Ethereum had an incredible 2017, growing by more than 15000%.
More people than ever want to invest in Ethereum but are confused by the process.
Thankfully entrepreneurs and new services have made it easier than ever to buy Ethereum.
Keep reading to find out exactly how to buy and use Ethereum.
What is Ethereum?
Ethereum is a blockchain based development platform for decentralized apps, called dapps. The blockchain is a programming method that uses a distributed ledger to keep a record of all actions and agreements that have been created by users.
What sets Ethereum apart from other blockchain coins such as bitcoin is the ability to create smart contracts. Because all records are stored in every Ethereum node it is impossible to falsify transactions or to refuse to carry out an agreed-upon action.
Smart contracts make it possible to carry out transactions, such as payments, directly between a user and a developer. There is no middleman required to facilitate the transfer of funds or to carry out an action.
When people say they want to invest in Ethereum they really meant that they want to buy ether. Ether is the fuel of the Ethereum network.
Before you can buy ether you have to set up an Ethereum wallet to hold your coins. Start by downloading a program available from the Ethereum foundation and installing it on your computer.
Once you've created your wallet you can then transfer coins into it and use it to make purchases. Always make sure to keep your wallet information secure. The blockchain is designed to make it impossible to reverse transactions once they have been carried out.
If you want to really secure your ether you can remove them from the internet entirely. You can either print off the actual cryptographic keys for the coins and store them in a very secure place.
How to Invest in Ethereum
There are several ways to get your hands on ether. If you have some technical know-how and a high-end graphics card you can mine ether by providing computing power to the Ethereum network.
For most people though, it's easier to just buy ether. There are hundreds of cryptocurrency exchanges that allow you to purchase ether using either fiat currency or other cryptocurrencies.
Coinbase is one of the oldest and largest exchanges. It allows you to use your bank account or credit card information to purchase Bitcoin, Bitcoin cash, Ethereum or Litecoin.
Purchasing from an exchange is a lot like buying shares of stock. You enter the number of coins you wish to purchase and press buy.
If you would like to purchase ether and pay cash there are thousands of specialty atm's available all over the world. These allow you to buy ether, bitcoin and other coins without providing banking or credit card information.
Invest in the Future
The blockchain may be the next stage of the internet. When combined with internet-of-things innovations a whole world of exciting possibilities is opened up.
Check out these blockchain innovators to learn more about how the blockchain is changing our world.
Disclaimer: Do not take this article as professional investment advice. We are not a financial institution.