What is Ethereum and how does it work?

– Even Bitcoin has a Kryptonite, it’s called Ethereum –

 

If you’ve only got into Crypto investing and all you’ve heard about from the news and social media is about Bitcoin, I want to inform you that there are others, lots of others.

At the time of writing this on the 13th December, there are 1324 crypto currencies out there. But like real currencies, there are ones that we classify, worth more than the others. There are ones that we see as gold, silver and bronze.

If Bitcoin is the Gold, then Ethereum is the silver and Litecoin is the bronze (My view).

Now, what is Ethereum you ask and how does it work. Well, that’s the same question I asked myself when I was researching this topic. After doing my homework I’ve come to realise that this crypto currency could be bigger then Bitcoin in the future if things go well for it.

 

 

What is Ethereum?

The first thing is that both Ethereum and Bitcoin have similarities, they both are crypto currencies, they both are distributed by the public blockchain network and they have an online currency Bitcoin and Ether. But that’s where the similarities end with the two.

While Bitcoin offers one particular application of the blockchain network, Ethereum offers another. Bitcoin is used for tracking ownership of the digital currency, a peer to peer technology cash system that enables the use of online payments. Ethereum focuses on running the programming code of any decentralized application.

 

Another difference between the two crypto currencies is that Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. Which means that if you sold Ether to another person or transferred it to another account, you could decide how much at a time you want to send, what time you want to send it and other decisions, like if the price is higher or lower at the time of sale.

It’s no different than using automation like email Marketing or creating different types of funnels, they are all based on rules and laws that get them to do certain things, but on the Ether currency.

At the moment it’s above $600, Ethereum has gone through a rollercoaster of a journey. When it. was $21.50 a coin, it had a serious crash because of the DAO (The DAO was a digital decentralized autonomous organization, and a form of investor-directed venture capital fund. WIKIPEDIA) had a hack which could not be easily stopped or reversed.

After that, there has been a lot of corrections with the currency and also with the companies that create the systems to secure your Ether.

Now, if you do the research Ethereum is said to grow to over $5,000 by the end of 2018.

 

Bitcoin is built on C++ a code not many people know how to use, whereas, Ethereum is built upon JavaScript, which is very popular, which means there would be a lot more programmers to build upon the Ethereum code, compared to Bitcoin.

With Ethereum, decentralised apps can be built on it with JavaScript which makes it interesting. Think of Ethereum like the iTunes Store, anyone that knows how to use the code can build different types of apps upon it using Java to create smart contracts.

 

 

How do I buy and spend Ethereum?

Ethereum can be bought, sold and returned in Dollars, Euro and some other currencies. This makes it incredibly simple to trade. You can purchase it on many marketplaces like Changelly, SwipeStox, Coinbase and more.

I use Coinbase to purchase mine, well not the Coinbase app or website, but their sister site where you can purchase Bitcoin, Ethereum and Litecoin with no fees, unlike the App. This website is called GDAX. It works off your Coinbase account but you’ll have to provide two types of identification to deposit or withdraw

any money and having no fees makes it definitely worthwhile.

Sign up to Coinbase via my

 

– > Referral Link < –

 

You can store your Ethereum in many places all you need do is search Google to find them. The ones I use are Coinbase and MyEtherWallet, which are safe, secure and easy to use. I like to store my crypto away from Coinbase and other marketplaces because sometimes their platforms crash as it’s still early days and more and more people are coming to the platforms to buy and sell.

You can even get an Ethereum debit card so you can spend your money. Having an Ethereum is great because you can spend your money when you want on what you want. For example, if the banks freeze your account for whatever reason, you can use an Ethereum debit card 24/7 without ever being frozen. You’ll have to transfer your Ethereum to the debit card, but in doing so you can keep track of what you’re spending. Another good reason is that if you’ve spent your money on something faulty or let’s say on a flight and the airline that you book with becomes insolvent, the debit card company will help you get all your costs back, and lastly, there are no deposit fees.

 

I hope you’ve learnt something about Ethereum from my post because I’ve learnt so much myself on informing you. I’ve even bought some myself to test it out. I purchased €60 worth of Ethereum a week ago and I’m already up to €90+.

There is lots of potential with this Crypto currency and I will be investing more and if you are too, please remember that investing in anything, you could lose most or all your money in doing so.

So, do your homework like I have, see what’s working, what the investments are building and if they have a community.

Good luck 😉

Daniel Mac Sweeney

 

 


 

 

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DanielMacSweeney.com

 

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Comments

  1. Paulin Curlay

    Your Bitcoin wallets review was so helpful. I have read a certain comments and you say that Exchange-Wallet web service it is not good idea, because all risks it can have.
    In that way, what do you think about SpectroCoin services?

    1. Post
      Author
      Daftplanet

      Hey there Paulin,
      Thank you for your reply. SpectroCoin, I’ve not done my research on that so that will be something I’ll be looking into. I’m glad I could help you and If you’ve got any more questions, please ask. Crypto has been doing great and there is a lot of stuff I will be getting into in the future like day trading and wallets…

  2. Ross Alisha

    “Your review is very helpful.
    Do you have any insight regarding multi-altcoins wallet services for a startup to launch its own cryptocurrency exchange? Also do you have info about wallet services used by major exchanges?

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