As the second-largest cryptocurrency, Ethereum (ETH) can be invaluable for many projects. Unfortunately, however, stablecoins have increasingly taken control over Ethereum network since mid-2019 according to research conducted by Messari Crypto which indicates an increasing disparity in transfer value vs. stablecoin transfer value.
Investors frequently swap USDT for ETH for various reasons, including banking on long-term price growth, yield multiplication and using DeFi or NFT apps supported by Ethereum.
What is Ether?
Ether (pronounced “ether”) is the native cryptocurrency of Ethereum and serves as its fuel to run decentralized apps on its network. For instance, when using the Notebook Dapp to create immutable to-do lists using blockchain, transaction fees would need to be paid in Ether for every entry added onto it.
As with other cryptocurrencies, Ethereum (ETH) prices vary in open markets due to supply and demand on unregulated trading platforms.
Apps built on the Ethereum platform can utilize coins generated on its blockchain to process transactions and execute smart contracts, much like bank ledgers do, yet with less security for more flexibility.
Ethereum differs from Bitcoin by continually growing; rather than having a fixed supply of 21 million coins available to it each year through mining processes; each year a certain amount is released via block mining processes to reduce inflation rates and prevent hyperinflation from occuring.
What is Ether’s Value?
Like most assets, Ether holds value because it can be used to purchase and sell other goods – for instance silver has tremendous worth as an element used in jewelry production or electronic chips; similarly Ether can be traded on cryptocurrency exchanges.
Price for cryptocurrency such as Ethereum is determined by supply and demand in open markets, meaning its price can fluctuate throughout the day as traders buy and sell it.
Ethereum has seen its price increase significantly since its debut, due to rising interest in its project as well as technical advancements on its platform.
At present, Ethereum (ETH) is the second-most-popular cryptocurrency and currently boasts a market cap of more than $46 billion. Investors should remember that cryptocurrencies can be highly risky investments that can quickly lose value; investors should only invest what they can afford to lose and research any investments before making a purchase decision.
How to Buy Ether
To buy Ethereum, users will first need to join a crypto exchange platform accepting their currency of choice and fund it using either bank transfer or credit card before being eligible to purchase cryptocurrency such as Ether.
Once a user has funded their account, they can trade fiat currency for Ethereum (ETH) or other crypto assets through certain platforms. Some platforms even enable direct purchase via mobile phone.
Before investing any funds into cryptocurrency markets, it’s crucial to recognize their extreme market volatility and diversify your portfolio to mitigate risk exposure. Don’t invest more than what can afford to lose!
How to Sell Ether
There are multiple approaches to selling Ethereum coins. One way is using an exchange like Binance or Gemini to trade your ETH for fiat currency – an easy and straightforward method that comes with associated exchange fees.
ChangeHero offers another method for selling Ether: using its P2P marketplace, users can quickly convert their ETH into cash in just a few clicks – fast and secure but with an increased transaction fee.
Kraken offers another method for selling Ethereum (ETH), with more complex transactions and numerous payment options; however, funds may take several days to arrive in your account.
One way to protect against short-term price declines with Ether is to open an opposing position – known as a long/short position – in the opposite direction. While this strategy reduces exposure, additional fees such as overnight funding charges and spreads may apply.
