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Frequently Asked Questions About Ethereum

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What is Ethereum and Who Created It?

If there is one currency that has the potential to surpass bitcoins in terms of market capitalization, that would be Ethereum. Currently, it is known to be the second most successful cryptographic token. The first is Bitcoin (BTC). 

We may recognize Ethereum as a cryptocurrency, but it has more functions than just storing value. Ethereal by definition is a decentralized platform for mining and developing software that generates multiple cryptocurrencies and applications over a unified blockchain system.

To understand this better, here are two functions of Ethereum.

  • Ethereum has its native currency Ether (ETH), which can be used to trade goods and services online. The transactions don’t take place via any bank or centralized network. Rather it is regulated by all distributed ledger stakeholders. You can simply track every transaction yourself by using one of the Ethereum block explorers.
  • The Ethereum network may also be utilized for data storage and the execution of decentralized apps. Many Defi apps, storage apps, and wallets like Metamask, 3box, MyCryptowallet, and others are using this platform to host securely and store their data in the network without using any third party.

The mind behind this revolutionary network is Vitalik Buterin, a Russian programmer and co-founder of Ethereum. The other co-founder was Charles Hoskinson. Later he dissociated himself from the project to start his own.

What is Ether and Gas?

Ether and gas are both indigenous to the Ethereum platform. They may not be separate tokens but, they have distinct purposes. 

Ether is a digital cryptocurrency and it functions like money but without any physical presence. Like any other cryptocurrency, it is a medium of exchange. With a certain amount of ETH, you can subscribe to a service or buy something online.

Gas is the price or fee you have to pay to perform a transaction successfully or use an Ethereum-based service. It is because computational energy is spent in making that transaction.

Gas has no intrinsic value but, it is the amount of energy required for completing a task. Its measurement can be done with ‘gas limits’. If the limit is high, it means more energy is consumed for a transaction in ETH. This may not be a desirable factor.

Ether and gas do not influence each other’s value. If one goes up, the other may or may not go up in value in the market.

How to Store and Trade Ethereum?

If you have gained enough knowledge about the Ethereum platform, you can start trading in 3 simple steps.

Select an exchange platform and open an account.

You have to do some research about the trading platforms that accept Ethereum based exchanges. Check the credibility of the platform before trusting it with your money. If you gain confidence, then create the account. We highly recommend you to pick only licensed exchanges such as Redot to prevent any possible issues with your crypto assets in the future.

Deposit Money

With this money in your trading account, you can buy ether. You will receive your Ethers after a processing time.

Start Trading

It is pretty much like a stock exchange trade.

  • Open a deal ticket
  • Select the trade size
  • After setting a limit, click buy or sell to start a long or short position respectively.

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