Cryptocurrency 101: How to invest in Ethereum

Cryptocurrency has proven to be a game-changer in the finance industry. In today's blog, Robert Testagrossa looks at how people can invest in Ethereum.

To invest in Ethereum, one needs to have an Ethereum wallet. An Ethereum wallet is a digital asset that stores private and public keys. These keys allow people to access their Ether (the name for Ethereum's currency) and make transactions on the Ethereum blockchain.

Ethereum wallets come in different types. Some wallets are designed for people who want to invest in Ethereum, while others are designed for people who want to use Ethereum for everyday transactions.

The most popular Ethereum wallet is the MyEtherWallet. MyEtherWallet is a web-based wallet that allows people to store their Ether and make transactions on the Ethereum blockchain. MyEtherWallet also allows people to create Ethereum addresses, send Ethereum transactions, access their Ether, and manage their wallets. Since MyEtherWallet is a web-based wallet, people can use it on almost any device including phones and computers.

There are also many different wallets that offer the same functionality as MyEtherWallet. Some of these wallets include Jaxx, Exodus (desktop wallet), Mist (for developers), and imToken (mobile wallet), Robert Testagrossa adds.

Once people have their Ethereum wallets set up, they can start to buy Ether. People can purchase Ether through cryptocurrency exchanges using other cryptocurrencies or fiat currencies like the U.S. Dollar. Exchanges can either be centralized or decentralized.

Centralized exchanges are a popular type of exchange. Centralized exchanges allow people to buy, sell, and hold cryptocurrencies. They also offer other services like margin trading and advanced order types. Centralized exchanges are regulated by governments and have been around for longer than decentralized exchanges.

Decentralized exchanges are a newer type of exchange. These exchanges do not hold people's funds and allow them to directly control their private keys. Decentralized exchanges have been gaining popularity because they have lower transaction fees, offer security features, and serve as a platform for trading Ethereum tokens, Robert Testagrossa explains.

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