The crypto market has surged in popularity in 2021 not just because Bitcoin has become the largest cryptocurrency on the market but because also other cryptocurrencies like Ethereum have exploded in value. Actually, even famous business and institutional investors are supporting the growth of Ethereum and other cryptocurrencies on the crypto market.
If you also want to join the crypto revolution and invest in ETH, in this article, we compiled a list of essential things you should be aware of before adding Ethereum to your portfolio.
Ethereum – Purpose and Background
Ethereum was built by the programmer Vitalik Buterin who saw the potential of Bitcoin and started to work on his project back in 2013. After he received funding for the project, he launched Ethereum in 2015. The purpose of Ethereum, unlike Bitcoin, is to also provide blockchain technology for developers that want to create different applications without the control of financial institutions and other intermediaries.
This accelerates the process of creating decentralized applications and also provides decentralized blockchain technology for users that want to make crypto transactions swiftly and safely. In addition, it was also used for the creation of NFT tokens that are utilized mainly for selling unique digital artwork. Otherwise, you can use your Ethereum tokens on different websites because there are a lot of online businesses which accept crypto payments. For example, you can use your ETH to make deposits on this Ethereum casino. This online casino features an extensive collection of first-class casino games, and it also utilizes high-end encryption technology, which means you can instantly make a crypto deposit on a secure online casino.
Before you register on a trading site which is actually the easiest way to obtaining Etherium, you need to invest in a crypto wallet that supports this virtual currency. This digital currency has been part of the crypto market since 2015, and it is highly regarded in the crypto community. So, you won’t have a problem finding an array of crypto wallets that support Ethereum. You can choose from hot wallets like mobile, desktop, and web wallets which are accessible for crypto trading and they are easy to use. But because they are connected to the Internet, there are some disadvantages and risks that come with their use. That’s why hardware wallets which are also known as cold crypto wallets, are recommended for long-term storage.
Trading sites, as we mentioned, are valuable to millions of users around the world. All you need to do is to find a reputable trading site where you can invest in ETH, sell it, and exchange it for other currencies. Another advantage of registering on online trading sites is that they are also compatible with mobile devices, like mobile phones and tablets.
It’s also important to familiarise yourself with blockchain technology which is basically the foundation of this cryptocurrency. The miners that work on the network are the users who are responsible for validating the transactions and adding the blocks of transactions to the blockchain. This is another option if you don’t want to get into trading, but instead, you want to obtain Ethereum through crypto mining because the miners get a reward for their work on the blockchain network. Actually, they are compensated by receiving transaction fees and Ether.
Ethereum represents not only an innovative cryptocurrency that can be used for a safe crypto payment online, but it also represents an innovative solution for the development of decentralized applications. Given that blockchain technology has a lot of advantages for different kinds of users, we can only assume that this cryptocurrency will become even more popular in the future.