Cryptocurrencies have managed to create the biggest boom in the global financial industry. Ever since they appeared back in 2008/2009, they have managed to reach heights that none of us thought was possible. 2023 is the year of cryptocurrencies, as research shows that there may be as many as 6-7 million crypto users.
Even though there are hundreds, maybe even thousands of cryptocurrencies on the market, only a handful are profitable and worth investing in. One of them is Ethereum, the cryptocurrency that we are going to talk about in this article.
We’ll be listing everything that you need to know about it and thus explain what makes this cryptocurrency so popular. Let’s start.
Ether and Ethereum Are Two Different Things
Some people refer to this cryptocurrency as Ether, while some refer to it as Ethereum. The truth is that Ether and Ethereum are actually two different things. Ethereum is the network that powers this cryptocurrency. Ether, on the other hand, is the cryptocurrency itself.
Thanks to the fact that Ether is one of the most popular cryptocurrencies on the market, it has a value of around $2,000, which makes it the second-most valuable digital asset. You can use it to trade and make a profit, but also to operateDApps.
Where Can You Trade It?
Speaking of trading with Ether, the best option is trading sites. These platforms are marketplaces as they connect you with thousands of buyers from all over the world. One of the most well-known trading platforms is the Yuan Pay App. It has thousands of registered traders from all over the world and a very high profitability rate.
Not only does this trading site utilize the latest HTML5 technology, which makes it optimized for use on all mobile and desktop devices, but it also uses an AI system that is able to scan the market and make accurate predictions on the cryptocurrency’s future fluctuations. Thanks to this AI system, the chances of making a profit are increased.
The Difference Between Ether and Other Cryptocurrencies
The first major difference between Ethereum and other cryptocurrencies is that Ethereum is not just a cryptocurrency – it is a whole network. It consists of three layers – the Ethereum Virtual Machine, Ether (the cryptocurrency), and gas.
The EVM is a decentralized environment used to build and operate smart contracts, or also known as DApps. Gas signifies the amount of work done by the EVM. Think of it this way – kW/h is the measurement of how much electricity we spend and pay. Gas is the equivalent to that measurement as it comes with a cost that users need to pay if they want to make a change to Ethereum’s Blockchain.
Next up, the process of mining in Ethereum’s network is much faster than other cryptocurrencies. Let’s compare it with Bitcoin. A Bitcoin block mining time averages 10-20 minutes. On the other hand, an Ethereum block averages 10 to 20 seconds. Additionally, the crypto cap is different in Ethereum.
Most cryptocurrencies are finite. For example, Bitcoin has a total of 21 million units that are likely to be mined by 2140. That is not the case with Ethereum. Its network is capped on an annual basis. The number of Ethers that can be mined each year is 18 million.
Finally, since Ethereum is a network rather than just a cryptocurrency, it supports many more processes and units. One of those units are non-fungible tokens, or also known as NFTs. They have become extremely popular recently as each NFT is unique and has great value. Recently, many celebrities have even issued their own NFTs, and since they are supported by Ethereum, the value of this cryptocurrency rises.
How does Ethereum Mining work?
Mining is primarily done for two purposes, i.e., first, to maintain a block of transactions of Ethereum tokens known as Ether to be added in the blockchain and second, to create and add new Ether coins to the Ethereum blockchain. The purpose and process of Ethereum mining are similar to Bitcoins, that is, by solving advanced mathematical algorithms by using high-powered computing devices and sources of energy.
These miners compete with several other Ethereum miners, and the fastest miner to solve the block of transactions gets the reward of two newly minted Ether and a transaction fee. Miners of Ethereum combine their computing power which is also known as a mining pool, to verify the block of transactions to the public ledger or the blockchain and in return, they are rewarded with Ether coins which are added to the Ethereum blockchain.
There is no way to alter or erase the transactions once recorded in the Ethereum blockchain. This gives both the parties involved a permanent and verified record of transactions. Compared with the world’s most valuable cryptocurrency, Ethereum is much faster than Bitcoin.
How to build an Ether Mining Rig with your computer?
An Ether mining rig is similar to any other computer that you would build using the latest hardware and software. The major components required to build an Ether mining rig includes a source of power supply, motherboard, an operating system, an SSD or computer memory and a GPU, or simply it can be done on a gaming PC. Ensure that you have enough air circulation and air conditioning appliances to keep the room cooler because the GPUs become really hot when they are running continuously.
Since you have to be the first one to solve the algorithm on the planet, the chances of solving the algorithm on a single mining rig are comparatively lesser. It becomes difficult to compete with miners with several mining rigs with advanced and latest operating devices. To increase your chances of winning, you can join mining pools with several other miners where the computing power of all the miners in the pool are combined, which increases the chances of solving the hash function first, and the rewards are shared equally amongst all the miners.
Is it worth investing in Ethereum?
If you are thinking of investing in Ethereum tokens, then it is totally worth investing. Ethereum being the second most valuable cryptocurrency in the world, continues to give tough competition to other cryptocurrencies. In comparison to Bitcoins, Ethereum had more benefits than the world’s most valuable cryptocurrency.
Compared to Bitcoins, transactions in Ethereum blockchain are much faster than Bitcoins blockchain. Ether mining doesn’t require an AISC computing device which is really expensive and consumes a lot of power, and with the support of smart contacts, Ethereum can do much more than Bitcoins.
If you are looking for a long-term investment, then you can definitely consider investing in Ethereum. Cryptocurrencies are volatile in the short run, but in coming times it will make you some long-term guarantee profits.