Outline:

1. How does ethereum work

2. What is eth stock

3. The difference between bitcoin and ethereum

4. Litecoin vs ethereum

5. How to use coinbase

6. Where to buy ethereum

7. General conclusion

Those seeking alternatives to Bitcoin and Litecoin have a lot of options. One of the coins many of these people choose is Ethereum. It offers a lot of benefits that other cryptocurrencies don’t, but, on the other hand, there are also drawbacks, too. This useful article will tell you more about this coin so that you will be armed with all the knowledge you need to make a sound investment.

How does Ethereum Work?

Ethereum is an open-sourced, public blockchain that replaces internet third parties, such as servers and clouds, with nodes run by volunteers. Most people store their data on sites like Amazon, iCloud, Google Drive, and so forth, but some people have a problem with the fact that they have no control over their data. Ethereum has solved this issue by creating a democratized platform, allowing people to keep track of their information. In short, it functions as a decentralized app store and internet!

What is ETH stock?

While this may sound great, you have to understand that there is no such thing as a free lunch. Ethereum needs money to run. The way it gets it is by selling ‘Ether’, which is the code the system uses to run its applications and programs. If you want to run applications on Ethereum or do anything else on the platform, you will have to buy ETH.

The good news about this is that it presents a great investment opportunity for those looking for ways to grow their wealth. Unfortunately, you cannot buy Ethereum stock and hold onto it the way you buy shares in a company; however, tools that allow investing in cryptocurrencies in a similar way as it is in stocks start already appearing. For instance, the Ethereum exchange traded product (ETP) recently appeared in Switzerland.

The more people using the platform the better because it will drive up the value of the coin in which you have invested. Later on, you can sell it and convert Ethereum to USD. A lot of people all over the world have made fortunes doing this, and if you are wise about how you invest your money, you can enjoy success in this sphere, too.

The Difference Between Bitcoin and Ethereum

People who are new to the sphere of cryptocurrency, and don’t know how to buy Ethereum stock, often think that all currencies are the same. While there certainly are similarities between them, each one of them is different. The main distinction between Ethereum vs Bitcoin is that Bitcoin is an alternative to money, meaning you can use it as a medium of exchange as you would a dollar or euro. Ethereum goes deeper than that, offering its users a platform upon which they can build applications and use smart contracts in their dealings with other users.

Another big difference between Ethereum and Bitcoin are the prices between the different currencies. Bitcoin is currently valued at $5,247 per coin, while Ethereum’s value is $173. It is difficult to tell what option is the best to invest when choosing between these two. Beginners wrongly assume that that one with low cost is better. Yet, this does not reflect the actual situation. Any cryptocurrency can be divided into smaller fractions, which investors can also buy.

To summarize, Ethereum is a more scalable, flexible alternative to Bitcoin. Along with that, Bitcoin is still the most resource-backed cryptocurrency with its share of about 50% from all cryptocurrencies market.

Litecoin vs Ethereum

Ethereum is newer than Litecoin, but that does not necessarily mean that one coin is better than the other. Each has its benefits and disadvantages. First off, Litecoin has only 84 million tokens available and, someday, its coins will no longer be issued. There is no limit on the ETH total supply, though.

Another huge difference is that Ethereum’s transaction times are much faster than Litecoin. Ethereum has been clocked at 15 seconds, whereas Litecoin’s transaction times can be over two minutes long. If speed is what you are looking for in a coin, you should choose Ether. Finally, there are transaction fees that are quite volatile and should be constantly monitored if you’re looking for low prices.

As you can see, they both do different things well, so you should spend some time thinking about what it is you value most in an investment vehicle before you make a decision.

How to Use Coinbase

To cash in on your investment, you have to find a digital currency exchange, and Coinbase is one of the most popular ones out there. Headquartered in San Francisco, California, this company is subject to state and federal laws and regulations, and it’s available in 58 countries. Check your place of residence to make sure you can register an account with them.

Here are the steps you need to follow in order to use this site:

• Sign up, create an account, and then confirm your email address. Once this is done, get back onto the site and provide them with your phone number. They will then send you a text message which will have a code you will use to confirm that you are actually you.
• Set up two-factor-authentication (2FA). That way your account can only be accessed on one of your devices.
• Before you begin using the site, you also have to provide them with some ID to verify your identity. Your best bet is to use a driver’s license.
• The next thing you need to do is to choose a payment method. There are several options, but we advise that you use their bank account option.

Once these steps are complete, you can buy coins! Buy Ethereum, Bitcoin, or whatever else you want.

Where to Buy Ethereum

There are other places to get Ethereum besides Coinbase. Here are some of the alternatives we recommend:

Coinmama

They have been in business since 2014 and are one of the most trusted exchanges on the market. On the plus side, they allow people all over the world to use their site, providing great customer support. However, they have fees that run at six percent.

CEX.io

This is another good exchange to choose. They have been in operation since 2013 and support transactions in almost every country. But, this exchange has high fees (five percent), slow transaction times, and poor customer support.

Kraken

If you live in Europe, this is a good option, especially if you want to buy and trade large volumes of Ether.

Gemini

For those living in the United States and Canada, they are an excellent option. They also serve Japan, Hong Kong, and South Korea. What’s more, their fees are one percent!

General Conclusion

If you have been keeping up with Ethereum news, you know there are a lot of reasons to buy or not to buy Ether. It really all depends on what you are looking for in a cryptocurrency. For those looking for a low-priced, high-speed alternative to Bitcoin that is available on multiple exchanges and is ready to rebound, Ether is your coin.

Disclaimer:

This article is not meant to be investment advice. Never spend more than you can afford to lose.