Ethereum is the second most popular cryptocurrency globally. However, the number one cryptocurrency, Bitcoin, is pretty expensive; one bitcoin costs around 39,221.70USD. The exorbitant price makes bitcoin out of reach of many investors. On the other hand, the price of Ethereum is relatively moderate; one ETH costs around $2,560.41. Hence, most new investors turn towards Ethereum for trading.
If you are new to crypto trading, you should learn the finer nuances of crypto trading. You can create an account in one of the many trading platforms and take a look at the information given on the website. You can also use the Demo Mode feature to know how trading works. Here is a beginner’s guide to investing in Ethereum cryptocurrency.
What Is Ethereum?
Also known as ETH, Ethereum is a cryptocurrency like Bitcoin. However, there is a huge difference between bitcoin and ETH in terms of goals, technology, and features. ETH’s decentralized blockchain network is powered by Ether token, enabling users to earn interest by staking and making transactions.
How Does Ethereum Work?
Ethereum works on a decentralized network of computers known as blockchain that tracks and manages ETH coins. It has a distributed database known as Ledger that holds records of all ETH transactions. The computers in the ETH network play an important role in verifying the transactions and ensuring data integrity.
The Ethereum transaction is autonomous, and they don’t need any intermediary bank or government agency to exchange money. It holds even when you exchange ETH coins for bitcoins or other cryptocurrencies. Though the transaction is carried on a public network, it remains anonymous.
What Are Applications of Ethereum?
Ethereum is not just a cryptocurrency that can be traded on exchanges or used to buy products and services. There are several applications of Ethereum like –
- Smart Contracts
ETH is also used as a smart contract. Smart contracts are like permissionless apps that are executed automatically when the contract conditions are met.
- Non-Fungible Tokens
The non-fungible token is a digital asset that can represent any asset. They allow artists or others to sell art directly to buyers using smart contracts.
Where Can You Trade ETH Coins?
You can buy Ethereum coins from brokerages, but the crypto exchange is the best place to buy ETH coins. The process of buying or selling ETH coins is divided into three steps.
- Register on the Platform
To carry out any crypto transaction, you can register on platforms like https://swyftx.com/au/buy/ethereum/and create an account. During registration, you need to enter key details like your name, phone number, email address and provide a government ID as part of the identification and verification process.
- Fund the Account
After your account is validated, you need to fund the account to buy ETH coins. You use fiat currencies to buy ETH coins. Before initiating a purchase, you need to wire transfer funds from your checking account to your crypto account, which are available to use whenever you buy ETH coins.
- Buy ETH Coins
The crypto exchange lists the prices of various cryptocurrencies. You can initiate the buying process from your account, and the exchange will facilitate the process. The whole process may take some time. Finally, the funds from your account are transferred to the seller, and your ETH coins are deposited in your crypto wallet linked to the account.
The seller will send a confirmation email message to indicate the completion of the trade. Once you have ETH coins in your wallet, you can use them to buy other popular crypto coins like Cardano, Solano, Dogecoin, or AVAX.
Now that you have good knowledge of Ethereum, you can participate in ETH trading.
Hi, I am Adam Smith, Admin Of TechSketcher, Creative blogger and Digital Marketer.