Ethereum has skyrocketed in popularity in the last year, leading many people to wonder what this cryptocurrency really is and how they can start trading it on an exchange. The truth is, Ethereum isn’t just one single cryptocurrency – it’s actually two! That’s right, there’s Ethereum (ETH) and Ethereum Classic (ETC). In this guide, we cover everything you need to know about both types of Ethereum tokens so you can make an informed choice when deciding whether to start buying and selling them on an exchange or not.
1) What is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. These apps run on a custom built blockchain. The goal of ethereum is to offer an alternative protocol for building decentralized internet applications, providing a way for people who don’t know and trust each other to transact business safely.
2) What are Ether Tokens?
Ether tokens are the unit of currency used in the Ethereum system. The total supply of Ether will never exceed 1.0x 1018 or 1000000000000000000, and each is divisible by 18 decimal places. This provides a certain level of scarcity and guarantees that no more than 18,446,744,073,709,551,616 Ether tokens will ever be in circulation at any given time.
3) How is Ethereum Different from Bitcoin?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
4) What is the Blockchain?
The blockchain is the digital and decentralized ledger that records transactions. These transactions are in the form of blocks, which are added to the chain as every block contains a hash of the previous block up until the genesis block. The blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. All transactions are recorded on a shared public ledger called the blockchain. In order for someone to make changes, they would have to change all copies of it – so it’s impossible!
5) How Do I Mine Ethereum?
Mining is the easiest way for someone who just wants Ether and doesn’t care about trading or hodling. All you need is a PC with a decent graphics card, which you can get from any manufacturer. The best cards on the market are Nvidia GTX 1060s and AMD RX 480s.
6) What is a DAO?
A DAO is a Decentralized Autonomous Organization. This means that it operates without any central control and is instead governed by the rules of its code. All decisions are coded into smart contracts, and a DAO can operate with 100% transparency.
7) What is an ERC20 Token?
An ERC20 token is a digital asset created on the Ethereum blockchain. These tokens are built following the ERC20 token standard, hence the name ERC20. The ERC20 token standard was created by Fabian Vogelsteller and Vitalik Buterin and is popular with developers because it requires less code than other standards.
The idea of an ERC20 token is that any developer can design their own token based off of this standard, as long as it follows certain rules.
8) How Do I Trade Ethereum?
Ethereum is a cryptocurrency that you can trade. It’s important to know that the prices of cryptocurrencies are volatile, meaning they are constantly changing. To start trading, you need to first set up an account on Coinbase or GDAX, both of which allow you to buy and sell Bitcoin and Ethereum. After your account is all set up, it’s time for some trading!
9) What Risks Are Associated with Ethereum?
Ethereum is a new type of cryptocurrency and it’s important to understand the risks before you start trading. The first risk is that the price of Ethereum can change rapidly. Second, you need a wallet to store your currency in. Third, there are security risks in storing your currency since it’s not protected by banks or the government. Fourth, it’s easy for hackers to steal your information when you’re using an online wallet.
10) What’s Next for Ethereum?
Ethereum is a blockchain-based distributed computing platform and operating system featuring smart contract functionality. It provides developers with the means to build and deploy applications that run on a shared public ledger. In this way, the decentralized apps are outside of any individual control or jurisdiction from any government or company. This is not just crypto-currency, it’s crypto-law.