Ethereum is a popular cryptocurrency and an alternative to Bitcoin.
Ethereum is a popular cryptocurrency and an alternative to Bitcoin.
Unlike its rival cryptocurrency, Ethereum has been adopted by several organizations and startups as a way to transact. Thus, more and more people are looking to invest in Ethereum.
Ethereum has both an industrial as well as intrinsic value.
With the ever growing popularity of Ethereum, a lot of people are inquisitive about what it actually is and how to invest in it.
Also, it is important to note the risks of investing, as well as the potential to mine it and generate your own wealth of Ether.
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What is Ethereum?
Ethereum is mainly a decentralized software that allows developers as well as programmers to run the code of any application.
Yes, that’s correct.
I know you must be confusing it with a cryptocurrency. Well, it has a monetary aspect – Ether.
You know, Bitcoin uses a technology called blockchain for conducting monetary transaction and it is a straight currency.
Ethereum too uses blockchain technology to allow the development of applications which can be protected from manipulation, executed in the cloud and much more.
For transactions, Ethereum uses a Ethere, which is the monetary value portion of Ethereum.
Owing to its unique abilities, Ethereum has caught the significant attention in the crypto industry, from finance, real estate, software developers, investors to hardware manufacturer and more.
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Investing in Ethereum (Ether)?
In case you are interested in investing in Ethereum, then you will need a digital wallet.
Ethereum doesn’t trade on any particular major stock platform. Thus, you can’t go to your online discount broker and buy Ethereum.
You have to convert your Ethereum (Ether) into your wallet.
It is recommended to use Coinbase as a digital wallet since it is incredibly easy to use, and allows users to invest in Bitcoin and Litecoin too. Not only this, they even give you a bonus for signing up.
It is important to bear in mind that Ether (ETH) is a digital currency, and need to be treated as such by investors.
You don’t really buy shares of Ether like you would stocks. Rather, you are exchanging your dollars for Ether tokens.
There are neither payouts nor dividends. Your only hope is that other people will pay you more for your tokens than you purchased them for.
In case you are not sure about using a cryptocurrency wallet, and willing to invest through an ETF, then you simply can’t do it.
However, there is a Bitcoin ETF – GBTC, that you can visit for as little as $5 on Stockpile.
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Final Thoughts
Investing in Ethereum may be a bit risky, but it could potentially be profitable. Different from Bitcoin or Litecoin, firms are really using Ethereum as a building block.
Yes, it’s a potential win for an investor.
Moreover, there can be splits on Ethereum similar to that of Bitcoin and Bitcoin Cash. This can be either a good thing or a bad one.
Individuals who invested in Bitcoin Cash are happy about the split since they made great money for no effort.
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