Ethereum exists as ether and is an example of cryptocurrency. Other forms of cryptocurrency include bitcoins invented by a group of individuals knows as Nakamoto, the Litecoin which came as an alternative of Bitcoin in 2011, the Ripple which exists as both digital currency and cryptocurrency among others.
Ethereum uses the technology of blockchain where data is available on several databases stored at different locations a technology known as distributed technology. Ethereum can be traded in two broad ways. The first one includes buying or selling ethereum. The most common way to trade ethereum is by use of CFD (contract for difference) which is usually a contract between a seller and a broker from when trade starts to when it shops. This allows a person to benefit from the rising and falling prices of ethereum without actually owning the ethereum. During the buying and selling of ethereum, like any other type of trade, it is important to study and learn all information about ethereum to avoid the risk of getting in a business without the needed information to remain in the business.
The buying and selling of ethereum come in different ways. When buying Ethereum, the ether is stored in an Experian paper wallet or hardware wallets and has no ties with the seller. When selling Ethereum, the ether is stored in an ethereum network and is maintained by the financial management.
The rise and fall of prices of Ethereum are driven by several factors. The first factor includes benefitting from the bullish market. This can be explained in that Ethereum like all other cryptocurrency is viewed as a form of saving and investment. The second factor includes robustness in the technology of mining ethereum. Ethereum with time has been voted more stable than all another cryptocurrency including bitcoins. The mining can continue over and over unlike for bitcoins whose mining cannot exceed a certain number.
People have many varying reasons to invest in specific items. Among reasons to invest I ethereum are;
- A great growing network-since ethereum developers are interested in advancing technology and coming up with new ways in which ethereum can be used, this has seen the advancements in developing more secure applications and creating a group of experts who are interested in great technology.
- The effect on networks and the mover advantage- a person interested in ethereum has to develop more advanced networks that can allow for the exchange and mining of ethereum which has seen the development of more advanced networks. This can be viewed as a way of improving technology with the aim if creating more advanced networks.
Ethereum also has its associated complications and some vote out the investing of ethereum. Among the common reasons not to invest in ethereum include;
- Attack surface; the mining of ethereum means extreme advanced networks and databases and complex computations as compared to other forms of cryptocurrencies. This offers a great risk as the more complex the computation, the more the networks are prone to Attack.
- Network congestion issues; ethereum continue to be a choose of many and the use by many individuals or companies can lead to crowding and congestion.
Disclosure: As an Amazon Associate, I earn from qualifying purchases. The commission help keep the rest of my content free, so thank you!