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/]

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Who Is Vitalik Buterin?

Cryptocurrencies are sources of fascination and trepidation in almost equal measure. Though some are left concerned by the volatility of these digital currency structures, increasing numbers of people are attracted by the 

. While there are numerous cryptocurrencies out there, two stand head and shoulders above the rest in terms of investment popularity and public profile. These are Bitcoin (BTC) and Ethereum (ETH) — two currencies available on the 

Both the Bitcoin and Ethereum networks are supported by a process known as mining. This mining process harnesses the processing power of the computers owned by network users, recording transactions in the cryptocurrency's blockchain. But how does this crypto mining procedure work in practice, and how is Ethereum mined specifically?

Ethereum first appeared some six years after Bitcoin in July 2015. While Ethereum does use similar blockchain technology to 

, it differs slightly. It uses smart contracts to help developers create applications based on the Ethereum network, effectively pushing the boundaries of what is possible from crypto.

The Ethereum network can be utilised for broader purposes than Bitcoin. Developers can create applications that use the ETH currency (Ether), or create currencies of their own within the Ethereum framework. Despite this, the Ethereum network — like the networks of its competitors such as 

 — is still based upon an underlying blockchain, which means mining still has a role to play.

The Ethereum cryptocurrency mining process explained

What does Ethereum mining mean? Well, Ethereum is not regulated by a central bank or any other authority. Instead, the 

In order to maintain Ethereum’s decentralised nature, blockchain’s technology is used. This means network users are required to "mine" transactions — i.e. to write these transactions into the blockchain. Mining is also how Ether is generated within the network.

 uses a proof of work model to write transactions into the blockchain and assign payments to network nodes. Let's take a look at what this means in detail as we examine how Ethereum mining works.

Proof of work crypto mining works like this:

The transaction is mined by online nodes. These are the user computers that will automatically complete the mining task.

These user computer nodes then solve a complex mathematical puzzle to add the transaction data to the blockchain. The node that completes the puzzle first adds the transaction to the blockchain and is rewarded.

Once the transaction is added to the blockchain, the node keeps a copy of this updated blockchain.

All other nodes on the network receive an updated copy of this blockchain, ensuring a consensus across the board.

The proof that the specific node completed this mining task is stored too, and a portion of the transaction fee is delivered to the node owner's crypto wallet, rewarding them for completing the transaction.

This is the traditional way for crypto networks to mine transactions, and it has been used on the Bitcoin and 

 blockchains since the beginning. However, there are some criticisms of this model.

 and Bitcoin are slow compared to other networks when processing transactions. This may be due to the relative age of the networks, but may also be caused by the difficulties associated with operating proof of work models at scale.

In addition, both networks are criticised due to the carbon footprint of mining transactions. The proof of work model requires huge amounts of energy, and this energy demand is placing strain on power grids around the world. As much of the power we use is non-renewable, this makes it difficult to run crypto networks in a sustainable fashion.

We can expect the proof of work model to change in the future in the face of these challenges. Also, the 

 network may face regulatory changes in the future as financial bodies work to bring cryptocurrency under control, which may also lead to moves away from proof of work.

Ethereum is expected to switch from the proof of work model to a proof of stake model, in which mining priority is given to node owners who hold more of the ETH currency. Let's take a look at how 

A transaction takes place in the same way as with proof of work.

The user computer nodes within the network stake some of their user's ETH currency for a chance to verify — or mine — the transaction.

The node that has staked the most ETH is given the opportunity to mine the transaction.

This user computer node solves the complex mathematical puzzle and adds the transaction data to the blockchain. This action is rewarded.

Once the transaction is added to the blockchain, the node keeps a copy of this updated blockchain like the proof of work model.

As with proof of work, all nodes on the network receive the updated blockchain copy to ensure consensus.

The hope is that proof of stake will answer some of the problems currently plaguing cryptocurrency mining. It is undoubtedly a greener option, as it avoids the problem of having multiple nodes working on the same mathematical puzzle simultaneously. In addition, it may increase the processing speed of the network.

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What does Ethereum mining mean exactly? Mining for Ethereum is the process by which transactions are written into the Ethereum blockchain. The process is carried out automatically by computers owned by the network's users and is completely decentralised.

Currently, the network computers that carry out the mining process work concurrently with other computers on the network to complete the task. These computers — known as nodes — must solve a complex mathematical puzzle. The first node to complete the puzzle is permitted to write the transaction into the blockchain and is rewarded accordingly. This is how mining works on the Ethereum network

Does Ethereum use proof of work or proof of stake mining?

Ethereum uses proof of work mining to write transactions into the blockchain. However, this may change to proof of stake mining in the near future. Proof of stake is considered to be the more ecologically-sustainable option for crypto mining

How much is an Ethereum user rewarded for mining?

Ethereum operates a fixed reward system of three ETH per block mined, sometimes known as Ethereum harvesting. This will not change in the future. Ethereum miners have their income guaranteed for the future, although the 

 is likely to change. This is different to mining rewards on networks such as Bitcoin. From February 2021, Bitcoin users receive 6.25 Bitcoins per mined block in the blockchain, half of the previous value of 12.5 BTC. This reward will be halved again after another 210,000 blocks are mined, reducing the income node owners receive from mining.

How Does Ethereum Mining Work?

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, 

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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.

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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.

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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.

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 Ethereum or any other cryptocurrency? Here at 

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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.

How To Store Your Ethereum

Bitcoin

Cryptocurrencies have always been subject to waves of volatility. But they are steadily rising in popularity and gaining traction among investors around the world. Of the hundreds of cryptocurrencies available on the market today, Bitcoin (BTC) and Ethereum (ETH) are the two most popular and well-known. They have long held the largest market caps and tend to be the yardsticks by which all other cryptocurrencies are measured.

 up by more than 300% over the past 12 months and Ethereum’s value soaring by roughly 700% in the same period, more and more people are entering the BTC vs ETH debate. Each of these digital currencies has its own unique advantages and disadvantages, and it is always wise to conduct extensive research on any investment.

 when deciding which of these options is the right one for you to buy.

Launched in January 2009 and based on a White Paper written by a mysterious entity who calls themselves Satoshi Nakamoto, 

 is essentially the predecessor of every cryptocurrency that has been developed since then. While not the first attempt at an online currency, the underpinning blockchain technology has led to Bitcoin’s continued success. It’s even led to it gaining a measure of acceptance among regulators and government bodies. In fact, many cryptocurrencies — including Bitcoin — are now legally recognised as a medium of payment and a store of value in various countries around the world.

 took the concept of blockchain technology one step further by using it to create a decentralised software platform — rather than using it purely for creating a cryptographically secured public ledger. They did this by utilising another revolutionary piece of technology known as “smart contracts”.

With these tiny pieces of self-executing code, developers can build entire applications and even other cryptocurrencies on the Ethereum network. This is often the number one example given to the question of “Why is Ethereum better than Bitcoin?”

However, Ethereum is more likely than Bitcoin to be more heavily impacted by regulatory changes in the future. With its strong ties to the decentralised finance (DeFi) industry, some regulators are concerned that these decentralised and distributable applications offer bank-like services but don’t offer the same consumer protections.

Ethereum (ETH) vs Bitcoin (BTC): The similarities

, we need to discuss their shared similarities. Both of these are digital cryptocurrencies built using ultra-secure blockchain technology. Both use the proof of work model to create new coins and validate transactions. They are also both available from the majority of 

Both of these tokens are also decentralised, which means that they are not issued or regulated by a central bank or other authority. Another feature that adds value to each of the tokens is the fact that only a limited quantity of each can ever be generated. However, the proof of work model used to “mine” these coins has an annual carbon footprint that has led to increasing criticism.

Both the Bitcoin and Ethereum networks are relatively slow when it comes to processing transactions, although Ethereum is slightly faster. So while they both have a first-mover advantage, there is a strong chance that they will be superseded by newer, faster and more sustainable cryptocurrencies.

Both face the potential problem of increased regulation from authorities around the world who are trying to find ways to control the sprawling industry. It isn’t clear right now what shape any new rules might take, but their decentralised nature makes them a subject of concern for regulators and governmental bodies everywhere.

The main difference between Bitcoin and Ethereum

So what is the most important difference between Bitcoin and Ethereum? The answer lies in their main purpose. Bitcoin is a purely digital currency that has become recognised as a store of value — effectively digital gold. In theory, it is meant to maintain its worth over time. As the digital currency that is the most widely accepted for payment, it makes sense that it consistently has the 

Ethereum, on the other hand, was designed to be a general-purpose blockchain that allows for limitless functions thanks to its smart contract. This means that ether, the token that the Ethereum network uses, is more than just a store of value, although it can be used as a digital currency. With smart contracts, users can exchange just about anything of value, including shares, real estate, Fiat currencies and more.

Both Bitcoin and Ethereum reward miners every time they add a block to the blockchain. With Bitcoin, this amount used to be 12.5 BTC per block and halved to 6.25 Bitcoins per block in February 2021. This amount will halve again once the next 210,000 blocks are mined. With Ethereum, the reward is fixed at three ether per block and will never change. While both networks currently use proof of work to add a block to the blockchain, Ethereum plans to switch to using something known as proof of stake. With this model, how fast a person can mine or validate transactions in a block is based on how many coins they own. So the more ether they hold, the more mining power they have.

Another place where these two cryptocurrencies differ lies in their transaction fees. With Bitcoin, they are entirely optional, and you can pay a miner extra to pay special attention to your transaction and be added to the blockchain a little sooner. However, the transaction will be added even if you don’t pay a fee. With Ethereum, you have to pay some ether that is converted into a unit known as “gas” in order to drive the computation that will add your transaction to the blockchain.

Bitcoin or Ethereum: Choosing the best buy

Though internet debates rage about which is the “superior” currency or which might supplant the other, the simple truth is that both Bitcoin and Ethereum complement each other. There is no likely scenario where one will totally replace the other.

With regards to which is the better buy, it all depends on your personal investment strategy and how tolerant you are to risk. Cryptocurrencies are a volatile market, and it is essential that you only invest money you can afford to lose. You will also have to do your own research on cryptocurrency investment to be sure that you’re comfortable with all the potential risks involved.

At the end of the day, both Bitcoin and Ethereum will probably be dominating the crypto landscape for quite some time. There is a very good chance that you will decide that both of these digital currencies have a place in your crypto portfolio, and even that there may be room for others like 

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There are hundreds of platforms spread all around the world that are just waiting to give you access to the many varieties of different cryptocurrencies that are available today. To decide which one is right for you, you will not only need to know what they are but what features matter most to you.

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Ethereum vs Bitcoin

The best way to buy Ethereum in Australia

If you’ve been considering investing in 

. As one of the most popular cryptocurrencies to emerge in recent years, it’s attracted considerable investor interest. As with any cryptocurrency, it’s not suitable for all investors — a certain degree of volatility is inherent in the market, and it’s crucial to have a high tolerance for risk. We would suggest utilising it as part of a balanced investment portfolio. However, if you think that this fits your profile, then we can explain how to buy Ethereum online and walk you through the steps to starting your trading journey.

But before we get to our step-by-step guide, there are a few things you need to know about how to buy Ethereum. First and foremost, you’ll need to find a cryptocurrency exchange for buying Ethereum. These outlets vary from the traditional stock exchange or broking system — they’re decentralised, and some are solely focused on one type of cryptocurrency. However, here at BTC Markets, we offer an extensive range of cryptocurrency options for investors, including 

Once you’ve settled on your preferred exchange, you’ll need a cryptocurrency wallet. If you’ve previously purchased other types of cryptocurrency, you likely already have one. However, cryptocurrency wallets are not mutually compatible with one another per se — they’re accessed via different protocols. So if you already have a Bitcoin wallet, for example, you can’t store Ethereum in it.

The good news is that many modern wallet services do allow you to segment your wallet, enabling you to access your different wallets from one point. So your main consideration should be whether you want to opt for a “hot wallet” or “cold wallet” when you’re looking at how to buy Ethereum safely.

A hot wallet is essentially a web-based form of cryptocurrency storage, in either browser-based or app form. It’s usually connected with your preferred exchange platform, allowing you to easily buy, sell and trade from a central location. However, it’s this convenience and continuous connection to the internet which can also make it vulnerable to being hacked or stolen. Accordingly, many investors choose to utilise a cold wallet as well.

Cold wallets are external hard drives (often in a USB-sized form) that keep your cryptocurrency stored offline. It’s the most secure way to store your cryptocurrency — would-be internet thieves can’t access it when it’s stored offline. Many investors utilise a combination of hot and cold wallets to ensure that the bulk of their funds are safely stored while also being able to utilise their Ethereum as required.

The primary downside is that if you lose your cold wallet storage device, your funds are gone forever — it’s like cash. So make sure you store your passwords somewhere safe to avoid future dilemmas!

Wondering how to get Ethereum in Australia? Well, you’re in the right place. You can 

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To get started buying or trading, visit btcmarkets.net and click ‘Create account’. Input your email address correctly, and make sure you choose a password you haven’t used for any other logins. Shortly afterwards, you’ll receive an email that asks you to confirm your registration via a verification link — this will expire after 24 hours, so make sure that you click it as soon as possible.

Once your account is verified, you’ll be able to interact with the main interface. Here, you can use the “Change Market” function to select the type of cryptocurrency you want to purchase. To start Ethereum trading, select “Ethereum” — you’ll also be able to see the fluctuations in 

The next step is to choose how you’d like to pay when you’re buying Ethereum. On the Limits tab, select “Deposit AUD”. This is done via Osko or BPay, so you’ll need to fill out some details to ensure security first — this will include verifying your identity, setting up two-factor authentication and API key creation.

Once your payment method has been confirmed, you can head back to the Limit tab. Now you can buy Ether, selecting between Volume (i.e. amount) of Ethereum or Price (i.e. how much of your chosen currency you’re willing to spend). It’s not necessary to buy complete units of Ethereum — they are subdivided into units of “Gwei” and “Wei” — so when you opt for Price purchasing, you’ll receive the relevant amount of full or partial units in return.

Congratulations — you’re officially an Ethereum investor! Now you can monitor the market, buy, sell and trade to maximise your investment. Best of luck!

Here at BTC Markets, we offer an extensive range of 

 to prospective investors and those who are looking to discover how to invest in Ethereum in Australia. Our services include 

, an easy-to-use platform and best-in-class cybersecurity. We’re also passionate about investor education, so make sure that you check out our 

Though you’ll often find cryptocurrency advocates talking about Bitcoin and Ethereum somewhat interchangeably, they’re actually quite different. Bitcoin, in short, was designed to be a decentralised currency that could be used all over the world. An online ledger — known as the Blockchain — acts as a living and evolving document of all of the Bitcoin transactions that have ever taken place. However, given some of its technological limitations, it hasn’t really caught on as a currency that’s used day-to-day.

Though Ethereum also utilises Blockchain technology to keep track of the ways it’s used for buying, selling, and trading, its Blockchain is much broader in scope. In addition to currency, it can be used for hosting any manner of items — the ones that have gathered the most outside interest are decentralised programs or apps known as “dApps”. dApps run the gamut from assisting with financial transactions through to being fully-fledged video games — just like regular apps. To find out more, you can also check out the 

Is it legal to conduct Ethereum trading in Australia?

Yes. Though Australia’s cryptocurrency legislation is continuously evolving, it is currently legal. Given Ethereum’s high profile and positive public awareness, it seems unlikely that this will change, though the specific regulation around it will likely shift in the coming years. It’s also important to be compliant with all of the relevant tax laws around profits made from crypto trading. We would advise you to speak to your accountant about any relevant implications or obligations when buying Ethereum.

Is hot or cold storage better for my wallet?

Both have their own distinct strengths and weaknesses. Hot wallets provide near-instantaneous and constant access to your funds, but the “always online” nature of this storage means that there is a greater risk of being exposed to cyberattacks. This can potentially wipe out your investment and leave you without recourse.

Conversely, cold storage keeps you safe from cybercrime — but it’s reliant on you keeping a physical device safe too. Many people invest in a safe specifically to store their cold wallet, just to minimise the risk!

You can purchase Ethereum right here with BTC Markets today! There’s no more need to wonder, “How can I buy Ethereum?” — just sign up for an account today, deposit your funds and start trading.

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