Pros of Ethereum
- Decentralised platform with versatile functionality
- Tracks crypto ownership and promotes extensive app design
- Inflation of ether decreases year-on-year
- Possible to raise independent funds for development on Ethereum
Cons of Ethereum
- Processing speeds of transactions are still relatively slow
History – A brief history of Ethereum trading
The actual platform, Ethereum trading, was designed and developed by a man called Vitalik Buterin. In 2014, in an effort to fund the development of Ethereum, a campaign was introduced whereby individuals had the option to buy Ethereum (Ether). Fast Forward a couple of years and the best Ethereum trading sites have a raft of developers improving the platform on a constant basis.
Ethereum trading sites and the primary Ethereum open-source site hopes to become the go-to platform for all use cases – particularly for all use blockchain cases where there is no dedicated operating system.
Today, it is possible to buy Ethereum and a range of cryptocurrencies, as well as trade more than just crypto. In essence, this is what the vision of Ethereum has always been – having the possibility to buy crypto online and improve blockchain capabilities to include a wide selection of trading products other than just digital money.
There is much to write home about when it comes to Ethereum trading reviews and the platform has left the infancy stage. With much interest and a strong contingent of developers and users, our Etheruem trading reviews are eager to see what the future holds for Ethereum trading and the respective currency, Ether. It is certainly one of the best cryptocurrency to invest in at the moment.
Development – What was Ethereum designed for?
Ether, the digital currency on Ethereum trading, was designed as a transactional token. Ether allows users to buy crypto online but also facilitates operations and transactions on smart contracts and applications (commonly known as ‘dapps’ on the Ethereum trading site).
One of the initial purposes of Ether, one that still presides today, is that the currency (token) represents a form of payment for those who complete requested tasks on the network. Apps that require higher computing power will need more Ether in order to run properly.
One important element of Ether, as it stands now, is that it is not possible to buy crypto online with Ether. However, it is possible to exchange a host of cryptocurrencies for Ether. The Ethereum platform is more focused on ‘fuelling’ growth and innovation. Something that has been achieved rather successfully.
It isn’t to say that Ethereum trading scams haven’t taken place. The platform has experienced issues regarding safety and was even hacked and lost tens of millions of dollars worth Ether. This prompted the Ethereum trading site to improve overall site security and ensure a more resolute platform. This has led many to voice a positive Ethereum prediction for future growth and development.
Statistics & Major Facts – All you need to know before you buy Ethereum
When it comes to Ethereum prices, supply, and all the technical characteristics of this cryptocurrency, our Ethereum trading reviews have you covered. The growth and consolidation of people who buy Ethereum has meant that Ethereum trading scams have been put on the backburner.
When it comes to a maximum supply of Ether, Ethereum never instituted a max cap on the supply of their cryptocurrency. However, there is an annual issuance limit which is set at 18 million. At the time of writing, Ethereum still does not have a supply cap. Proponents of a max cap point to the fact that inflation might come into play. With no cap in sight, the supply of Ethereum increases year on year. The current supply of Ethereum is nestled well beyond the 100million mark. At the time of writing, the supply of Ethereum has hit 114.43million.
The proof type that Ethereum uses is the same as Bitcoin – namely proof-of-work (POW). This consensus protocol allows the nodes within the Ethereum network to agree on all recorded information and highlights the ability of the network to mitigate potential attacks.
Security, Features, Use Cases – Is Ethereum secure?
To understand the current use cases that Ethereum possesses, you’ll want to know what a ‘smart contract’ is. Smart contracts are simply programs that run on the Ethereum blockchain. Each contract is seen as an account and has a balance which can be transferred across the network. Users do not own smart contracts but can interact with these programs so as to receive or set off a function.
Smart contracts have many possible use cases. On the Ethereum blockchain, these smart contracts are capable of improving a variety of services. From increased efficiency within the financial sector, to replace middlemen (escrow) and reduce transaction costs, to improve data security and protect individuals from third-party entities.
From a financial standpoint, Ethereum is able to facilitate much faster payments and improve data collection and exchange. This is particularly helpful when cross-border payments and data flows must take place. Many financial entities have incorporated Ethereum blockchain technology so as to improve transparency and increase the effective flow of information and financials.
Escrow services can result in delayed transfers, faulty management, untransparent practices, as well as higher costs for all individuals involved. Although Ethereum blockchain is not quite there yet, a possible use case would be for Ethereum to act as the middleman whereby a smart contract can facilitate all engagements and transactions with much more ease and at a lower cost.
Wirth Dapps on offer that are supremely secure and external to any one company, Ethereum blockchain is a prime example of how best to store personal details and information. Online data theft is a massive issue and many succumb to it every year. With Ethereum, online protection of individuals is far more stringent
The security of Ethereum blockchain has always been a question many wish to quantify. With the flexibility of smart contracts, there is always a certain trade-off between security and versatility. However, as Ethereum is set to adopt proof-of-stake mining, time will tell as to what the state of security on Ethereum will be.
How To Trade – Tips on how to buy Ethereum
In terms of trading the cryptocurrency, it is important to remember that the actual currency is known as Ether. You won’t be trading ‘Ethereum”. To buy Ethereum (Ether), you can follow this step-by-step guide as it will provide you with the much-needed know-how in order to buy Ethereum and sell it, too. Once you have the basic principles down, you can buy Ethereum and trade it as you see fit.
In order to buy Ethereum, you’ll need to make use of an online exchange. You’ll find that our featured online trading sites, for the most part (if not all), allow you to buy and sell Ethereum. However, certain brokers only allow trading in crypto CFDs. Thus, you’ll want to find a dedicated crypto exchange which makes buying and selling Ether easy. Using a peer-to-peer exchange will enable you to directly purchase an amount of Ether from someone who is wanting to sell Ether. You can buy Ethereum by sending cash to the seller or make use of payment options such as PayPal. If you happen to be a novice crypto trader, peer-to-peer exchanges can be daunting. Thus, you can always make use of an online broker or exchange that provides a more traditional trading environment.
For our purposes, we recommend you use an online broker exchange such as Kraken or Binance. Here, it is possible to make use of standard online broker transactions in order to buy and sell Ether. You’ll have to pay a commission but can also utilise a range of tools and informative resources. Keep in mind that these platforms are still seen as exchanges and focus on crypto trades as a whole. Exchanges allow you to purchase the asset outright.
Traditional trading platform
If you wish to buy Ethereum CFDs, then you can use any online trading platform that is not seen as a crypto exchange. For the most part, a platform like XTB will enable you to speculate in the prices of Ether as opposed to buying the asset. Speculating in the price of a cryptocurrency such as Ether can yield high returns. However, the flip side to trading in CFDs is that you expose yourself to a lot of risk. As you are only fronting a percentage of the total price, you may well lose more than you deposited in the first place.
For starters, we recommend you decide on whether you want to buy Ether outright or trade in CFD cryptos before you embark on your crypto trading venture.
Once you buy Ethereum, you’ll have a cryptocurrency that has a number of utilities, internal to the Ethereum platform, and from an external point of view. Ether can be used as a payment method. However, it is also used to store value and it is used to reward individuals (miners) who work on the Ethereum platform and ensure that all functions and transactions are processed. Lastly, it can also be used in order to “stake”. Read on to find out more about future staking opportunities. If you’re interested in finding out how to trade alternative coins, take a look at our guide on how to buy bitcoin cash or how to buy ripple.
Future Outlook – What is the future of Ethereum trading?
In December, the Ethereum platform made the much-awaited switch over to Ethereum 2.0. This was met with much anticipation and it put the price of Ether on an upward trajectory. As Ethereum 2.0 holds a lot of promise for what is to come in the future, crypto traders have continued to show interest in the coin.
Decentralised finance (DeFi) has always been at the heart of Ethereum and is set to grow further as interest is spurred in the ability to partake in investments separate from a centralized power. With the new Ethereum 2.0 network, scalability has gone through the roof. As many of the DeFi apps run on the Ethereum platform, growth and adoption will take place within mainstream markets. This is an exciting prospect for those who prefer to use a decentralized financial system as well as what it means for Ethereum. We’re also convinced of an upward trend when it comes to Ethereum price prediction, so we suggest you keep a close eye on future developments.
Reputation and Customer Feedback – Good reviews from crypto traders
When it comes to customer feedback, the best Ethereum trading sites have enjoyed notably good reviews from users and the general public. The Ethereum community continues to expand and this has created a versatile and supportive network of developers and users. It’s relatively easy to learn.
As the tide continues to turn in favour of decentralised networks and individual control of finances without financial institutions at play, the Ethereum network has plenty of room to branch out. Whether you want to buy Ethereum or use the network to act as a facilitator of a variety of use cases, customers seem to find this network conducive to all facets and needs.
Conclusion – One of the best-known cryptocurrencies in the world
Ethereum has set out to achieve a dynamic network that facilitates a wide number of decentralised transactions without any authority meddling in the activities of said individuals. Not only does Ethereum allow users to exchange cryptocurrencies and make payments, there are a number of real-world applications that Ethereum is set to establish and expand on.
The keen interest that has been shown in this technology is underpinned by its ability to revolutionise how transactions are processed and carried out. It is our belief that Ethereum will continue to grow and as the network continues to develop, scalable and lasting global adoption and use will be inevitable. For coverage on other cryptos, find out how to buy Binance coin or get started with Litecoin trading.