• Вс. Июн 4th, 2023

ETH vs BTC: Ethereum Cryptocurrency Explained for Beginners

Ethereum is simply the second largest crypto in the market factored by its market capitalization. It facilitates $28 billion of total market capitalization. Although launched in July 2015, it is the first cryptocurrency to acknowledge such a fast pace in comparison to crypto market leader Bitcoin.

Ethereum Cryptocurrency Explained

Ethereum achieved its supremacy level in relatively less than half the time took by Bitcoin. So, what can we conclude by such high pace growth? Will it be smart to buy Ethereum now? Does Ethereum hold such growth prospect in future also? Let us discover the answer to these questions.

Distinct Features Offered By Ethereum (ETH)

Basic things first. Ethereum is a decentralized cryptocurrency based on blockchain technology similar to that of Bitcoin. Then what else does it held under the hood?

The answer lies in its protocols capable of executing the transactions triggered by smart contracts. The contracts are smart because they are written and executed in digital format only. Ethereum’s contracts run on applications that operate exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps are built and operated by custom built blockchain that can represent the ownership of the property.

Using this feature, you can write and execute the blockchain based contract on almost everything, whether it is about buying some goods and services or swapping your ETH coin with any other crypto.

Ethereum Comparison With Bitcoin (BTC)

Bitcoin is the absolute raw form of blockchain based virtual currency. There is no concept of smart contracts or any other services offered in conjunction with bitcoin. You can buy goods or services by paying consideration in form of Bitcoin, as simple as that. Blessed with this simplicity, Bitcoin emerged over time to become the biggest market holder through its market capitalization which is $115 billion.

But Bitcoin is cursed with some of its limited features. The biggest among them is its finite number of coins. Only 21 million coins can be made for Bitcoin over its life which has already reached more than 17 million. While there is the solution offered by Ethereum in this regard. ETH facilitates the infinite number of its coins. Although the annual supply chain is limited to 18 million coins.

Further, if we are to look at the lightning fast speed of the modern world then we must acknowledge Ethereum’s capability to meet that speed. Its block time which is ultimately responsible for completing transactions is as low as 10-20 seconds as compared to 10 minutes in case of Bitcoin.

How To Trade With ETH Coin

To start trading with Ether (Ethereum’s coin), one needs to buy it first. The buying and selling of crypto coins are facilitated by cryptocurrency exchanges where various cryptocurrencies are listed. The best exchange to buy Ether is Coinbase and Binance. After you buy Ether on these exchanges, the balance in your account will also be reflected by the smart Ethereum Wallet facilitated by its promoter team itself.

You can also buy Ether directly with fiat currency from the major cryptocurrency exchanges.

Usage of crypto coins to buy goods and services online is extremely ordinary just like any other wallet namely Paypal, Google wallet etc. Just look for crypto coins as an acceptable mode of payment and you are done. Even the deep web is mostly facilitated by payment in cryptocurrencies, if not in cash.

A swapping option is also available and widely whereby you can swap your Ether coins to hold any other crypto coins, say Ethereum to Bitcoin exchange is highly practical these days.

Future Prospect of Ethereum

Ethereum’s demand will be driven by the acceptability of crypto coins for the supply of goods and services. Blockchain-based cryptocurrency being successful in meeting its principal objective (i.e. a secured & private virtual currency) is becoming more adaptive by every passing day. Thus, a virtual currency like Ethereum is must needed to back up the limited supply of Bitcoin and will surely serve its purpose along with other rivals.

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