What is Ethereum?
Ethereum is a cryptocurrency and a blockchain platform with smart contract functionality. It provides a decentralized virtual machine that can execute scripts to implement self-enforcing business rules for any application. The Ethereum Virtual Machine makes the Ethereum Blockchain 100% trustless.
How do I invest ETH?
You either buy it from someone who has ETH or use your fiat currency to purchase ETH from an exchange. Once you have ETH in your account, you can then use exchanges like Coinbase or Gemini that trade US dollars and Bitcoin to convert it into other cryptocurrencies like Litecoin, Monero, etc. To get involved with Ethereum and build on it, you need to know solidity. To program in solidity you need to understand the basics of the Ethereum Virtual Machine (EVM) which is stack-based (a stack-based machine).
For example, a number on a stack has ” int ” data type. An “int” has 4 bytes or 32 bits and the most significant bit is reserved for the sign bit. You can push int’s onto the stack as they’re used to doing Arithmetic/Logic operations. The Ethereum Virtual Machine will pop one number off the stack, perform an operation, and push it back onto the stack as needed. So each time you push a number on the stack, it will perform some operation on the top number.
Ethereum has a built-in programming language called Solidity, which allows you to program using Ethereum Virtual Machine (EVM) functionality. So to do anything with Ethereum, you have to learn EVM and then learn Solidity. To program anything with EVM, you must know what an “address” is. An “address” is your user account information – your public key and private key. It allows you to send transactions across the Ethereum network and is equivalent to a wallet. The Ethereum Virtual Machine (EVM) operators use a technology called “smart contracts” where they define terms and conditions that determine if an action is executed. Currently, many smart contracts are being built that are forming new industries such as gambling (dice), insurance, stock trading, and secure voting.
The above is a brief overview of Ethereum rather than an in-depth technical explanation of how it works.
The future potential of ETH?
As with all cryptocurrencies, the value of ETH is highly volatile. The future potential for Ethereum depends on what’s built on it and what technology can be built using it. Currently, there’s a lot of attention on using Ethereum as a cryptocurrency for exchanges and sending payments worldwide. There’s also significant research being done to optimize Ethereum to run extremely efficiently at a high rate of speed while still maintaining the security that people expect from the chains they’re in.
How to dollar-cost-averaging ETH?
Answer: If you consider investing in Ethereum, you should do so with your time and effort. If you do, the wisest thing to do is invest a small amount of your investment portfolio into ETH now and ditch most of it, leaving you with enough money to purchase more ETH when it’s released. As the value of ETH goes up so will its reward for holding. To ensure your ETH investment loss, you need to dollar-cost-average into it. The key to investing in cryptocurrencies is to buy them at a low price, then wait for their value to go up.
Sell ETH for cash?
It depends on your plans and where you want to use your ETH. If you’re just looking for a quick profit without gaining real value from the coin, you can sell it now. If you want to use it in future projects and be part of building something that could eventually change the world, keep holding on to it and wait for its value to go up.
ETH vs BTC, What is the best investment?
The answer will depend on your perspective and investment strategy. You should be aware that both coins can have drastically different price movements in the short term. If you’re looking to profit from short-term price movements and don’t mind locking in a small amount of your capital, Ethereum might be a good choice. If you’re looking to buy ETH when it’s cheap, or sell it when it’s expensive, this answer is not for you.
Should I invest in Bitcoin?
The answer will also depend on your plans for investing in cryptocurrencies. Don’t invest with money you cannot afford to lose in the short term because if you lose it everything you invest will be gone. You should always invest in cryptocurrencies with money you can afford to lose in a short term without fear of being left holding the bag with no chance of getting it back.
Is ETH better than Bitcoin?
ETH is much better than Bitcoin. Bitcoin after hitting its all-time high in 2017 is a rarity these days. Most cryptocurrencies are valued at less than 1/5th of their value in January 2018. Ethereum, on the other hand, is among the topmost valuable coins compared to other new ATL coins available in the crypto market today. However, it is not likely to be as stable as the good old USD, but then again it’s the future so who knows how stable it will be.
If you’re looking for an amazing coin for long-term investing and don’t mind locking in a small amount of your capital today to achieve huge returns tomorrow, then definitely ETH is what you’re looking for.