Stock investing for dummies – How To Invest In Ethereum (And Is It Too Late)



Stock investing for dummies

stock-investing-for-dummies

Ethereum has become a popular cryptocurrency alternative to Bitcoin over the last year. However, unlike Bitcoin and rival currency Litecoin, Ethereum has been adopted by many companies and startups as a way to transact (and more).

In the cryptocurrency wars, I like to view Ethereum like the diamond of the currencies – it has both a intrinsic value and an industrial value.​ Compare this to Bitcoin, which operates like gold – not much industrial value, but people buy it and sell it based on it’s intrinsic value to the holder.

Given the popularity of Ethereum, many people are curious about what it actually is, how it’s different than Bitcoin, and how to invest in it. It’s also important to note the risks of investing, and the potential to mine it and create your own wealth of Ether (the actual monetary unit of Ethereum).

Before we dive in, it’s important to note that to look at, use, and transact in Ethereum, you need a digital wallet. We recommend Coinbase because it’s free, has a great app, and they give you a bonus for depositing $100.​ Check it out.

What Is Ethereum​

Ethereum is basically software that is decentralized and allows ​developers and programmers to run the code of any application. Wait, what? I thought Ethereum was money… well it has a monetary aspect.


You see, Bitcoin uses a technology called blockchain specifically for conducting monetary transaction – it’s a straight currency. Ethereum uses blockchain technology to allow the creation of applications that can be executed in the cloud, can be protected from manipulation, and much more (some stuff getting too technical for me here). However, a bi-product ​of this is that Ethereum uses a token called Ether, which is like Bitcoin, to transact. This is the monetary value portion of Ethereum.

Because of it’s unique abilities, Ethereum has attracted all types of attention – from finance, to real estate, to investors, software developers, hardware manufacturers, and more.​

How Ethereum Is Different From Bitcoin​

As we mentioned above, Bitcoin was designed to be a currency. It uses the same underlying technology principles, but uses them to facilitate monetary transactions.​

Ethereum, on the other hand, was designed to facilitate software​ processing using a token system called Ether. That Ether has become more valuable as a result of people becoming interested in the technology. That Ether is what people want to invest in.

However, there are a lot of apps being developed on Ethereum, and even some major financial companies are getting involved in the space. It could be interesting to see what develops from this over the next few years.​

Finally, Ethereum is much cheaper than Bitcoin. Bitcoin currently trades for over $2,600 per unit, while Ether trades at just $318.​

stock-investing-for-dummies

How To Invest In Ethereum​ (Ether)

If you’re interested in investing in Ethereum, and specifically Ether, you need a digital wallet. Ethereum doesn’t trade on any major stock platform. You can go to your online discount broker and buy Ethereum. You have to convert it into your wallet.​

We recommend using Coinbase as a digital wallet because it’s incredibly easy to use, allows you to invest in Bitcoin and Litecoin as well, and they will give you a bonus for signing up. If you sign up with this link you’ll get a $10 in Bitcoin bonus if you deposit $100.​

It’s important to remember that Ether (ETH) is a currency, and should be treated as such by investors. You don’t buy shares of Ether like you would stocks or ETFs. Instead, you are exchanging your dollars for Ether tokens. There are no dividends, no payouts. Your only hope is that in the future, other people on the Internet will pay you more for your tokens than you bought them for.​

Final Thoughts

Investing in Ethereum is risky, but it could potentially be lucrative. Unlike Bitcoin or Litecoin, companies are really using Ethereum as a building block – something more akin to diamonds than gold. As an investor, this is a potential win.

However, Ether is still an Internet currency, so you should always proceed with caution.​

– stock investing for dummies

Learn How To Be #1 on Google Results



Source link