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Have you been looking for the answer to the question for a long time: Ethereum – what is it in simple words? We will conduct a simple guide to the Ethereum cryptocurrency. Let’s talk about ethereum: what it is in simple terms, why cryptocurrency is valuable, how it differs from bitcoin, how to buy it, where to store it, and much more. Ready to find out: Ethereum – what is it? Then our article is for you!
What is ethereum
Ethereum is digital money that is used on the Ethereum platform. The Ethereum platform is something similar to a computer or laptop, but the platform can only perform its functions on one device. In this platform you can create your own code and have links to applications that other users have created. Programs can be of varying complexity, from the simplest to the most complex.
Why is Ethereum valuable
Ethereum creators create and run codes in Ethereume. These programs cannot be stopped or assigned to third parties. The code that is added to the blockchain can be configured so that it cannot be further edited.
So, ethereum in simple words what is it? The answer is simple – these are user programs that can be run from anywhere in the world, but without the possibility of auto use. Programs are called smart contacts.
Differences between bitcoin and ethereum
Bitcoin has a blockchain methodology and a financial incentive to construct a large payment turnover. Thanks to the work of programs that any user can open on a PC, bitcoin works in a decentralized environment.
First-generation Bitcoin (blockchain itself) has a complex system, limited smart contact language, and is not strong at software transactions.
2nd generation blockchains are more developed. They know how to make financial transfers, give more opportunities to work with programs.
But where is ethereum, what does this mean? Everything is simple. Ethereum was the teacher of 2nd generation blockchains. Ethereum is the most popular among its representatives.
Smart contact – what is it?
Smart contacts are program codes that enforce agreements between multiple parties. For example, you can make a code with the response “Welcome to the system”. After receiving 2 ethers for this contact, you will receive the answer that you indicated in the code – “Welcome to the system”.
How to buy ethereum
You can buy ETH in 2 ways:
- Bank card;
- P2P market.
Consider the option of buying with a bank card:
- Go to the site for buying and selling cryptocurrencies.
- Select the purchase currency – ETH and the payment currency.
- Select a payment method.
- Enter the required data.
The transaction is a little longer with the P2P market:
- Sign in.
- Click on “buy and sell in one click”.
- Go to “buy”.
- Choose the appropriate option that suits you and the payment method.
- Click ‘buy’.
- Confirm payment.
- Check off paid.
- The transaction is completed after receiving the coins from the seller.
Is ethereum a cryptocurrency that makes it possible to make purchases in real life? This question can often be seen on the Internet. Yes! With the ETH cryptocurrency, just like with cash, you can pay for goods or services.
Is it possible to make money on Ethereum?
Ethereum is a crypt, what does it give, you say? But with ETH, just like with any other cryptocurrency, you can both earn and lose your investment. Nothing can protect you from financial instability. If you already have ETH and are afraid of losing it, use it to pay for the loan collateral.
How to store ETH
You can store ETH in several ways:
- Custodial. Trust coins to the 3rd party.
- Non-Castolic. Saving coins on a crypto wallet.
How to display ETH
You need to do the following to withdraw crypto from Binance:
- enter the program;
- go to wallet;
- click “withdraw funds”;
- select ETH;
- choose a network;
- enter requesting data;
- confirm actions via email.
We discussed the most important thing about Ethereum, its operation and its capabilities. We hope that this guide has helped you to understand how cryptocurrencies work better. And if you need help, you can always contact the Crypto Crew exchange, our curators will definitely provide 24/7 support.