How and Why to Invest in Ethereum ETH
Welcome to the world of Ethereum, the trending hot topic. This blog will shed light on Ethereum and its investment purpose. Ethereum is open to everyone, and all you require is a wallet to participate. Several huge companies, including start-ups, have adopted Ethereum as a mode of transaction. Before we see how and why one should invest in Ethereum, let us briefly introduce what exactly is Ethereum and its comparison with Bitcoin.
What is Ethereum?
As a blockchain platform, Ethereum - a decentralized public ledger for recording and verifying payments. The platform users can develop, launch, monetize and leverage apps and use its currency Ether (ETH) as payment. It was created to enable creators to build and launch smart contracts and dApps without worrying about fraud or 3rd-party interference.
Bitcoin Vs. Ethereum
- Bitcoin was designed to be the currency to ease monetary transactions, while Ethereum enabled software processing leveraging ETH.
- The transaction process of Ethereum is swifter than Bitcoin.
- The mining protocol of Ethereum is Proof-of-stake (PoS), and that of Bitcoin is Proof-of-work (PoW).
- The top-notch applications of Ethereum are NFTs, Defi, and DAOs.
- ETH trades at $2K while Bitcoin is around $40K/unit, which explains that Bitcoin is expensive than Ethereum
How to Invest in Ethereum?
Are you looking to invest in Ethereum and not sure what you need or whom to approach? Well, all you need is an e-wallet connected to the crypto exchange. Investors must keep in mind that ETH is a currency and must be treated as such. Here you can't buy shares of ETH; however, one can exchange dollars for the token. Various platforms are available for purchasing Ethereum, such as Kraken, Uphold, Binance, and Voyager.
Why Invest in Ethereum?
It's always safe and better to store ETH in your own crypto wallet that you control. However, for people new to ETH investment, you can't hold the private key if your cryptos are left onto platform exchanges such as Coinbase. In addition, there are numerous statements on banning accounts without any prior notifications that will leave you in a broken state. However, when the ETH is moved to your e-wallet, you know what happens and have complete control of the money.
Image source: Unsplash.com