Ethereum (ETHUSD) is one of the most widely held digital coins on crypto markets, boasting widespread trading activity and being built upon blockchain technology that facilitates decentralized applications like smart contracts.
Furthermore, it offers an expansive digital economy and pioneering new methods for creatives to monetize online.
What is Ether?
Ether is the currency of the Ethereum network and used to pay for transactions validated by its blockchain. Additionally, Ethereum serves as home to numerous tokens with diverse functions that serve to further diversify the ecosystem.
Each Ethereum transaction costs a small amount of ether to process and verify, with these fees known as gas fees being denominated in ETH. Ethereum also uses ether as a way of rewarding developers of new apps on its platform as well as network validators who help keep its integrity secure.
Ethereum expands on the pioneered by Bitcoin by using smart contracts. This innovation has allowed for an explosion of decentralized applications (dApps), earning Ethereum its name “the world computer”. Ethereum was developed open source by Vitalik Buterin, a Russian-Canadian programmer who established it at 19 years old – an interest he developed through cryptography he wanted to implement into building an independent digital world free from central control.
What is Ether’s Value?
Like other cryptocurrencies, ether’s value depends on supply and demand as well as influences from other cryptocurrency prices – especially bitcoin’s price fluctuations; when bitcoin rises, typically so will ether’s. Conversely, when bitcoin declines so may its price.
However, another key driver of Ethereum prices is how its network is being utilized. When more people use it, demand for ether increases and its price surges accordingly; an example being how CryptoKitties NFT craze in 2017 caused mainnet traffic to reach near capacity and consequently send prices skyrocketing.
Ether can be an attractive investment option depending on your outlook and risk tolerance. As with any investment, do your research carefully before investing any of your money – but if you believe Ethereum will continue its upward trajectory with potential long-term gains then investing could be worthwhile – just consult a financial advisor first as they’ll help explain the risks involved.
How to Buy Ether
Your options for buying Ethereum are numerous. One common method is through centralized cryptocurrency exchanges, which offer numerous coins for trade while accepting USD deposits and withdrawals. Each exchange varies in terms of opening an account but typically involves verifying identity documents as well as meeting regulatory compliance standards.
When ready to purchase, simply enter Ethereum (ETH)’s ticker symbol into an exchange’s order book and then wait for your purchase to be processed.
Keep in mind that cryptocurrency prices can be highly unpredictable, often fluctuating rapidly up and down. Therefore, it is vital that you do your research and are comfortable with the risks before investing. Furthermore, consider diversifying your portfolio with other investments as well as setting aside an emergency fund before buying cryptocurrency assets. Many long-term investors opt for hardware wallets which provide excellent protection and ease of use.
How to Sell Ether
No matter whether you earned Ethereum through mining or purchased it, there may come a time when you want to cash out your holdings. There are various methods of doing so. One popular one is selling your ETH for fiat currency on a cryptocurrency exchange such as Coinbase or Binance.
Before selling, make sure that you select a reputable exchange that offers the fiat currency that you would like to sell for and be aware of any trading fees or withdrawal charges that may apply.
Option two involves selling Ether directly to someone you trust for Dollars or Euros; this option can be more risky as the buyer must be trusted. Furthermore, selling your ETH for fiat currency could be considered investing and you may need to pay capital gains taxes depending on your individual tax situation and jurisdiction laws.
