocurrency? Take a look below at our step-by-step guide. This will show you just how easy it is to jump aboard the Ether trading bandwagon:
Find your perfect Ethereum trading site
As Ether is one of the world’s most popular cryptos, it should be pretty easy to find a trading site that lets you buy and sell this cryptocurrency. While this is true, it never hurts to do a bit of homework before you sign up to a new crypto trading site. This is certainly true as there are a handful of rogue trading sites out there who might not give you a fair deal. Thankfully, we’ve given you an easy way to find the best Ethereum trading sites. This is because we’ve been hard at work in reviewing all of the top crypto trading sites in the UK. Each of these trading sites have been checked to make sure that they are regulated by the FCA. Plus we’re pretty sure that they’ll have low fees so that you get to keep more of each Ether trade you make.
Create your crypto trading account
Once you have found an Ether trading site that you like the look of, you will need to register an account. This is usually a fairly painless experience as you’ll be able to sign up with little more than an email address. From here you will also have to create your own unique username, and come up with an easy-to-remember but secure password. After you’ve done all of this you can submit your application.
Verify your trading details
All decent ether trading sites will be quick to ask you to verify your account. They do this to make sure that you enjoy a safe and legal crypto trading environment. To verify your account, you’ll normally have to provide some personal identification that proves your name, address, date of birth and telephone number.
Research your Ether trades
After you have verified your account, you’ll finally be able to start Ether trading. You’ll have to make a deposit first either with a cryptocurrency or a fiat currency. Remember that all good crypto trading sites will give you a range of tools by which you can make an informed trading decision. This allows you to see anything from the all-time high of Ether to its net change over the past 24 hours. You should also be able to see a graph detailing recent price rises. All of which can help you make a shrewd Ether trade.
Buy your Ether tokens
Once you’ve done your research about your Ether trades, you can simply click on the Buy button. This will normally bring up a screen that asks about the quantity of Ether you want to buy. Don’t forget that you may also be able to trade your Ether for other cryptocurrencies so that you can enjoy Litecoin trading and much more.
Future Outlook – Our Ethereum price prediction
Ether has maintained its current position as the second-largest crypto by market cap for some time now. This is a testament to the durability of the cryptocurrency and there’s no sign that the popularity of Ether is going to slow down.
In the past year, the value of Ether has skyrocketed. From a low of less than $200 in the early part of the year, Ether’s price has rapidly grown to reach over $1,400 less than ten months later.
At the time of writing this Ethereum guide, the all-time high of Ether stands at $1,476. While this is up over 1,000% on its initial valuation, there are plenty of signs to suggest that Ether is just getting started.
By being the currency of use on the world’s most actively used blockchain, Ether has made itself an essential part of many people’s lives. All of which means that our Ethereum prediction is going to be very positive.
Reputation and Customer Feedback – Are there any Ethereum trading scams?
Ethereum suffered a devastating hack in 2016. This saw an unknown hacker stealing $150 million in DAO tokens. These tokens were produced by an organisation to fund a crowdsale for a series of smart contracts on the Ethereum platform.
This hack led Ethereum to split its network into two separate blockchains. The current Ethereum network continued with the theft reversed, but Ethereum Classic kept the blockchain showing the theft from the hack.
What’s remarkable is that Ethereum has had to introduce a ‘hard fork’ on two further occasions to counter other hacking attempts. While this caused plenty of consternation among crypto users, it showed that Ethereum can adequately adapt its technology to deal with such attacks.
Overall Conclusion – Key points of our Ethereum trading reviews
There are many reasons why you’d want to buy the Ethereum cryptocurrency. The key reason is that Ether is the currency on the Ethereum network which is the most actively used blockchain in the world.
This has meant that the value of Ether has grown in correspondence. Barring the inevitable moment of volatility, Ether has shown an impressive rise in value of 1,000% since the initial public sale way back in 2015.
All of this is particularly impressive as Ethereum suffered a big setback with a notorious hacking case in 2016. But such is the belief in the technology that Ethereum has bounced back and Ether remains the second biggest crypto by market cap.
It’s a remarkable journey for a cryptocurrency that was never meant to provide serious competition for the likes of Bitcoin. But as it stands, there are plenty of decent reasons why you should buy Ethereum cryptocurrencies. Just remember that crypto trading is volatile and we are not regulated to offer financial investment advice.