Ethereum is the world’s number 2 cryptocurrency and has been an important part of the crypto-verse.
Ethereum is different from another cryptocurrency because the user can not only transfer and store value, but it also enables the user to write code that could run on the blockchain.
Here in this article, we’ll be looking at some of what you should consider before you invest in Ethereum.
Meanwhile, see the table of content below for an overview of what to expect in this article.
Table of contents
What is Ethereum?
Ethereum is a virtual supercomputer developed to host applications that can run devoid of the help of human interference. Ethereum was developed by Vitalik Buterin with regards to the thriving success of bitcoin back in the crypto dark ages. It was created after bitcoin in 2008.
In contrast to commission-based app stores that demand a cut for hosting and running the various apps, the decentralized and autonomous nature of Ethereum keeps it zero- to low-cost.
The team that saw the creation of the world’s number 2 crptocurrency are Vitalik Buterin, Hoskinson Charles, Gavin Wood, Mihai Alisie, Anthony Di Iorio, Joe Lubin, and Amir Chetrit.
Step-by-Step Guide on How to Open an Ethereum Account
If you are looking to invest in Ethereum, here’s how to begin. See the step to step guide on how to open an Ethereum account.
#1. First step:
The first step is to get a trading platform to invest in ethereum. Among the platforms that offer Ethereum, EverFX is the highest-regulated platform that offers Ethereum fiat exchanges. Exchange is characterized into two, namely:
- Fiat Exchange is when you exchange cryptocurrency for local currency example, converting Ethereum for U.S dollars or Euros.
- C2C is when you exchange a brand of cryptocurrency for another example when you exchange Ethereum for Bitcoin.
As an investor, it’s necessary to know the cryptocurrency field is very dynamic as it relies on steady technological innovation. It also means it’s not regulated.
Steps to take to reduce risk when choosing your trading platform
- Know where the company is based.
- If the company has a valid license.
- Make sure the security of the website is okay.
- Check how secured your money is with this company.
- Look up the company’s managing executives
#2. Second step
Account opening
This step helps you to set up your account. If you already have an account with a broker, then opening an account will not be stressful for you. There might be differences in the platforms, but the steps are same for all. Your details will be required, such as name, ID, social security number, address, and other useful information.
After this, you will be asked to verify your identity. Be careful about the platforms you register with. This is the next thing to consider before you invest in Ethereum. If the stage is not up to 3 for the verification, it might be the wrong website. The verification can take up to 2 hours.
READ: How I Transferred My Sweatcoin To PayPal
#3. Third step
Deposit
Fiat exchange platforms allow you to add money to your account on the platform via a bank account or a debit card. While most cryptocurrency exchange platforms will accept money as low as $5, it’s advisable to invest a reasonable amount.
The deposit in C2C exchanges can add a level of complication to the transaction. A user might need to transfer cryptocurrency from one point to another by code. This type of transfer can take up to an hour.
#4. Fourth Step
Trading
Trading Ethereum is the act of designing and executing a strategy where repetitive purchases and sales of Ethereum have the aim of generating profit. If you have completed the steps above, then you are good to go; you can start buying Ethereum.
#5. Fifth Step
Withdrawal
You can withdraw your saved ETH to your bank account or your ETH wallet. ETH wallet can be defined as a digital currency with password, and payment description. Every platform is equipped with a cryptocurrency wallet option.
READ: What are Sweatcoin Rewards & Prices in 2023?
How Valuable is Ethereum?
Ethereum is the world’s second biggest cryptocurrency by total marketcap with that currently at around $14 billion.
So why is it that people buy, sell, and use Ethereum, and what gives it its value?
Ethereum can be widely traded for a profit. This kind of value is not common within the design of Ethereum or its characteristics but instead is derived from the perceived value that Ethereum has based upon its unique selling points in the marketplace.
With the idea that many millions of people in the world consider Ethereum to be worth trading speculatively, you also can assume that this would potentially provide you with a valuable opportunity to profit from buying and selling it.
Examples of Ethereum Apps
Decentralized Autonomous Organizations– With a combination of smart contracts in use, the rules and structure can be drafted to run a leaderless company. Such a DAO can be possessed by anyone who through ether tokens who gets voting rights.
Provenance – makes the supply chain open and helps all involved stakeholders to receive real-time updates about the origin and history of products allowing consumers to make informed decisions.
WeiFund – smart contracts-based, decentralized crowdfunding technology that runs on Ethereum. Weifund enables contributions to be turned into contractually backed digital assets which can be used, traded, or sold on Ethereum.
Augur – It allows participants to make predictions about the outcome of real-world events and be rewarded for correctly predicting one
Best Places to Trade Ethereum
Binance is one of the largest exchanges in the world which has grown its status by continuing to provide a wide range of assets. Binance grew its exposure and user base.
The platform provides limited margin trading of up to 3x on some assets, which could be increased to improve the services for their users.
Apart from this Binance is working to try to launch a decentralized exchange and doing other things that have kept them relevant where a number of other exchanges have fallen by the wayside.
PrimeXBT is the world’s leading multi-asset margin trading platform which lists a wide range of traditional assets and crypto-assets.
Since its launch the platform has grown exponentially to now hold a daily trade volume of up to $650 million per day, and is one of the largest crypto trading hubs on Earth.
As well as listing ETH with leveraging of up to 100x, PrimeXBT also lists other cryptocurrencies such as BTC, XRP, LTC and EOS, as well as a wide range of traditional assets such as the most popular stock indices, forex pairs, commodities and metals.
As well as this, PrimeXBT has the lowest fees of any of the major exchanges that we researched, with some being up to 10 times more expensive than PrimeXBT’s flat rate of 0.05% across all trades.
PrimeXBT’s security is another major drawcard, with the platform never being breached by hackers and including cutting edge security facilities such as 2FA, mandatory.
Robinhood vs Acorns Reviews 2023: pros & Cons | Legit & Scam | How it Works
Referral Programs In Ethereum
It is a program for people to earn from Ethereum without having to buy and sell cryptocurrency.
Here, participants earn any time that someone joins from social media through their referral link and then signs up to the platform.
People who invest in ethereum can also earn more and make a profit from referral than the main trading.
There is a wide range of referral programs within the cryptocurrency space, however, and it’s worth a deeper investigation to find out which ones have the best conversion rates and payouts.
Related: Ally Invest vs Robinhood: Best Option in 2023 | Pros & Cons
What is Gas?
Gas is an internal pricing fee mechanism that enables Ethereum to ensure the quality of its network coding. All Ethereum network transactions can be measured in terms of their gas level.
Is Ethereum A Long-term investment?
Ethereum is a long term investment plan because as the price increases, the Ethereum blockchain technology is used. Ethereum has gained popularity because of its usefulness, and other cryptocurrencies can be based on the Ethereum network.
Conclusion
Ethereum is a long-term investment that has no limit on supply. Many ether units will always be added and lost over time, causing the availability to fluctuate.
Although the Government has not yet accepted cryptocurrency there is hope that it will be accepted by a wider community soon. So, this is the best time to invest in Ethereum.
The reason is simply that crypto is the new currency and it is important you get along well on time.
Recommendation
