Ethereum works almost the same way as bitcoin does. Ethereum blockchain shares records of the all transaction history but mainly the most recent data.
Ether and other crypto assets are held in the ethereum wallet which allows you to create and use smart contracts.
The Ethereum Virtual Machine (EVM) is a turning complete software that runs on the ethereum network. It allows anyone to run any program regardless of the programming language given enough time and memory.
The EVM enables the development of thousands of different applications all on one platform instead of building an entire blockchain for each new application and makes the process of creating blockchain applications much easier and efficient.
Smart contract are just computer codes that can be used to facilitate the exchange of money, content, property shares or anything of value. Smart contracts run on a blockchain, exactly as programmed without any possibility of censorship, downtime, fraud or third party influence.
Ethereum is also used to build Decentralized Autonomous Organizations (DAO) which run by programming codes on a collection of smart contracts written on the ethereum blockchain.
The code is designed to replace rules and the structure of a traditional organization. It eliminates the need for people and centralized control making it work completely transparent and independent of any human intervention even its original creator. Everyone who purchases tokens owns it and acquires voting rights.
How to invest in Ethereum?
Like any other cryptocurrency e.g. Bitcoin, one can acquire ethereum by mining it. Of course this requires you to solve complex mathematical equations and come up with a proof of work in a fastest time possible. The miner is rewarded with 5 ether and joined to the block or ethereum network.
Ethereum can also be bought and hedged against the other fiat currencies like USD. What do we mean . You can choose to buy ether in exchange for any local currency and hold it for some time then sell it at a higher future price.
Ethereum can also be invested in for personal use. Through using EVM, smart contracts and carrying on online payments.
Like bitcoin or any fait currency, you can earn from ethereum through speculating its future value in relation to other cryptocurrencies or fait currencies on the exchange markets and earn from value differentials.
You can predict direction basing on technical or fundamental analysis.
Take a look at the ETH/USD 4-Hour chart
From the above, you can see we had a bearish Flag. This is signal for continuation of the trend.
The target is measuring the previous move distance and then projecting it forward.
Learn more on the Flag pattern here.
How to buy and sell ethereum.
Ethereum can be bought or sold the same way you do for bitcoin only that this time you will be rewarded ether not bitcoin. Follow the same procedure just like in bitcoin trade and click the buy ethereum button it will be executed instantly.
How long you should hold an open position, is a personal thing for all traders. The decision is all yours. You know what your goals are as a trader, the kind of strategy you use to trade. All this starts from what you are? and What you want? If I am to answer, this...