About Ethereum Cryptocurrency Token
On the occasion of ether coin’s introduction to the eToro platform, we would like to present you with a handy guide to this currency. Here’s what you need to know to incorporate Ethereum into your trading strategy.
With the advent of bitcoin in 2009, a new form of currency called cryptocurrency was created – a means of payment that exists only in digital form. Therefore, it is not surprising that other currencies soon joined the pioneer – one of the newest – Ether, currently the second cryptocurrency in terms of capitalization. Like Bitcoin, Ether (ETH) is decentralized so it is less affected by changes in the foreign exchange market. You can now trade Ether CFDs on the eToro platform.
Eth coinmarketcap rates and Ethereum capitalization
Cryptocurrency rates can fluctuate greatly, so these tools are not suitable for all investors. Investing in cryptocurrencies is not subject to the EU regulatory framework. Your capital is under threat.
What is Ethereum?
Introduced in 2015, Ether was created as a currency based on Ethereum technology. Like Bitcoin, Ethereum is a blockchain-based system. However, unlike Bitcoin, which was only conceived as an alternative currency, Ethereum could be used to create a variety of decentralized applications. From an investment point of view, we focus on ether as a currency, as it is an alternative to traditional means of payment.
Ethereum tokens were introduced in August 2015. Initially, Ethereum tokens cost around $ 2.80, but has grown steadily since its inception. The all-time high for the Ethereum exchange rate is $ 21.50 – the currency is currently valued at around $ 12 and its market cap is slightly over $ 1 billion.
The goal of the creators of Ether was not to replace currencies: while Bitcoin was supposed to be a form of alternative means of payment, Ether as a currency was originally intended to be used as a wallet for Ethereum users with their applications .
How much does an Ether token cost and what affects the price
In terms of internal factors, ether is affected by changes in the Ethereum platform. The Ethereum platform is constantly evolving and from time to time reaches turning points known as “hard forks” – when changes occur in the way the platform works, resulting in a lack of backward compatibility. The goal of each of the hard forks is to increase stability and improve the overall functionality of the platform. The third hard fork, known as the DAO, unveiled in June 2016, resulted in the inadvertent opening of a hack gate that hijacked $ 50 million worth of ether. This led to the collapse of the ether rate, which lost 30% of its value. Since then, however, the platform has changed and the hack has been removed, and rates have started to rise again.