What is Ethereum?
A Beginner´s Guide to Buying, Selling, Using, and Mining Ethereum:
An In-Depth Ethereum Guide by Americas Cardroom
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Ethereum started in July 2015 and has enjoyed incredible gains since, having the second-biggest market cap of any cryptocurrency.
But while the biggest crypto (Bitcoin) was created simply to be digital money, Ethereum was designed to be a decentralized computing platform based on a blockchain that could be used for a wide variety of applications.
What is Ethereum?
Ethereum is a blockchain, think of a database or ledger, that contains a history of all transactions on the platform. It is set in place and secured by a large distribution of network machines, ensuring general accountability and precise verification of all transactions that take place. The network currently has thousands upon thousands of participants, each of whom can audit the ledger.
Ethereum is also a cryptocurrency, a digital token based on the blockchain platform. Perhaps the biggest benefit of cryptocurrencies like Ethereum is its decentralized nature as no middlemen are needed to oversee end-user transactions. Websites like Reddit can also be used to find detailed explanations and definitions of Ethereum. Because it is not a regulated currency, research on Ethereum is mainly confined to the internet and third-party websites.
Cryptocurrency Symbol: ETH
How secure is Ethereum?
ETH is secured by the Ethereum blockchain. All the computers on the network verify and secure each transaction, which means it’s almost impossible for a third party to interfere.
Is Ethereum a private cryptocurrency?
Ethereum is a public cryptocurrency.
Who is backing Ethereum?
Ethereum is a decentralized open-source blockchain. However, many of the world’s biggest companies are making it their platform of choice like JP Morgan, Amazon and Microsoft.
How will Ethereum gain value?
Ethereum will first and foremost gain value through speculation. Investors will choose to buy the coin if they believe in the success of the platform, for example the number of projects built on the network. Note, there has been a large influx of Ethereum based applications, including file sharing, content creation, and video streaming platforms.
The value will also increase if investors believe that the coin will become more integrated in mainstream society, like with everyday purchases. Something even as simple as buying a pizza.
How to mine Ethereum
Ethereum mining is the process of participating in a cryptocurrency network in consensus. Miners sort through blocks, the parts that make up blockchains, and analyze them to ensure smooth running transactions that make it all possible.
Miners are richly rewarded for their hard work by either part of the transactions themselves, or digital coins like Ethereum. Calculators are used to determine profitability and play an essential role in mining the blockchain platform. Those that want to personally mine Ethereum can do so with their home computers, provided the computers are able to withstand the GPU and RAM qualifications.
The first step to mining Ethereum is to download an application that will link the miner to the Ethereum platform. Next, an account must be created and mining software must be downloaded. This will allow the user to begin mining with their GPU or CPU.
Mining that is done properly can result in higher profitability, often in the form of coins. As mining makes Ethereum more efficient and robust, the market cap of the cryptocurrency will only increase.
Where to buy Ethereum
Ethereum can be bought and sold on an exchange, just like common securities. Of the many exchanges that exist, more popular exchanges like Coinbase are home to millions of traders and investors. The whole process is quite simple. A potential buyer can go to an exchange’s website online and set up an account. Once the user has registered his or her account, fiat currency must be deposited, much like one would deposit money into an online brokerage or savings account.
The trade is executed through the exchange platform. The coins will show up in the user’s wallet – a piece of software that stores Ethereum assets. In many ways, it is the cryptocurrency equivalent of a fiat currency bank account.
How to buy Ethereum cryptocurrency
Ethereum can be purchased with cash or with a credit card. But this doesn’t mean someone can walk up to a bank and deposit cash or swipe their card. All transactions are done via the exchange online as no tangible assets are exchanged.
Another option is to purchase anonymously. Those who want privacy away from the public view of Ethereum exchanges can purchase Ethereum ‘peer to peer.’ There are various sites that provide this option, though this is traditionally riskier than purchasing Ethereum on an exchange and should be done at the buyer’s own risk.
How to set up an Ethereum wallet
A crypto wallet allows you to send, receive and spend your cryptocurrency, in this case Ethereum. You can find a list of e-wallets by visiting ethereum.org.
How to send Ethereum to a wallet
Sending Ethereum to your wallet changes based on which wallet(s) you choose to use. The wallet will provide easy-to-understand instructions, so just follow along each step carefully and you’ll be good to go.