Ethereum is one of the big hitters in the crypto sphere. It has successfully jostled for position against Bitcoin and Ripple for years with plenty of followers and fans. For those new to crypto, Ethereum (ETH) may be a bit confusing because it is not exactly the same as the also popular Bitcoin. So, before you start thinking about getting a secure Luno Ethereum Wallet, you may want to consult the info below and get answers to the most common Ethereum FAQs.
Is Ethereum the Same as Bitcoin?
Bitcoin was the revolutionary step in crypto which first utilized blockchain technology to enable effortless peer-to-peer payments. Ethereum is not the same as Bitcoin because it builds on this rather than emulating its functions. Instead, ETH uses the same capabilities for computer codes. Ethereum allows for computer codes to run globally on a mass network. The uses of it are therefore diverse, ranging from voting to hospital processes and more.
So, What Does That Make Ethereum Exactly?
With that in mind, Ethereum can be categorized as a platform for sharing information easily, securely and conveniently. In more complex terms, it is a public network that runs codes from decentralized applications.
Is Ethereum Also a Cryptocurrency?
Ethereum is not a cryptocurrency, it is a network as already established. However, this network runs with the help of a digital coin known as Ether, or ETH. Ether can be traded, held in a wallet and invested just like Bitcoin, but it is also used as a way to paying for computer services or transactional fees. Ultimately, it is a little more than just a regular crypto.
What Is the Potential of Ethereum?
Ethereum’s biggest benefit is that applications can be built from it that secure and streamline processes in the real world. For example, voting can be a monotonous and time-consuming process with the chance of human error. Ethereum could decrease the time it takes to count votes and simultaneously remove any inaccuracies or fraud. This is just one potential for Ether, and it is likely that its usage will spill over into more modern-living needs.
Should I Invest in Ether?
Ethereum has proven itself as a long-standing name in crypto and is unlikely to come crashing down any time soon. Investing in it now is still a good decision but you should only do so by knowing all the details and by equipping yourself with one of the best Ethereum wallets.
Some people consider investing in Bitcoin over Ether because Bitcoin has been perched on top of the podium for so long. Investment diversification is key, especially when Bitcoin’s value is turbulent. Even if you already have your eggs in Bitcoin’s basket, venturing over to Ether may not be a bad idea. All decisions to purchase crypto should be done with knowledge.
This gives you a basic breakdown of Ethereum and Ether. Anyone looking to invest may want to do some extra digging into the smaller details of one of the biggest names in crypto and blockchain technology.