Here let’s talk about where to buy Ethereum (ETH) in Canada, what Ethereum is, and if it’s still worth buying. We’ll also talk about how it’s different from Bitcoin.
Buying Ethereum
Here’s how to buy Ethereum (ETH) in Canada:
- Sign up to a cryptocurrency trading platform such as Coinberry
- Add funds via wire transfer or Interac e-Transfer
- Buy Ethereum
Using a crypto trading platform is the easiest and perhaps the best way to buy Ethereum. Almost anyone can get started and it doesn’t require a technical background. These platforms are often user-friendly and straightforward. Once you’re signed up and you have some funds (get started for as little as 50 CAD), you can buy or sell some Ethereum in a few clicks or taps.
Another way to buy Ethereum is by using a cold wallet and learning about private keys and seed phrases. This is far from beginner-friendly because it requires you to learn about technical terms. If you’re only interested in investing in Ethereum and accomplishing it in the easiest way possible, you can always count on a crypto trading platform.
Once you’ve started your crypto investing journey, you can always learn about what Ethereum is (including a bit about blockchains, decentralized finance, decentralized organizations, NFTs, and smart contracts), how it works, and how it’s different from Bitcoin.
What is Ethereum?
To be accurate here, Ethereum is a kind of technology where we can do the following:
- Build apps and organizations
- Hold assets
- Carry out transactions
In other words, Ethereum allows us to transact, just like how money works for us. What’s different in Ethereum though is that there’s no central authority here. It’s all decentralized and peer-to-peer where senders and recipients are directly connected.
To repeat, Ethereum is a kind of technology. What powers it is its native cryptocurrency, Ether (ETH). To use the technology and the network, we need a small amount of ETH. That’s because every action in the network requires computational power, which is paid in the form of Ether.
Why would we use Ethereum and ETH? Here are some of the reasons:
- Cheaper and faster crossborder payments (simplifies sending money overseas)
- Quickest option during financial crisis and economic catastrophes (such as what happened in Ukraine and Venezuela)
- Empowerment of creators (through NFTs)
- Empowerment of gamers (play-to-earn games with real money incentives)
Difference between Ethereum and Bitcoin
Both Ethereum and Bitcoin are digital money and use blockchain technology (a decentralized way to store information and record transactions. However, there are key differences:
- Ethereum is programmable (you can build and deploy application in its network)
- Ethereum is also a marketplace of games, social networks, financial services, and more (while Bitcoin’s utility for now is only about payment)
In other words, we can do more with Ethereum than with the Bitcoin network. As a result, Ethereum is about empowerment and this feature and capability has inspired several other blockchain networks and cryptocurrencies (where you can also build and deploy apps).
About smart contracts, DeFi, DAO, and NFTs
As you learn more about Ethereum’s capabilities, you’ll most likely hear about those terms above.
First, what is a smart contract? It’s a contract or terms of agreement turned into computer code. In other words, they are computer programs that are executed when something happens (i.e. triggered by a transaction from a user). Features of smart contracts are:
- Automatic execution (when conditions are met, this automatically triggers the execution of the contract, no need for trust or a third party to make sure terms are met)
- Predictable outcomes (computer code has clear set of rules or terms of agreement)
- Public record (smart contracts are on a public blockchain, you can easily and instantly track transfer of assets)
- Privacy protection (transactions are not tied publicly to your identity because Ethereum is a pseudonymous network)
- Visible terms (with public transparency and you can view the terms)
What is decentralized finance? It’s a way or system of carrying out transactions without relying on third parties (e.g. bank, brokerage). We can do this through Ethereum or other capable blockchain networks.
A decentralized autonomous organization or DAO is an entity with no central authority (which is why it’s called decentralized. Tokenholders take part in its management and decision making. These DAOs rely heavily on smart contracts (which are powered by the Ethereum network).
What are NFTs? NFT stands for non-fungible token. It’s a token that represents ownership of unique items. Because of NFT’s unique properties, they are interchangeable (which is critical in representing and proving ownership).
Those are just some of the most common terms related to Ethereum. Whenever you decide whether to buy Ethereum or not, those terms (and updates about them) might play a role in your decision.
Is Ethereum still worth buying?
In terms of market capitalization, Ethereum has always been in the number 2 spot (Bitcoin is always number 1). Ethereum is still wildly popular because it’s one of the “firsts” and it has actually inspired the development of several other blockchain networks and cryptocurrencies.
Also, developers, investors, and enthusiasts have been anticipating Ethereum’s major updates. One such update is its transition from proof-of-work mechanism into proof-of-stake (less energy intensive and more scalable). This can lower Ethereum’s energy requirements by about 99.95%.
In addition, Ethereum seems to be entrenched in its high position. Aside from being one of the “firsts”, its development and upgrade have also been continuous (just like most other popular blockchain networks). As a result, Ethereum can still maintain its lead and perhaps expand its capabilities in the near future.
For simplicity and feeling of safety, many investors often put most of their money into Ethereum and Bitcoin (with some funds into less popular cryptocurrencies). When Bitcoin’s price gets too high, investors sell some and favor Ethereum. On the other hand, when ETH’s price gets too high, investors switch to Bitcoin. It’s a dynamic process where Ethereum stays in the picture no matter the state of the crypto market.
