The Beginner’s Guide to Finding the Best Ethereum Price
With the unprecedented development of the cryptocurrency industry, many people are looking to trade and profit from its growth. Ethereum is the second largest cryptocurrency on the market and one of the most popular digital currencies there are. Now, cryptocurrency can be traded and profited from with the help of brokerage trading platforms under various financial derivatives.
In this guide we will discuss the basics of Ethereum; how it came to be, how to buy ethereum, trade Ethereum, and most importantly how to find the best Ethereum price.
What is Ethereum?
Vitalik Buterin invested Ethereum in 2013. Ethereum is both is a blockchain platform with smart contract functionality and a cryptocurrency.
Essentially, it’s a decentralized platform constructed for developers to build apps on. Ethereum’s used to codify, secure, decentralize and then trade almost anything: financial exchanges, domain names, voting, crowdfunding, contracts, agreements, company governance, and for intellectual property.
What is Ether?
Ether is the Ethereum platform’s legal tender. Anyone looking to build on or use the platform will need Ether to do so. Many people use the term Ethereum for referring to the currency alternatively, which can be confusing. Akin to Bitcoin, Ether has got the ability to be mined or traded and is bought at any of the brokers that are listed on our chart above.
The Advantages of Ethereum Decentralized Platform
- Decentralized applications run on the blockchain. This benefits from all of its properties.
- Secure – There isn’t a central point of failure, and it is secured using cryptography. All the applications are strongly protected against fraudulent activities and hacking attacks.
- Immutability – Third parties don’t have the ability to make any changes to the data.
- Corruption and tamper-proof – Based on a network that is formed around the consensus principle, these apps render censorship impossible.
- Zero downtime – This means that the apps can’t be switched off and will never go down.
Ethereum Vs. Bitcoin
Although Ethereum and Bitcoin are both Cryptocurrencies that are built on blockchain technology, they differ in several ways. These differences between them are each relate to the refinement of the Ethereum protocol. Because of the way that Ethereum is mined, transactions with Ethereum will occur a lot faster than with Bitcoin. For example, Ethereum’s typical “block” time is 12 seconds whereas, with Bitcoin, the “block” time is 10 minutes. With Ethereum, it is easy to pay and clear transactions. Moreover, Ethereum doesn’t have the automatic restrictions that are placed on its supply growth in the same way Bitcoin does.
How to Buy Ethereum
When it comes to buying Ethereum, the easiest way is through a Bitcoin trading platform that also offers Ethereum trading. Therefore, if you are looking where to buy Ethereum, look at our top choices above.
Don’t Want to Buy Ethereum? Day Trade!
For those looking to earn on the exchange rate, they should also invest in CFDs. The thought is that instead of buying Ethereum you can trade directly according to the exchange rate. You need to keep in mind that CFDs are better suited to experienced traders and your capital is at risk.
How to Find the Best Ethereum Price
Unlike Bitcoin and other cryptocurrencies, Ethereum is not designed to have the same functions. While Ethereum does have its own Ethereum price, what it does is pays for specific actions on the cryptocurrency network. One of the biggest influences on the Ethereum price is mining. The mining of Ethereum influences the Ethereum price by increases its supply. Miners either hold or sell their coins. However, the current version of Ethereum controls a proof-of-work based agreement, which rewards computers that help security. Once it begins to develop further the Ethereum price is anticipated to change. Also, the number of the users is another factor. The more people start to see the uses of Ethereum, the more it affects the Ethereum price.
How to Choose an Ethereum Broker
As the trade volumes are reaching billions of dollars a day and the market caps are hitting tens of billions of dollars, it is no wonder that cryptocurrencies fuel the modern day gold rush. Today is an age of digital currencies, with cryptocurrencies birthed within the decade. There are already more than a thousand cryptocurrencies in the market and almost daily, an initial coin offering (ICO).
Because there’s so much competition in the Ethereum exchange market as well as having countless Brokers and Exchanges to choose from, it can be difficult to know which option will work best for you. Here are a few things we suggest keeping in mind before you decide on the right Broker for you:
Use a regulated Ethereum Broker or Exchange. The regulatory body develops rules and services protect the integrity of the market, as well as traders, and investors. Because of possible safety concerns, you should open accounts exclusively with regulated brokers.
Trading happens 24 hrs a day, so customer support should be available at all times. You’ll want to be able to speak with a live support person. The representative’s ability to answer your questions regarding spreads and leverage, as well as company details is very telling.
The details of a good broker should be out in the open for everyone to see, either online or otherwise.
Your ideal broker for trading Ether should be able to offer either multiple account options or provide you with an element of customizability. Look for an Ethereum Broker that offers competitive spreads and easy deposits/withdrawals.
Buying and selling Ether costs money. However, unlike buying stocks or bonds, brokers generally charge a percentage. You may consider looking for a broker that charges a flat rate fee instead of the percentage model.
Because Ether is traded in a market where people are both looking to buy or sell the digital currency, it’s crucial to consider the amount of liquidity that an exchange can have. Liquidity is the ability to sell without the price being significantly affected, causing the price to drop.
For more information on Cryptocurrencies, please see our tutorial: The Basics of Cryptocurrency.