New to Ethereum? We’ve gathered all you need to know to get started. Learn about the Ethereum network and how to use Abra to invest in ether - the digital currency that powers Ethereum - right here!
What is Ethereum?
As stated on the Ethereum website, “Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.”
Ethereum is a blockchain system where thousands of computers around the globe are networked together to create a distributed, decentralized computer. This computer runs an operating system called the Ethereum Virtual Machine (EVM). The EVM understands and executes the software written in Solidity, or other Ethereum-specific programming languages. The applications executed by the EVM are called smart contracts. A smart contract is just a program that controls the transfer of ETH between accounts if certain conditions are met. For example, a smart contract for landlords could live on Ethereum where the locks in the rented apartment only continue to open if the renter pays their monthly bill.
It is not free to access and run computations on the Ethereum Blockchain. Like in Bitcoin, a native cryptocurrency is necessary for the blockchain to function. Bitcoin (BTC) is used to transfer value within a digitally distributed ledger known as the Bitcoin Blockchain. Ether (ETH) is the native token that enables users to pay to execute smart contracts on the Ethereum world computer.
Why is Ethereum important?
A growing number of entrepreneurs and developers view Ethereum as a valuable tool and have started to use it to build decentralized businesses that couldn’t have existed before. Ethereum smart contracts can be used to eliminate third parties from many industries, which would lower costs and creates more secure products. Ethereum use cases are many, including decentralized identity registration, supply chain management, and democratized crowdfunding.
Due to the demand for Ether, the value has increased rapidly over the past year. The Ethereum network now processes more transactions per day than Bitcoin. The number of applications and businesses have also been increasing at an exponential rate. Ethereum is only 3 years old, but it is showing tremendous potential to create trustless, decentralized applications that will be used by millions of people across the world.
How to invest in Ethereum through Abra
Abra provides the ability to gain exposure to Ethereum’s price action, without having to deal with the complexities of setting up a separate ETH wallet and signing up with another exchange. Here’s how to invest in ether through Abra:
- Make sure you set Bitcoin and Ethereum as your wallet’s currencies.
- Tap ‘Add Money’ in your USD wallet or ‘Buy Bitcoin’ in your BTC wallet
- Tap ‘Exchange’ in your ETH wallet
- Select your funding source and confirm the amount you want exchanged
Voila! You now have invested in ether!
Important Note: Abra uses bitcoin as the underlying asset for extending your investment into other cryptocurrencies. Cashing in and out is done via bitcoin or fiat, where available. You will not be able to send or receive ETH from an external ETH wallet. Learn more about our revolutionary technology.
The content above is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice.