Ethereum: Beginner's Simplified Guide to Make Money with Ethereum

Introduction:

I would like to thank you for purchasing this book ‘Ethereum: Beginner’s Simplified Guide to Make Money with Ethereum’.

Ethereum is the hottest cryptocurrency on the block at present. Cryptocurrency is the word that's used to describe decentralized digitized currencies. The first cryptocurrency was created in 2008, and it was Bitcoin. Ethereum is relatively new and was invented in 2013. All the information that you will need about Ethereum has been concisely provided in this book. If you are curious about learning more about investing in Ethereum and trading it, then this is the perfect book for you.

The book starts out by explaining what Ethereum is, the benefits it offers, about the blockchain technology, the different ways in which you can buy and invest in Ethereum, and investing in it. Apart from this, you will learn about trading Ethereum, tips for avoiding fundamental investing mistakes and risk management! The book starts out by giving you a brief understanding of what Ethereum is all about, its founders, the benefits of investing in Ethereum, the process of getting started with Ethereum, and the growth potential of Ethereum. It will give you an idea about the rise of Ethereum and why it is an excellent investment opportunity. By the end of this book, you will be equipped with all the information you need to make an informed decision. The future of investment lies with this currency and learning about it will help you to make an informed decision while investing.

So, why don’t we get started now? 

Chapter 1:

What is Ethereum?

Chapter One: What is Ethereum?

History and Definition of Ethereum

Bitcoin was the first cryptocurrency that was ever created. Only when Bitcoin became a success did the ideas of creating other cryptos come up. Bitcoin is a digitized currency, and it is held in electronic form. No single authority has any control over it, unlike the fiat currency that we use. Bitcoin can be utilized for buying things electronically. It is similar to fiat currencies like dollars or pounds in this sense. The one character that makes Bitcoin very different from other currencies is its decentralized nature. 

The main aim of Ethereum is to function as a decentralized Internet and as well as a decentralized app store, that will provide support for the Dapps in this process. No one owns Ethereum; however, the network that supports this is not free. In fact, this system makes use of Ether. Ether is a specific code that is made use of to pay the computational resources that are necessary to run an application or a program.

Ether is similar to Bitcoin, and it is a bearer asset (quite related to security in the market, like a bond or a share that is issued in physical form). Ether doesn’t require a third party for processing or even approving a transaction, just like cash. It doesn’t operate the way digital currency or payment system would and instead it aims to provide fuel that will help in the functioning of the Dapps or decentralized applications on the network. It might sound a little complicated, but it isn’t. Think of this as a decentralized online notebook and for deleting, posting or modifying a note; you will be required to pay a transaction fee in the form of Ether to make the necessary changes. Therefore, Ether has also been referred to as digital oil.

Let us this analogy a little ahead, then the transaction fees on Ethereum is calculated by the amount of gas that is necessary for the action. The transactional cost would depend on the computational power that is required and the time that it would take for getting it up and running. A transaction that would cost 500 gas would be paid in Ether. Thinking of Ethereum from the perspective of an economic system, this is entirely open-ended. For instance, there is a cap on the number of Bitcoins at 21 million, whereas there is no such cap on the limit of Ether.

In the year 2014, out of all the Ether that is in existence, about 60 million was purchased by the users who participated in the crowdfunding campaign. Approximately 12 million of Ether was directed towards the Ethereum Foundation that consists of researchers and