Why you should buy Ethereum? How to buy and sell Ether in 2021.
Shortly before the announcement by Elon Musk that Tesla will no longer be accepting Bitcoin payments for the purchase of electric cars, Ether had soared to record highs. Ether, the digital token of the Ethereum blockchain, has seen a tremendous growth trajectory over the last couple of years, and it is not showing signs of slowing down.
Why You Should Buy Ethereum
Ethereum is currently the second-largest cryptocurrency after Bitcoin. However, its total market cap grew by over 1,000% year-over-year, twice the growth rate of the largest cryptocurrency in the world. Generally, the year 2020 was terrific for the entire cryptocurrency market as investors swarmed into the market at times of economic uncertainty due to the coronavirus pandemic. Ethereum was one of the top value gainers.
Updates: ETH 2.0 and Institutional Growth
Bitcoin has been the most dominant decentralized cryptocurrency since its advent in 2009. The flagship cryptocurrency has been at the top of the market cap charts since the early days, with almost no other cryptocurrency threatening its position. However, experts do not expect that dominance to last. Bitcoin endures some real-world limitations, one of which is its inability to scale.
Although many alternative cryptocurrency projects have come up to solve the inherent problems associated with Bitcoin, none has threatened to replace it so far. The only noteworthy exception is Ethereum which has long been the sole large-scale rival. Although Ethereum is much more sophisticated and modern than Bitcoin, it also suffers some inherent problems that it needs to subdue to stake a significant market share and value challenge against Bitcoin.
Transitioning to Proof-of-Stake
That is precisely what Ethereum developers aim to attain with the upgrade of the Ethereum Network to Ethereum 2.0. The core reason behind the upgrade is because early blockchains (Bitcoin & Ethereum) suffered performance difficulties. Both Ethereum and Bitcoin rely upon the resource-intensive proof-of-work consensus algorithm to validate transactions, mint new tokens and secure the network.
The biggest drawback to this consensus is that it is dreadfully inefficient by design. And since every node must stake its own currency to validate transactions, it would be exorbitantly expensive for anyone to attack the network. To address this problem, Ethereum 2.0 is transitioning to the more efficient proof-of-stake consensus algorithm. This will reduce the complexity of cryptographic work, resulting in immense productivity yields for the entire network.
To enhance Ethereum's efficiency and scaling ability, Ethereum 2.0 will also introduce a processing method known as sharding. In the current network, all the information added must be verified by all the participating nodes. As such, the processing speed of the entire network is restricted by the processing speed of the slowest node. With the addition of the blockchain sharding technique, Ethereum 2.0 will enhance its resource utilization efficiency by a great deal.
Replacing EVM with eWASM
Another notable Ethereum 2.0 upgrade that will improve the network's overall efficiency to stake a worthy challenge against Bitcoin dominance is replacing EVM ( Ethereum Virtual Machine) with eWASM. EVM is the runtime environment for smart contracts networks. Although EVM is broadly used, it remains a puzzle even to the most seasoned of programmers.
To address this problem, Ethereum 2.0 will begin using web assembly language in a system dubbed eWASM. It will allow developers to choose from several languages like Rust, C, and C++ to write code to run on the network. This will improve the number of potential developers for the ecosystem because it will grease the wheels for users without learning a native Ethereum-only language.
Buying and Selling Ethereum
Since its launch back in 2015, Ethereum has seen its fair share of ups and downs. However, there are some essential things to keep in mind before you trend that path. Before you buy Ethereum, you need to accept that it is a highly volatile investment asset. Volatility can either result in massive gains or significant losses. Ethereum's volatility means it is a high-risk investment.
Another critical factor to keep in mind is the security of your coins. Before you buy some Ether tokens, you need to make sure you have a digital wallet to store them. Security is a very crucial factor in the world of cryptocurrencies. A secure wallet must have the following:
Private keys – Wallets where you control your private keys.
An active development community.
Backup and restore features.
Compatible with different operating systems
Easy to use
How to Buy and Sell Ether from XanPool
XanPool offers an optimized way to buy Ethereum from seven countries simply by clicking a few steps. It facilitates a near-instant and intuitive process to buy and sell cryptocurrencies, including Bitcoin, with local payment methods.
Let’s take a step-by-step procedure on how to buy Ethereum from different countries using XanPool.
Step 1: Sign up on XanPool
Click on the ‘Sign up’ tab available on the homepage of XanPool. The process is simple and easy. You need to mention your name, email address and create a password. After you submit, you have to verify your details by clicking on the link received through the mail. Alternatively, XanPool offers the option to sign up using your Facebook account.
Step 2: Buy Bitcoin on XanPool
You can buy BTC from several different countries through XanPool. From the dashboard, select the country that you want to buy your ETH from. Currently, XanPool offers its services in Singapore, the Philippines, India, Indonesia, Japan, Hong Kong, Malaysia, Thailand, and Vietnam. Select the local payment method that you wish to use for buying BTC. Click on Xchange.
Step 3: Enter your Wallet Address
Verify all your details and enter your wallet address where you want to transfer your Ether coins. Alternatively, you can also transfer to the OKEx cryptocurrency exchange platform. After you make the transaction, XanPool takes less than five minutes to process and transfer ETH into your account.
To ensure an optimized experience, XanPool offers several features and easy functionality to exchange ETH to fiat currency and vice versa.