Ethereum For Beginners
Created by Vitalik Buterin, Ethereum (ETH) is a cryptocurrency that allows smart contracts and decentralized applications (dapps) to run on its network.
If Bitcoin is the floppy disk of the blockchain, Ethereum is the CD: it is the beginning of the technology. What Ethereum has proven is that a community can create money, and send and receive anyone with a cryptocurrency wallet. It solved the big problem of double spending.
What Ethereum has shown, however, is that blockchain can provide much more than just a store of value. It can be used to organize people, ideas, business, money, work, etc. If something can be written in code and used in smart contacts, it can be built on Ethereum.
This simple concept has allowed people to use Ethereum to manage assets and stocks, create social networks and financial applications, develop games, and even build new nations. Unlike the Bitcoin blockchain, which is only the home of Ethereum, the Ethereum blockchain supports an unlimited number of digital currencies, such as Tether USD (USDT), BNB, and ChainLink, in addition to its local currency, ether.
Finally, many believe that Ethereum can support another way of thinking about how the Internet works, called "Web3", which removes the control of the Internet from big companies like Amazon and Facebook.
What Is Ethereum?
Ethereum, the second largest cryptocurrency after Bitcoin, is a blockchain supported platform for decentralized applications (dapps). While Ethereum was created as a currency and a store of value, Ethereum is a network that makes it ineffective for the execution of smart contracts - code that runs in a peer-to-peer network and is verified by the blockchain of Ethereum.
A smart contract is a computer code that generates the rules of a contract and ensures that the parties involved execute the contract according to those terms. The idea is to create applications that are secure, transparent and anti-censorship, as they do not rely on centralized platforms.
Ethereum has been used as the underlying software layer for everything from decentralized finance (DeFi) applications to gaming to monetization using non-fungible tokens (NFT). Ether (ETH) is the cryptocurrency that Ethereum uses to build and secure its network. The branch of Ether Gwei and Wei is named after Wei Dai, the first cryptocurrency pioneer.
If Bitcoin is the gold of the cryptocurrency world, Ethereum is the oil that makes them work. Ethereums can be sent quickly and securely from anywhere in the world, all you need is an internet connection.
The price of Ethereum is determined by the open market, based on supply and demand. Click the button below to see the current price of Ethereum in USD (US Dollar), EUR (Euro), GBP (Pound Sterling), CAD (Canadian Dollar), CHF (Swiss Franc), JPY (Japanese Yen) and AUD (Australian Dollar):
Who Controls Ethereum?
A Russian-Canadian computer scientist named Vitalik Buterin wrote the Ethereum-based white paper. Many programmers and entrepreneurs contributed to the foundation of Ethereum: Anthony Di Loria, Charles Hoskinson, Miha Alisie, Amir Chetrit, Joseph Lubin and Gavin Wood.
However, if you are wondering who controls Ethereum, that is another matter. The Ethereum network is decentralized, which means that no one person or company controls the platform.
Where To Get Ethereum?
You can easily get your first Ethereum or at least a fraction of it through the following methods:
1. Crypto Exchange
Most crypto exchanges accept payment methods like bank transfer, cash deposit, credit card, debit card and Paypal.
Currently, most Crypto Exchanges require personal documents to carry out KYC procedures, but there are still excellent options that allow you to buy Ethereum anonymously.
2. Ethereum Mining
Since the Ethereum uses the Proof of Stake protocol, it cannot be mined. You must buy a stake by applying ETH to get rewards from supporting businesses. Without getting involved with any ASICs or GPUs, you save a lot of money to spend on hardware, power and cooling.
Anyone willing to become a validator must deposit 32 ETH into the deposit smart contract and run three different software, an execution client, a consensus client and a validator. The selected validators receive block rewards once a block gets validated.
The more you bet, the higher the reward. Therefore, it can be useful to have representatives in your pool. You get a percentage of their commission. Additionally, you will also need to meet the operating system requirements.
3. Accepting Ethereum At Your Business
To start accepting crypto and Ethereum as a business, you need to register for a crypto wallet or payment gateway. You can integrate cryptocurrency payment gateways offered by companies like BitPay into your online checkout.
Adding Ethereum as a payment method has become popular among small businesses with access to cheap and easy to use platforms and applications. You can also accept crypto payments in-person by compatible QR code scanner.
4. Receiving Ethereum Rewards
Crypto faucets are basically an easy, free and legal method of earning Ethereum. Many of the popular crypto faucet websites like FaucetPay.io offer secure transactions along with real Ethereum rewards at no additional cost.
On some crypto faucets you can earn the equivalent of $200 worth of Ethereum per hour by completing certain tasks online.
5. Accepting Ethereum Donations
Accepting Ethereum donations will be an excellent method if you are making valuable content available to the public for free. This is also a method widely used by non-profit organizations, charities, schools and religious organizations looking to reduce the tax burden.
In this method you will be able to use your own crypto wallets and receive donations in Ethereum without intermediaries.
Where To Store Ethereum?
If you buy or earn Ethereum, you will need a safe place to store it.
In this step you will have to decide between two types of Ethereum wallets:
1. Hot Wallet
In this type of Ethereum wallet you will store your Ethereums at third-party providers offering independent online security. In most cases these providers are crypto exchanges that provide applications connected to the internet.
These solutions allow access to your Ethereum wallet via a computer browser, desktop app or smartphones. This type of Ethereum wallet is often targeted by hackers and is only recommended for temporary storage.
Use hot wallets only when you need to sell or spend your Ethereums for your online business.
2. Cold Wallet
In this type of Ethereum wallet, you will store your Ethereums on devices that should never connect to the internet. In most cases, you will use encrypted devices like a USB drive that allow you to manage your Ethereums free of hacker attacks.
Always use cold wallets if you want to safely store your Ethereums for long periods of time. Unlike banks, anyone can create their own Ethereum wallet for free. Ethereums are held by their owners in an anonymous system.
This means that there are no account numbers, names, social security numbers or other identifying information linking Ethereums to their owners.
How To Multiply Your Ethereums Every Day?
There is no magic way to multiply your Ethereum, just like there is no magic way to multiply other currencies. Ethereum is like any other currency in the world today and you can multiply it every day using these three methods:
1. Crypto Casinos
Online gambling is one of the most popular branches of entertainment, and crypto gambling is growing. Introduced in 2011, the crypto gambling industry has grown by more than 500%. This is not surprising, as crypto gambling sites offer many player benefits including anonymity, amazing bonuses and promotions.
These casinos work in the same way as traditional online casinos, the main difference is that they allow players to deposit, bet and withdraw using cryptocurrencies such as Ethereum, than traditional fiat currencies like US dollars or euros.
You can use your skill and luck to double your Ethereum in a few hours.
2. Crypto Brokers
A crypto broker is a company that provides online financial services to users who want to buy or sell cryptocurrencies. To provide this service, a crypto broker charges trading fees for every trade performed by users of its trading platform.
Crypto brokers provide the best place for users who are new to the cryptocurrency market and beginners who want to buy Ethereum or other cryptocurrencies.
You can use your skill and the leverage offered by the crypto broker to multiply your Ethereum on every trade.
3. Crypto Trading Robots
In the world of cryptocurrency trading, crypto trading robots perform the task of trading one or more cryptocurrencies on one or more platforms automatically on behalf of the owner or user. Professional crypto trading robots work as long as they use predictive, and automated input or execution technology to make them profitable in crypto trading.
They are used to automate trading strategies and applied for purposes of amplifying trading profits.
Where To Exchange Ethereum For Cash?
Like many other assets, Ethereum can be bought and sold using fiat currencies such as the U.S. dollar. The price will depend on the current market value, which can fluctuate significantly from day to day.
You can easily sell Ethereum or at least a fraction of it through the following method:
1. Crypto Exchange
You will be able to easily sell Ethereum on cryptocurrency exchanges to other investors who will pay you in cash using methods such as bank transfers, cash deposit, cash in person or cash by mail.
Currently, most Crypto Exchanges require personal documents to carry out KYC procedures, but there are still excellent options that allow you to sell Ethereum anonymously.
What Can I Buy With Ethereum?
Once you buy Ethereum, you can use them in online transactions wherever they are accepted. Today, many businesses accept Ethereum as a legitimate payment method.
To avoid falling victim to scammers when making purchases using Ethereum, it is recommended that you always use some crypto escrow service.
Crypto escrow services are the key to secure payments using Ethereum.