Ethereum

BTC Markets has been supporting the Ethereum chain and its updates since Ethereum commenced in 2015. If you are holding ETH, your assets will remain safe before, during and after the Merge. 

What are BTC Markets doing to support the ETH Merge? 

As the date of the ETH Merge is not fixed, BTC Markets are carefully tracking updates within the crypto community and have the team on standby to support necessary activities at the time of the Merge. 


To manage any instability in the network, BTC Markets will suspend deposits and withdrawals of ETH and ERC-20 tokens for a short time before and after the Merge, which is forecast to occur on the 15th of September 2022. 


It is possible that the ETH Merge will result in a hard fork, leading to the existence of two chains. A snapshot of ETH balances will be taken at the time of the Merge, so that if there is a split, we can effectively distribute the new token to our clients. Further updates will be provided should two viable chains emerge. 


Clients of BTC Markets will still be able to trade ETH and ERC-20 tokens during this period. 


We will keep you up to date via announcements on our social media pages and direct emails. 

What is a hard fork and what does it mean for me? 


There are two possible outcomes should a fork occur following the Merge:

 If the PoS chain is supported by most of the community, and there is little support for a PoW forked chain, only one chain will remain.


 If the Merge is contentious, and there is continued support for the current proof of work consensus mechanism, it is possible that two viable ETH chains will emerge, and a new token will be created. For this reason, BTC Markets will take a snapshot of all ETH holdings at the time of the Merge. We will then credit clients for the new chain, based on the snapshot of ETH at the time of the fork expected to occur on the 15th of September 2022. 

Your ETH private keys will remain secure on BTC Markets during this time. 


 Clients can trade ETH and ERC 20 tokens on the exchange during this period. However, if the chain forks, we cannot guarantee what fork of ETH your trades will ultimately relate to. Please remember, ETH and ERC-20 deposits and withdrawals will be disabled ahead of and during the Merge. 


 If you want to continue to deposit and withdraw your ETH, you may send your tokens to a platform maintaining these services. Please be advised that this action may expose you to a higher level of risk. 

Preparing for Ethereum's Merge as a BTC Markets Client

ETH Merge date is anticipated for 15th September 2022

The network is transitioning from a proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism

The Merge is expected to reduce Ethereum's energy consumption by ~99.95%

Customers do not need to take any action to participate in the Merge

BTC Markets will monitor activity at the time of the Merge and evaluate any possible forks

"The Ethereum network move from proof-of-work to proof-of-stake consensus mechanism has been compared to changing a plane's engine mid-flight. It is hard to work in technology and not be thrilled by this audacious undertaking, so near completion"

After years of planning and development, the Ethereum Mainnet is anticipated to migrate from its existing PoW consensus mechanism to its new PoS validation structure on 15th September 2022. The Merge, announced by 

 will improve the scalability and sustainability of the Ethereum network. In this article, we will explore some of the basic concepts of Ethereum, the significance of this Merge, and the impact it may have on you as a holder of ETH.

Ethereum is a programmable blockchain, which is a software platform that can be re-coded to build new uses for the technology. The network’s digital asset, Ether (ETH), is the second largest by market capitalisation.

Ethereum has a feature called smart contracts. A smart contract automatically executes the terms of an agreed contract, without the need for any third party. It is useful for many industries, including e-commerce, e-gaming, and financial services.

, the “Mainnet is the primary public Ethereum (ETH) production blockchain, where actual-value transactions occur on the distributed ledger. When people and exchanges discuss ETH prices, they're talking about Mainnet ETH.”

The Mainnet currently operates on a PoW consensus mechanism that enables the Ethereum network to agree on things like the order of transactions or account balances. This avoids the possibility of double spending, and ensures that the Ethereum blockchain is very secure.

PoW relates to the underlying process that miners undertake to add valid blocks to the blockchain. As more blocks are added and the blockchain gets longer, the work gets harder. This means miners need to consume larger amounts of computing power to validate new blocks, which in turn is very energy intensive and not very sustainable.

The Beacon Chain is Ethereum's new PoS blockchain, and has been described by 

 as the “spine that supports the entire Ethereum 2.0 system”. Like Mainnet, the Beacon Chain is the consensus mechanism of the network, responsible for creating new blocks, validating them, and rewarding validators with ETH for keeping the network secure.

It was deployed in December 2020 and has been running parallel to Ethereum’s Mainnet, confirming on-chain data, but through the PoS consensus mechanism. Running the chain separately, allowing for the identification of bugs or development issues prior to the Merge.

Being a PoS network, the Beacon Chain uses less energy than the PoW protocol (~99.95% less), as transactions and blocks can be approved quicker without the need to solve complex equations. Blocks on a PoS chain are said to be ‘forged’ as opposed to ‘mined’.

The Beacon Chain has been in operation for 19 months, testing its integrations through the various networks that Ethereum has deployed. Most recently they completed a Merge on the Goreli testnet on August 12th, 2022 - the largest of Ethereum’s test networks. This signalled the final hurdle before a Mainnet migration can occur, which is anticipated to take place on the 15th of September 2022.

Around 15th September 2022 (at TTD 58750000000000000000000), data held on the Mainnet (the existing PoW consensus protocol on Ethereum) will be merged with the Beacon Chain, and the new PoS consensus will become the engine for block production on Ethereum. After the Merge has successfully taken place, mining will no longer be the means of producing valid blocks on the network, and all future block validation will be processed through PoS.

No history is lost from the blockchain. As Mainnet gets merged with the Beacon Chain, so too will the entire transactional history of Ethereum.

The move to a PoS consensus mechanism will provide the Ethereum network with heightened security, reduce energy consumption (by 99.95%* due to less computational power) and provide greater scalability opportunities not currently available under PoW e.g. sharding; a feature that makes data transfers and accessibility faster and more efficient for layer 2 rollups. Caroline Bowler stated, "The Merge is said to be the first of five major improvements to the Ethereum network. Vitalik Buterin is quoted as saying this will move the network from 40% to 55% completed".

PoS also allows ETH holders to earn crypto rewards through staking. Ethereum staking rewards are earned by setting up an individual node or delegating your ETH to a pool. By participating in staking, you assist in the validation of the Ethereum blockchain, further securing the network. The Ethereum network offers ETH as a reward for doing this.

Setting up your own pool requires 32 ETH, but if that’s not feasible, you can join a staking pool. More information on staking can be found on 

.

Unfortunately, due to the Australian regulatory requirement to hold a managed investment scheme license, BTC Markets is not currently able to support pooled staking for any asset. We will continue to monitor the regulatory landscape while we investigate alternative earning opportunities for our customers.

Will the Merge Impact Ethereum Token Holders? 

As a holder of Ethereum, there is nothing you need to do with your funds or wallet ahead of the Merge. There is no upgrade to an “ETH2” token, and any funds held before the Merge will still be accessible after it is complete.

It’s important to remain vigilant as scammers may attempt to target users unaware of how the Merge will be executed. Do not engage with notifications asking you to redeem, swap, or send ETH for “ETH2”, or any offers from others to act on your behalf to prepare you for the Merge.

There is some community speculation of a new Ethereum token due to a hard (contentious) fork following the Merge. BTC Markets will monitor activity at the time of the Merge and if a hard fork occurs, evaluate the impact on the network. To manage network risk, BTC Markets will suspend ETH and all ERC_20 token deposits and withdrawals a couple of hours before the Merge. This freeze will remain in place until the Merge is complete and the network is stable. We will keep our customers informed via our social media channels (

) during the event.

A small number of exchanges have listed ETHS and ETHW tokens as pre-emptive tokens in the event a hard fork occurs, and two chains emerge as viable. However, these pre-emptive tokens are not endorsed by the Ethereum Foundation.

Please always check reputable sources, such as Ethereum.org, for official releases and guidance.

What does the Industry Expect to Happen to Ethereum Post-Merge? 

, Ethereum could become worthy of institutional investments and adoption post-Merge. The report suggests that crypto could go the way of futures and exchange-traded funds as companies look to diversify their holdings into the crypto landscape.

BTC Markets is excited about what the upcoming Merge will do for the Ethereum blockchain and the impact it will have on the broader crypto ecosystem. 

If you have any further questions, please contact our 

The Ethereum Merge is Coming

Decentralised transactions are one of the many benefits of cryptocurrency. Users can make secure, reliable transactions from user-friendly crypto wallets. The result is a payment system that is revolutionising the payment landscape.

But what about Ethereum? What are the unique crypto advantages of Ethereum? Why is this cryptocurrency network so well suited to 

Ethereum operates a decentralised network and is immune from any external or third-party control. This means there is no maintenance downtime, no risk of interference, and no danger of fraud. All of these things are a few of reasons why so many use 

Constant development of the Ethereum blockchain

One of the cons of Ethereum is that transactions are not immediate. However, neither is Solana, 

, or other cryptocurrencies. When developing new currencies, the time taken to settle a transaction is one of the most important factors. Currently, Ethereum is able to handle double the number of transitions than its market-leading rival, Bitcoin.

Ethereum is moving to a proof of stake consensus mechanism that will allow it to process a higher number of transactions faster per second and significantly reduce carbon emissions caused by miners validating the network under its current proof of work framework. Through the continued innovation and development of the Ethereum blockchain, Eth has become the second biggest cryptocurrency by market cap.

 is a little different to competing networks such as 

. It is based on a smart contract system that can support a wide range of different transactions and decentralised applications. This means Ethereum can be used to pay for a wide range of different assets via the blockchain — rather than simply being limited to Ether-for-Dollar trades.

This leads to significant Ethereum potential, which opens doors for a growing number of transactions in the future. Users can harness smart contracts to complete transactions for everything from NFTs to real estate property over the blockchain, making Ethereum a far more interesting proposition than Bitcoin.

 features include a smart contracts system that developers can harness as they create their own inter-connected networks and platforms. This means the potential of Ethereum is only going to increase in the future.

This is great news for investors looking for key Ethereum advantages as they make payments. With more integrations and support for a diverse range of different coins and value sources, Ethereum represents an exciting environment for payments.

Remaining aware of the pros and cons of Ethereum

While there are many benefits of Ethereum as a payment and transaction platform, users still need to be aware that there are pros and cons. Ethereum is already widely used for transactions across the world, but this does not mean the network does not have its own negative aspects. Take a look at some of the points you need to remain aware of.

Ethereum transactions are not instantaneous

Ethereum still uses a proof of work consensus mechanism to validate transactions. During periods of high demand, this period can be as long as a few hours or even a few days. The transaction network is still reliable but cannot provide the instant transactions that bank customers are accustomed to.


This proof of work model may be replaced in the future by 

 operations. This will make transactions far faster, improving the experience for all users. It will also make the network more sustainable, reducing the amount of energy required to mine transactions.

You will need to pay to make transactions on the Ethereum network. To process a transaction, you are required to pay a ‘gas fee’ that is used to reward miners for validating transactions and supporting the Ethereum blockchain.


Unlike Bitcoin, where a small percentage of the transaction value is used to provide the reward, Ethereum requires a fixed fee for transactions. As a result, users who want to pay with Ethereum will need to anticipate the cost of gas fees in their transaction.

The price of Ethereum is volatile, just like the prices of all cryptocurrencies. Whether you are working with Bitcoin, 

 or XRP, there is the potential for the crypto value to fluctuate quickly, and this can be problematic.

 you use to complete your transaction could change quickly. In other words, it's possible that a $100 value of Ether could be worth substantially more or less than it was a day or month prior.

Invest in Ethereum and make payments using BTC Markets

, you can buy and sell crypto on the open market. You can use your own crypto wallet to make payments and transactions via the platform and harness the power of Ether as a genuine alternative currency. Get started today, and set up your 

 via our intuitively designed website. To learn more about how BTC Markets works, reach out to our team directly.

Grow your understanding of Ethereum and Ether transactions by browsing some of the most 

How many transactions are processed on the Ethereum network each day?

Ethereum continues to grow rapidly as a payment platform, handling as many as 1.1 million transactions per day in July of 2021. This is an interesting development for Ethereum, as this figure is actually far in excess of the daily transactions handled by the platform's major rival, Bitcoin. Transactions on the Bitcoin network reached only 250,000 for the same month.

While Bitcoin is still far more valuable than Ether crypto tokens, evidence suggests that users prefer Ethereum for making transactions. This brings Ethereum closer to the intended objective of the cryptocurrency project from its beginning — to become a viable alternative form of currency that can support transactions.

[Reference: https://www.statista.com/statistics/730838/number-of-daily-cryptocurrency-transactions-by-type/]

Where can I view my Ethereum transactions?

You can view your transactions in your crypto wallet. 

 provides wallet storage features, where you can store your Ether tokens and other forms of cryptocurrency in a safe and secure environment. You can also use this feature to make transactions across the Ethereum network and manage your recently processed transactions.

Our wallet is designed to be easy and intuitive to use. You will be able to open and view a list of your Ethereum transactions, keeping track of incomings and outgoings across the network.

You can track the Ethereum transactions you have made in your crypto wallet provided by BTC Markets. As mentioned above, you can use your wallet to find a list of transactions you have already made, helping you to keep track of your activity and your balance in Ether or in any other form of crypto held in the multi-coin wallet.

You cannot track Ethereum transactions that have not been finalised, however. As the Ethereum network relies upon a proof of work model to write transactions into the blockchain, there is a latency period while transactions are being processed. The procedure is completely decentralised, and there is no risk of tampering or third-party interference — a key advantage of the blockchain and an important cryptocurrency benefit. Once the transaction has been completed, confirmed and written into the blockchain, you will be able to see this in your crypto wallet.

Many users across the world are already working with Ethereum to make transactions. In fact, far more people utilise Ethereum to send and receive funds than other high-profile cryptocurrencies, such as Bitcoin. This provides peace of mind to anyone who is considering whether to use Ethereum as a payment network.

Further peace of mind can be drawn from the fact that many banks and financial institutions have also put their faith in Ethereum. Institutions such as J.P. Morgan are already using a form of Ethereum to operate a payment network based on the crypto's smart contracts. This is an example of how Ethereum transactions are rapidly becoming part of the mainstream payment landscape.

Advantages Of Paying With Ethereum

While the origin story of Bitcoin is a little difficult to confirm, 

 is more straightforward. The revolutionary network was created by a young man from Russia with an aptitude for economics and cryptography. But who is this young man exactly? Read on to learn more about a remarkable human being and a remarkable story.

Who is Vitalik Buterin? While you may already be vaguely aware of the Vitalik Buterin Ethereum connection, you may not know too much about the young man who started it all.

Buterin's story begins back in January 1994, when he was born to Dmitry Buterin and Natalia Chistyakova in the city of Kolomna, Russia. Dmitry was a computer scientist and provided the young Vitalik with much of his early education into the worlds of computer networking and decentralisation.

The young Vitalik showed his academic prowess at an early age and quickly rose to the top of his class. Vitalik Buterin was aged only six when his parents relocated from Russia to Canada, and it was here that Vitalik found himself in a class for gifted children. With a keen understanding across most of his academic subjects, Vitalik was particularly suited to several key fields — mathematics, computer programming, and economics. It was these three disciplines that would form the basis for the development of Ethereum many years later.

The young man's education quickly gathered pace, and Buterin earned a place at the private Abelard School — a renowned high school in Toronto. It was while studying at Abelard that Vitalik would talk to his father about a new phenomenon emerging in the world of digital sciences — Bitcoin. Vitalik was still only 17 years old at this point, and he did not know that, in only two years, this concept would change his life forever.

Following high school, Vitalik attended the University of Waterloo. Again Buterin proved to be a gifted student, winning numerous awards at university and taking advanced modules. He also became a research assistant for the eminent cryptographer Ian Goldberg. Viltalik Buterin would not complete his university education and eventually leave Waterloo before graduation. There was a good reason for this, of course — things were changing for Vitalik, and changing fast.

As early as 2011, Vitalik Buterin was showing that he was not simply interested in 

 and cryptocurrency, but he was something of an expert in the field. He began earning Bitcoin as a journalist, writing for the Bitcoin Weekly magazine in exchange for small amounts of the fledgling currency — amounts that would be worth tens of thousands of dollars today.

After a couple of years working as a cryptocurrency journalist, Buterin began to develop his own ideas as to what a cryptographic network could, and should, achieve for society. These thoughts eventually coalesced into the concept of Ethereum and were outlined in Vitalik Buterin's own Ethereum whitepaper in 2013.

The ideas at the heart of the white paper were relatively simple, but they were instrumental in changing the status quo of crypto. Buterin declared that one of the failings of Bitcoin was its static nature. He argued that the currency and the network needed a scripting language through which new crypto-supported applications could be developed.

Buterin soon realised that adding this capability to Bitcoin was not feasible, and therefore he decided to create his own network. This would eventually become the 

By 2014, the white paper had been distributed throughout the industry and was generating significant interest. Cryptocurrency was still a relatively underground phenomenon back in those days, and it was difficult for Buterin and his new network to gain mainstream acceptance. Despite this, his ideas were certainly turning heads among those in the know, and Ethereum was rapidly becoming the next big thing.

This is particularly remarkable because of Vitalik Buterin's age. Buterin was still only 19 in the first weeks of 2014, and his work experience was largely based around journalism for Bitcoin Weekly and Bitcoin Magazine. With little to no experience in public speaking, Buterin was invited to give a talk at the North American Bitcoin Conference in Miami, where he demonstrated his knowledge, passion and expertise with an excellent speech that outlined the aims of the project.

Fast forward nine years, and Vitalik Buterin's project is very much a leading player and pioneer for 

 in the crypto market. While Bitcoin continues to lead the way in terms of value and mainstream understanding and recognition, Ethereum is not far behind. In fact, Ethereum can be considered superior to Bitcoin in some ways, not least due to the smart contract-based structure that makes the network 

 than its rival. Boasting the second highest market cap among all cryptocurrencies has made Ethereum an attractive crypto to 

 are developing rapidly, Ethereum remains the closest competitor to the elder statesman Bitcoin.

Buterin today — where does Vitalik Buterin live now?

While Vitalik Buterin originally came from Kolomna, a city close to the Russian capital of Moscow, he has lived in a number of other locations across the world. He spent many of his formative years in Canada, and eventually attended the University of Waterloo in Ontario before eventually dropping out.

It is understood he has lived in Europe for a period, including Zug — the capital of the Swiss canton of the same name. He has also lived in Asia, having spent time living in the city-state of Singapore.

Despite the meteoric and ongoing rise of Ethereum, Vitalik Buterin has withdrawn from the spotlight in recent years. Sources close to him say that he is uncomfortable with his position as a leader in the field. Instead of being a figurehead, Buterin would prefer to allow the Ethereum community to grow more resilient on its own, demonstrating the power and potential of the network.

Vitalik Buterin's Ethereum holdings — how much Ethereum does Vitalik Buterin have?

 about Ethereum and Vitalik Buterin relates to his Ethereum holdings. So, just how much Ether does Vitalik Buterin have?

 wallet in 2018, showing that he had over 355,000 ETH coins. As of January 2022, this would be worth over A$1.5 billion due to 

. Buterin has since transferred much of this digital wealth to other wallets and has donated significant amounts to charitable funds in locations such as India.

[Reference: https://coinformant.com.au/how-much-ether-does-vitalik-have/]

With BTC Markets, you can buy and sell Ethereum, as well as other cryptocurrencies, on the open market. In addition, you can use your own crypto wallet to make payments and transactions via the platform to harness the power of Ether as a genuine alternative currency.

 via our intuitively designed website. To learn more about how BTC Markets works, reach out to our team directly

Who Is Vitalik Buterin?

Ethereum was one of the first cryptocurrencies to appear, emerging six years after Bitcoin in July 2015. The Ethereum network expands the decentralised blockchain concept from Bitcoin, deploying smart contracts that help achieve Ethereum transaction verification and broaden the scope of the network.

This makes Ethereum different from many of its competitor networks and currencies. The Ethereum network was intended to become a general-purpose blockchain foundation for crypto-enabled app development. The smart contracts built into the Ethereum network allow it to be used for universal trading. These assets are not limited to the ETH token. They can include real estate, stocks and shares, fiat currencies or anything else of value. This is one of the key differences between Ethereum and other cryptocurrencies.

However, Ethereum still supports other forms of digital currency. As a result, it can still be used for speculative investment, storing currency, and, of course, completing digital transactions. So, what is an Ethereum transaction, how do these Ethereum transactions work, and how are they different from crypto transactions on other types of networks?

The Ethereum transaction process explained

How do you do an Ethereum transaction? Of course, you can't start making Ethereum transactions until you have Ethereum to trade or sell. You can

 at any time, usually through crypto exchanges. On a cryptocurrency exchange, you can use your existing fiat currency funds — for example, Australian Dollars — and you can exchange this for an 

equivalent amount of ETH at the current rate

Though there are several options available to you when you choose a cryptocurrency exchange, 

 is one of the market leaders, thanks to a reliable payment system and easy-to-use interface. BTC Markets aims to create a digital platform for all customers to enjoy — including those based in Australia and elsewhere in the world. Many of our competitor exchanges bar customers from some regions and jurisdictions. Where possible, BTC Markets tries to be inclusive.

Making an Ethereum transaction from your wallet

You can send ETH that you own directly from your crypto wallet, just as you would with a standard digital wallet or an online banking platform. To do this, you will generally need the address of the recipient's wallet, as this is where you will be sending the funds.

Within your wallet, you will have an option named “Send Funds” or similar (Different crypto wallets include different transaction tools). Open the sending menu, add the recipient wallet address, and select how much ETH you want to send. This is a one-way transaction, useful if you purchase a product or need to send money to someone for another reason. It is also possible to view your past Ethereum transactions in the wallet.

You can also use the smart contract element of the 

 to conduct a two-way transaction. This smart contract will automatically make and confirm the Ethereum transaction when certain criteria are met, such as when a specified amount of time has elapsed or when funds have been deposited into escrow. Ethereum verification is then achieved, and the transaction is written into the blockchain.

Making an Ethereum transaction with a retail store

Not all retail stores accept cryptocurrency, and an even smaller number accept Ethereum.

However, as the general understanding of cryptocurrency increases, this transaction type is becoming more frequent as Ethereum systems are utilised in more and more retail stores.

To make an Ethereum transaction with a retail store, you'll first need to check that the store can accept Ethereum. If so, you will see a Pay with Ethereum or Pay with Crypto button displayed on their site, or something similar. Select this button and either make the transaction using the Ethereum wallet address or follow the instructions on the retail store's site and complete using your wallet.

Making an Ethereum transaction using a peer-to-peer network

Peer-to-peer (P2P) trading is similar to trading on a standard cryptocurrency exchange. By paying a set fee, you gain the convenience of selling into an active market without needing to seek out a buyer. However, P2P exchanges differ in a fundamental way — rather than conducting an Ethereum transaction with the exchange itself, you are trading ETH with another user.

This means you can set your own price for 

. The platform will use automated tools to find a user who is willing to meet the terms of your transaction.

P2P platforms also offers security when you make trades. Choose a P2P trading platform that uses an escrow system. The platform will hold both the buyer's and the seller's capital, releasing this simultaneously once the conditions of the trade are met. In other words, there is no danger of fraud or other problems with the transaction.

Buy and sell ETH, BTC or other cryptocurrencies on Australia's largest crypto exchange

To start making transactions with Ethereum, you'll first need to buy ETH and build your reserves. There are different ways to achieve this, but cryptocurrency exchanges remain some of the most possible, as they are so convenient and broadly available.

 are proud to be Australia's biggest crypto exchange. You know where to go when you want to grow your holdings in ETH or another form of crypto. Use BTC Markets to make, manage and check BTC transactions, or if you have 

Ethereum is not free, unfortunately. Other networks such as Bitcoin offer free transactions, and BTC holders can trade their assets without paying any extra for the privilege. By paying an additional transaction fee, Bitcoin users can essentially have their trade prioritised, accelerating the pace of the transaction — but this is still a choice for the consumer, and they can opt for a free service if they prefer. Ethereum, on the other hand, does require a small transaction fee of ETH. This is used to support the transaction as it is written into the blockchain.

Unfortunately, Ethereum transactions are not instantaneous. After you have finalised the transaction and sent the funds, there will be a latency period while the transaction is verified on the network. This is due to the decentralised nature of Ethereum — transactions must be confirmed cryptographically in a process known as mining.

The mining process involves complex mathematical equations that must be solved using the computing power of devices connected to the Ethereum system. It takes a huge amount of computing power to complete these tasks, so there will be a delay while the transaction is verified. Your funds are protected throughout this process, and there is no danger of theft or loss.

Ethereum uses its own blockchain for transactions. In this sense, it is essentially the same as Bitcoin, although the two blockchains are independent. However, they differ in the scope of their network capability. Ethereum works with smart contracts that trade a wide range of different assets on the blockchain, while Bitcoin is limited to BTC transactions.

Currently, Ethereum is still using the proof of work model to mine and verify transactions, although this may change to a more efficient, more eco-sustainable 

How Do Ethereum Transactions Work?

 — or any cryptocurrency for that matter — it’s critical to get educated about the best ways to store your investment and its security. Cryptocurrency’s relatively anonymous nature has been something of a double-edged sword. Although it means that transactions and exchanges can occur with privacy, it also means that if you have a cybersecurity incident with your crypto, then you tend to have relatively little recourse. Though exchanges and marketplaces do have their own security measures in place, the onus is still on you as an investor to make your own decisions about the best way to store Ethereum.

Storage for cryptocurrency is referred to as a “wallet”, and there are three main varieties, each with its own distinct pros and cons. We’ve compiled some of the key information you need to know about them. If you’re new to crypto investing and wondering how to store Ethereum, this is an excellent introduction. You’ll discover the advantages of a hot wallet, how to store Ethereum offline and more. But even if you’re an experienced investor, it might be time to reconsider your storage strategy — this guide can help you stay up to date with best practices too.

The three main types of wallets available are hot wallets, cold wallets and paper wallets. Let’s take a closer look at each.

Hot wallets are the most convenient method for day to day Ethereum storage and usage. They’re hosted online and provide you with instant access to your cryptocurrency as long as you’re connected to the internet. This might be in the form of a desktop-based program (also known as a desktop wallet) or an app. They’ll also include an exchange interface so that you can easily buy, swap or trade at the touch of a button. Of the different types of wallets available, they’re the most akin to online banking.

With this said, this convenience comes at the price of security. Because your investments are stored online, they can be vulnerable to hacks — just like any other online service. Accordingly, many people have both a hot and cold wallet. Utilising a combination of both enables you to keep the bulk of your investment safely stored, while also retaining a nominal amount in a hot wallet for day-to-day usage.

A cold wallet allows you to store Ethereum offline, so it’s generally used for longer-term storage. It’s a hardware device that’s usually similar in size and shape to a USB drive — so you can plug it into your computer, transfer your Ethereum onto it and then stash it safely away.

A cold wallet is significantly more secure than a hot wallet. A prospective thief would need to have physical access to the device to even attempt hacking it (which in turn is an extremely difficult task). An offline Ethereum wallet can’t be accessed via the internet, so it’s free from the prying eyes of cybercriminals.

Although the benefits are undeniably obvious, an Ethereum cold wallet isn’t always the best option for every investor. If you’re a regular or aggressive trader, being able to take advantage of pricing fluctuations as and when they occur is likely important to you. Using an offline wallet adds an extra layer of complexity to this process. In this case, you may want to keep a discretionary amount of funds in a hot wallet, so that you have easy access to day-to-day transactions and trading.

Additionally, if you lose the cold wallet, you’ve completely lost access to the funds forever. With this in mind, many investors use an actual safe in order to keep their investments safe.

Arguably the safest way to store Ethereum, a paper wallet is a type of cold wallet. Your Ethereum is stored offline, and your access to the storage device is printed on a piece of paper. This is currently the most difficult type of wallet to access, making it ideal for investors who are looking to keep their Ethereum in cold storage for an extended period.

However, if you lose your access code then you’ll also lose all your cryptocurrency. As you might expect, people who use paper wallets tend to make multiple copies of their code. However, it’s extremely important that you don’t share this information with anyone and keep your codes in secure locations.

Learn how to store your Ethereum and more with BTC Markets

 Ethereum or any other cryptocurrency? Here at 

 to prospective crypto investors. Choose to invest in 

I’ve got my wallet set up — but how do I store my Ethereum even more safely?

Once you’ve chosen your preferred storage method, there are still some other steps you can take to protect your investments. Undertaking a security scan of your computer is crucial in order to spot or deal with any issues such as malware, spyware or other related issues. Changing email and account passwords regularly is also crucial. In fact, you can also check for data breaches to your email via websites such as “Have I Been Pwned”, and make any relevant security updates as necessary.

You should also ensure that you keep track of any software updates for both Windows and Mac to ensure that you are not placing yourself at risk of malware attacks, bugs, or viruses that rely on exploiting older versions of software.

Enabling Two Factor Authentication will also add an additional layer of security when you’re accessing your crypto account. In addition to using your usual password, you can set up a requirement that a second code also needs to be sent to your phone and input in order to provide access. If your phone or computer has biometric authentication set up, this can also be done via fingerprint.

I know where to store Ethereum, but what about my keys?

When you utilise any form of cryptocurrency — Ethereum included — you generate two types of keys, public and private. They’re both complex strings of letters and numbers that are unique to your account. A public key is provided to others so that they can transfer funds to your account, while a private key is used only by you for spending and transferring from your account.

It’s worth backing both types on an external hard drive or USB that only you have access to. This will save you from needing to either memorise your keys, continually write them down or otherwise risk losing them or exposing them to others.

It’s difficult to make blanket statements on which cryptocurrency is more “secure” than another. Factors like the size of a Blockchain attached to a given cryptocurrency can certainly make it more difficult for outsiders to hack or damage on a macro scale. At a micro-scale, though? Exchanges will provide security, but it’s still essential for individuals to ensure that they’re taking the necessary safety precautions — using protective software, regularly running security scans and ensuring information like passwords aren’t being shared. Knowing how to store Ethereum safely yourself is arguably the most important factor in ensuring your investment is protected.

BTC Markets Blog

Preparing for Ethereum's Merge as a BTC Markets Client

The Ethereum Merge is Coming

Advantages Of Paying With Ethereum

Who Is Vitalik Buterin?

How Do Ethereum Transactions Work?

How To Store Your Ethereum

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.css-10i63lj:hover{-webkit-text-decoration:underline;text-decoration:underline;}.css-187z2gv:hover{-webkit-text-decoration:underline;text-decoration:underline;}Preparing for Ethereum's Merge as a BTC Markets Client

The Ethereum Merge is Coming

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How To Store Your Ethereum

Get BTC Markets content delivered

Preparing for Ethereum's Merge as a BTC Markets Client