Invest in Ethereum

Ethereum was created to take cryptocurrency a step further than Bitcoin. It’s an open-source blockchain technology that supports financial transactions and smart contracts as well as decentralised cryptocurrency applications, tokenized assets and decentralised financial services.

In this guide, we will cover the basics so you can decide whether or not you want to invest in Ethereum. 

Best platforms to buy Ethereum – 2021

1
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Minimum Deposit
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Trade the global markets. Trade with real-time execution and professional tools
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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What is Ethereum?

Ethereum is an innovative blockchain technology. It aims to support a wide range of financial applications as well as decentralised applications (also known as dApps) and tokenized assets. Its native currency is known as ether (ETH) and is the second-largest cryptocurrency in the world, second only to Bitcoin. Being open-sourced, Ethereum is accessible by anyone to track data and create dApps. 

As well as having a native token, Ethereum also supports a wide range of different tokens, known as ERC-20 tokens. One such token is BAT, which has become one of the world’s most popular coins for digital advertising and content creation. Ethereum today is one of the world’s most popular investments due to its tech potential and applications. With Ethereum 2.0 in development, some investors speculate that it could one day overtake Bitcoin as the world’s number one cryptocurrency. 

Ethereum was created by Russian-Canadian Vitalik Buterin who was only 20 years old at the start of its development. Buterin believed that although Bitcoin was a big innovation in the world of technology, it lacked a broad appeal. He believed that cryptocurrency could be used to tackle the issue of centralized web services. In his early days, he compared the real world to World of Warcraft, stating that the development team (referring to politicians) could make changes to the world that weren’t in line with the needs of the average person. In 2014, the Ethereum Foundation sold 72 million ETH, generating $18 million for further research. It would then be released to the public in July 2015.

As of September 2021, Ethereum has a market cap of $396,068,197,040 with 117 million tokens in circulation. It has no maximum supply and has therefore reached its fully diluted market cap. One ETH currently costs $3,373.40 and reached an all time high of $4,362.35 in May 2021. 

Buy Ethereum now at our preferred partner

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Pros

  • Ethereum itself is much more than just another cryptocurrency. It can be used in virtually any sector from gaming and finance to medicine and renewable energy. It also allows for the tokenization of art, which has developed in the form of NFTS, though can be used for medical records, ID verification, crypto-collectables and other agreements. 
  • Ethereum has one of the largest communities of developers in the world. This makes it more secure than most cryptocurrencies. The more popular a technology, the better the security. The only cryptocurrency more secure than Ethereum is Bitcoin. 
  • The development team behind Ethereum are highly recognised and respected within the world of crypto. They’ve continued to innovate the technology and by doing so increased its applications. 

Cons

  • The biggest issue Ethereum has is its high fees. Trading Ethereum (and Ethereum products) is extremely expensive. This has turned off some investors, who believe that better alternatives for trading are available. 
  • The programming language behind Ethereum is actually quite complex. This makes it difficult for new programmers. What makes this worse, is the fact that beginner-friendly tutorials aren’t widely available.
  • Although Ethereum has a lot of potential, it’s also extremely volatile. This means that investors have the chance to increase profits but at the same time they can incur higher losses. The price of ETH has gone through many ups and downs, which can be a big risk for new investors. 

How does Ethereum work?

Ethereum uses a proof-of-work mining process to power its blockchain. During this process, computers use energy to solve puzzles, these puzzles then create blocks. On average, it takes around 12 seconds for miners to turn transactions into new blocks. 

Developers can also write smart contracts and deploy this code onto the Ethereum blockchain. The two most common programming languages are Solidity and Vyper. As of September 2021, Ethereum 2.0 is still in development. Ethereum 2.0 plans to overhaul the core operating system, moving to a proof-of-stake system. Under this model, any user that owns more than 32 ETH can lock their funds into a contract. Through this contract, they’ll have the chance to earn rewards and add new blocks to the blockchain

Congratulations, you’ve just bought your first Ethereum !

Top platforms to buy Ethereum

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2
Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes