The Ultimate Guide to Buying Ethereum (ETH); All you need to know

Step 3 – Transfer your crypto to your secure wallet

No crypto is completely safe on an exchange or online wallet. Sending ETH to the selected offline wallet is an important and easy step that will protect your possessions.

Trading Ethereum through CFDs

CFD stands for Contracts for Difference. This means that you can open a trading position to speculate on the increase or decrease in an asset that you don’t necessarily own by taking a percentage of the price.

Plus500 (* 76.4% of retail CFD accounts lose money) offers trading Ethereum CFDs along with other cryptocurrencies. The broker has struggled to be regulated in many jurisdictions with the current ones being the UK Financial Conduct Authority, Cyprus Securities and Exchange Commission and Australian Securities and Investments Commission.

Opening an account through Plus500 is a simple process and all requires a minimum deposit of USD / EUR / GBP 100 to open an account.

Once you apply, you are ready to deposit your funds and start trading. You can explore on your own.

However, you cannot send your crypto from one forex exchange to another wallet; You can only withdraw on fiat.

Technologies supported by Ethereum

Ethereum Smart Contracts

A smart contract is a cryptographic computer protocol that, immutable and exactly as programmed, facilitates, monitors, verifies or enforces the execution of an agreement. This is achieved without the burden of expensive and inefficient third parties and without human error.

It has the potential to largely eliminate the need for lawyers, accountants, witnesses, banks, experts, governments or trustees.

With blockchain technology, Witnesses become honest nodes operating anonymously on the distributed network around the world, executing hard-coded consensus algorithms to ensure that all conditions for the execution of the agreement are met and for the contract to perform the expected results can.

When the technology was first introduced in 1994, Nick Szabo envisioned a way to create traceable and irreversible contract outcomes through the use of a computer protocol that would be superior to pen and paper contracts.

According to him, smart contracts would;

  • Facilitating the mutual monitoring of the performance of both parties under the contract,
  • Review the successful completion of a contract or any condition contained therein.
  • Ensure a selective distribution of contract details to ensure that only necessary information is passed on
  • be self-assertive and autonomous in order to minimize human intervention.

In 2009, Satoshi delivered the first successful use case for smart contracts with the development of the blockchain.

In doing so, he ensured the security of the results of smart contracts through the decentralized Byzantine Fault Tolerant (dBFT) algorithm, which is made possible by the distributed nature of the blockchain.

It made it possible to ensure the confidentiality, anonymity, observability, and enforceability of smart contracts like those that execute Bitcoin.

Soon Vitalik Buterin postulated that Ethereum would use the technology to get any company on the blockchain.

Decentralized applications of Ethereum (dApps)

dApps, as they are commonly known, are programs designed for “everything” Bitcoin has done for money. They are complex smart contracts or many smart contracts that work harmoniously.

We can therefore say that decentralized applications are computer software programs deployed on a blockchain to perform more complex tasks than smart contracts.

Dapps have self-incentive functions (i.e. have resident tokens that boost their operations) and run on distributed ledger technology. Anything but that is no Dapp. It’s just computer software.

What are Decentralized Autonomous Organizations or DAOs?

Referring to a DAO as a company can be confusing, although enticing. A DAO is simply a for-profit entity that exists on a distributed network, operates autonomously, and relies on hiring people to perform certain tasks that cannot be automated.

Consensus is reached by voting on who to hire, what to do, how to spend money, how to share profits, etc.

Ethereum members founded the first DAO with the bullish name in May 2016The DAO‘. However, it died a premature death due to a security breach in August of that year that robbed it of $ 50 million worth of Eth before the blockchain pushed hard to contain the theft.

This was the first indication that, for security reasons, the technology would not be deployed as easily as originally thought.

Ethereum vs. Bitcoin: How is Ethereum different from Bitcoin?

Bitcoin summary

While working hard to break the age-old kleptocracy that existed in the management of money, the pen name Satoshi Nakamoto had no illusions that he was on an explosive but necessary odyssey.

We paid no attention to him when he gave birth to the blockchain in January 2009.

He often pleaded with other cryptographers to participate in Bitcoin mining. In May 2010, Laszlo Hanyecz, one of the geeks, made the first purchase of a good with Bitcoin, and the era of cryptocurrencies began.

Since then, Bitcoin has gone through everything to set one of the most incredible growth records for any asset in trading history.

It has suffered employee desserts (including Satoshi himself), price dumping, and hard forks.

It has seen price hikes, has been targeted by all kinds of regulators, and fought criminal allegations, peaking at nearly $ 20,000 by December 2017.

And that’s huge when you consider that Bitcoin didn’t reach dollar parity until February 2011.

As the gold standard for cryptocurrencies, no altcoin coin has ever surpassed this in terms of market capitalization or unit price.

Ethereum and Bitcoin: Comparison of Blockchains

Looking at the two blockchain use cases, the niches are in stark contrast, and this is insightful in order to understand the different opportunities they offer to different interested parties.

A quick pairing of the two cryptocurrencies gives us a clear picture of the main differences, as shown below.

The main goal of Ethereum is to enable the creation of decentralized applications that reshape major global markets and make them accessible to the less humble distributed mainstream. It therefore enables other blockchains to be built on it.

Bitcoin seems primarily to solve the problem of expensive and slow money transfer worldwide. While Bitcoin chooses a decentralized ledger

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How can you spend / use ether?

Ether was primarily developed as a fuel that gives you access to the Ethereum blockchain. It may not become a mainstream currency, but it is a good bet for crypto speculators.

As the main gateway for most of the ERC20 tokens that make up most of the crypto coins, Eth is a great choice for the rising demand as we delve deeper into the age of decentralized applications, and it’s a good thing to get it at the right time have.

This means that Eth can be used for many applications related to gaming, entertainment, medicine, and a variety of other dApps.

ICOs and Ethereum

Because of the decentralized applications possible on its blockchain, Ethereum has enabled the start of online crowd sales for business ideas that scale to become profitable.

Ideas that yesterday’s banks and other traditional financial institutions would never have funded.

When such an idea goes public and a date for the crowd sale is announced, it is called an initial coin offering. Or an ICO that is playing with the mainstream IPO.

Final thoughts

Ethereum is easily the most comprehensive crypto that one can understand. It has a very sophisticated and well structured growth curve.

When the Casper algorithm is finally established, the blockchain promises very good growth prospects.

However, it must be said here and now that all investments in crypto are risky and none of the information in this article should be construed as solid financial advice.

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