The whole world is talking about cryptocurrency ever since it became an overnight success that made millionaires. The history of cryptocurrency started from 2009 when Bitcoin was created. It was initially a decentralized method for making digital payments. However, it is not tangible like cash or gold.
Cryptocurrency is generated through complex mathematical formulas. If you too are interested in investing in cryptocurrency, you need to know the basics. One important aspect is to know about Ethereum and how to convert ether units.
Over the last year, Ethereum has gained more popularity compared to Bitcoin. Many companies and startups have adopted the currency instead of both Litecoin and Bitcoin. Ethereum took over the market because it has an intrinsic value along with the industrial value. On the contrary, Bitcoin operates much like gold that doesn’t have much industrial value compared to intrinsic value. Apart from the curiousness of knowing how Ethereum is different from Bitcoin, it is also essential to understand the risks of the investment and potential to mine it.
What is Ethereum and what are ether units?
Ethereum is decentralized software that allows programmers and developers to run codes of any application. Bitcoin uses blockchain for monetary transactions and that’s straight currency. However, Ethereum uses blockchain to allow applications and execute them in the cloud.
Ether is a type of currency that is used to pay for computation and falls under Ethereum. This is how the monetary aspect comes in. Ethereum has many denominations like finney, szabo, wei, mwei, kether, mether, gether, tether, kwei, and gwei. You need to know how to convert ether units to keep track of your digital currency. Since Ethereum seems exclusive, more people are drawn into this. From finance to software developers, from real estate to investors, everyone is talking about their switch to Ethereum.
How is Ethereum different from Bitcoin?
Bitcoin was designed as a currency and its uses are same according to technology principles. It is used to facilities financial transactions. Ethereum was created as a software processing and the token system was called Ether. The entire system that includes kether, mether, gether, finney, szabo, wei, mwei, and more, have all become more valuable to people and so they are making the investments. There are plenty of apps being created on the Ethereum and it is likely to create a huge demand in the coming years. Moreover, Ethereum is way cheaper compared to Bitcoin.
Why should you invest in Ethereum?
Apart from the growing popularity, there are some more aspects that might interest you to invest in Ethereum:
The value of Ether has grown over the past few months. It was publically traded from 2016 and the estimated growth was 18 million per year. Currently, it has gone up to $700 million.
Trade on exchanges
There are plenty of Cryptocurrency exchanges offering Ethereum on their platforms. Some of the popular ones are Coinbase and Buy Virtual Currency.
Many organizations are accepting cryptocurrencies as payments. Ethereum might come to your use for purchases.
Can be the future
The potential of Ethereum has shaken up the financial system. People are slowly moving away from traditional financial markets after the crisis that happened a decade ago. The world is comfortable online and there is a huge scope.
How to Invest In Ether?
You need a digital wallet so that you can invest in Ether. You won’t find Ethereum in major stock platforms and that’s why you get it for really cheap. We need to know how to convert ether units in the digital wallet. We also need to know the value of the units like finney, szabo, wei, mwei, and so on.
You need to understand that Ether is a digital currency and your venture is similar to that of an investor. You don’t get to buy shares of it, unlike stocks and ETFs. We are instead, exchanging dollars for the Ethereum tokens. These don’t have dividends or payouts. Investing on this is just hoping for the value to rise in the future. There are also people who can buy your tokens for a higher amount than what you had got them for. If you have any doubt about the digital wallet, and you wish to invest through ETF, you cannot do this as yet.
It is essential to understand the intricacies of how Ethereum works so that you know how it can come to your use. Be aware of the possible risks before making any investments.