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The Ethereum blockchain offers a solid platform for creating decentralized applications commonly referred to as Dapps. Developers who try to use the platform to create these applications must take costs into account. Such as? Using the platform's native token, Ethereum coin.
In addition to developers, the Ethereum currency can be bought and traded on cryptocurrency bags that produce profits along the way.
In this post, we will focus on the currency of Ethereum
rather than its platform.
Two uses of the Ethereum coin
Fuel
As mentioned above, the activities on the Ethereum blockchain are not free, whether it is to interact with decentralized apps or to send some Ethereum coins to a friend or to pay for goods and services. The Ethereum coin is necessary to feed these activities.
However, how much is "fuel"? these
the activities that must be completed depend on a series of factors.
For example, how a car needs
more fuel to travel longer
distance, the fuel on the Ethereum blockchain is calculated depending on the duration a
a single interaction will be performed on the platform which will also result in that
calculation power is needed.
Investment
The Ethereum coin can also be
used as an investment However, with the type of volatility we have seen
the cryptocurrency space, this option may be despised by some. But, seasoned
cryptocurrency traders will argue that Ethereum's currency is among the best
cryptocurrencies to include in your wallet.
This is largely like that because the
The currency of Ethereum is the second largest cryptocurrency in terms of the market
capitalization. Note that the market capitalization is calculated by multiplying
the number of coins in circulation with the value of a single currency of Ethereum a
a special moment
As an investment, a
the cryptocurrency trader can choose to buy the currency when the price is low or at the price of
current price, keep it and sell when the price is appreciated.
With cryptocurrency, the
prices can appreciate or depreciate in a few minutes. Therefore, when looking at
to use the Ethereum currency as an investment, it is advisable to monitor the
main factors that can cause crypto a
rocket or plumb. Understanding these dynamics and a knowledge of the
price charts can make the difference between a good return on investment and a loss.
3 ways to acquire the
Ethereum coin
Purchase
This is by far the most common way to get your hands on the coin. The purchase of the currency can be done on virtually every reputation of cryptocurrency in the world. However, with this option, exchanges could have some obstacles.
For example, some exchanges
may not allow you to use fiat directly to purchase the Ethereum coin. In this
case, the Ethereum coin can only be bought using another encrypted
Bitcoin.
In case the exchange
Supporta fiat is not your favorite, you can buy the coin and transfer it
to your favorite change and buy the Ethereum coin from there.
Extraction
The next best way to acquire the Ethereum currency is by confirming the transactions on the Ethereum blockchain. This process, as known in the circles of cryptocurrency, is called mining. Because Ethereum's blockchain uses the Proof of Work consent algorithm, powerful IT devices are needed to discover blockchain transactions. The more compute power you have, the more likely it is to find new blocks, confirm them by solving complex mathematical equations and ultimately be rewarded with Ethereum coins.
However, the developers of Ethereum
they are working on moving from a Proof of Work algorithm to an algorithm
does not require high computing power for
confirm the transactions.
Coin mining can be done individually or in a group by joining a mining pool. While entering a mining pool may seem feasible, the rewards are shared among those who contribute with their computing power to find a new block.
However, if you decide to extract
as an individual, returns may not be guaranteed since they have enough
The power of calculation to ensure consistent returns can be complicated and expensive.
Accepting as a method of payment
If you are a merchant, you can do it
have one more way to acquire the Ethereum coin. expanding the payment
options to include the Ethereum currency.
storage
The currency of Ethereum, as with other cryptocurrencies, is stored in cryptographic portfolios. An advantage with money is that it is supported by a wide range of software and hardware portfolios.
Some of the main software
the portfolios include Jaxx, Mist and Atomic. For hardware portfolios, the Ledger
Nano S, Ledger Nano X and Trezor are the best choices.
Conclusion
As we conclude, it is good to note that the currency of Ethereum and Bitcoin differ for some reasons. For example, Bitcoin was developed as a peer to peer payment system. While Ethereum, although it has this feature, offers a platform for developing decentralized applications.
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