Ethereum Review
Overall Rating
★ 4.6/5
Ethereum Key Features
 Founded | 2014 |
 Rating | 4.6 |
 Website | www.ethereum.org |
 Seller | Ethereum Project |
 HQ Location | N/A |
| Coinbase Wallet, Hyperledger Fabric, Waves, Clause for DocuSign, Solana, Velas, Algorand, CertiK, Chainlink Labs, ConsenSys Diligence |
COMPARISONSPros
- Secure cryptocurrency platform
- Ethereum is the best secure blockchain-based secure cryptocurrency platform. It helps to develop secure transparent crypto currency solutions for our customers.
Cons
- N/A
Ethereum Details/Product Description
Ethereum is a platform and a programming language that makes it possible for any developer to build and publish next-generation decentralized applications.
Next to Bitcoin, Ethereum is the second largest cryptocurrency in the world – measured by market capitalization. Trading with ETH has experienced a real boom in recent years. In this article, we will show you how to get started in Ethereum trading in a step-by-step guide. We explain how to choose the right crypto broker and what you should look out for when trading the cryptocurrency.
Especially due to the high volatility and high trading volume that characterizes well-known cryptocurrencies such as Bitcoin and Ethereum, these assets are ideal for trading. In the course of the article, you will also find the current Ether price and some practical tips on how to trade successfully with crypto coins.
What Is Ethereum?
To trade Ethereum, you don’t need to fully understand the currency – that’s one of the advantages of trading cryptocurrencies. Nevertheless, we will give you a brief insight into the second-largest cryptocurrency. Strictly speaking, Ethereum is not the currency, but Ether. This is the name of the coins that are used as a means of payment in the Ethereum world.
Ethereum is a decentralized open-source platform based on blockchain technology. It enables any interested developer, individual, or company to run and develop their own dApp or decentralized organization (DAO) using smart contracts. In addition, new token projects can be created on the Ethereum blockchain via the ERC 20 token standard, for example.
What is Ether?
Monetary units used in smart contracts are called ethers. Ether itself is thus the cryptocurrency of Ethereum, but only a part of the overall system and can be stored in ethereum wallet. This is exactly the reason why Ethereum has attracted so much media attention lately. After all, this platform is not just a pure cryptocurrency, as is the case with Bitcoin, for example. Rather, Ethereum is a standalone platform that offers programmers different possibilities, which could revolutionize various industries.
How does Ethereum work?
The entire Ethereum world is based on a blockchain, a decentralized and complex data structure. Compared to Bitcoin, ETH does not aim to be a digital currency but acts more as a kind of “operating system” for decentralized apps (dApps) and applications as well as smart contracts. Smart contracts are digital contracts that are settled on the blockchain.
- The most important features of Ethereum at a glance
- Ethereum is an open-source blockchain for running scripts - called smart contracts - and thereby decentralized applications.
- Ethereum's network forms the first dedicated smart contract platform and remains the leading foundation for decentralized apps (dApps) today.
- Ether is the second largest cryptocurrency right after Bitcoin (BTC) and the native token of the Ethereum blockchain.
What are smart contracts?
Smart contracts are digitized, determinate contracts between two or more people or software programs. It is possible to use them to develop a DAO or a dApp.
- They are operated by a network of computers
- They execute agreed steps automatically when a specified event occurs
- They automatically track changes within the set terms of the contract
- They are stored on the blockchain
Does Ethereum have potential?
ETH could revolutionize not only our everyday lives but also the financial industry with the help of smart contracts. This is also the reason why big banks are so interested in cryptocurrencies and Ethereum. Transactions that take place in banks usually need to be validated by many employees and entered into bank internal registers. With the help of smart contracts, this effort would be eliminated because there would be a central register in which all the necessary data is automatically stored. The individual contracts could be executed automatically as soon as their underlying conditions are met. The cost savings in options and bond trading as well as in lending would be astounding.
What are the Advantages of Investing in Ethereum?
Ethereum is the second most popular cryptocoin nowadays. Among all the possibilities, which ETH presents, there are some advantages of buying this high-promising asset. Let’s move on to the four advantages of buying into ethereum:
- Low costs: Trading cryptocurrency like Ethereum is usually significantly cheaper than trading classic financial instruments or assets. So, especially for beginners or traders with lower capital, this is a great way to dive into the world of trading.
- 24/7: Traditional stock exchanges have opening hours. They close sometime in the evening and reopen the next morning – you can’t trade in between. With cryptocurrencies like ETH, it’s different. The decentralized nature of cryptos means you can trade 24 hours a day, seven days a week. All you need is an internet connection.
- Leverage: you can trade the highly volatile cryptocurrencies with leverage – in both directions, rising and falling prices. While high volatility in other asset classes may give investors a stomach ache, it helps you with Ethereum trading. Double and triple with the right leverage.
- Complex, but irrelevant: In day trading or swing trading cryptocurrencies, you don’t necessarily need to know about the exact workings of the coins and systems. Ultimately, what matters most in the Ethereum network is the technical analysis of the charts you perform as the basis for your trading setups. How exactly the currency works is secondary.
How do you buy Ethereum?
A lot of investors and beginners discovering Ethereum as a crypto coin are interested in buying it. That’s why it is essential to have a step by step guide near you. So let’s take a closer look at how you buy it.
Step 1 - Choose the Time
To enter the market and buy or trade Ethereum, you can buy the coins at the current price or you can set a limit order. With this type of order, you define a fixed price at which a certain amount of Ethereum will move into your account. Since the Ethereum price is in the four-digit range, you can trade fractions of it at any time.
Step 2 - Broker is Essential
We have therefore compiled a small list of brokers that we have tested and found to be good. You can choose one of them without hesitation to get started with Ethereum trading.
- Etoro
- Libertex
- Capital.com
- Binance
As a rule, you buy and trade Ether cryptocurrency at such an online broker without owning it yourself. This would usually require a so-called Ether wallet. Think of it like a digital wallet where your Ethereum coins are kept. To get around this and be able to trade at any time, you can use CFDs. This way you don’t own the coins directly, but only trade them.
Step 3: Open an account with a broker
Once you have decided on an online broker, you need to open an account. To do so, go to the provider’s page and click on “Register”. All you need in the first step is a username, your email and a secure password. With this, you can already access the trading platform and test all functions with a demo account.
However, to get started with a real Ethereum network, you logically need to deposit real money. The prerequisite for this is verification of your account. For this, have an identification document – ID card, driver’s license, or passport – ready, you will need it during the process. In addition, some brokers want to know your home address and some other information that you need to provide truthfully. This way, the broker makes sure that you are a real person and not a bot or someone who wants to scam other users.
Step 4 - Choose the amount of money to spend
Therefore, it is always important to stick to fixed budgets when trading Ethereum and only use the money that is not otherwise earmarked for rent, electricity bills, etc. The magic word in this context is money management. The magic word in this context is money management.
Note: When choosing a deposit method, pay attention to whether and how many fees apply. Some brokers charge fees for certain payment methods, while others are “free”.
Step 5 - Summary
A summary of how to trade Ethereum through online brokers:
- Invest directly in the cryptocurrency Ethereum.
- Invest in rising or falling prices via CFDs.
- Leverage possible (leverage).
- Stop loss and take profit so hedging your position is possible.
- Many trading instruments for analysis can be useful.
Of course, all platforms and brokers also offer these options. If you are interested in other brokers, you can browse their official reviews.
Conclusion
In the end, the current Ethereum blockchain forecasts are promising – no matter which cryptocurrency you are ultimately interested in. Since the experts also believe that the entire crypto market is getting stronger, we can assume that probably every digital currency can increase in value. This could be seen well in the meme token Safemoon.
However, caution is advised. The crypto market is extremely volatile. This means that you should only invest money that is freely available because there are always strong upward and downward movements.
F.A.Q.
Ethereum’s uniqueness stems from its role as a versatile blockchain platform that goes beyond the capabilities of traditional cryptocurrencies like Bitcoin. While Bitcoin primarily serves as a digital store of value, Ethereum blockchain offers a decentralized ecosystem for building and deploying smart contracts and decentralized applications (DApps). These smart contracts enable trustless and automated agreements, transforming industries like finance, supply chain, and gaming. Ethereum’s flexibility has given rise to a vibrant community of developers and entrepreneurs, leading to the creation of various innovative projects.
The Ethereum network employs a security mechanism known as Proof of Stake (PoS) to ensure its integrity and functionality. In PoS, validators lock up a certain amount of Ether as collateral, which gives them the right to participate in block validation. This process eliminates the energy-intensive mining associated with the Proof of Work (PoW) used by Bitcoin. By reducing computational competition, PoS enhances the network’s scalability, reduces environmental impact, and strengthens security by requiring validators to have a stake in the network’s well-being.
You can purchase Ethereum on various reputable cryptocurrency exchanges such as Coinbase, Binance, Kraken, and more. These exchanges provide a user-friendly platform for buying, selling, and trading Ethereum using different payment methods like bank transfers, credit cards, and even other cryptocurrencies. It’s crucial to choose a reliable exchange with a solid track record, robust security measures, and a wide range of trading pairs to ensure a smooth and secure purchasing experience.
Ethereum and Bitcoin are both cryptocurrencies, but they serve distinct purposes within the blockchain ecosystem. While Bitcoin primarily acts as digital gold and a store of value, Ethereum focuses on enabling programmable transactions and DApps through its smart contract functionality. Ethereum ecosystem allows developers to build a wide range of applications beyond simple peer-to-peer transactions, making it a hub for innovation in various industries. In contrast, Bitcoin’s primary function is to provide a decentralized digital currency and store of value, without the ability to execute complex smart contracts.
Investing in Ethereum can be a strategic move due to its potential for growth and its central role in blockchain innovation. Ethereum’s adaptability and wide-ranging applications, from DeFi to NFTs, make it an attractive investment option. However, like any investment, there are risks involved, including price volatility and regulatory changes. It’s crucial to conduct thorough research, understand your risk tolerance, and consider diversifying your investment portfolio before committing to Ethereum blockchain or any other cryptocurrency.
Predicting the exact price of Ethereum is challenging, as it is influenced by a multitude of factors, including technological advancements, market sentiment, adoption rates, and macroeconomic trends. Ethereum’s trajectory will likely be shaped by its ability to scale, its role in enabling innovative projects, and its competition with other blockchain platforms. While short-term price fluctuations are common, some experts believe that Ethereum’s value could continue to appreciate over the long term, especially with ongoing developments like Ethereum 2.0, which aims to address scalability issues and enhance the network’s efficiency. However, it’s essential to approach price predictions with caution and consider a range of scenarios when evaluating its potential growth.