Ethereum is one of the most popular names in cryptocurrency and it has retained its install value. Ethereum is primarily a blockchain project and has proven its utility. Most exchanges based in Canada offer CAD to ETH as a trading pair option, as both currencies are valuable in their own right.
Ether, or ETH, is the original Ethereum cryptocurrency. ETH is used to fund Ethereum blockchain projects. When you invest in Ether, you are investing in Ethereum.org projects broadly. And because Ethereum is a successful blockchain, the cryptocurrency has retained value. Its price is also not as volatile as Bitcoin is.
Although ETH is valuable, it had never been worth as much as Bitcoin. This is not a bad thing at all, it is still the second or third most valuable cryptocurrency on exchanges. One of the best qualities of Ethereum’s token is that it is a much more versatile coin. This is primarily because Ether is a much cheaper cryptocurrency to use. Therefore, it is better suited for smaller payments and purchases.
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What Is Ethereum
Ethereum is an open-source blockchain, which allows other projects to be built on top of its architecture. Ether is the original cryptocurrency associated with Ethereum. As such, the value of ETH is related to the success of the projects on Ethereum’s blockchain.
Many other cryptocurrencies are built Ethereum’s blockchain that are not ETH. Some of these are ICO or Initial Coin Offerings. These work a lot like IPO (Initial Public Offerings). ICOs are a crowd-funded project, which offers a lower initial buy-in to help get the project going. If the project is successful, then the coin is worth more than the investor paid initially, just like an IPO.
What is Ether (ETH)
ETH is a highly liquid asset, and can also be traded for other cryptocurrencies or fiat currencies. But the foundation of the Ethereum blockchain is smart contracts. Smart contracts are automated contracts that are only completed once the code had been completed correctly.
They work a lot like a vending machine; if you put in a dollar and hit A2 you will get your candy. But if you only put in $0.75 and hit A2, the code remains incomplete. This is the essence of smart contracts.
Smart contracts are one of the keys to trustless peer-to-peer transactions. This is because they do not require a third party, like a lawyer, to ensure that all of the conditions are met. Instead, the conditions are set in the code, and the code is only complete when all the necessary conditions are met. To run the blockchain and smart contracts, Ethereum is funded with ETH.
Exchange ETH for Fiat Currencies
Like Bitcoin, Ether can be sold on cryptocurrency exchanges for a fiat currency. Most cryptocurrency exchanges sell strong fiat currencies, such as CAD, USD, or EUR. However, an exchange will not have all fiat currencies. Each exchange lists the currencies it will pay out in.
If you are in Canada, and you plan to sell your ETH for CAD, then it is simplest to use cryptocurrency exchange, like Bitbuy or CoinSmart, which will transfer your money straight into your bank account.
Shop Using Ether
Because Ether is valuable, many retailers accept ETH as well.
Here is a list of a selection of merchants that accept ETH as payment:
- 1000 EcoFarms: purchase fresh farm products
- Amagi Metals: buy gold and silver
- Bitgild: precious metals retailer
- CryptoPet: pet supplies
- Digitec Galaxus: the largest Swiss online retailer
- FlokiNET: Scandinavian web hosting business web design company that develops individualized digital products for businesses and individuals.
- Flubit.com: largest UK-owned marketplace for branded goods.
- More Stamps Global: Hungarian travel agency
- OpenBazaar: a peer-to-peer application that connects buyers and sellers
- OpenSea: sell digital goods, like collectibles, gaming items, digital art.
- Overstock: interior design company
- PizzaForCoins: buy pizza with Ether
- Snel.com: VPS hosting service
- TapJets: private jet firm
There are many ways to use ETH because it is one of the most valuable and traded assets on the crypto market. To use ETH to make a purchase, users just need a digital wallet, such as MetaMask or Exodus. Once there are available funds on the wallet, you can buy ETH.
You can also use digital wallets to trade directly with other investors. This works a lot like an email, where the seller sends a QR code with their wallet address to the buyer. Because ETH is a much less complex cryptocurrency than Bitcoin, transactions are much faster and less expensive.
