If you have any interest in investing in cryptocurrency, you’ve probably explored both ether and bitcoin. Bitcoin is currently the most commonly traded cryptocurrency, but ether is quickly gaining in popularity. Investors who are interested in how to buy Ethereum, ether, or ETH, please read on. We’ll tell you everything you need to know about the currency and how to trade in ether.
The Ethereum Blockchain
In 2011, a programmer from Toronto, Canada developed an interest in Bitcoin. He was so interested, in fact, that he founded Bitcoin Magazine. Throughout his research in writing for his publication, Vitalik Buterin learned much about cryptocurrency, and came up with his own idea.
In 2013, Buterin released a whitepaper with a new proposal. He envisioned a platform which was open source and able to be used as a platform for any developer. It would be regulated by peers, leaving it virtually unsusceptible to fraud or censorship. And it would, Buterin thought, become the next generation of internet technology.
Cryptocurrencies like bitcoin and ether use blockchain technology. Blockchain is a record-keeping technology of sorts. Rather than currency or applications being stored in one central location, blockchain records are stored across a network. This network not only stores those records, but the computers communicate with one another and work together to record changes.
Ethereum is a platform on which applications can be built, and the currency of that platform is ether. Like Bitcoin, ether can be traded on the internet and it can be mined. However, there’s one notable difference between ether and bitcoins. Bitcoins can be used to make purchases. At present, ether is only used to pay for the Ethereum platform itself.
The Ethereum price isn’t close to the trading value of Bitcoin just yet. At present, the value of one bitcoin in the United States dollars is $3,320. The value of one ether is just below $300. Bitcoin is new, but ether is newer. Because both currencies are in their infancy, the price can be expected to fluctuate greatly.
Despite not holding the same monetary value as bitcoin, though, Ethereum is steadily rising in popularity among investors. An increasing number of exchanges are listing ETH as an option for traders, and the versatility of the cryptocurrency is appealing. And it’s actually because of the newness of the currency that investors are also interested. Traders are making bold speculations about their investments.
Up to Date Ether Price
Analysts are expecting the price of ether to skyrocket. Projections range from $800 to $2000 by the end of 2017.
The future of ETH depends on more countries acknowledging it as a viable currency. More retailers need to accept the payment, and more consumers need to spend it. There is, however, one Ethereum limitation, and that is ironically its lack of limitation. The number of bitcoins possible to be mined is finite. Once 21 million bitcoins are issued, there are no more. Ether, conversely, is infinite. This increases the risk of the currency experiencing inflation. Those wishing to invest in ether should do so wisely, and watch the market for signs of a bubble.
Like any cryptocurrency, you’ll need to store records of your ether in a wallet. A wallet is a bank account of sorts, where you can hold currency. You’ll also use your wallet to make transactions, like selling your currency or using it for purchases.
There are quite a few wallets available for those who wish to buy ether. You’ll find reviews of each of these wallets online from those who have used them, but the simplest option is Coinbase. Coinbase is like one stop shopping for investors; you’ll hold record of your currency there, but can also use the application to buy and sell your currency.
Before you sign up for any Ethereum wallet, it’s best to get an idea for the reputation of the company. Check for reviews on Buy Shares In and across the web.
Alternative Ethereum Investments
If you’re interested in investing in cryptocurrency but feel that ether may not be right for you, there are alternative Ethereum investments you can research.
Bitcoin and Litecoin are two of the most popular cryptocurrencies. NEM is another, and Monero is one more. All are private, untraceable currencies which are gaining in popularity with consumers and investors alike.
Another option is a CFD, or contract for difference. CFDs allow investors to make (or lose) money based on the value of a currency, but don’t require that traders hold the currency itself. Most discount brokers will allow CFDs on cryptocurrency.
Can you Buy Ethereum Stocks?
You currently can’t buy stock in Ethereum. Instead, investors will either purchase a CFD or will trade the currency via a discount or traditional broker, allowing you to buy Ethereum that way. This trading works similarly to that of commodities or currencies. Contact your broker for details on any additional charges you may incur while trading cryptocurrencies.
Can you Buy Stocks with Ethereum?
At present, there are no reputable discount or traditional brokers which will allow for the purchase of stocks with Ethereum. The value of ether fluctuates too violently for most stock brokers’ liking, and you’ll have to use the traditional methods of purchasing stock for now.
Buy Ethereum vs Bitcoin
For investors seeking to trade cryptocurrencies, Ethereum and Bitcoin are both very viable options. Both currencies are new, and many analysts believe that it’s because of this that now is a good time to invest.
Remember when you buy Ethereum that it has the possibility of inflation, while that’s less likely with bitcoin. However, Ethereum is very rapidly growing in value, and is expected to match or overtake the value of bitcoin quite soon. This could be a great time to invest in the second largest cryptocurrency in the world.
As always, be sure to weigh the risks of any investment you make. With an investment which fluctuates as rapidly as do cryptocurrencies, you stand to lose just as much money as you can make.