Before investing in Ethereum, it’s important to understand it. That’s why we’ve made this plain-talking guide and created a list of where to go in order to help you buy Ethereum responsibly. This guide lays out the basics: what ether is and the multiple ways it can be used.
1a – What is ‘ether’? Ether is the cryptocurrency supported by the Ethereum blockchain. The term ‘Ethereum’ is commonly misused to refer to both the cryptocurrency and the blockchain. This is not the case: ‘ether’ is the digital currency that is used and transacted on the ‘Ethereum’ blockchain. The Ethere...
2a – How is ether transferred? Imagine sending someone (e.g. your friend Gemma) an email that reads ‘1 ether’. You would: Log into your email account Enter Gemma’s email address Type ‘1 ether’ into the body of the email Hit send Gemma would receive a message reading ‘1 ether’ An ether transfer works in a simila...
3a – How do I buy ether? If you are looking to buy ether using the money in your bank account, the best and easiest option is to use a brokerage. An ether brokerage is essentially an online bureau de change for ether. Brokerage platforms sell ether at a fixed price, depending on the time and date of the transaction. Just like when exchanging pounds for...
4a – What is ether used for? Ether has two main usage purposes: to use as ‘gas’ to fuel smart contracts, and for ordinary everyday use like a ‘regular’ currency. ‘Gas’ is simply a unit of ether that is necessary for the successful operation of a smart contract on the Ethereum blockchain. Just like a car needs fuel to...
