Want to buy Ethereum? Take A Deep Dive into How Ethereum Works

Snapshot:

• What is Ethereum? 
• How Ethereum Works?
• Key Attributes of Ethereum 
• Bitcoin vs Ethereum: Comparative Analysis 
• Ethereum Technical Analysis 
• Ethereum Price Prediction 
• Ethereum Price Trends 
• How to Invest in Ethereum

Deep Dive into Ethereum Cryptocurrency

The most common crypto name that pops up after Bitcoin is Ethereum. It has been one of the most sought-after altcoins since the boom of the crypto space. According to many analysts, among all the best cryptocurrencies to invest in, investing in Ethereum has always been on the list for best crypto of 2021 and has been reckoned as the crypto that can beat Bitcoin with its market cap value. 

Not long after the release of Bitcoin, Vitalik Buterin co-founded the online news website Bitcoin Magazine, where hundreds of articles on the crypto space were published. He was of the belief that Bitcoin was one of the many possibilities the blockchain technology has to offer and it needed a scripting language for further developments in its applications. He released a white paper in 2013 describing an alternative platform designed for any type of decentralized application that developers would want to build. The system was called Ethereum.  

What is Ethereum? 

Ethereum is a public blockchain-based peer-to-peer networking software with a built-in programming language that allows developers to build and deploy decentralized applications using smart contracts. It provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), that executes contracts used to transfer money and develop and run various kinds of applications that are accessible anywhere in the world.

Additional Read: How to buy Ethereum in INR

How Ethereum works? 

ETH is one of the most loved cryptocurrencies within the crypto ecosystem. Traders, investors, and everyone almost always buy Ethereum in bulk or a huge amount, knowing its importance and its potential. That being said, here are some of the facts that you should know before investing in ethereum. 

Additional Read: What is ERC-20 Token Standard? Top 5 ERC-20 Tokens 

Key Attributes of Ethereum:

• Smart contracts: Traders and developers can make use of Smart Contracts on the Ethereum platform. It enables or allows the development and deployment of Ethereum Smart Contracts.
• Ether: Ethereum’s cryptocurrency that is bought and sold on crypto exchanges is called Ether (ETH).
• Ethereum Virtual Machine: Ethereum is the provider of architecture and software; that is the underlying technology that understands smart contracts and allows developers to interact with them.
• Decentralized autonomous organizations (DAOs): One of the use cases of Ethereum is DAO. One can collaborate and create an online community with like-minded individuals. Not only that, it is a new-age way to create a community that shares the same goal and also makes pool- funding possible. 
• Decentralized applications (Dapps): Developers use the ETH platform to create various applications that are known as decentralized applications (Ethereum Dapps). A decentralized application is also known as Dapp for short.
• Non-Fungible Tokens: Also known as NFTs, these tokens are unique and each of them represents an unique item as Ethereum assets that are tradable. The innovation of Non Fungible Tokens has reshaped the world of digital art creators.
  

All the mentioned points are the essential features you should consider before investing in ETH.

Difference between Bitcoin vs Ethereum: BTC vs ETH 

If we are to sit for a cryptocurrency discussion, two names that will definitely pop-up, are Bitcoin and ETH. Why? Because when Satoshi Nakamoto introduced Bitcoin to the world, he opened a door for possibilities yet to be grasped. Fast forward to 2014, Ethereum provided the crypto space with a platform where not only can one explore and write software that is censorship, fraud, and downtime free but can also create groups with like-minded people and experience pool funding. 

While Bitcoin was a peer-to-peer network for seamless online transactions, Ethereum was the global platform for developers to create Dapps using smart contracts and for digital creators to create NFTs! All things combined, investing in Ethereum has been an interesting journey in 2021. Read more about the two most talked about cryptocurrencies in BTC vs ETH.

Additional Read: Bitcoin vs Ethereum: What’s the Difference

Ethereum Technical Indicators 

• Ethereum and NFT tokens: NFTs are unique Ethereum based assets that are one of a kind. Ethereum blockchain gives a platform for digital creators to make unique assets as NFTs that are then sold in the crypto market. 
• ETH and Defi tokens: Decentralised finance or DeFi are a global, open alternative to the current centralized financial system. The Ethereum blockchain provides DeFi to work like a marketplace where investors, traders, and developers can borrow, save, invest, and trade various products.
• Ethereum and Dapps: Dapps are applications built with the characteristics of Ethereum. They might feel like regular apps, but in reality, they are much more.

Additional Read: ETH/BTC Technical Analysis 

Correlation of Ethereum with Top 4 Cryptos 

Source: CryptoWatch

Additional Read: Ethereum Price Prediction

How to Invest in Ethereum

Investing in ETH is as easy as ordering food online with CoinDCX. If you are a beginner in crypto all you have to do is:

• Download CoinDCX app
• Sign up*
• Complete your KYC
• Transfer your INR funds
• Start investing!

* If you are a CoinDCX Pro user, use the same credentials to Login on CoinDCX.

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