For those of you who are new to the concept of cryptocurrencies, no, the ether described here is far from what it is in the Marvel universe. What Ether means here is Ethereum’scryptocurrency which at its peak value was at $400.
That is an astronomical 5000% increase since the beginning of the year. So before we go into dealing with Ethereum in the forex market, it is well to get our eye in on what it is exactly.
What Is Ethereum?
As far as cryptocurrencies go, Ethereum is a prominent asset, second only to bitcoin. Despite its name, it is not something that came out of nothing. The blockchain technology that it uses is similar in many ways to bitcoin.
However, it is a programmable blockchain which means that its platform is Turing-complete. It also mean that significantly more advanced functions and applications can be added including other cryptocurrencies.
By contrast, bitcoin is limited to a singular function, facilitating peer-to-peer transactions in the form of a digital currency. It may have been the first to exploit the benefits of the blockchain technology, it has sustained scaling issues during its 8-year old life as a result of its limited functionality.
If this year has been any indication, we have seen some truly staggering growth with Ethereum. While it still remains as the second largest cryptocurrency, it is rapidly closing in on the top contender, bitcoin. Learn about bitcoin here.
And all guesses are this will happen through a phenomena known as “Flippening.” With Ethereum’s coin value having expanded dozens of times over within the year, we can only assume that it has further to climb in the coming weeks and months. No doubt then that an increasing number of traders will be keen to capitalize on this financially. So here some ways by which you can include Ethereum as part of your trading portfolio.
1. Create an Account on an Exchange
With etheruem as with any cryptocurrency, you can only buy or sell it through a transaction on an online platform. So stake out a service for this that is highly reputed. If you want some names, there is Coinbase, Bitstamp, Kraken, and Gemini. It is imperative that you select an exchange and create an account prior to trading Ethereum.
2. Verify your Account
A good tell of whether an exchange is reliable or not is if they require that you verify your account in one or multiple ways. That usually means uploading a certain amount of documents to confirm that your account is legit. The verifying process will likely take no more than a couple of days although that is somewhat subjective to the extent of activity your choice of exchange would be involved in.
3. Make a deposit in Fiat Currency
The next step involves depositing fiat currency to your account either through a bank or wire transfer. Once again, the duration of that process can last a few days before the money comes through.
4. Start Trading Ethereum
Now that you have a verified account with money in it, you are all set to purchase Ethereum as well as other cryptocurrencies through exchange. The interface differs more or less with each currency. But any case, be ready to confirm transactions and wait the allotted time which will also be pending on the full number of transactions that have been requested.
5. Withdraw ETH into your digital Wallet
Just as you have purchased ETH via exchange, you can now withdraw that currency straight into a wallet under your control. Hacking is an ever-present threat to exchanges so yes, you tokens are potential targets for theft. As a safety precaution, it is best to download and install a wallet that is compatible with etheruem and only grants you access through a key. That is about as private a place that you can acquire for storing your tokens securely.
Next you can enter the address of your account into the exchange so you can shift ether into your wallet. Take care not to use either your wallet address, password, or private key as you may encounter difficulty getting at your ether in the future.
Take your time, explore all angles and you can set yourself up nicely to buy Ethereum and enjoy its perks.