ETH cryptocurrency review | Trader Reviews

Ethereum is a decentralized online system for creating blockchain-based services. This network has no central control and runs on thousands of devices dispersed around the world. The creator of Ethereum is Vitalik Buterin. The network’s unit of account is the ether (ETH). 

The main characteristics of Ethereum

Bitcoin and Ethereum blockchains have similar algorithms and are used to process financial transactions. The main difference between these systems lies in their capabilities. The Ethereum network allows more transactions to be processed, including programmable ones. 

Despite the increased security and decentralization, Ethereum has some problems. The system’s shortcomings include insufficient scalability and high energy costs for mining Ethereum coins. In search of a solution to these problems, the developers created a new version of the network – Ethereum 2.0.

Ethereum 2.0

With the Ethereum 2.0 update, Ethereum will switch to proof of stake in 2022. Since the inception of Ethereum, this switch has been on the Ethereum roadmap. It would introduce sharding and a new consensus mechanism. The Beacon Chain will replace the current Ethereum chain and be used as a settlement layer to facilitate smart contract interactions on other chains.

The Arrow Glacier update to Ethereum was delayed until June 2022 in late 2021. Vitalik Buterin believes that the road to the endgame of the network will be marked by optimistic rollups as well as Zk-rollups.

Transactions with ether

Ether transactions cannot be undone or corrected. When sending large amounts of ETH to an unverified address in advance, it is recommended to split the payment into several parts. Transactions on the Ethereum network are not considered completely confidential. The system does not show real user names, but experts can identify many of the people making ETH transactions with a high probability.

It is possible to buy ether on exchanges:

• Binance;
• HitBTC;
• Coinbase Pro;
• Upbit;
• Kraken, etc.

Since the Ethereum network has no central controlling authority, such as a bank, it is virtually impossible to recover lost coins. Investors use hardware devices (Trezor or Ledger) and online wallets to store altcoins. It is also possible to keep coins in exchange. In this case, you need to log in to your personal account to withdraw funds.

The subtleties of using ETH

Ethers are used as a guarantee of execution of smart contracts on which the online system operates. ETH cryptocurrency is used in decentralized markets, trading, and games. Ether is highly volatile, so it is actively traded on the exchange. Traders use the altcoin as a long-term investment or for opening short-term deals and earning from fluctuations in the exchange rate.

Investors in reviews note the anonymity of the network, the affordable price of ETH, and the ability to use digital coins as a means of payment. Often, traders prefer to supplement ether with other digital assets to diversify their investment portfolio. Some market players prefer to trade ETH only. There is no universal strategy; every exchange scenario has risks.

Conclusion

Ether continues to rank second in popularity after the main digital currency. Many traders make money on changes in the rate of ETH. Some experts suggest that by the end of 2021, the value of the coin may grow to 5-6 thousand dollars.