Why Trade Ethereum vs. Bitcoin?
Ether is one of the most popular cryptocurrencies there are. It was only seconded to Bitcoin and operated entirely different than Bitcoin. Therefore it has a lot of various advantages to the cryptocurrency depending on the needs of the user. Other then bitcoin, it's the only cryptocurrency that has had so much promise over such a short time. Not only that, but Ethereum also has a lot of real-world applications.
If you're still trying to figure out how you can trade Ethereum Tokens (Ether), then you'll learn a lot in this article. The Ethereum Network involves some risk, but with the right trading strategies, it's not nearly as hard as you may think. Besides, all investments come with risk. But with these strategies, you'll learn how you can get started and trade accurately.
What Makes Ethereum (ETH) Unique vs. Other Coins?
Ether is the fuel for the Ethereum network. It's money that is used to operate on Ethereum. So you're never trading Ethereum, you're trading Ether. And the better you understand how to trade Ether, the better you'll be able to operate on the network. You can use Ether to pay for software services on the system, or you can use it as a real-world currency.
Before you can truly understand how to trade Ethereum, you'll have to know how it all works. The main reason Ethereum is so different than Bitcoin and the other cryptocurrencies is because it's a software platform that allows people to build applications on a decentralized network. They do this on top of the Ethereum Platform.
Apps built on the Ethereum Platform are the same as when Dropbox builds an app on the MacOS. They host your files, and you pay them a monthly fee. On the other hand, with Ethereum, the fee is for the storage of Ether, not USD. The main difference with Ethereum is that it is open to everyone, plus it's completely free from censorship. It's also more secure than many existing solutions on the market. This is because Ethereum is entirely decentralized.
The network operates on a database that is hosted on several different computers all over the globe. Each of the computers has a copy of the database. For this process to work, multiple computers must agree to change the database and validate any transactions that have occurred. It's the only way that any changes can be implemented.
And even though, several people have the stored data, you need to have a private key to unlock your data. The private key is entirely safe and secure and nearly impossible to hack. It's as strongly encrypted as anything you can find online, anywhere in the world. The data is said to be even more secure than any you can store anywhere, even on the most secure cloud-based platforms. It's called a blockchain,
One of the most significant factors with Bitcoin and Ether is there is an unlimited supply of Ether. New Ether is produced every year.
Live ETH Price Chart
The Best Ether Trading Strategies
There are several ways you can trade Ether, but first, you need to make sure you have an account signed up for the exchange. There are several good exchanges you can trade Ether on. You'll need to do so per your personal preference and any local laws. Also, make sure you are using a trusted exchange. Many of the trades give you the ability to purchase Ether directly from them. There are other's however that require you to buy Bitcoin; then you can use that to exchange it for Ethereum. The leading trading platforms are Poloniex, Kraken, Bitfinex, Coinbase.
You may also need to give some proof of ID on some sites when exchanging. It’s a security procedure to help stop the laundering of money. Some will argue that it goes against the anonymity that cryptocurrency stands for, but it’s entirely up to you.
Other great sites you can use are Changelly and ShapeShift. Once you have your account set up, then you can do one of two things. One, you can buy and hold and two you can actively trade your currency. There is are upsides and downsides to both. Putting anything you own onto cold storage is always the best bet. When storing your cryptocurrency in cold storage, it can't be hacked, and it can be stored off-site. You'll not have to worry about computer failures either. The best way to store cryptocurrency is to use a combination of methods. Once you start this process of trading, it will take time – but you’ll start to learn and eventually start making money if you follow the instructions.