There’s one famous saying, “Money is always eager and ready to work for people who want to employ it”. Today’s not the age of just confiding your money in fixed deposits and locking them in your bank account for years. You have to keep looking for opportunities to let your money work for itself. And that’s when blockchain technologies like Bitcoin and Ethereum wallet come to the market.
Before jumping into the details, we should know; what is blockchain technology?
If I have to explain blockchain in simple words, I’d say blockchain is a spreadsheet or book containing detailed information of all the transactions in correspondence to the blocks created at each transaction. The best kind of diary which cannot be forged.
This blockchain technology works on a hash function. A hash function is series of mathematical function composed of alphabets and numbers that converts them into a string of code with a fixed number of characters. It can create a whole new hash even with a small change in the code.
What are Ethereum and Bitcoin?
Bitcoin is nothing but the money saved in a “digital form”. People buy bitcoin to stay away from the hassle of banks and formalities, some see it as an investment and some buy bitcoins to buy companies. Whereas the Ethereum blockchain is an actual implementation of blockchain technology.
Ethereum is the next step to innovation. It is not just a cryptocurrency, but a ledger technology that is used by companies to build some new programs.
Ethereum and Bitcoin price
Bitcoin was launched in 2009, the price of one bitcoin was a few dollars for its first few years. And now Bitcoin is priced at 34,802 USD ( INR 25,38,979.91) in February 2021. Bitcoin is quite volatile and lacks proper dividends to prove as a great investment.
Ethereum in February is priced at 1312.14 USD ( INR 95763.65) which is comparatively low to bitcoin but a better innovation in terms of investment. In fact, if we go through the live charts, ethereum is expected a potential high of around 1000$ and low as only 450$.
Ethereum is a new trend in the market for investors, meaning that investing in Ethereum can provide maximum financial reward and return on investment (ROI).
How to buy Bitcoin and Ethereum?
Due to its increased value, people have started showing interest in the purchase of bitcoins. But as clueless as they are, don’t know how to?
A person can buy bitcoin with a credit card. Coinbase.com and Coindesk.com are the two most trusted exchanges. They also provide digital tutorials for beginners and novices.
In India, Bitcoin can be purchased from the Zebpay exchange. You can link your bank account for easy and fast transfers to Zebpay which is available for both Ios and android versions. All you have to do is make payment to your Zebpay account and buy bitcoins. There is a requirement of KYC and you need to verify your ID by simply submitting a photo of your pan card.
Ethereum has completely revolutionized the way transactions are carried out.
Ethereum can be purchased by first creating a digital wallet in BuyUcoin. Buyucoin is an exchange platform that provides buying and selling Ethereum as well as other cryptocurrencies in India. Follow the steps to create your account:
- Opening a Digital Wallet. A digital wallet is required to hold your cryptocurrencies and interacts with others using blockchain technology.
- Register & Open an Account.
- Google 2 step Verification.
- Add Bank details.
Ethereum and Bitcoin wallet
You can also create a wallet for the purpose of purchase and selling. Ethereum wallets are interactive applications that connect with your Ethereum account. Think of it as an internet banking app – without the bank. Your wallet lets you read your balance, send transactions, and connect to applications. You can also manage several Ethereum accounts using only one application. Some of the examples of the best ethereum wallets are Trezorone, Metamask, ledger nano, Exodus.
To operate a wallet you need to add the entire Ethereum Blockchain. Therefore, it gets transformed into a hub in your working station, an entity that supports the entire network by updating the Blockchain with the motive of reaching an agreement on the validation of transactions with other hubs.
Similarly, Bitcoin also secures information as a private key to secure addresses and carry out transactions. Bitcoin wallets are available in four different types; desktop wallet, mobile wallet, web wallet, and hardware wallet.
Desktop wallet: some famous desktop wallets are bitcoin core, multibit, armory, and electrum.
Mobile wallets: mobile wallets provide the additional features of QR codes. Bitcoin Wallet, Hive Android, and Mycelium Bitcoin Wallet are some of the examples of mobile wallets.
Web wallets: Web wallets let you use Bitcoins from anywhere, using any browser or mobile device. But you have to be really careful while selecting the browser since it stores your private keys online. Two popular web wallet providers are Coinbase and Blockchain.
Hardware wallets: hardware wallets costs easily between 100$ to 200$ as the data is stored in an external device and later plugged into a computer using a USB port. They are considered the safest as they are virus attack-free.
Frequently Asked Questions
- Can you send ethereum to a Bitcoin wallet?
Ans: No, you cannot send Bitcoin to an Ethereum wallet, or Ether to a Bitcoin wallet.
- Which wallet is best for ethereum?
Ans: Some of the Best Ethereum Wallets are:
- Trezor One. Trezor is the oldest Bitcoin hardware wallet.
- Metamask. If you don’t know much about the Ethereum network, you should go with this option. …
- Ledger Nano S. Probably the most popular hardware wallet, Ledger Nano S certainly deserves a place in this list.
3. How do you get an ethereum wallet?
Ans: Steps to get an ethereum wallet:
- Go to the app store (iOS) or to Google Play (Android).
- Search and download Coinomi.
- Open the app and write down your recovery sentence of 24 words.
- Set a strong password.
- Add ethereum to your wallet.
- Use your receiving address to receive ether.
4. Which crypto wallet is best?
Ans: The Best Bitcoin Wallets of 2021
- Best for Beginners: Exodus.
- Best For More Advanced Users Interested in Just Bitcoin: Electrum.
- Best for Mobile Users: Mycelium.
- Best Hardware Wallet: Ledger Nano X.
- Best For a Large Number of Cryptocurrencies: Trezor Model T.
- Best Bang For Your Buck: Ledger
- Nano S.
5. Is it smart to invest in Bitcoin right now?
Ans: The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand. Lower inflation risk.
6. Is it safe to keep Bitcoin on Kraken?
Ans: Storing your asset on the exchange is not recommended in general. That is because, including Kraken, cryptocurrency exchanges are not intended to be your wallet. So far, Kraken is known to be the safest exchange, hackers have never compromised us.
7. Can you lose money on Bitcoin?
Ans: However, things are not that simple. If you invest the aforementioned $50 in bitcoin, you will always have some money in the form of BTC. Unless it drops to absolutely nothing and loses all value, then you will lose the initial $50. This is extremely unlikely to happen though.
8. Is Bitcoin good for long-term investment?
Ans: Traders would say it’s something they can take advantage of,” even as long-term investors have to hold their stomachs through the chop. Bitcoin was meant to be decentralized but the financial industry that’s grown up around it makes it more centralized, a moderator observed.
9. Is it safe to leave Crypto on exchange?
Ans: If you leave your cryptocurrency on an exchange, the private keys to your coins are with the exchange and your coins could be stolen in a hack. Of course, actively traded crypto will need to be kept on an exchange; however, any crypto holding that you don’t plan to trade shouldn’t be on an exchange.
10. Which Cryptocurrency is best to invest in 2020?
Ans: These are seven of the best cryptos on the market. It has been over a decade since the mysterious Satoshi Nakamoto created Bitcoin, the first and by far most popular form of cryptocurrency in the world.
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Tron (TRX)
- Chainlink (LINK)