September 5, 2017

What is Ethereum and how is it different to Bitcoin?

Ethereum is the second most valuable and the second most widely known type of cryptocurrency. The currency itself is called Ether and the technology behind it is called Ethereum, it was devised as an improved version of Bitcoin. As such it has many similarities with Bitcoin as it is the same decentralised payment system that allows you to make anonymous payments. All the transactions are registered with a decentralised ledger system and are there for everyone on the network to view.

So how is it different to Bitcoin?

Many plaudits of Ethereum say that it has many advantages over Bitcoin in that transactions are processed faster and perceived as more efficient. The major advantage of the Ethereum network is that the system allows for not just the currency to run on the network, you can also run computer apps. So new firms can raise money on the network and in exchange for funding they offer special tokens that allow you access to a service.

Its popularity has risen dramatically and there is now almost 50% of the funds in Ether as there is in Bitcoin and there are around 5.5 million wallets that hold ether. People hold Ether as they can carry out transactions online without the charges raised by normal currency transactions as there are no banks involved. Fraud is not really known as all transactions are visible so you can’t hide anywhere. Most people hold Ether as an investment though and are gambling on the fact they believe the price will rise.

So should you invest in Ethereum?

As with all cryptocurrencies it is a high risk game. Many people have become millionaires and some have lost money. So only invest what you can afford to lose. It is a relatively new investment vehicle so the bubble may burst at some stage so be careful, but there is potential.

Take a look at the trading platforms on our home page and choose one that is right for you, they are all solid platforms but they do have their own nuances that may suit you. Pick a platform and if you decide you do want to invest in Ethereum then use them and I hope things go well for you.

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