ETH 101

ETH 101

Robert McDougall 

January 9, 2024

Cryptocurrency

Ethereum (ETH) is a blockchain platform that allows developers to create decentralised applications and smart contracts. With a market capitalisation of over $200 billion USD as of April 2023, Ethereum is one of the most popular blockchain platforms in the world.

Similar to Bitcoin, Ethereum is a distributed network that uses cryptography to secure transactions and maintain the integrity of the blockchain. However, Ethereum differs from Bitcoin in that it has a different security model, larger block sizes, and does not use proof of work. This makes it a more versatile platform for building decentralised applications.

One of the most notable features of Ethereum is the ability to create ERC-20 tokens. These digital assets can represent anything from a company's shares to a digital collectible, and their value is determined by supply, demand, and their respective tokenomics. Once listed, ERC-20 tokens can be bought and sold on cryptocurrency exchanges.

The price of Ethereum is subject to market fluctuations and can be influenced by various factors such as market sentiment, technological advancements, and regulatory changes. In late 2021, ETH reached an all-time high of over $4,500 USD, but by mid-2022, the price had dropped to around $1,000 USD. Since then, the price has been on an upward trend, and as of May 2023, ETH is trading at around $1,800 USD.

Ethereum has a thriving community with 224 million unique wallets currently holding ETH. This high level of adoption shows that many people believe in Ethereum's potential. The platform also has a large and active developer community that is continually working on new applications and improving the technology.

If you are interested in learning more about Ethereum, there are many resources available online at Binance Academy. Additionally, you can trade or buy ETH on Binance, which offers a user-friendly interface and low fees.

Binance is a global cryptocurrency exchange and has a significant presence in New Zealand, with Binance New Zealand being the local subsidiary. 

The exchange is among the top crypto exchanges worldwide, with a strong focus on providing secure and transparent trading services to users.

Disclaimer

This content is for general information purposes only, not investment advice. Cryptocurrencies, including Ethereum, are volatile and fluctuate on a day-to-day basis, thus, trading requires proper diligence and sound judgement in order to evaluate the risks associated.

 Nothing in this article constitutes investment or legal recommendation, nor should any data or content mentioned in the newsletter be relied upon for any investment activities. You should consider seeking independent legal, financial, taxation or other advice to check how the article content information relates to your unique circumstances.

Binance New Zealand is not affiliated, associated, endorsed by, or in any way officially connected with any individual or organisations mentioned in the article. Binance New Zealand is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by use of this article and expressly disclaims any and all liability for any loss or damage you may suffer.


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