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Ether (ETH) is the cryptocurrency on the Ethereum network, arguably the second most popular cryptocurrency after bitcoin (BTC). Indeed, it has attracted attention from people all over the world.
Viewing: What is Ethereum
If you want to know what Ethereum is, how it works and what it can be used for, without diving into technical knowledge then this guide is perfect for you.
❗️❗️ Ethereum’s minimum trading volume on Mitrade (as regulated by ASIC) is 1 lot and Ethereum leverage is 1:10 – which means you can start trading ETH with $119 when and total value 1 ETH is 1190$. In addition, with the ability to short sell, you have the opportunity to make money as soon as ETH drops in price.
Launched in 2015, Ethereum is known as an open software platform based on blockchain technology that allows developers to build and deploy applications based on a distributed ecosystem.
Also considered a cryptocurrency like bitcoin, Ethereum is also applied to many other things through Smart Contracts based on Blockchain technology.
“Smart contracts are applications that run exactly as programmed without any downtime, censorship, fraud, or interference from third parties.”
Ethereum investment performance over the years:
Year Highest Year Low Year Annual Performance 2020 $623.65$88.20$341.9% 2019 $363.18 $100.9$1.59% 2018 14020$80.9 -82.4% 2017 870$ 201$ 147.8%
Analyze the following specific words:
★Downtime: Once programmed, applications will never shut down unexpectedly and cannot be shut down.
★Censorship: Ethereum nodes (computers running the protocol) are distributed worldwide and remove censorship from central authorities..
★Cheating: contracts cannot be changed, hacked or manipulated.
★Third parties: the contract is self-executing and therefore does not require a 3rd party.
What is Ether? What relation to Ethereum?
We all know that Ether is the cryptocurrency in the Ethereum network. Is it completely real?
According to ethereum, Ether is a solution to the payment problem; it is a digital asset (like a bond or other security). It functions like cash in that it does not require a third party to process or approve the transaction.
★Is Ethereum a cryptocurrency?
Usually, Ethereum is thought of as a cryptocurrency, this interpretation is not mistaken but not entirely correct.
To put it simply, Ethereum is the foundation and Ether is the raw material used in the Ethereum network. Ether is considered the fuel to operate the Ethereum network infrastructure.
★Is Ethereum the same as Bitcoin?
Let’s see the BTC vs ETH comparison table
Name Etherum Bitcoin Launch Date Creator Vitalik Buterin Satoshi Nakamoto Original Token ETH BTC Issuance Method Initial Coin Supply Primitive Block Mining Max Supply Infinite 21,000,000 Market Cap Around 16.6 billion dollars Approximately $135.6 billion Consensus Proof of Work (Proof of Work) Ethash algorithm SHA – 256 Block time 12 seconds 240 seconds Maximum TPS 25 7 Smart Contracts Yes No
Unlike Bitcoin, Ethereum is more than just a cryptocurrency. Ethereum is a platform on which many types of Blockchain related applications can be built.
When people talk about buying Ethereum, what they are actually buying is Ether or ETH, a tradable token designed to power the Ethereum Blockchain ecosystem, although it can also be purchased used in the same way as a traditional currency (both crypto and fiat).
Bitcoin and Ethereum have quite a few minor differences. Like the average vibration time per block of BTC is 10 minutes cogn ETH is 12 seconds..v..v. But there is a pretty clear difference that ETH has a key feature called “Turning Complete” – allowing to calculate everything from time to electricity consumption just enough and save time.
BTC does not have this ability. Maybe this is ETH’s advantage, but it can also be its weakness – the DAO attack is an example.
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Ethereum Price: 375.81/ETH (October 15)
Investing in Ethereum comes in many different ways and forms. However, typical examples are traditional ETH trading, Ethereum mining and Ethereum margin trading. Either way, you need to understand the price of Ethereum as well as the transaction costs of each form before deciding to invest.
Let’s talk more about these 3 forms. The first is a traditional Ethereum Transaction.
1️⃣ Traditional Ethereum Trading
This figure has increased from $1,933 yesterday (up 5.61%). Compared to a year ago, the transaction cost of 1 ETH has increased by 1570%.
The transaction fees of ETH can be seen increasing rapidly. And I This number is likely to increase over time.
2️⃣ Mining Ethereum
If you are an ETH miner, then in addition to the above transaction fees, you need to add mining fees, electricity and storage fees, etc. According to the statistics of Venturebeat：
Number of GPUs 4 Hash Rate Per GPU (Mh/s) 40 Total Hash Rate (Mh/s) 160 Mining Power Consumption (W) 1000 Electricity Price (USD/kWh) 0.1 Cost of Electricity day (USD) 2.4 (About 55,000 VND) Mining fee 1.5% Total hardware cost (USD) 3,000 (Approximately 69 million VND)
However, this cost is only a corresponding calculation because in each different country, the cost will be different. But looking at this cost is enough to see that to have a reasonable Ethereum “rig” is not cheap at all.
Below is a chart of the Ethereum block mining difficulty coefficient. This coefficient is increasing exponentially which means that the difficulty of ETH mining is increasing rapidly.
3️⃣Ethereum Margin Trading
This is the most popular form at present because it is easily accessible to all investors, especially to retail investors. So how does this form make money?
In essence, ETH margin trading allows investors to make profits based on the price difference of ETH and not need to own them. And an even more special thing is that investors can earn profits in both directions of the rise and fall of the ETH price as long as the investor correctly predicts the trend of movement.
Let’s take a look at some of the advantages of margin trading:
✔️Low capital: Your investment will be amplified after using financial leverage
✔️Low transaction costs: no storage costs and no risk of being hacked because you don’t own the assets. Instead, you only need to pay a very small fee to the exchange.
✔️Fast and convenient: Just register an account online, with smart devices connected to the internet, you can trade anywhere, anytime you want
✔️Two-way profit and high profit: Whether rising or falling, you can profit by correctly predicting the trend.
– Buy: Choose Buy if you predict that ETH price will increase
– Short Sell: Select Sell if you predict that ETH price will fall
If you do not intend to hold Ethereum, you can trade ETH margin on Mitrade Exchange. Mitrade gives you 1:10 leverage with Ether.
In my opinion, the most suitable way for retail investors to trade Ethereum is to join a margin exchange such as Mitrade. In addition, trading Ethereum on Mitrade is very simple.
About Mitrade Exchange: ✔️Regulated by ASIC(AFSL 398528) ✔️Golden leverage ratio 1:100 ✔️No commissions, hidden fees ✔️Negative balance protection tool ✔️Competitive spreads ✔️T+0 trading, support Support24/5 ✔️Easy to use, user-friendly platform ✔️TradeForex, Cryptocurrencies, stocks, Crude Oil etc.
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In the following section, I will introduce in more detail the steps of Ethereum margin trading.
And below I will guide you through the detailed steps to trade ETH on Mitrade. Reputable margin trading platform and won many international awards.
❶Step 1: Register and create an account
It’s very simple, you just need to fill in the necessary information to be able to register. So I will talk more about the 2 accounts available on Mitrade.
Mitrade currently provides investors with 2 trading accounts: Demo account and real account. New traders will have $50,000 in virtual money to practice trading with a demo account.
Real trading account with your own capital.100 financial markets |0 commissions | Low Spreads | Leverage up to 1:200(Bitcoin:1:10) | Free trading tools | Privacy | Easy-to-use platform
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❷Step 2: Deposit capital into trading account
The minimum deposit amount on Mitrade is $50 (about 1.1 million VND) and the platform supports many payment methods including domestic cards. Deposit/withdrawal made easy. Your deposit will be protected by ASIC regulations.
❸Step 3: Choose Ethereum to trade
Select the crypto market and then select Ethereum. In addition to Ethereum, Mitrade also offers more than 100 other markets including:
Popular types of financial markets on Mitrade
You can fully diversify your investment portfolio easily on Mitrade
❹Step 3: Choose a Buy/Sell position
Based on your analysis, make a judgment and open a position
– Choose Buy if you predict that ETH price will increase
– Select Sell if you predict that ETH price will drop
Then choose the number of lots you want to trade, the system will automatically show the required deposit amount without you having to calculate it.
❹Step 4: Use a risk management tool
The risk management system on Mitrade is extremely rich with tools: Take Profit, Stop Loss, Stop Loss…
Some free risk management tools on Mitrade
►Step 5: Close position and withdraw profit
After the trade is profitable, you just need to close the position and withdraw the money to your account. Mitrade has linked with most banks in Vietnam, so there is no need to worry about the deposit/withdrawal part.
If you are a short term investor, love fast transactions and look forward to If you want to make profit during the day, then Mitrade is the number 1 choice for you.
At the end of 2013, Vitalik Buterin described his idea in a white paper, which he then sent to a few of his friends, who in turn sent it further. As a result, about 30 people reached out to Vitalik to discuss the concept.
In January 2014, the project was announced publicly with the core team including Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, Charles Hoskinson, Joe Lubin and Gavin Wood.
In 2014, Ethereum launched a “Pre-sale” for ether and received an overwhelming response. Ether is like a vehicle to move around on the Ethereum platform and is mainly sought after by developers who want to develop and run applications inside of Ethereum.
July 2015: Ethereum’s experimental network, Frontier, was launched after both the white paper and the yellow book. They then released the proposed token specifications, known as the ERC standard.”
In 2016, Ethereum was split into two separate blockchains, Ethereum and Ethereum Classic, after the DAO fund was hacked and lost more than $50 million, a set of smart contracts derived from the ethereum software platform.
May 2019 and ongoing: The upcoming Istanbul V1 upgrade includes six changes to the EVM, most of which are highly technical lightweight optimizations. While the Istanbul V2 enhancement caused some controversy surrounding a new algorithm called ProgPoW, Serenity (Ethereum 2.0) represents a complete transition from Proof of Work to Proof. of Stake (Proof of Stake).
As of September 2019, Ethereum is the second largest virtual currency in the market, just behind Bitcoin. Buying ether currency is much faster than bitcoin (about 14 or 15 seconds to homogenize vs BTC which is almost 10 minutes) and has more units of ether in circulation than bitcoin.
The Ethereum blockchain is very similar to bitcoin, but with smart contracts, its programming language allows developers to write software through blockchain transactions that manage and automate specific outcomes.
If a traditional contract outlines the terms of a transaction, a smart contract ensures those terms are fulfilled by writing it in code. The contract automatically executes the deal as soon as predefined conditions are met, eliminating the delays and costs associated with manually completing a transaction.
As a simple example, an Ethereum user can create a smart contract to send a certain amount of ether to a friend on a certain date. They will write this code into the blockchain and as soon as the contract is complete the ether will automatically be transferred to the other party.
This basic idea can be applied to much more complex settings, and its potential is limitless, with projects already at the forefront of areas such as insurance, property, financial services. , legal and crowdfunding.
Currently, Etherum and cryptocurrencies are not legal in Vietnam. However, you can still find reputable virtual currency exchanges to be able to invest and profit with Etherum. For example, Mitrade – a new broker in Vietnam is highly appreciated by the community.
And now there are many attractive promotions for newcomers. For example, you can create a risk-free demo account on Mitrade and practice trading with $50,000 in virtual currency for free.
For a better understanding, check out this comparison table:
Pros Cons ETH is immune to any 3rd party interference which means that all decentralized applications and DAO funds deployed in the network are not controlled by anyone. Had a DAO fund attack and lost more than 3.6 million Ether tokens. The attacker exploited a bug from the code. The damage is not only in the amount of stolen tokens. It also undermined user confidence across the entire ethereum network, the value of Ether falling from over $20 to just under $12 at the time. Blockchain is formed around a consensus principle. All nodes in the system need to agree on any changes made in it. This eliminates fraud, corruption and counterfeiting. See also: What Is Abs – How It Works Designed as smart contracts, errors will occur at the coding stage. And any small bug can be exploited. If an error occurs, there is no direct way to prevent attacks. The only way is to reach consensus and rewrite the underlying code. However, this goes against the very nature of the Blockchain-1 ledger which is immutable and immutable. The entire platform is decentralized. Therefore all applications are always online and never shut down. Decentralization and cryptographic security make the Ethereum network resistant to hackers and fraudulent activities
Aside from being used by developers to fuel their projects on the Ethereum network, ETH is like a digital asset. For investors it Just like other cryptocurrencies.
★Trading ETH with other Cryptocurrencies on the Exchange
There are currently hundreds of alternative tokens in the Blockchain ecosystem. These Altcoins fluctuate in value, sometimes thousands of percent in a day, and buying or selling these coins in hopes of making a big profit has become the norm.
Once you have an Ether wallet, your Ethereum transaction process is as simple as signing up for your exchange of choice, searching for your desired transactions and then executing them. You can also trade ETH for Bitcoin or other crypto assets like Litecoin, Ripple Dash etc. through most online exchanges.
★Participate in ICO
ICO, is a process by which a new project sells new cryptocurrencies, usually in exchange for Bitcoin or Ethereum. This is similar to crowdfunding, or an IPO (Initial Public Offering) where a startup sells to initial shareholders. IPOs are designed to give startups the venture capital they need to succeed in making their projects a reality.
This is attractive to ETH holders as they can trade their ETH for a portion of the company’s crypto assets at a discount to the asset value *possibly* priced in when the token is new. be made public.
If all goes well, holders of these new tokens can choose to sell when the project goes public, and if the project gains traction in the market, this could potentially generate huge profits. However, if things go wrong and the new tokens are deemed worthless by the market, the ICO participants could end up losing everything.
★Trading Ether for Goods and Services
Like Bitcoin and other cryptocurrencies, Ethereum can be traded with anyone with the associated wallet address. The Ethereum Blockchain is very good at facilitating peer-to-peer transactions, and it is much cheaper and faster than the Bitcoin Blockchain.
ETH also has the added benefit of using “smart contracts,” an innovative process that injects parameters into a transaction and then requires agreements to be met before an exchange can be made. money.
This eliminates the need for a third party, such as an attorney or banking institution. And it allows you to search the community or P2P (peer-to-peer) marketplaces for individuals whose goods, services, and even fiat currency you want to trade your Ethereum with.
★Exchange ETH for real money (fiat currency)
Exchanging your ETH for fiat currencies is a fairly straightforward process. The most common is through an established online exchange. The first step is to find an exchange that can offer you the currency you want in exchange for ETH.
Once you exchange, you simply follow their instructions to set up your account. You will of course need to verify your identity to tie the exchange to your bank account, although there are some exchanges with small withdrawals without identity verification to maintain anonymity that some crypto users value.
Another popular option is to convert your Ethereum through a prepaid debit card. There are a ton of options available, and once funded, the card works almost identically to the traditional debit card you’re familiar with.
Some of these tokens are tied directly to a digital wallet, which means you can spend the ETH stored in your wallet anytime, anywhere. When there is a notice asking you to deposit an Ethereum payment into your account, that is, you need to “top up” more money on your card before using it.
Other uncommon methods of exchange include using peer-to-peer markets, in which users freely exchange their assets with each other in a secure and encrypted environment, bypassing the need for exchanges of third-party.
Think of this as an online forum where you deal directly with other individuals who want to trade their goods, services, and assets, including fiat. Of course, you can always try to find someone who wants to buy ETH directly from you in the community, as a private transaction between the parties.
Remember to always know that any exchange of Ethereum for fiat currency is taxable in most countries and you will have to pay taxes according to your country’s regulations when trading and when you receive profits.
Here are 4 reasons that I think are compelling enough to invest in Ethereum in 2020:
9.1 The core meaning of blockchain is expanding.
Blockchain technology has been taking over the world, and it is likely that this year it will attract a lot of people interested. And Ethereum is at the heart of this technology as it is a platform for developing applications on blockchain locations. The majority of cryptocurrencies are built on Ethereum and this trend is likely to continue.
Invest in ETH as a bet that the entire blockchain will succeed. I don’t think any of us believe that technology blockchain will fail.
9.2 Ethereum has many applications
Ethereum uses the blockchain that makes it unique and superior to Bitcoin. Etherum is written in Turing-Complete, which means any script can run on top of Etherum, making it a valuable tool for many uses.
Ethereum was also the first project to introduce smart contracts, a major change in the blockchain industry. This is for Ethereum to be much more complex than BTC. Ethereum has become a platform for other projects like other cryptocurrencies or DApps.
Ethereum has many competitors like TRON, EOS, Vechain, and ICON. But with a huge community and a team of professional developers, Etherum always has the first advantage.
9.3 Backed by Fortune 500 companies
The Enterprise Ethereum Alliance (EEA) is a group of more than 200 companies, such as Intel, Microsoft, JP Morgan, and others, working together to further develop Ethereum technology. The existence of the EEA is proof that Etherum is at the heart of blockchain technology. If Fortune 500 companies are willing to invest in Ethereum, this is a smart move.
Some specific examples of Fortune 500 companies residing on Etherum are Deloitte and Microsoft.
9.4 Etherum is the future, investing in Etherum is not like investing in other cryptocurrencies
The crypto world has had some pretty crazy years already. However in 2019 its market is much more mature, with many products widely adopted from institutions. Blockchain technology, whose main center is Ethereum, is being trusted by many places.
Everyone believes that Blockchain technology is the future, developing it is developing the future.
As for other cryptocurrencies, the investment is a short-term investment because the market is highly volatile. Make cryptocurrency investment a super profitable investment trend. However, with Etherum it is different, with what is discussed in this article, this is a great long-term game.
•First of all, let’s find out what Ethereum wallet is:
An Ethereum wallet is a tool that allows users to create an Ethereum wallet address to store tokens issued on the Ethereum blockchain, including ETH.
•Popular Ethereum wallets:
The most basic type of wallet known is a paper wallet, the name being a piece of paper with a private key written or printed on it.
The information on this piece of paper is all that is needed to control all assets on an Ethereum account.
Hardware Wallet (Hardware Wallet):
This is a type of wallet that stores Private Key in a hardware device, very easy to use and secure. But, this type of wallet users have to use money to buy. Some reputable Ethereum storage hardware wallets: Ledger Nano S, Ledger Nano X, Trezor, KeepKey
This is a type of wallet that stores Ethereum on the hard drive of your computer or phone. Easy to use but also vulnerable to hackers and not secure with hardware wallets.
The most common way for people to buy their first crypto asset is through an exchange that allows people to trade between fiat currency and cryptocurrency.
Exchanges also act as wallets because the platform controls private keys on behalf of users.
The benefit of having a platform that controls your private keys is that your money or assets can be recovered if you lose your password.
•How to create an Ethereum wallet
◆B1: Go to myetherwallet to start the registration process.
◆B2: Enter Password and click Create New Wallet
◆B3: Download Keystore File (UTC / JSON). Once the download is complete, click I understand. Tiếp tục. At this time, the Private Key of the wallet will appear.
◆B4: Save Private Key as well as Keystore/JSON File. Next click Print Paper Wallet and save.
Above are 4 steps to create an Ethereum storage wallet, so be careful not to let anyone know or lose your Private Key as well as Keystore/JSON File.
Bruce Fenton, CEO and founder of Atlantic Financial, explains in an interview why he believes the coin is legit and promising despite its struggles. Others in the crypto world blamed the 2017 ICO bubble and asserted that its proof of staking model was not viable and unusable.
November 26, 2019, Fenton spoke to BlockTV to defend Ethereum. He argued that, although many pointed the finger at the coin for its role in the 2017 ICO boom that saw many projects fail and disappoint investors, it was not a scam. island:
“I don’t think it’s a scam. It’s honesty in the way it’s presented. It and the coin built this multi-billion dollar ecosystem of hundreds of companies and projects.”
Bruce Fenton’s point is quite correct. Everyone knows that the cryptocurrency market is always volatile. But in any new market, there must be fluctuations for development. Ethereum is not a scam, but old That fall is the stopping point for everyone to look at it again and find ways to make it more perfect in the future.
13.1 Is Ethereum a currency?
Ethereum is the platform to run Dapps around the world. It is not a currency, it is a platform. The currency used to move in the network is called Ether.
13.2 What is the current price of Ethereum?
13.3 What makes Bitcoin and Ethereum different?
As the comparison table above, Bitcoin vs Ethereum also has a few obvious differences. One major difference between Bitcoin and Ethereum is that Bitcoin is used as an application to decentralize money while Ethereum is used to run Smart Contracts and make things basic.
Comparing Bitcoin to Ethereum would be like comparing apples to oranges because they do not serve the same purpose. Having said that, these are the key differences between their minor similarities (as they are both cryptocurrencies).
13.4 How was Ethereum created?
Ether is generated through mining, just like in Bitcoin. This means that computers around the world compete to “mine” Ethereum. When the computer solves the algorithms, you will be given 2 Ether by the network.
In short, Ethereum is a software platform based on blockchain technology, and Ether is a unit of encrypted money used in transactions on the Ethereum network.
Ethereum does not have too many differences compared to Bitcoin, but its advantages are becoming a factor for it to outperform BTC. And it is at the heart of blockchain technology.
Ethereum investment is a long-term investment and is considered safe. However, nothing is certain, 1 wrong calculation can also cause large losses. Please research carefully before investing to minimize risk.
Advantages of trading ETH on Mitrade Exchange:
√ Regulated by ASIC*
√ Leverage up to 1:200
√ No commission fees, hidden fees
√ Tool to support negative balance protection
√ Trade from 0.01 lots, anytime, anywhere
√ Fast and reliable deposits & withdrawals
√ Many bonus programs with attractive incentives
√ Very flexible: fast payback, timely portfolio adjustment
√ Possibility to sell short: there is a chance to make money even when the market goes up or down
Do you lack trading confidence? Don’t worry, Mitrade will help you solve this problem with a DEMO account (Register in just 3 steps) and have many attractive promotions:
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You can also make a small investment to gain experience!
On Mitrade, the minimum trading volume is as low as 0.01 lots, the minimum initial investment is as low as 50,000 VND, very suitable for new traders with low capital and not yet confident about trading.
All initial margin and trading volume of market types like Cryptocurrencies, Forex, Gold, Crude Oil etc. are different, find out for yourself on the Mitrade platform.
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*ASIC-Top 3 leading regulatory bodies in the world in the supervision of the stock market and investment market
Please note that any form of investment involves risk, you can click on Mitrade’s Risk Disclosure Statement to learn more about trading risks. *Promotions on Mitrade are subject to Terms & Conditions.
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The content of this article is the author’s personal opinion only and does not necessarily mean investment advice. The content of this article is for informational purposes only and should not be used by readers as any basis for investment. Investors should not use this information as a substitute for independent judgment or merely to make their own decisions. make decisions based on this information. It does not constitute any trading activity nor does it guarantee any profit in trading. Mitrade will not be responsible for any results based on this article. Mitrade also cannot guarantee the 100% accuracy of the content in this article.