Should you buy Ethereum right now?
Nowadays, more folks are figuring out if they should buy Ethereum or not. The world is excited about the potential of blockchain, particularly cryptocurrency. You’ll see more people on social media helping each other as new investors. You might have heard of Ethereum, so now you’re reading our guide!
First, we’ll cover the basics of Ethereum, such as its uses and features. We’ll show the pros and cons of Ethereum and the most significant crypto, Bitcoin. Then, we’ll tell you about what’s in store for this crypto in the future. Last but not least, we’ll teach you how to start investing in Ethers properly!
Many people see the promising benefits of blockchain for the future. Although, most people only pay attention to its application as cryptocurrency. That’s why you’ll see more buyers and sellers popping up on the internet. As you learn more about Ethereum, you’ll discover that blockchain links to possibilities beyond finance.
What is Ethereum?
Before you buy Ethereum, it’s essential to know all about it. First, know that you want to purchase Ethers, not Ethereum!
Ethereum’s a shorter term for the Ethereum blockchain. It provides Ethers as its form of crypto coins. Still, it’s called Ethereum (ETH) in cryptocurrency exchanges.
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It launched in 2015, and it’s made to replace the existing financial system. It will put decentralized finance (DeFi) to take its place.
The current system runs on old processes controlled by a select few. DeFi gives control of money back to the people. It lets us join global markets and replace fiat currencies.
You need to buy Ethereum to use DeFi. It uses smart contracts for its transactions instead of the big banks. These follow each transaction’s conditions, and no third party can change them.
What’s more, the smart contract is in a public ledger. People can check if they’re legit or not. This lets them build a community based on trust.
Uses of Ethereum
When you buy Ethereum, you don’t just purchase for better gains in the long run. The Ethereum network offers far more than that. The biggest ones are dapps and NFTs.
Also known as decentralized applications, dapps work like regular apps. Though the power of Ethereum sets them apart, making them faster and safer.
People are paying more attention to non-fungible tokens (NFTs), though. Many believe it is the future for various types of media.
Large corporations often look over our computer programs. Some help you buy Ethereum too! Dapps use Ethereum to bring power back to people on the internet.
Blockchain is always up, making sure these programs don’t get downtime. It’s open-source, so everyone can help make it better.
Though, Dapps still have some problems. It’s hard to use many of them. Those with a small number of users have weak security.
Non-fungible tokens are trending on the internet after Beeple sold one at around $70 billion. This got people asking about how to get rich from just one piece of digital art!
Even better, NFTs offer more possibilities for music and literature. Some companies have launched their NFT platforms to help artists earn more.
It could apply to video games as well. People could buy Ethereum then use it to get in-game items. Enjin is one of the companies that help add NFTs for games.
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Ethereum vs. Bitcoin
Bitcoin may just be the mother of all cryptos. It’s the first one, so many altcoins based their tech on it. It’s also the most expensive and most popular one.
Nowadays, we have more coins to choose from instead. Lots of them are better than Bitcoin in some ways.
Ethereum is one of the many cryptocurrencies that came after Bitcoin. They both use blockchain, but they’re for different purposes.
There’s more to buying Ethereum as an investment! Bitcoins serve as a decentralized store of value. Ethereum provides innovative contract applications like the ones we’ve mentioned.
Both of them rely on other users to check each transaction. This is called mining, and it’s another way to earn with cryptos.
Bitcoin miners use proof-of-work when confirming transactions. Ethereum miners use proof-of-stake, and they use less energy than Bitcoin miners. Ethereum miners will soon use proof-of-stake, a method that’s more affordable and eco-friendly than mining.
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Future of Ethereum
Most people buy Ethereum and other coins for a chance to earn big. Others look to the blockchain, seeing how it might change the world.
Aya Miyaguchi, the Ethereum Foundation executive, wants to use blockchain to make people’s lives better. Her group helped UNICEF get donations via cryptocurrencies.
What’s more, Ethereum 2.0 will soon launch this year. Its first part went live on December 1, 2020. The second upgrade may come around 2021. The second upgrade may come in late 2021 or early 2022.
The former is called the beacon chain. It’s a network separate from the ETH blockchain. More importantly, it uses proof-of-stake instead of proof-of-work.
Unlike bitcoin mining, this uses less energy and computing power. In other words, you won’t need a powerful PC. Instead, you just need to deposit 32 Ethers.
Once you do, you’ll become an ETH validator. If you don’t have that many Ethers, you can stake fewer coins in other services. For example, RocketPool lets you start with just 17.6 ETH.
As we said, the beacon chain is still separate from the Ethereum mainnet. This means most ETH holders won’t see these features yet. That will come once “The Merge” happens.
Expect it to come out in late 2021 or next year. This upgrade is the reason why we advised against ETH mining this year. You might not get the utmost use of your mining gear if you start now.
We may see another ETH 2.0 upgrade in 2022. It’s called Shard Chain. The upgrade uses sharding to improve Ethereum further. Even better, it will lower the hardware requirements too.
Ethereum and the other cryptos always try to improve. In a few years, they could bring even more great things. If you buy Ethereum, you’ll come along its path to the future!
Ethereum’s future is now!
You don’t have to wait that long to see new upgrades. On August 5, 2021, 11:55 (UTC), the Ethereum blockchain will transition to the London Hard Fork.
This will introduce EIP-1559, a proposal to burn a base fee for transactions. This will decrease Ethereum’s circulating supply. Also, it will let users give tips to reward speedier confirmations.
This event may result in the creation of another token. In response, cryptocurrency exchanges have released advisories for their users.
For example, Binance will suspend ETH deposits around that time. If you’re using other exchanges, check those for more information.
This hard fork will introduce other proposals like EIP-3541. More importantly, this is another step towards Ethereum 2.0. Ether holders can expect great things soon!
Should you invest in Ethereum?
Purchasing Ethereum is more than just checking the price today. If you want to profit from buying ETH, you need to learn all you can.
Check all the available info on the internet. Besides Ethereum prices, you’ll find more on the Ethereum website. See if your investment dreams match their crypto goals.
Learn the benefits and risks before buying Ethereum. Don’t jump into the hype train! Read articles from other sites to find the cryptocurrencies you should buy.
You can choose from thousands of cryptos, not just Bitcoin and Ethereum. Learn about Bitcoin Cash, Kraken, and other altcoins that might fit you better.
Crypto prices go up and down often. Don’t be surprised if your coins dip in value a second after buying! Prepare to lose money in any investment, even in cryptos.
Ethereum and other digital assets are growing more popular. More stores accept Bitcoin as a payment method. More folks are excited about the future of Ethereum.
If you want to buy Ethereum, visit an online crypto trading platform. Binance, Coinmama, Gemini, Coinbase, and even PayPal can help you buy and sell.
They let you connect your debit card or credit card from Mastercard or Visa. You could bank transfer in USD, EUR, and other currencies.
If you’re serious about buying Ethereum, get hardware wallets. Check out the best Ethereum wallets online. These are small in size but significant in protection!
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