In terms of volume and popularity, Ethereum comes second after Bitcoin – the pioneer cryptocurrency.
In terms of uses, Ethereum is a blockchain network that embraces new blockchain technologies such as the NFT and Dapps.
The numerous uses of Ethereum make it arguably a primary protocol in the crypto industry.
The growth that Ethereum had in 2021 and the last few years has led to speculations of Ethereum Price surpassing Bitcoin.
That’s a story for another day, as I will be unraveling things you can buy your Ethereum within this article.
What Is Ethereum
Ethereum came into existence in 2015 when a crypto enthusiast known as Vitalik Buterin decided to co-create a cryptocurrency with vast uses.
He decided to create a cryptocurrency that does not have one primary use case like Bitcoin. Ethereum isn’t just like the regular cryptocurrency you hear about on the internet; it comes with numerous features.
The obvious ones include serving as a trading payment method and a platform for developers to create new applications. Of course, these apps perform functions closely related to cryptos, such as lending and payment applications.
You should also know that Ethereum is built on the idea of smart contracts, a fundamental part of crypto. A smart contract is synonymous with a program that runs automatically and autonomously on a blockchain.
The function of smart contracts in the Ethereum blockchain is to help you to complete direct transactions on the network, such as P2P lending.
Ether serves as the native token of Ethereum, enabling several simple and complex transactions to occur on the Ethereum network.
However, don’t use the term “Ether” in the place of “Ethereum”; they are two different things in crypto.
Ether Vs. Ethereum
There have been scenarios where these terms are interchanged, but they mean different things and serve other purposes.
Let’s say you are boarding a flight; while booking your flight, you will need to pay your flight fare. In this scenario, the flight fare is Ether while the airplane is the Ethereum network.
In other words, developers and users of the Ethereum network use Ether to create new tokens and pay transaction fees. Ether’s primary function is serving as a store of value while being held and exchanged in the Ethereum blockchain.
In contrast, one of its challenges is the high amount of Ether needed to carry out transactions in the Ethereum network.
The developers are making plans in the Ethereum network to launch Ethereum 2.0, which seeks to create a solution to the issue of high gas fees during transactions.
Ethereum, on the other hand, is simply a decentralized network that functions as a platform to run decentralized applications and store data.
Merits of Ethereum
Decentralization
Just like blockchain technology, one of the fundamental advantages Ethereum offer is that it gives you power.
To perform complex transactions in the conventional banking system, one has to pass through complex processes and intermediaries. With Ethereum, all the network needs are your approval for transactions.
Vast Use Cases
There are many cryptocurrencies whose function or purpose ends at one thing and nothing else.
Not only does Ethereum serve as a payment method, but it also serves as a repository for third-party applications and carries out smart contracts.
Innovation
The basis of the creation of Ethereum was to innovate the crypto industry, and it is still doing so.
With the introduction of Ethereum, there was wide adoption of smart contracts and decentralized applications.
The problem of high transaction fees is a disturbing reality of the Ethereum network, which is why the network is restructuring into Ethereum 2.0.
Reliability
Ethereum is a scrutinized network; millions of transactions occur in the Ethereum network regularly without breakdown.
Despite the high gas fees it is battling, it still has a large community behind it, creating many new projects in the crypto and NFT space.
Repository Functions
This is one of the primary functions of Ethereum as a blockchain network; it functions as storage for data.
It stores data so that users don’t have to rely on a central manager to control the information stored here.
Liabilities of Ethereum
High Gas Fees
Also known as transaction fees, this is one of the primary problems faced by both Ether and the Ethereum network.
Compared to its competitors, such as the Binance network, one might have to pay ten times in gas fees when making transactions with Ethereum.
This does not apply to cryptocurrencies; digital arts sold with Ethereum cost more than those sold with other cryptocurrencies.
Scalability Issues
Sluggishness is one of the problems crypto enthusiasts have with the Ethereum network, although its 2.0 claims to solve this issue.
You can only carry out about 15 transactions per second on the Ethereum network, while other protocols allow more per second.
What Can You Buy With Ethereum?
Buy Goods And Services With Ether
The adoption of Bitcoin opened the way for cryptocurrencies like Ethereum to be used as a payment option for goods and services.
Moreover, the Ethereum blockchain performs many Peer-To-Peer transactions faster and cheaper than Bitcoin.
It does not matter if this is a physical or a digital product or service; one can use Ether to buy goods from brick-and-mortar shops and online.
Some shops online accept Ethereum as a payment method, such as CheapAir.com, Ethlance, and many more. E-commerce shops are not the only establishments that accept Ethereum; betting and casino platforms such as 1xBet accept Ether.
The hospitality industry is not left; some restaurants allow their customers to pay with Ethereum after using their services.
It has even gone beyond making a payment with wallets, crypto debit cards have been issued, and it can make payments using Ethereum.
ICOs (Initial Coin Offerings)
People have made a lot of money because of their initial coin offerings (ICOs) investments.
ICO is a period when newly launched projects offer their newly minted cryptocurrencies in exchange for Ethereum or Bitcoin.
It is a form of crowdfunding, and assuming the project goes, the Ethereum invested in such project will help yield more money. Investing in ICOs with Ethereum does not need intermediaries; you can easily do that using only your Ethereum wallet and an internet connection.
The only downside is that after trading your Ethereum for some newly launched cryptocurrencies during ICOs, the chances of making money are balanced with the possibility of losing money.
Buy Digital Assets
Ethereum has proven that it has numerous use cases, including the buying and selling of digital arts like NFTs.
Non-fungible tokens are obviously the new craze in the blockchain industry, and the Ethereum network takes the lion’s share of the NFT industry.
Most buying and selling involving NFTs use Ethereum to pay and receive payments for NFTs, although the fees are higher.
Buying digital assets with Ethereum does not mean it would yield profit, but NFTs are a way to make money when one invests in the right project.
Buy Other Cryptocurrencies
The beauty of the crypto industry is that one can profit from the fluctuations of crypto prices.
Especially for altcoins, there is a constant fluctuation; a coin can go from $125 to $255 in an hour. Just like there are profits, a cryptocurrency can also go from $500 to 125 within an hour.
The bottom line is that you can easily buy other cryptocurrencies with Ethereum and make a profit when their prices increase. To make the most out of this, I recommend you take a crypto course on trading to understand what it entails.
Ethereum to Fiat
Yes, you can buy fiat like the US dollar and profit with cryptocurrencies like Ethereum.
Exchanging Ethereum for fiat currencies can mean many things depending on the person buying the fiat. For someone who has been holding Ethereum for a long time and needs to swap it for fiat, it could mean just selling off.
On the other hand, some people make it a business of buying fiat with Ethereum to make profits.
They look for an exchange that sells Ethereum at a lower price, buys from there, and sells it off at another exchange. They keep repeating the process in different exchange platforms and make money buying fiat with Ethereum throughout the day.
Ethereum Debit Cards
With the increasing adoption of cryptocurrencies, Visa or Mastercard aren’t the only way of buying things anymore.
Many major crypto exchanges have provided crypto debit cards, Ethereum inclusive, that are used in purchasing digital and physical goods and services.
Crypto debit cards are connected directly to the exchange providing the card, and one doesn’t have to pay transaction or maintenance fees.
Some platforms that provide crypto debit cards are Binance, the biggest crypto exchange, and Bitpanda Card.
Conclusion
Ethereum is one of the well-known cryptocurrencies, mainly because of its use in the physical and digital world.
Despite the issues of scalability and transaction fees, Ethereum serves many purposes for blockchain developers and regular crypto enthusiasts.
Ethereum can be used in crowdfunding for crypto projects during ICOs, to buy goods and services, and to purchase digital arts such as NFTs.
