Ethereum was originally created not just as a payment system, but as a base for the affordable implementation of blockchain technology in third-party projects. Today, Ethreum is actively traded on cryptocurrency exchanges and in the world it is considered the second top coin after Bitcoin.
What is Ethereum?
Ethereum (ETH) – is a universal tool for launching decentralized applications (dApps) running on smart contracts. Cryptocurrency ETH is an exchange unit of the ecosystem. Ethereum is sometimes called Bitcoin 2.0, but despite a certain similarity, these projects have fundamentally different purposes.
In 2013, a young Canadian programmer, founder of Bitcoin Magazine Vitaly Buterin, together with his colleague Gavin Wood, presented the concept of the Ethereum blockchain platform. Cryptocurrency in this network played the role of not only a means of payment, but also allowed the exchange of resources to a variety of web services operating in a peer-to-peer network. During the ICO held the following year, the company managed to collect 31,000 BTC. The innovative Ethereum project was able to attract the attention of many reputable companies: banks, financial organizations, and so on. After the implementation of the Homestead protocol, the network began to function in full mode.
The main value of the Ethereum network is not cryptocurrency, but the capabilities of a virtual platform. The platform has a variety of applications in multiple fields, but among the main ones is the use as a cryptocurrency for fast and secure transactions, building smart contracts, and conducting ICOs. In addition, various blockchain projects are being launched on the basis of Ethereum, ranging from sports betting and online casinos to charitable foundations.
The Ethereum blockchain allows everyone to use all the advantages of distributed ledger technology when performing specific tasks. After the appearance of the Ethereum system, it is no longer necessary to create a personal crypto network. For a relatively small fee, you can use a ready-made solution.
Tens of thousands of computer applications written in different programming languages could now be launched and interacted with each other on the same platform, which significantly expanded the scope of blockchain technology. Thus, every qualified programmer can create his own application based on the Ethereum ecosystem, working according to a strictly established algorithm. The system guarantees protection from failures and intruders, the absence of censorship, and the non-interference of external regulators.
The functionality of the Ethereum network allows you to:
- To launch smart contracts.
A smart contract is the name of a computer code created to organize the exchange of money, content, property, shares or some other value. When launched in the blockchain network, a smart contract turns into a computer program that is automatically executed under certain conditions.
Since the smart contract is executed on top of the blockchain, it works exactly as programmed – there is no censorship, downtime, fraud or third-party interference.
- Create applications of any type (games, utilities, etc.).
Although all blockchain implementations are able to run code, the capabilities of most of them are very limited. Ethereum does not provide the developer with a narrow set of available operations, but offers to create any programs, and, thus, thousands of completely new applications can be implemented in Ethereum.
- Many ICOs are held on the basis of the Ethereum platform.
ERC20 is the standard for tokens of the Ethereum network. The abbreviation stands for Ethereum Request for Comments. This is the official protocol of the company for making proposals for improving the blockchain in the network. The number 20 is the offer ID. The ERC20 protocol was created in order to solve compatibility and support problems. With the help of ERC20, new tokens can be added to the exchange and perform the necessary manipulations: quickly add and remove tokens, move between wallets, etc. The protocol contains a set of rules according to which all coins created on the basis of this platform work.
Unlike Bitcoin, the issue of which is limited to 21 million, the emission of Ethereum is not limited. Ethereum did not strive to become the most expensive cryptocurrency in the world, and limiting the issue would lead to an increase in value. The developers chose a different tactic and did not lose at all, as evidenced by the fact that ETH is the second leading cryptocurrency after Bitcoin. As of June 30, 2021, the market capitalization of ETH is $254,949,840,138, and the price per one coin is $2,189. The all-time high of $4,362 was reached on May 12, 2021. While the all time low was recorded on October 21, 2015 and was $0.4209. Amazing growth isn’t it?
Advantages of Ethereum
- Availability. To date, Ethereum is the second most popular cryptocurrency in the world and is traded on all major exchange platforms.
- Versatility. The platform allows you to work with different programming languages and protocols (regardless of the level of complexity).
- Smart contracts. Thanks to this technology, Ethereum is in the zone of interest of many large corporations and banks.
- Publicity. The developer of Ethereum, Vitaly Buterin, is a public and recognizable person, all improvements and innovations are announced in advance, which causes a huge level of trust in the platform.
- Flexibility. The development team keeps up with the times, refining and improving the platform, which easily accepts changes and upgrades.
- Open source code. Anyone can create a unique decentralized application based on Ethereum blockchain.
What drives Ethereum prices
As the price history of ETH shows, there are two important factors, which might make the price line go up or down:
- Speculation of investors – due to the volatility of any cryptocurrency and Ethereum in particular, it is very sensitive to the actions of big traders, governmental decisions or tweets of famous influencers
- Hardforks – the most indicative event, which might cause the price fluctuations. The new perspectives of the asset inspire new investors, while at the same time they frighten the old ones, as far as one never knows where the price will go after a hardfork
How to trade Ethereum: top tips for success
While it is probably impossible to predict the accurate price of ETH in the future, we have prepared a list of useful tips which will save your funds from being devalued, as well as may help you to develop your own trading strategy:
- Never spend more money on trading than you can afford. To save your nerves and stay financially secure, we recommend using no more than 30% of your income
- Do not rush and always stay calm when the price surges up and falls down. Make your decision on the basis of calculations and strategy, not emotions.
- Concentrate on the process and do no try to combine it with another activity. Trading requires your full attention and might penalize you with a huge loss, if you are not attentive enough.
Why should I trade Ethereum?
Ethereum can already be considered one of the most successful blockchain projects of our time, and there is no doubt that in the future, the popularity and value of the ETH cryptocurrency will only grow. If you need proof, think about the following:
- As Ethereum-based tokens grow in value, the assets of the underlying platform also grow.
- Several large companies, such as JPMorgan Chase, BBVA, Accenture, Microsoft and Intel, got together and created a group called the Enterprise Ethereum Alliance (EEA), which focuses on developing applications via Ethereum blockchain.
- As the use cases of dApps continue to expand and the technology grows to meet the demand, Ethereum, taking advantage of this trend, expands its network.
Many authoritative sources predict the growth of the Ethereum exchange rate. For example, the Digitalcoin platform predicts that by the end of 2021, the value of one ETH coin will reach $3,046. And by 2028, the value will exceed $9,000. According to the forecast of Longforecast, the cost of ETH by the end of 2021 will be in the range of $2,440 – $3,028. And by the end of 2022, the approximate cost of ETH will be $6,702.
Where to trade Ethereum?
There are no difficulties to buy or sell ETH 24/7, just use the services of a secure crypto exchange or brokers:
- Binance – a multilingual crypto exchange with a good technical architecture and high security.
- Huobi – a well-known crypto exchange with low commissions and high data security.
- 7b – a straightforward and intuitive crypto broker, with some of the most competitive rates on the crypto market.
- OKEx – a popular crypto exchange with high security and modern functionality.
- Coinbase – founded in 2012, today Coinbase is one of the leading cryptocurrency exchanges, providing solid variety of altcoins to trade
- Kraken – credible crypto trading platform with an access to 60 cryptocurrencies, with an ability to stake and loan them
- Bitstamp – the EU-based Bitcoin exchange providing fiat/fiat, fiat/crypto and crypto/crypto trading
- Gemini – custodial crypto trading platform, founded by Winklevoss brothers in 2014
- Bitfinex – is a Hong Kong operated cryptocurrency exchange that has been in operation since late 2012
How to trade Ethereum using the 7b crypto broker app?
Looking for a profitable way to buy or sell ETH? Then you have come to the right place. 7b crypto broker is suitable for both beginners and experienced traders. The platform provides high security, favorable rates, and more than 2000 cryptocurrencies for trading. To trade ETH, you only need to perform a few steps:
- Download the 7b app from Google Play to your smartphone.
- Log in to your account or register for it if you are with us for the first time.
- Pass two-steps verification.
- Enter ETH in the search bar and select the cryptocurrency you want to trade it with.
- Select the action that you want to perform with ETH coins.
- Enter the desired transaction amount.
- Confirm the transaction.
- Get a success message.
FAQ
Is Ethereum a good investment?
Definitely yes. Ethereum is the second highly capitalized crypto project after Bitcoin. Due to its unique technical and functional capabilities, the platform is one of the most popular and in-demand in the world. In addition, many reliable sources, such as Longforecast, Digitalcoin and others, predict the growth of the ETH rate in the coming years.
How do I invest in ETH?
Investing in ETH is quite simple, first of all you need to choose a profitable and secure crypto exchanger or broker. It is also necessary to study the price chart of the ETH exchange rate and choose the right moment for investment. On 7b, to buy ETH, you need to log in to your account, select ETH and the cryptocurrency you want to buy it with, enter the desired amount, and confirm the transaction. Withdraw your newly ETH coins to a secure wallet and wait until the price goes up.
How to trade Ethereum for beginners?
Trading any cryptocurrency is highly risky due to the volatility of the market. Therefore, it is a good solution to diversify your crypto portfolio, so that if the exchange rate of one currency falls and the other jumps, you are not suffer losses. On 7b, it will be easy for beginners to start trading: register in your account, select a trading pair, enter the amount, and confirm the transaction.
How to buy Ethereum cryptocurrency?
You can buy ETH cryptocurrency via various crypto exchanges and brokers. On 7b, we offer you the best rates on the crypto market and ease of use. Just log in to your account, select ETH and cryptocurrency to purchase it with, enter the amount, and confirm the transaction.
What is Ethereum Blockchain?
Ethereum is a platform for developing decentralized applications. In Ethereum, it was decided to realize the untapped potential of the Bitcoin scripting language at the protocol level by adding a tool for creating smart contracts.
