Ethereum has emerged as a sought-after Bitcoin alternative over the last few years. Unlike Bitcoin and other competing currencies like Litecoin, Ethereum has been adopted by many organizations and startups as a means to make transactions (and more).
In the cryptocurrency market, many see Ethereum as the diamond of currencies – it has both an intrinsic value and an industrial value. Contrasting this to Bitcoin, which functions like gold – not much industrial value, but people purchase it and sell it based on its intrinsic value to the holder.
Given the appeal of Ethereum, people previously unaware of the markets are beginning to wonder what it essentially is, how it’s different from Bitcoin, and how to invest in it.
How to Think of Ethereum (Ether)
When looking into how to invest in Ethereum, stop thinking of it as stock because Ethereum isn’t traded on any traditional stock exchanges. You can’t go to your online discount brokerage and buy Ether there. If you’re serious in acquiring Ether, you will need to open up a digital wallet.
We suggest using major digital currency exchanges such as Coinbase, Bitpanda, or Coinmama as your digital wallet issuer because these are exceedingly user-friendly for acquiring Ethereum, and they let you buy or sell Bitcoin and Litecoin as well. Sometimes they might even give you a bonus for signing up.
It’s crucial to remember that Ether (ETH) is a currency and must be considered as such by would-be investors. You don’t vie for shares of Ether like you would stocks or ETFs. Rather, you are swapping your dollars for Ether tokens. There are no dividends nor payouts. Your only aspiration is that eventually, other individuals on the web will give you more for your tokens than you purchased them for.
Last Thoughts on Ether
Investing in cryptocurrencies like Ethereum is uncertain, so you ought to always proceed with caution. Additionally, familiarize yourself with the steps you’ll need to make your Ethereum stash secure from hackers and thieves. Using cryptocurrency exchanges may provide exceptional convenience, but such firms tend to be the most vulnerable to cyber attacks. It is therefore recommended that you limit the amount of cryptocurrency you hold on exchanges to reduce your exposure to hackers. Unlike Bitcoin or Litecoin, organizations are utilizing Ethereum as a building block – something more like diamonds rather than gold. Quite simply put, in terms of real world usage, Ether may very well be the best crypto to invest in as of 2018.