Blockchain technology offers many opportunities for many industries. However, where Bitcoin (BTC) is aimed at sending payments with bitcoins via a decentralized network, blockchain can also be used for other purposes. In this article, you will learn more about Ethereum, the largest blockchain network other than Bitcoin.
Ethereum is a decentralized programming platform on which applications can be built and executed. These applications are called "decentralized applications" or DApps. Because the code of these applications is stored on a blockchain it cannot be modified. This immutability of the code offers interesting possibilities.
Smart contracts are an important part of Ethereum. These are applications that trigger a transaction as soon as certain requirements have been met. Two or more parties sign the contract after which they cannot get out of it. Think for example of an apartment lease.
If you would put the lease contract on the Ethereum blockchain it would look like this:
“On every 1st day of the month between 2018 and 2022, party A pays €500 rent to party B”
Of course, a smart contract doesn't look that simple in reality, but the above example is just an illustration of how a smart contract can be used. There are many more options, such as online orders that are only paid after a package has arrived at a certain location. In addition, loans can be issued on Ethereum. The latter implementation is part of the "decentralized finance" or DeFi sector. This sector has grown significantly in recent years.
Buy Ethereum (ETH) safely and easily via Knaken+
Ethereum can be used to simply send ether (ETH) to another person. You can buy Ethereum in various ways, such as via cryptocurrency exchanges (for example, Binance, Kraken, Coinbase) or over-the-counter (OTC) platforms.
When you decide to buy Ethereum through an exchange you will be able to buy the altcoin for the current market rate. However, OTC platforms can offer more privacy and security benefits. For example, OTC platforms send the Ethereum you have bought directly to your own wallet. In addition, your order will not be visible in an order book, as is the case with exchanges. Another benefit of buying Ethereum through OTC platforms is that customer service is often better than major exchanges.
Sell Ethereum (ETH) safely and easily via Knaken+
Suppose you bought Ethereum some time ago, or you received some ETH from a friend, you might want to sell this Ethereum at some point. This can be done in many places nowadays. The information about buying Ethereum often also applies to sell Ethereum.
For example, you can sell Ethereum through exchanges or using OTC platforms. Exchanges make selling Ethereum easier as you're often able to receive your money directly into your bank account. Transaction fees may apply to exchanges.
Knaken helps you buy or sell Ethereum safely and easily. It doesn't matter if you are a beginner or a veteran. These three simple steps apply to everyone.
• Select your cryptocurrency
• Pay via payment methods such as IDEAL.
• Receive and manage your crypto in your Knaken dashboard or your own wallet.
Why do people buy or sell Ethereum?+
One of the most common reasons to buy and sell Ethereum is to trade with it. By buying Ethereum when the price is low and selling it again when the ETH price has risen, you can generate profit. This naturally involves risks since cryptocurrency prices are often very volatile. You can read more tips for buying and selling Ethereum in the section below.
Why choose Knaken?+
• Safe & Easy
• No extra costs
• Manage crypto via your Knaken Dashboard or your wallet
• Knaken has its own exchange
Important tips when buying/selling Ethereum+
First of all, always make sure you have a secure wallet. This is where you can store your Ethereum. When you create a wallet it is important to make sure the wallet supports Ethereum.
If possible, choose a hardware wallet. This is a kind of USB stick that is not connected to the internet, which prevents hackers from accessing your Ethereum. If you buy Ethereum via an exchange it is recommended to not leave the Ethereum in your account. Send your Ethereum to your wallet to ensure that you actually own the Ethereum.
Only put money in Ethereum that you can really miss. Due to the volatility of cryptocurrency, Ethereum can suddenly lose a lot of value. So be sensible when you put money into Ethereum.