How do I invest on BTC or ETH?
WilliamHow to invest in Ethereum: the new (and better) Bitcoin
In this article, we are going to see how to invest in Ethereum in a simple but safe way. Right now everyone is talking about Bitcoin as its price has soared in recent weeks (+ 125% in a month!). While some believe that its price is still going to multiply in the coming months or years (some speak of it reaching $ 100,000 in two years), others believe that it is a speculative bubble that is about to burst.
Regardless of the position taken against Bitcoin, there is another cryptocurrency much less known but equally (if not more) interesting to invest in right now due to its enormous potential for appreciation: Ethereum.
To invest in Ethereum we will use the Coinbase platform (to buy the coins) and the Ledger Nano S wallet (to keep our coins safe).
Article
In this article, we are going to see what Ethereum is and we are going to give a series of ideas to invest in Ethereum in a simple way (and totally suitable for beginners in the world of cryptocurrencies) but safe at the same time. Because, if you don't know, security is essential when it comes to investing in any cryptocurrency.
(I) What is Ethereum
Preliminary remarks
By way of introduction, we want to emphasize that what follows is a fairly simplified presentation of what Ethereum is so that all our readers, even the most neophytes in this type of technology, can understand it and can invest in Ethetreum with some knowledge of cause. However, we believe that this article sufficiently summarizes what it consists of so that our readers have a solid foundation to start investing in Ethereum if they wish.
That said, it is possible to invest in Ethereum without specifically understanding what it consists of, so if you wish you can go directly to the section «how to invest in Ethereum». Even so, we encourage all our readers not only to read the first part of this article where we explain what Ethereum is but also to delve further into the matter on their own to be able to assess for themselves at all times whether the price of Ethereum is correct if it is undervalued or overvalued to optimize your investment.
What is blockchain technology and Ethereum?
With this in mind, we can get down to business. For this, we take a little detour because we believe that it is important to understand what Bitcoin is (which facilitates understanding since most of our readers surely already know - at least vaguely - what it consists of) to understand Ethereum.
Bitcoin was launched in 2009 as the world's first cryptocurrency. Its main objective was to create a decentralized universal currency that did not need intermediation by financial institutions but could still ensure the security and validity of transactions.
This was made possible by the revolutionary technology that was called "blockchain" (chain of blocks). It is a digital ledger (that is, a database) without a central server where entries are continuously recorded and verified. Thus, it allows recording every transaction and every exchange.