What is Ethereum? How to buy ETH? Beginner’s Guide in 2024
If you are an investor in the cryptocurrency market in 2024, one of the most important questions you should know the answer to is: What is Ethereum?
This currency is one of the most important cryptocurrencies on the scene for several reasons. It is also the second largest currency on the market after Bitcoin in terms of market capitalization.
So let’s learn more about ETH and how to buy it.
What is Ethereum?
Answering the question: What is Ethereum? It lies in your understanding of the Ethereum ecosystem and network.
Ether, also known as Ethereum, is the currency of the famous Ethereum blockchain network.
This is considered the second largest network after the Bitcoin network in terms of popularity.
This network is distinguished by the fact that it supports what is known as smart contracts. This network can be used to build and develop smart contracts and thus launch various decentralized applications, whether for playing, trading, conducting financial transfers, etc.
Ether is the currency used on the network to confirm various operations and also to secure the network.
The network relies on the stake staking mechanism after having relied on the proof-of-work mechanism for a long time.
Almost the most famous network in the world currently is this network due to its breadth and size. The network ecosystem is so huge that it has so many different applications. Everyone is always developing and programming on the Ethereum network.
The interest of major investors in this network increased after it turned into a staking mechanism.
This is because it has become possible to obtain passive income by staking on the network to secure it.
Here lies the importance of this network in preserving the privacy of users and also ensuring security from various online hacks.
The difference between Bitcoin and Ethereum
When answering the question: What is Ethereum? You should also be fully aware of the difference between Ethereum and Bitcoin.
The Bitcoin network is primarily intended for performing various financial transactions and sending Bitcoin from one person to another.
As for the Ethereum network, this is not its primary goal. This is the biggest difference between the two currencies.
Ethereum’s primary purpose is to build, develop, and secure the network ecosystem. The more new applications are built on the network and the greater the demand for using these applications, the greater the value of Ethereum.
As for Bitcoin, the more currency miners and money transfers there are the greater its value.
This means that there is a radical difference in the value of each network. Therefore, it does not make sense to compare the two networks to each other.
However, it is important to know that Bitcoin and Ethereum are currently the two most secure digital assets in the crypto market.
Due to the huge daily trading volume of Bitcoin and Ethereum and their high market value, their price is not subject to significant fluctuation like other cryptocurrencies.
Consequently, these currencies received great attention from the giants of the American economy on Wall Street, for example, and others.
This is why it is currently considered a haven away from fiat currency.
Is investing in ETH good?
Usually, who asks what is Ethereum? He is asking for investing in it. Therefore, it is natural to wonder whether investing in the currency is good or not.
This is up to the investor, his goals, and his capital. We have previously talked about portfolio diversification and its importance in the world of cryptocurrencies.
Therefore, Ethereum is one of the best candidates in the market due to the magnitude of the project and investors’ confidence in the network.
But the large market value also means that it is difficult to achieve huge gains. Most of the expectations for Ethereum in the upcoming bull market do not exceed $10,000 per coin, i.e. an increase of approximately 6 times over the current price.
Therefore, this increase may not be satisfactory to many investors in the cryptocurrency market.
This is because they are looking for the crazy increases that occurred in the 2021 bull market.
Here we must recognize the importance of capital. If the amount you have is huge, you can make good profits from Ethereum currency.
But if the amount is low, investing in the currency may not be appropriate.
How to buy Ethereum?
If you want to invest in Ethereum, you will need to purchase the currency. Here you can do this very easily through centralized or decentralized platforms.
Buy ETH on a centralized or decentralized platform
Through centralized platforms, the best platforms are Binance, Coinbase, and OKX.
On these platforms, you will need to create an account and then go through KYC procedures after depositing funds and purchasing, and we will talk in later articles in detail about this point.
The other way is through decentralized platforms such as UniSwap.
Here you will need a hot wallet to interact with the platform, buy the currency, and then pay the gas fees. This method is characterized by confidentiality and privacy.
But first, make sure that buying Ethereum is legal or at least not a criminal act in your country.
Buy Ethereum with a credit card
You can also buy Ethereum with a credit card, but through a central exchange or on a wallet such as MetaMask. This method will require you to do KYC first before using it.
Where to keep ETH?
You can hold Ethereum on a central exchange through wallets provided by the exchanges.
But in this way, you may lose your coins if the platform falls or is stolen, so this method is not always recommended.
Alternatives are to transfer the currency to a hot or cold wallet. In both cases, you must keep the keys and passwords of the wallet.
This is because if you lose these words, you will lose the right to access the wallet forever, and thus you will lose your coins. Be very careful if you save coins in a private wallet.
Also, if you leave currencies on a hot wallet, always check the websites that allow them to interact with this wallet. Because it is very possible to lose your coins as a result of a security breach or theft.
Can ETH be sold easily?
The most important challenge that investors always face is the ease of selling the investment asset and converting it into liquidity or money.
Many investment assets constantly increase in value, but it is very difficult to convert them into liquidity or sell them.
Fortunately, many cryptocurrencies are very easy to sell and convert to cash.
Ethereum in particular is considered one of the most accessible currencies, due to the availability of sufficient liquidity on many central and decentralized platforms to sell the currency very easily.
You can sell the currency directly on a central platform and convert it into USDT, or it can be sold into fiat currencies such as dollars or euros.
The most important thing is to make sure that the time you are selling the currency is a good time to sell. Here the rule is to sell after you see many successive green candles, especially over long time frames, whether weekly or monthly.
The future of Ethereum and whether is it worth investing in?
Answering the question: What is Ethereum? It always leads to one ending.
Ethereum is undoubtedly one of the most important currencies on the scene currently, and many American economic giants are betting on its success.
This is due to the increasing growth of the Ethereum network over the past years and the increase in the number of wallets and interactions with different applications on the network.
This is very important, as this is what increases the value of the network.
Therefore, this project may grow exponentially in the coming years.
We must not forget the importance of the price of Altcoins also being linked to the price of Ethereum.
Altcoins’ prices explode after the price of Ethereum increases like crazy.
Therefore, we always say that Ethereum should be on the list of any investor in the crypto market due to its importance.
If you do not plan to invest in it, at least follow the currency price and always monitor it due to its impact on the rest of the market.
