Guide to Investing in Ether (ETH)

Ethereum is an upcoming cryptocurrency that is currently undergoing its pre-ICO. It is a decentralized platform for the creation of DApps. It is developed by ConsenSys and was released on the 28th of May 2017. It is the second most valuable cryptocurrency after Bitcoin.

The ETH has been launched at a price of $7 and it has risen from that price to a current price of $1,400. In this article, we will explain the value of Ether, the features of this new cryptocurrency, and how it compares with other cryptocurrencies.

What is Ethereum?

Ethereum is an open-source protocol that runs smart contracts. The protocol allows people to create their own tokens and use them to build decentralized apps. In layman's terms, this means that Ethereum is a blockchain that is used to build decentralized applications or DApps.

How is Ethereum different from Bitcoin?

Ethereum is a cryptocurrency that runs on the Ethereum platform. It is a distributed computing network that runs smart contracts and decentralized applications. A cryptocurrency is a digital currency that uses cryptography for secure transactions and money transfers. Bitcoin is a peer-to-peer electronic cash system. It was created by Satoshi Nakamoto in 2008 and was the first widely known cryptocurrency.

Who is ConsenSys and Why Should You Invest?

ConsenSys is a company that is responsible for developing the Ethereum network and building DApps. They are also responsible for creating and maintaining the Ethereum Virtual Machine. Their aim is to create an ecosystem that can be used to build large-scale decentralized applications.

What are Smart Contracts and What Can They Be Used For?

A smart contract is a digital agreement that is stored on the Ethereum blockchain. The contract itself is encrypted and is only accessible by the people who are involved in the transaction. The main use of a smart contract is to verify and record the transfer of ownership of something.

It is important to note that the use of smart contracts has increased over the past year, and the popularity of the protocol continues to grow.

What is the Value of ETH?

Currently, the price of Ethereum is $1,400. However, it has been on a steady rise since its initial release. The ETH market cap is $18.8bn and the total supply of the currency is 21,000,000,000.

The price is expected to continue rising and may reach $5,000. However, it is likely that the currency will have a bearish trend.

How does ETH compare to Other Cryptocurrencies?

Ethereum is different from many other cryptocurrencies. Unlike Bitcoin, Ethereum uses the Proof of Work (PoW) consensus algorithm. This means that the miners need to work to validate the transactions that are being conducted on the blockchain.

The miners are rewarded in the form of newly created coins. However, the rewards are much less compared to Bitcoin.

In comparison, Bitcoin has a Proof of Stake (PoS) algorithm that is used to distribute the blocks.

The PoS is used to verify the transactions and is performed by the validators. The rewards are then distributed in the form of new coins.

There are no limitations to the amount of ether that can be mined. However, this is not true for Bitcoin. In fact, the supply cap is 21 million and it will never be reached.

Conclusion:

Ethereum is the second most valuable cryptocurrency after Bitcoin. It is still very early days for the cryptocurrency but is set to grow exponentially over the coming months.

In our next blog, we will look at other cryptocurrencies that you should invest in.

If you have any questions about Ethereum fill free to comment to me. I will help you.