The hype for cryptocurrency is strong, with over 300 million users are either starting to invest or are well-established that their wallets reach billions. If you plan on joining the cryptocurrency world, one type of cryptocurrency you should be familiar with is Ethereum.
Even though Ethereum and Bitcoin are cryptocurrencies, you can find that they are far from each other as one would think. When you Buy Ethereum online, you have to know that investment strategies you use for Bitcoin may not work with Ethereum. If you are new to investing in Ethereum, it would be best to learn about its basics and what you need to be aware of.
Understanding What Ethereum Is
What you need to know about Ethereum is that it is a decentralised computing network that is open-source, and it similarly functions like the Bitcoin network that is built around blockchain technology. Blockchain technology refers to a digital public registry where financial discussions can be authenticated and stored completely by software. You should also know that no other third-party members can grab hold of your Ethereum, making it yours and yours alone.
If you want to put it simply, Ethereum is a secured database network that anyone can access anytime, anywhere. When new data blocks are added, they cryptographically chain to a parent block, making an un-editable record of the last changes. One interesting fact about Ethereum is that it is one of the largest cryptocurrencies worldwide, which falls second to Bitcoin.
What is the Hype Surrounding Bitcoin?
When you Buy Ethereum online, enthusiasts and users get excited because of the cryptocurrency network’s capacity to achieve more than financial transactions. Ethereum is considered by many slightly better than Bitcoin because it allows developers to operate programs that can host any decentralised program, also known as “dApps.”
You can find that Bitcoin was the first to utilise blockchain technology to create the P2P (peer-to-peer) payment system. Whereas Ethereum also uses identical blockchain technology but can generate decentralised applications on top of its existing platform. You should also know that many users have created and started a wide array of dApps on Ethereum, such as digital art marketplaces, games, and even DeFI (decentralised finance) apps.
How Does Ethereum Operate?
You should know that cryptocurrency functions by computing power to provide power to another network. It means that users and organisations use their computers to run specific nodes or software. Virtually anyone can set up their computer to help a node run, as long as the computer has the proper specifications.
You can find that Ethereum cannot work without node operators because they process transactions within the Ethereum network. The operators collect a fee for operating the software and hardware needed to assist the transactions. The fees are called “gas fees” because they work like gas that keeps the network operational, and they are also paid in ETH (ether).
Is Ether Identical to Ethereum?
Both Ether and Ethereum work hand in hand, but they are not identical. Ethereum is technology, while ether is a legit cryptocurrency. In short, you can determine ether as “fuel or cash” that helps operate the entire Ethereum network.
Before you purchase Ethereum, make sure you purchase from a credible coin supplier so that they can assist you every step of the way. You can always start small with cryptocurrency and work your way up to the big leagues in the long run.