Ethereum, is a decentralized platform that allows for the running of applications without any downtime, fraud, censorship of third-party interference. Ethereum uses blockchain technology to allow network users to send and receive payments. A simple explanation for how the network operates is that it uses a massive amount of nodes (computers) that are all connected. Any transactions that take place on the network are automatically recorded and distributed on an open ledger.
Ether is the currency unit of the Ethereum network.
What are Some of the Potential Uses of Ethereum and Ether?
Blockchain-based cryptocurrencies have been gaining in popularity as they represent a viable alternative to more traditional payment methods. These cryptos can provide a number of potential benefits, and are considered to be a very convenient means of sending or receiving payments.
Cryptocurrencies can be sent or received anywhere in the world, and may offer a lower-cost alternative to bank wires or even ACH payments. Funds sent using ether may clear very rapidly. This speed of cleared payment can be very important, since checks or electronic transfers can often take 14-30 days to clear. Funds sent overseas also eliminate the need for currency conversions, since ether is the exact same whether it is in Canada or Japan.
Some possible uses of ether include merchant remittance, sending funds to a friend for dinner and even buying a cup of coffee.
Why do Investors Care About Ethereum and Ether?
Trading and investing in cryptocurrencies has become increasingly popular over the last year, as it could potentially present a good long-term opportunity. Most cryptos have a limited amount of units or tokens that can be mined. Given the laws of supply and demand, if demand rises while supplies remain the same, prices are likely to climb. In fact, they could potentially rise sharply from current levels, and there is no telling just how high they could go.
Is Ether Accepted by Merchants?
Some merchants have already begun accepting ether as a means of payment, and that number is likely to grow as consumers look for alternatives to credit cards and other payment methods. In fact, A house was recently sold and the transaction was performed using a cryptocurrency.
Is Ether Actively Traded?
Many cryptos have become more actively traded this year, and trading volumes could increase as they gain in popularity and acceptance. That being said, cryptos may lack the liquidity needed for “day-trading” or similar strategies. Some investors may take a more moderate approach, buying after significant sell-offs and selling on sharp rallies. Other investors, especially those more interested in the crypto’s long-term potential, may simply look to buy or add to long positions on any significant dips in price.
Can Charts be Useful for Trading or Investing in Ether?
Charts can potentially be very useful, as they provide a simple, graphic depiction of market activity. Charts can be used to find potential areas of price support and resistance, and may also be used to spot trends or technical trading patterns.