Chapter Five: What is Ethereum?


Symbol: ETH

Invented by: Vitalik Buterin

Year invented:2015



Notable For: smart contracts

Circulating Supply: 94,018,405 ETH

Popular Wallets: Ledger,

Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality.[2] It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called “ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.[2][3]

The Ethereum was launched in mid-2015, but quickly outperformed the market capitalization of all other cryptocurrencies, with the exception of Bitcoin. At the beginning of 2017, the price of 1 ETH was less than $ 10. Since then, the price has reached more than 40 times its initial value of 2017.

This incredible growth in price, combined with a broader understanding of Ethereum’s potential, has generated many new investors looking to buy this cryptoactive.

Buying cryptoactives such as Ethereum or Bitcoin remains confusing for many people. It is not an action or a typical “investment”. It’s not like anything that people have seen or experienced. You do not get actions; instead, you get digital coins or chips. Coins are “better” than a paper ticket because they actually support a greater cause, as in the case of Ethereum, to build a decentralized internet and applications within a decentralized platform. And the coins help “feed” that cause, so to speak.

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For most people in the US UU., Coinbase would be the easiest option to buy Ethereum, Bitcoin or Litecoin. After checking your account, you can add a number of payment methods that include credit or debit cards, US bank accounts. UU or even electronic funds transfers. Other options for exchanges that will take US dollars. UU in exchange for Ether are Kraken and Geminiin the USA UU Normally you will need to verify your account with a driver’s license and add other details to extend your purchase limits. Since cryptocurrencies are “hard currencies”, the stock exchanges will not want to risk being embezzled, since you can not reverse a cryptocurrency transaction once it is completed.

How to buy Ethereum
By Digital Bodha

In 2017, Ethereum has grown at an incredibly fast pace. In fact, the second largest cryptocurrency by market capitalization could in the future displace Bitcoin to become the most prominent cryptocurrency in the world in a phenomenon known as “Flippening”.

In addition, Ethereum’s currency, the ether , has grown in value by dozens of times since the beginning of the year, and some analysts believe that the cryptocurrency market still has new heights to reach in the coming weeks and months. For all these reasons, more and more investors are interested in adding Ethereum to their portfolios. This is how you can incorporate Ethereum in your investments:

1. Create an account in an exchange
Like other cryptocurrencies, Ethereum must be bought and sold through an online exchange. There are a number of these services that are available and are considered highly reputable. Some of the most popular include Coinbase , Kraken, Bitstamp and Gemini. You must choose an exchange and create an account before starting to trade with Ethereum.

2. Verify the account
Any accredited exchange will require you to verify your account in one or more ways. It is likely that you will have to upload a number of documents to verify your identity and ensure that your account passes the regulatory call. Verification will usually take one or two days, depending on how popular and busy the exchange you have selected.

3. Deposit Fiat currency
Next, you must deposit the fiduciary currency in your account, usually by bank transfer or credit card. This may take a few more days to ensure that the money is credited.

4. Start negotiating
With a verified account and money deposited in that account, you can start buying Ethereum and other cryptocurrencies through the exchange. Each exchange has an interface that works somewhat differently, but you must be prepared to confirm the transactions and then wait for the processing time, which may also depend on the total number of transactions requested.

5. Withdraw ETH to a wallet
Once you have purchased ETH through the exchange, you can withdraw that currency in a wallet that you control. Exchanges can be hacked , which means that your tokens can be stolen. To keep your tokens in a private place to which you have access through the key, download and install a wallet that has the capabilities of Ethereum. Some of the best wallets for Ethereum are MyEtherWallet, Jaxx, Exodus and Parity.

Once you execute and configure the wallet, you can enter your account address in the exchange to transfer your ethers. Make sure you keep your wallet address, password and private key in a safe place, otherwise you may have trouble accessing your ether later. Transfer it to the exchange again if you want to sell or if you want to make trades trading later.

Friendly methods for beginners to buy Ethereum
The easiest way to buy Ethereum is to use an online cryptocurrency exchange. As cryptocurrencies have gained popularity in recent years, the emergence of new companies that seek to facilitate their exchange has not been lacking.

Numerous new companies seeking to help customers buy and sell cryptocurrencies have emerged in response to increased demand for cryptocurrencies. With so many options to choose from, these are 3 of the most recommended and easy to buy places for beginners.

1) Coinbase
Coinbase is the most reliable and easy to use exchange.
Coinbase is our main recommendation for beginners looking to buy Ether. Coinbase offers functions that serve as “training wheels” for newcomers.

With its initial launch in 2012, Coinbase aimed to create an easier way to buy and sell Bitcoin. Unlike traditional cryptocurrency exchanges, Coinbase directly facilitates the exchange of cryptocurrencies to its users. Your site comes with a variety of advantages over other exchanges:

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The prices and guaranteed rates are clearly established at the time of placing your order. This means not dealing with complicated market interfaces.
You can set the prices for your first faster order in Coinbase than in most other exchanges. Coinbase blocks your price when you initiate an order, which means that you will receive the amount of cryptocurrency you purchased, at the price of the established order, after the deposit has been made.
You can use credit and debit cards for instant purchases at Coinbase, although your limits will be substantially lower than if you use a bank transfer.
Feeling an increase in demand for Ether, Coinbase added support for Ethereum in 2016. Its Ethereum services now come with the same benefits as its original Bitcoin service.

While we recommend storing cryptocurrencies in a wallet over which you have full control, Coinbase offers one of the most secure online portfolios . You can use your Coinbase wallet to store, send and receive Ethereum.

In addition to being easy to use, Coinbase is also one of the most trusted names in cryptocurrencies. The company is headquartered in San Francisco, California, and has received numerous investments of large venture capital, and is valued at 1,600 million dollars. As an exchange of digital assets based on the US UU., The company also complies with all the laws and regulations required. Coinbase has helped more than 11 million users in 32 countries to exchange more than $ 20 billion in digital currency.

You can register with Coinbase or get more information here.

2) Gemini
Gemini offers very low rates, while still being relatively friendly for beginners.
Tyler and Cameron Winklevoss founded Gemini in 2015. The company is headquartered in New York and, therefore, is regulated by the New York State Department of Financial Services. Despite being in the market for less time than their competitors, they have quickly built a great reputation.

Unlike Coinbase, Gemini operates as a more ‘traditional’ cryptocurrency exchange. This means that users can use the website to trade with other users in their market. The site works like a traditional Forex platform.

Gemini users can exchange Bitcoin, Ethereum and USD. Deposits and withdrawals are only available through bank transfer, however, the site allows you to start trading while your deposits are still in process. This gives users the ability to set purchase prices faster than almost all other traditional exchanges.

While we believe that Gemini is a little less friendly for beginners than Coinbase, their team has done a phenomenal job of designing an interface that is easy to use.

You can register in Gemini here.

CEX.IO offers high credit card purchase limits compared to other alternatives.
Based in London, CEX.IO represents another long-term method of buying cryptocurrencies.

Initially, the company started in 2013 as a provider of bitcoin exchange and cloud mining services. In 2016, the company added Ethereum to its platform and finalized its cloud mining service. Recently they also added Dash and Zcash to their platform.

Read also : How to mine Ethereum Classic on your PC

CEX.IO offers a complete exchange, as well as easy buying / selling methods. The site accepts deposits and withdrawals with credit cards and bank transfers. They also grant verified members credit card limits higher than Coinbase.

The disadvantage of CEX.IO, compared to Coinbase, is its potential for higher fees. Even so, CEX.IO is a good option for users who want to make large purchases with credit cards or users in locations that are not compatible with Coinbase.