Virtual currencies are the great financial news of today. Despite a huge potential, this market is still very little explored in Brazil and many people do not even know of their existence.
The best known of cryptocurrencies is Bitcoin, which gained notoriety for being decentralized, that is, it is not linked to any financial institution or government units, and has enabled the opening of an alternative economic system. The most attentive users of the internet should have heard at least about it.
With this, alternatives to the most famous digital currency are emerging and promising good rivalry. There are currently hundreds of cryptocurrencies on the worldwide computer network and many are promising.
In this article, we discuss the digital currency ethereum, showing how it works, its level of growth and expectations for the future, in addition to showing what are the advantages of targeting investments in this novelty.
What is this new virtual currency ethereum?
The bet on cryptocurrencies has grown precisely because it is a freer market and less dependent on government laws. Bitcoin gained fame because of its high valuation and this attracted attention to other virtual currencies.
Ether is a cryptocurrency that caught attention at the end of 2016. Anyone who bought a unit in December last year could have sold for more than 40 times the amount invested. However, there are many differences between Ether and the hundreds of existing digital currencies.
The main one is the restriction of use: the ethereum digital currency is linked to a virtual platform called Ethereum and can only be used within that platform. This software, regulated by a Swiss association, allows to perform decentralized applications in applications that do not have the possibility of fraud, censorship or interference from third parties, through Blockchain technology.
And why did you get so much attention? In 2017 only, this cryptocurrency valued more than 4.25%, being the second most valued on the market, behind bitcoin only, according to information from the CryptoCurrency Market Capitalizations portal.
How does it work digital currency ethereum?
It is important to note that both Ether and Bitcoin have similar grounds: the two currencies are used anonymously, with virtually impossible tracking and need a virtual wallet. The difference is that in Ether transactions are recorded in the blockchain system, which functions as a digital ledger. This security system happens with digital validation that happens over a network.
There are no regulators, such as banks, but network users who are available to validate transactions. In this process, the miners, the name given to the people who apply to participate in the process, receive in return the virtual currency.
Ether can be traded on online exchanges and turned into real money. Another possibility is to hold the cryptocurrency in the virtual wallet and expect large positive variations in the quote to make trades.
Using ethereum digital currency has several advantages. Here we list the main benefits and some alerts for those who want to start investing in this market:
- Processing speed: The time it takes the currency to be processed is shorter than compared to what we have with Bitcoin. This is due to the verification being done much faster.
- No limitations: there is no limit on the number of coins that can be generated. There are over 90 million Ether units in circulation on the Internet. It’s good to take advantage, as an expansion limit can be set soon. Again compared to the rival currency, Bitcoin has more than 16 million units in circulation and a limit of 21 million currencies on the market.
- Possibility of appreciation: the market of virtual currencies is quite risky, because what one day may be on the rise, the next may suffer a sharp fall.
- Expectations for the future: still with the uncertainty hanging over the virtual currency market, expectations for the future of the ethereum digital currency are positive. It has had a valuation of 2,400% in the last year and should continue to grow.
- Reputation: it is something that is built over time from the experiences and consequences of using the currency. Bitcoin, for example, has a bad reputation for use for illicit purposes. To date, there has been no news linked to Ether favoring illegal trades.
How to buy Ether in Brazil?
- Since there are no specific brokers in the country, you must first buy Bitcoins and then convert them into Ether. The first step in this operation is to create an Ether wallet using virtual wallet sites of the currency. MyEtherWalltet is quite indicated.
- When creating the virtual wallet, do all security procedures, such as password choice and private key settings. This is important so that there is no risk of intrusion into your wallet.
- What should be done next is the purchase of Bitcoin. The market for the main virtual currency is very large and there are no difficulties in carrying out the operations.
- The final step is to exchange Bitcoin for the digital currency ethereum. On the internet are available exchange offices (work similar to those where we can exchange real for dollars, for example) of cryptocurrencies. Be careful when buying. The desired currency is Ethereum, not Ether Classic.
It is necessary once again to clarify that there are no brokers of this virtual currency in Brazil, but there are no illegalities in making your purchase. By following the steps above, you will be ready to start investing in a promising new virtual currency market. Be aware, as it will also be necessary to declare in income tax when doing operations with Ether.
What do you think about using virtual currencies? How do you see the expansion of this market? Leave your opinion in the comments and report your own experiences with the use of Bitcoins and also ether.