What is Ethereum?
Ethereum, for those of you who have been living under a rock, is one of the biggest cryptocurrencies alongside Bitcoin. The actual currency that Ethereum uses is Ether (ETH) and one of the common misconceptions is that Ethereum is the name of the currency. Ethereum itself is a blockchain platform that allows developers to create their own blockchains and tokens which has opened up the world of crypto completely.
With Ethereum, it has become easier than ever for a new cryptocurrency developer to create a token and bring it to the market. Because of its popularity, functionality, and success, the price of ETH has grown rapidly over the years and although it isn’t as valuable as Bitcoin (BTC), Ether is a very expensive crypto if you’re starting out.
Difference between Ethereum (ETH) and Ethereum Classic (ETC)
Another common question around Ethereum is what is the difference between Ethereum and Ethereum Classic? Ethereum Classic (ETC) is a hard fork from the main Ethereum (ETH) blockchain that came about after a group within the Ethereum community didn’t like one of the changes implemented on the blockchain. To mitigate this, they chose to keep the existing structure of Ethereum and created the Ethereum Classic to do this.
At the time this was a very divisive action within the Ethereum community, but now, things are pretty relaxed and many people who own ETH also own ETC and vice versa. There are some things you, as a trader, should know about ETC before making a transaction. The first is that the price is a little tied to its big brother ETH and second that it isn’t necessarily viewed as a good fork.
Good forks tend to be where something is improved by forking, for example with Bitcoin Cash forking from Bitcoin, it was to try and improve the speed and reduce fees and cost. With ETC though, it was to prevent a beneficial change and keep things the same, so some view this as a negative for Ethereum Classic.
Regardless, both Ethereum and Ethereum Classic are reputable cryptocurrencies with a good track record and neither is considered a bad currency for traders and investors. Most wallets also support both! You just need to read up a bit more about them to decide which is best for you and your trading goals.
Is It Too Late to Invest in Ethereum?
Another common question asked by traders is whether or not it is too late to invest in Ethereum. After all, the price sits quite high and they have the second-largest market capitalization. It is fair to say that for beginners, the price of ETH may be off-putting but that shouldn’t dissuade you.
Ethereum has some really big developments in the pipeline and some big on-platform changes that will not only improve the blockchain but dramatically expand its capabilities are coming up. While these outcomes aren’t certain (as no one has a crystal ball), it is fair to say that there is room for growth of Ethereum’s price if the market conditions are right.
Remember there was a time when Bitcoin sat for a few years at the hundreds of dollars mark, and traders then believed that the bubble had burst and they were too late to invest in it. The time when Bitcoin’s cost was a few hundred dollars now seems like a lifetime ago.
In short, it isn’t too late to invest in Ethereum.
Buying Ethereum with Cash or Exchange XMR to ETH?
This question comes down to privacy and whether that is important to you. If you value privacy there are a few cryptos that help you transact in a fairly anonymous fashion, like Monero (XMR) and ZCash (ZEC). These two currencies have advantages over traditional currency methods as they obscure your personal information and make it impossible (or as close as possible) for others to see your details.
Buying Ethereum for cash will undoubtedly mean that you will be using a crypto exchange with your credit or debit card. This is a perfectly acceptable practice for most, but with traditional banking there are responsibilities. Creating credit trails for taxation and accounting is important to many, but some simply don’t want to do it.
If transacting privately is your thing, then XMR to ETH exchange is undoubtedly going to be one of your preferred options for acquiring ETH. Make sure you are getting the best XMR to ETH exchange rate before you transfer those funds and complete the transaction.
Best Crypto Platform to Convert XMR to ETH?
Now, this is where it can get tricky as typically, most exchanges operate this pair the other way around and users have to convert fiat to ETH and then purchase XMR. However, some exchanges, including Godex.io, have great functionality for converting XMR to ETH.
Once you have set up an account on Godex.io, you can use an XMR to ETH calculator to help you work out the best time to trade and buy Ethereum.
Be sure to check out the latest news around XMR and ETH to get a feel for what is going on and where the price might go over the short, medium, and long term. Making as informed a decision as possible normally helps traders mitigate risk as they have a clear plan in mind. Lastly, remember that XMR to ETH is going to be a big jump because XMR is much cheaper than ETH.
You are not going to get a lot of ETH for your XMR because of the price differences. This is why it is advisable to check the XMR to ETH calculator before you convert XMR to ETH.
COMMENTS