Ethereum: How to Make Money with Ethereum - The Investor’s Guide to Ethereum Mining, Ethereum Trading, Blockchain and Smart Contracts

Introduction

Cryptocurrency has been growing rapidly, and multitude businesses, entrepreneurs, and individuals have been using digital currency for different transactions. The usage of cryptocurrency offers a plethora of benefits. In fact, many people are investing in this digital money.

The following chapters will discuss what you need to know about the cryptocurrency Ether. Ethereum is not much different with Bitcoin. In fact, it was inspired by Bitcoin. But Ethereum managed to be better – it offers things that Bitcoin does not because Ethereum is constantly changing to meet the needs of the users that are on the network.

This book focuses on Ethereum and how you will be able to make money with Ethereum. The remarkable thing about Ethereum is that, unlike the stock market, you can invest in it without the need of having a lot of money. Once you have obtained Ether, you will be at the point where you need to decide what to do with your Ether. You can take it and invest in acquiring more Ether. Or, you can cash it out through an exchange so that you can get fiat currency.

Also in this book, you will learn some problems that you may run into when you are working with Ethereum as well as how you can write your own code with Ethereum. It is not going to be easy if you do not have any coding experience, but you will be able to do it as long as you are patient and take your time.

Chapter One: Ethereum – What Is It?

Ethereum is a blockchain application that is decentralized, public, and programmable. While you are using Ethereum, you will be using a peer to peer contract that will make it to where you can mine and trade Ether. A Russian Canadian engineer proposed his idea for Ethereum in the year of 2013. Vitalik Buterin took what he had learned from working with Bitcoin and decided that he was going to create a blockchain application that would surpass Bitcoin. In 2014, Ethereum was funded and started the development process.

When the developers were working on Ethereum, they decided that they wanted to go beyond the peer-to-peer system and provide more services to the users that Bitcoin was not able to offer. But, as Ethereum was being developed, people began to question its security and its scalability. Even now, people are continually questioning the security and scalability of Ethereum.

In the summer of 2015 Ethereum’s blockchain went live. In the beginning, Ethereum’s programs were being developed by the Ethereum foundation and the Ethereum Switzerland GmbH. In the spring of 2016, the Ether token was created and held a net worth of one billion dollars. The Vox website reported, Ethereum is a new digital currency and is a challenge to Bitcoin because of the wide range of services that Bitcoin was unable to offer.

Just like everything else, there are pros and cons of using Ethereum. In this section, you will learn these pros and cons so that you are better informed to ensure that you are making the proper decisions when it comes to investing in the future.

Any smart contract that is written will be executed as is.

You most likely know whenever a contract is written by a lawyer, judges have to enforce them. But, this is an expensive process for everyone involved. That is why Ethereum offers smart contracts! Smart contracts, as you will learn later in this book, are a cheaper contract solution and are governed by the distributed autonomous organization known as the DAO.

Thanks to the distributed autonomous organization, you do not need to worry about your contract being executed any other way except how you have it written. This happens because the contracts on Ethereum have to work inside of the DAO’s rules so that both parties involved in the contract are protected.

Since there is a DAO, there is no need to have judges or lawyers involved in the contract process. However, it is highly recommended that you reread your contract before you send it to the system because you are not going to be able to correct any mistakes that you make once it