Are you finally ready to start investing in cryptocurrency? Your first instinct might be to buy Bitcoin.
Bitcoin is, after all, the most popular option of all the different types of crypto. Between 15 and 20% of Americans have invested in crypto at this point, and most of them have done it by buying Bitcoin.
But it’s worth noting that Bitcoin is not the only type of crypto you should consider purchasing. There are also many other crypto options available.
Outside of Bitcoin, Ethereum is one of the best other options of the bunch. Before you buy ETH, here are nine important things you should know about it.
1. ETH Has Been Around for a Decade
Ethereum hasn’t been in existence for as long as Bitcoin. Bitcoin was founded back in 2009 and is the first cryptocurrency ever.
But Ethereum has been around for a long time compared to most other types of crypto. It was founded in 2013 and has developed a lot since then.
With this in mind, you won’t have to worry about Ethereum disappearing on you anytime soon. It has established itself within the crypto world and now plays a key role in its success.
2. It Was Influenced by Bitcoin
Although Ethereum didn’t come along until almost 5 years after Bitcoin, it was influenced by it a lot. It was designed by a Russian computer programmer named Vitalik Buterin who played a part in the early Bitcoin days.
Buterin originally wanted to figure out a way to create decentralized applications using the Bitcoin blockchain. But in trying to do so, he ended up creating Ethereum from scratch.
It would eventually lead to Ethereum turning into the second-most valuable form of crypto behind only Bitcoin.
3. It’s More Than a Cryptocurrency
One thing that sets Ethereum apart from Bitcoin is that it’s more than just another type of crypto. In fact, Ethereum isn’t actually crypto itself.
Ethereum is instead a decentralized computer network that has been set up to run decentralized apps. Ether is technically the crypto used to fuel it.
Many people tend to use Ethereum and Ether interchangeably, though. It has created some confusion surrounding the two.
So when you buy ETH, know that you’re buying Ether, which can be used on the Ethereum blockchain. It’s a subtle difference but one that’s worth pointing out.
4. It Has Several Different Layers
If you’re confused by Ethereum and Ether being two different things, prepare to get just a little more confused in a moment. Ethereum has a few different layers to it that make it unique from other types of crypto.
These layers are:
- The Ethereum Virtual Machine that’s used to create decentralized apps
- The cryptocurrency known as Ether
- The “gas” that refers to the work done by the EVM and powered by Ether
Each of these layers helps drive Ethereum as a whole. Ethereum wouldn’t exist without each of them pulling their own weight.
5. It Has Many Different Uses
The EVM is used for so many different things at this point. It’s what makes Ethereum so unique when you compare it to other forms of crypto.
Here are just a few of the ways that the EVM is utilized:
- Designing mobile games
- Setting up cloud-based operating systems
- Putting together smart contracts
- Notarizing documents
- Verifying decentralized news
This helps illustrate the potential that Ethereum and, more specifically, the EVM have. It’s taking digital assets to a new level.
6. It Plays a Key Part in NFTs
Are you someone who buys and sells NFTs on a regular basis? You’ve already been actively involved in the world of Ethereum without even realizing it.
NFTs, or non-fungible tokens, wouldn’t exist with Ethereum. The Ethereum blockchain is where NFTs live. It’s also what makes them so special and stops others from laying claim to the NFTs you own.
7. It Doesn’t Have a Cap
There is a cap on how many Bitcoin will exist in the world. There won’t ever be more than 21 million Bitcoin.
This same cap doesn’t exist when it comes to Ethereum. There can be up to 18 million Ether put out into the world each year. It’s eventually going to lead to way more Ether existing than Bitcoin.
8. It’s Considered Stable
Many of the different types of crypto aren’t considered stable. They simply haven’t been around long enough to stabilize and provide people with security.
But because Ethereum is so ingrained within the crypto culture at this point, it’s one of the most stable forms of it. Some people will even argue that it’s proven to be more stable than Bitcoin at times.
9. It Could Be a Worthwhile Crypto Investment
If you sneak a peek at the Ethereum price at any given time, you’ll find that it’s on the higher side. It’s not quite as high as Bitcoin, but it’s getting there.
For this reason, Ethereum would be a great type of crypto to invest in if you’re going to choose anything other than Bitcoin. It should provide you with a sense of stability. It should also put you in a position to make money on your initial Ethereum investment down the line.
Buy ETH Today
Have you taken the time to buy ETH and add it to your crypto portfolio yet? If you haven’t, now might be the perfect time to take this step.
You might not be as familiar with Ethereum as you are with, say, Bitcoin. But you shouldn’t let that stop you from looking into investing in it further. It could be one of the smartest investment moves you ever make.
