What is the difference between Ether and Ethereum?

 

Ethereum and Ether are so similar in names that they are used synonymously to each other in the Cryptosphere. But it is important to understand the difference between the two. Here is a guide to tell you all the similarities and differences between Ether and Ethereum.

Ethereum is the platform based on blockchain technology and Ether is the cryptocurrency of this platform.

It is also to be noted that Ethereum is listed as Ethereum in the crypto exchanges but it is just a denomination which is synonymously used with “Ether” which is the cause of confusion in many.

What is Ethereum?

Ethereum was invented in 2013 by Vitalik Buterin, a Russian programmer. He first presented the Ethereum blockchain in his white paper at the North America Bitcoins Conference in 2014.

Ethereum is a platform for writing and implementing smart contracts and DApps which are automatically executed when a certain set of coded conditions is met.

Let us understand the working of Ethereum with the help of an example:

Let us assume that Linda has given a project/contract to Nancy for website development for a price of 20 ETH. Linda has coded the necessary requirements, conditions and terms about the type and preference of the website needed by her on the Ethereum blockchain.

Now, when Nance submits her website (completed project) on the blockchain, it will act as an evaluator and if all the requirements and conditions are met, the smart contract will execute itself and Nancy will get her payment.

If the terms and requirements are not met, then Nancy has to keep working until all the conditions are met in order for her to get her payment.

What is Ether?

Ether or ETH is the fuel for the Ethereum blockchain. Just like you need fuel for starting a vehicle, in the same way, you require Ether (ETH) to do operations on the Ethereum blockchain such as smart contracts, transactions, decentralised applications etc.

Implications of Ethereum

There are a lot of technological implications of the Ethereum blockchain and the code written on the blockchain cannot be tempered, hacked or altered. These features of the Ethereum blockchain makes it tamper-free.

 

What is the meaning of Coin in the crypto world?

 

Cryptosphere is filled with many types of cryptocurrencies, coins, tokens, altcoins, etc . All these words are very common in the crypto world but if you are not aware of the differences in the technical jargons, you can end up confused.

Many a times, coins and tokens are used as synonymous to each other but that is not correct. There is a slight difference between the two. Nobody is responsible for this inaccurate usage of terms as the field is still new and people are still learning about all the terms and jargons.

What does a coin refer to in the Cryptosphere?

The term coin is used for coins which are created by making variations in the code of the blockchain. Examples of coins are Bitcoins, Namecoins, Litecoins etc. These coins are also referred to Ältcoins” since they were created as an alternative to Bitcoins with uses similar to Bitcoins.

The coins in the Cryptosphere is also known as cryptocurrencies or crypto coins.

Properties of Coins

The characteristics of these coins are similar to that of Bitcoins. Here are some of the major characteristics of coins:

  1. Acceptable: These coins are widely accepted as a mode of exchange
  2. Fungible and Uniform: In these coins, unit of one coin is equivalent to another. The same denomination has the same value.
  3. Divisible: The coins can be further divided into smaller values.
  4. 4. Portable: These coins can be exchanged and carried along.
  5. Limited Supply: The supply of the coins is limited and constant.
  6. 6. Durable: The coins can be used any number of times without any degradation in their value and worth.

Coin-in-Cryptocurrency

The parent category of the coins is the cryptocurrency under which the subcategories are coins/ crypto coins and altcoins and the other sub category is tokens.

Bitcoins are the main coins in the cryptocurrencies. Other coins such as ETH (Ethereum) and Ripple are also considered in the coin category since they have their very own blockchain and have the same properties as Bitcoins. But they are not just used as a usecase for money but also for some other utilities.

Some other currencies which are not created on the Bitcoins code are also referred to as Coins in the crypto world as they have their own blockchain and have the same properties as that of the Bitcoins. One example of such coins is Monero (XMR).

What is Volatility in the Crypto market?

 

The cryptocurrency world is the new way of storing your wealth and protection of your purchasing power. Some people believe it to be very beneficial and profit making while some have been burned badly by its volatile nature. Any market whether it is share market or the cryptocurrency market, where trading takes places in the free market without any regulations is bound to be volatile.

 

What is the meaning of volatility?

As per the economics definition of the word volatility, it means the rate change of the price of a security for a given set of returns. Volatility shows the range of price to which the price of a security may decrease or increase up to.

Thus, the movement of the price of the cryptocurrency over a trade cycle or a definite period is known as volatility.

For example, the value of bitcoin was $8976 at 10 AM and rises to $9532 at 1 PM and again falls to $5643 at 6 PM. this fluctuation of the price is known as the volatility.

Some people also call it instability in the price of the cryptocurrencies.

 

Reason for Volatility

The main reason for the volatility is that the cryptocurrencies cannot be controlled since they are decentralised and are traded in the free markets without any regulations.

A free market is referred to as the market where the price of the commodity or security is purely determined by the consumers and not affected by the supply and demand of the securities. This is an idealized system where there is no intervention of the government, other authorities and the price-setting monopoly.

Cryptocurrency market including the price of Bitcoins is highly volatile and it will remain volatile until it reaches its saturation market-cap which cannot be predicted safely.

If you are unable to handle the volatility of the crypto market, it is suggested that you do not invest in cryptocurrency. But on the other hand, you can invest and get accustomed to the volatility of the market.

The only thing to be cautious is that only invest which you can afford to lose. Since the crypto market can be both rewarding and detrimental to your financial health because of its high volatility.

Cryptocurrency Influencers You Must Follow on Twitter

 

Now-a-days almost everyone proclaims to be an expert in the cryptocurrency domain. Hence finding the genuine sources and following them closely can be a difficult ask for the newbie investors. While keeping a tab on authentic crypto experts can be an enlightening experience, preposterous links may lead to damaging consequences.

In this article, we are going to introduce you to 4 well-known and highly respected cryptocurrency influencers whom you can follow on Twitter to gain insightful knowledge about the crypto market.

  1. Andreas Antonopoulos (Twitter handle – @aantonop)

One of the most knowledgeable persons in the crypto domain, Andreas is popular for his views on innovative ideas about Bitcoin. You will be blown apart by his tremendous grasp of the subject matter. Every newbie trader must follow his explanation on Bitcoin basics and its scalability. He has been lauded for his leading role in spreading awareness about Bitcoin myths and exposing various scams associated with the market.

  1. Charlie Lee (Twitter handle – @SatoshiLite)

Charlie Lee needs no introduction. He is a highly respected figure as the creator of Litecoin cryptocurrency. He also served as the Director of Engineering at Coinbase in the past. By following Lee on Twitter, you can gain exposure on the adoption of segwit, atomic swaps, forks and Bitcoin scalability. He is also one of the few persons to share the details of upcoming ICO events through his Twitter account.

  1. Vitalik Buterin (Twitter handle – @VitalikButerin)

The creator of Ethereum in 2015, Vitalik is known to speak his mind out and never afraid of calling a spade a spade. His unique and critical views about different aspects of crypto trading is an enlightening experience. He is also a significant contributor on security related topics. Following him closely enough can help you stay away from scam ventures and improve your overall awareness on cryptocurrency security best practices.

  1. Jameson Lopp (Twitter handle – @lopp)

An experienced figure of the BitGo team, James Lopp is credited for coming up with the pioneering crypto wallet called Casa. He tweets his ideas on both basic-level topics as well as advanced functionalities – which has helped him grow a huge follower base on Twitter. He usually shares a great deal of insight on Bitcoin basics, wallet security, crypto exchanges and current market trends.

Final Words:

Cryptocurrency community is growing by leaps and bounds. To keep yourself updated with the recent market trends and events, it is important to have the right connections. Following the above mentioned figures on Twitter can be an amazing experience as you get to learn about various aspects of crypto trading and the technicalities associated with the market.