In this article, we will provide answers to all the questions you should be aware of to start trading Ethereum.
What is the Ethereum coin?
Ethereum is the second most popular and best cryptocurrency in the world with a market size of more than $45 billion.
Its idea is to create smart contracts between two parties and force both parties to comply with the contract.
Today, the price of one Ethereum coin is about 1490 USD, which is not a small number!
There is a lot of ado about the concept of Ethereum and the trading of Ethereum and cryptocurrencies in the market.
In this article, we will provide answers to all the questions you should be aware of to start trading Ethereum.
How does Ethereum work?
Ethereum certainly works with the same technology that Bitcoin works, which is blockchain technology, and although this technology is known, there is a lot that is not known about it, and from here, it can be clarified that this technology is the technology that is used to store and verify digital transactions. It works with a high degree of security.
In addition, this technology carries a degree of encryption that is difficult for anyone to break or bypass. Thus, Ethereum is working in this period to expand its circle of work to include digital applications, as these applications can be anything like lease contracts, employment contracts, and others.
It should be noted that these contracts must use the Ethereum currency, which is called Ether, and that these applications do not depend on human beings for their management. Instead, these applications are managed through events without human intervention. Then, Ethereum will be transferred from one wallet to another automatically.
What are the uses of Ethereum?
To review the primary uses of Ethereum, we will explain the three main areas in which it is used:
NFTs: It’s a buzzword right now. NFTs, or Non-Fungible Tokens, are a form of a digital token representing ownership of anything valuable and unique — most notably art, for example. Even real estate has become symbolic. These tokens are made on Ethereum and can only have one real user at a time.
DeFi: Short for “decentralized finance,” DeFi is definitely growing in popularity as an important topic in the financial community. How does this relate to Ethereum? Well, any financial product or service that runs on the Ethereum software is considered DeFi. With DeFi, individuals do not deal with central authorities, and markets never close.
DAOs: Last but certainly not least, another use of Ethereum is the option of DAOs, Decentralized Autonomous Communities. This is a member-owned community, a true democracy that provides a safe and secure way to collaborate with strangers and exchange money for projects. It is truly an open-source and transparent solution for global collaboration.
We can have an extensive conversation about comparing DeFi to traditional financial models, but we will save that for another day and another article. What is essential to keep in mind regarding the topic is that the trading price of Ethereum, or Ether, has great potential, given the massive potential in the upcoming world of finance, thanks to the Ethereum blockchain.
What are the factors controlling the price of Ethereum?
In fact, we find that the price of Ethereum has increased significantly in the past period, as it reached its highest levels, in addition to the price of Bitcoin as well, hence it must be noted that the high price of digital currencies increases the desire for investors to trade these digital currencies.
Some many factors and events would control the price of Ethereum, and the most prominent of these events is the solid and sudden crash in the value of Ethereum that the market witnessed in 2017, in addition to the spread of the new Coronavirus, which was a decisive factor in changing the price of Ethereum.
