Ethereum, in its most general definition, is a distributed computing platform. In addition to its open-source, publicly accessible and Blockchain-based structure, Ethereum supports a computer protocol called “smart contract”. Its founders, Russian computer programmer Vitalik Buterin and British programmer Gavin Wood wrote the platform and brought it to life in 2013. Ethereum makes it possible to produce and run decentralized digital applications (dApps) using its technologies. Thanks to these applications, which have a very wide usage area, users can perform many transactions without intermediaries. These include transactions such as sending money and issuing secure contracts without the need for a notary public, where the environment of trust is maximized despite the elimination of intermediaries. In this context, smart contracts minimize the risk of fraud and allow users to perform one-to-one transactions in a transparent and secure manner. Ether or ETH is a cryptocurrency created by the Ethereum platform. ETH was created mainly to encourage programmers to run the Ethereum protocol on their computers. Programmers rewarded with this digital asset produce high-quality software, keeping the network healthy and secure. In this post, we will talk about Ethereum in some detail and tell you about how you can buy Ethereum in Canada. Let’s get started.
Buying Ethereum In Canada: All You Need To Know
How Is Ethereum (ETH) Produced?
Ethereum production is carried out by mining, just like Bitcoin. Ethereum miners can generate Ethereum by utilizing the computing power of high-capacity GPUs (graphics processing unit) or ASIC chips through their computers or specialized hardware.
Parameters such as processing power, electricity consumption, efficiency and computational power (hash) directly affect the success rate you will achieve while mining ETH. While some hardware allows you to capture sufficient computing power with a high level of processing power, it can destroy your profitability due to electricity consumption. On the other hand, some advanced energy-saving hardware can reduce profitability by reducing the amount of ETH to be obtained through mining if they are insufficient to provide the necessary computational power (hash).
For all these reasons, good hardware is the primary element of Ethereum mining. After installing good equipment considering the parameters in question, the next steps are to install the software, install the node and make the network connection. After that, you can start mining by downloading the Ethereum blockchain.
What is the Difference Between Ethereum (ETH) and Bitcoin (BTC)?
Bitcoin basically consists of a networked money system based on Blockchain technology and an accompanying cryptocurrency. Because BTC is the first cryptocurrency, it is considered the father of all cryptocurrencies and the architect of its technological infrastructure. However, ETH operates as a computing platform and is seen as the most important cryptocurrency that contributes to the growth of the industry, thanks to smart contracts and superior protocols such as dApp (distributed application) in the ecosystem. While Bitcoin enabled the emergence of the cryptocurrency industry, Ethereum played an innovative role by shaping the future. Some leaders in the industry even liken it to “the 2.0 version of the industry” for Ethereum.
In summary, perhaps the only similarity between these two is that they have cryptocurrencies traded in cryptocurrency markets and benefit from the blessings of Blockchain technology. Apart from this, Bitcoin and Ethereum are the players of the sector with two different roles. While Bitcoin has given the world a kind of currency that has never been seen before; In its role as an Ethereum computing platform, it allows anyone to benefit from cutting-edge technologies such as distributed ledger, dApp and smart contracts.
How to buy Ethereum (ETH) in Canada?
Buying and selling cryptos requires the organization and several steps must be followed:
- Find a bitcoin platform or vendor that works with Canadian dollars (example: ShakePay) to link back and forth with your bank account.
- Buy basic crypto that will be used to buy other cryptos: Bitcoin or Ethereum in particular.
- Send crypto funds to a platform that sells the crypto you are interested in. For example, sending Ethereum to the Binance agency to buy Ripple.
- When you have made profits that you want to convert back into Canadian dollars, you have to go the opposite way again: convert the crypto into basic crypto like Ethereum or Bitcoin, send it all back to a Canadian platform, sell for Canadian dollars, and transfer everything to your bank account.
You can, if you wish, settle for the two main cryptos, such as Bitcoin, Ethereum. In this case, step 3 does not exist and everything happens within a single agency.
How Is Ethereum (ETH) Calculated?
Ethereum calculation can be examined in two categories as price and mining profitability calculation.
In order to calculate mining profitability, many calculation engines are available on the internet. These tools can provide high-consistency information about profitability by combining many factors such as the unit price of the electricity you use, the capabilities of your hardware, the current mining difficulty, the current hash rate and pool share. It is also possible to achieve this operation manually as a result of a series of mathematical operations.
How to store Ethereum (ETH)?
It can be said that Ethereum is the project with the widest wallet alternatives, as it is the oldest and the most application-developed platform in the industry. Ethereum can be stored in desktop, mobile, hardware or online wallets. You can also create a paper wallet to store Ethereum. If you want to download the entire Ethereum blockchain, you can use one of the desktop Ether Wallet or Mist Browser applications. However, if you are unable to allocate your system resources for this task, you may prefer desktop applications offered by other developers or service providers.
You can use mobile wallets if you want to carry your Ethereum wallet on your smartphone or if you plan to shop with Ethereum in stores.
You can try Exodus, AtomicWallet, TrustWallet, Blockchain, Coinomi and many more mobile wallets and choose the wallet that is easy to use for you. You can download mobile wallets for free from the app store on your smartphone.
If you want to go the online wallet route, you can use the services of Myetherwallet.com, one of the most popular Ethereum wallets today. Private keys are one of the most important issues to consider when choosing a wallet. You should make sure that the wallet you choose gives you the 12-24 word custom keyword set (also known as seeds or keywords). These keywords are the only solution to recover your wallet.
You can also store Ethereum in portable and secure hardware wallets that are not always connected to the internet. In order to send Ethereum from hardware wallets, you need to connect the device to your computer and make transactions through the application of the wallet. You can safely carry your wallet as you make the payment transactions by entering the password with the physical buttons on the device. You can print your Ethereum address as a QR code and use it as a paper wallet. If you are considering using a paper wallet, you should be careful not to store your private key and Ethereum address in the same place.
So that was a brief glimpse into the world of Ethereum. If you are interested in buying Ethereum in Canada, this post will definitely be helpful. Remember to exercise caution while investing in cryptocurrencies like Ethereum and don’t succumb to greed.