Ethereum for Beginners: The Complete Guide to Understanding Ethereum, Blockchain, Smart Contracts, ICOs, and Decentralized Apps

By Nick Woods

Are you looking to learn how you can cash in on the Cryptocurrency revolution?

 

Have you been hearing about Ethereum lately in the news and can't seem to wrap your head around what Ethereum is? Do you wonder how you can start investing in Ethereum but don't really know what it is and have hesitations around investing in something you don't understand? Do you wish you were able to understand Ethereum but are afraid that it is too complex and complicated?

 

If this sounds like you, then keep reading!

 

Ethereum is a fascinating new-age decentralized currency that is only available online and allows the user to be somewhat anonymous. Among the thousands of cryptocurrencies, Ethereum holds, perhaps, the most considerable growth potential. The sheer number of projects built upon the Ethereum blockchain is enough proof that Ethereum is heading to the moon!

 

Understanding Ethereum will help you achieve all of your goals with investing in the cryptocurrency, no matter how big or small they are.

 

Regardless of who you are and what you want to accomplish, the basis of Ethereum is the same for everyone. This book will help you understand everything you need to know about Ethereum, blockchain and cryptocurrencies including the benefits and challenges of the new technology, and I will provide you with a step-by-step guide for achieving a higher level of understanding so you can feel comfortable getting involved with Ethereum and other cryptocurrencies.

 

Never before has there been a book so gentle in its approach and so effective at understanding Ethereum from a beginner's level.

 

Within these pages, you will discover:

 

• What Ethereum Is and Why It Is So Important

• How It Works and Why It's Different from Bitcoin

• How to Get Started Mining Ether

• How to Buy, Sell, or Trade Ether

• Decentralized Apps (dApps)

• Blockchain Technology

• What to Look for in Ethereum's Future

• Smart Contracts

 

AND MUCH MORE!

 

No matter how young or old, how inexperienced or experienced, or what education level you have, this book will be able to help you strengthen your understanding of Ethereum so you can utilize it in your daily life to achieve the things you want to achieve. The things you want to achieve don't have to be huge goals like building a multi-million dollar investment portfolio (although this book can certainly help), but you can use it to start understanding what all the talk and excitement is about with this new technology.

 

If you're ready to start understanding about Ethereum, blockchain and cryptocurrency and learn how you can get involved in this groundbreaking opportunity - then look no further.

 

Don't waste another minute, scroll up and hit "BUY NOW" to get started today!

• Language: English
• Publisher: Publishing Forte
• Release date: Jul 7, 2021
• ISBN: 9798201594961

Nick Woods

Nick Woods has been active in the technology sector since the early 1980's. As a graduate of MIT, Nick has always been fascinated with how technology can improve our lives. Being involved in many start-ups as a computer engineer during the beginning of the Internet, Nick has always loved new and interesting technologies as it relates to how humans communicate and interact.In the mid 2010's, Nick became fascinated with blockchain and cryptocurrencies and after learning the ins and outs of the technology, started investing and mining the Bitcoin and Ethereum blockchains.After a fruitful business career, Nick is now retired in sunny South Florida with his wife Margeret. He enjoys spending time fishing, writing, getting visits from his 2 adult children and 6 grandchildren and going to the park with his chocolate lab Max.

Book preview

Introduction

I want to thank you and congratulate you for purchasing the book Ethereum for Beginners: The Complete Guide to Understanding Ethereum, Blockchain, Smart Contracts, ICOs, and Decentralized Apps.

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When Bitcoin was created in 2009, it was originally dismissed by many as just a way for criminals and computer experts to transfer fake internet money to each other. In less than twelve years, it has gone from being considered a scam to being seen as a technology that could disrupt finance, banks, foreign exchange and potentially create a worldwide global currency.

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The change in perception is primarily due to realizing the potential of the blockchain technology underlying Bitcoin. Blockchain technology is more revolutionary than Bitcoin and is predicted by many to impact the world as big as the internet once did.

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While many people have heard of Bitcoin, it is the lesser-known Ethereum that made the world aware of the potential of blockchain technology. Bitcoin mainly used blockchain technology for payments and transfers of digital currency.

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The creation of Ethereum has taken the possibilities of blockchain from a technology mainly used for financial payments into a technology that could disrupt and replace systems or companies in almost every industry in the world.

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The original blockchain technology created by Bitcoin is known as Blockchain 1.0. The new capabilities that Ethereum has made blockchain technology capable of is known as Blockchain 2.0

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Many governments and corporations consider Ethereum to be a far superior technology compared to Bitcoin. Large companies such as Microsoft, MasterCard, UBS, ING, Intel, BP, Deloitte, J.P Morgan, and more have joined an alliance to develop, build, and integrating Ethereum based applications on a large scale.

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Ethereum is not just an idea that may have an impact in the future. The Ethereum platform has already shown to have a wide range of real-world applications across various industries.

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Ethereum was only released in 2015; in the short time it has been around, thousands of companies and applications were all created on the back of Ethereum.

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Billions of dollars have been created in a few years as companies and developers utilize the revolutionary capabilities of Ethereum. Everything from digital identities, file sharing, cloud storage to chat messaging apps have already been created on Ethereum.

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Ethereum is still a new technology; however, it is already set to change the world. Understanding Ethereum in these early stages could put you on the cutting edge of a technology that may one day be a part of everyday life.

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Even if you have had no experience with Bitcoin, Ethereum, or cryptocurrencies, by the end of this book, you should have a firm understanding of what Ethereum is, how it works, and why it is so revolutionary. 

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This book will answer all your questions about Ethereum.  Flip the page, and let's begin! I hope you enjoy your read.

1

An Introduction to Cryptocurrency

Before getting into what Ethereum is, you must first understand how cryptocurrencies work.

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Cryptocurrencies can be used to purchase goods or services, or you can trade them to try and make a profit.

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Cryptocurrency is a purely digital currency and uses an online ledger with cryptography to ensure all online transactions are secure. Many people find these currencies interesting as they try to trade them for profit, as speculators can drive prices up significantly.

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Many different companies have created their currencies, often referring to them as tokens. These tokens can then be explicitly used for any goods and services that a particular company offers. You can think of these tokens similar to chips you can use in a casino or tickets you can use in an arcade. You will have to swap real currency for your chosen cryptocurrency to gain access to that good or service.

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Cryptocurrencies operate by using a technology that is known as the blockchain. Blockchain is a decentralized technology spread throughout thousands of computers, each of which records and manages transactions. One of the many appeals of this type of technology is that it is incredibly secure.

Are Cryptocurrencies a Good Investment?

Cryptocurrencies tend to increase in value, but many investors view them more as speculations than investments. Similar to real currencies, cryptocurrencies don't create a cash flow. It means that you need someone to pay more for that currency to turn a profit than you did.

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For those who view cryptocurrencies, like Bitcoin, as one for the future, it should be said that any currency requires stability. Cryptocurrencies like Bitcoin do have the potential to be unsafe, and less risk-averse investors often tend to steer clear.

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Cryptocurrencies, such as Bitcoin, have been volatile for the majority of their history. This type of price volatility leads us to a conundrum. If Bitcoin may be worth much more later down the line, then people become less likely to circulate and spend them today, leading to them becoming less viable as a genuine currency. Think about it, why would you spend a bitcoin if it might be worth over three times that much in value the following year?

Reasons to Invest and Trade in Cryptocurrency in 2021

Cryptocurrency has blown up in the last few years. However, most people still view the topic with an air of caution, and many have a minimal understanding of cryptocurrency. They might be interested in learning more, but most people are still not considering investing or trading cryptocurrencies, certainly not soon!

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Recent history highlights that it can be a good idea. There are risks to cryptocurrency, just as there are with any investments that carry a high return. Despite this, there are plenty of benefits, which we will look at in more detail here.

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Incredible Returns

Let's start with the most notable reason first. Cryptocurrencies have not been around for an exceptionally long time, but they have already shown they can be much more profitable than other types of investments.

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The highest return you are likely to ever get on the U.S. stock market sits at around 20%, which would be viewed as an excellent result. Cryptocurrencies usually show significant changes in prices in a very short amount of time. The risks are much higher, and high profits are never guaranteed, but the potential rewards can be much more than 20%. Plenty of people lost out on making money by trading crypto as they do so without any strategy.

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Independent Alternative

Cryptocurrency may be a safe alternative option to other traditional investment opportunities. People's opinions differ on how cryptocurrencies will react if there is a market crash. Some investing experts believe that they will do well, while others think they may negatively affect them.

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Your Money Is Yours Alone

Cryptocurrencies provide you with a new level of independence that is not possible via other means. When you store money within a bank, your money is in the hands of other businesses and people. At any time, the access you have to that money can be closed by a bank if the business goes bankrupt or is robbed.

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Using cryptocurrencies, your money is entirely yours and will stay that way for the entire time. You are not reliant on any financial institutions to hold or transfer it for you. You also don't need to pay any fees for holding your funds. In the long term, it can lead to a truly decentralized and open economy, and if that occurs and you invest now, then you will be right at the front of it all.

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High Liquidity

One of the main characteristics of all assets is liquidity. This is how easy it is to buy or sell that asset near the market rate. Due to their very nature, as you can easily and quickly purchase and sell them. The trading platforms make it easy to use a range of tactics and tools, as well as algorithm-based trading.

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Simplicity

Any form of investment, such as bonds, stocks, or other traditional methods, can be very bothersome, complicated, and time-consuming. Many investment opportunities have a very high entry-level threshold, where you need a significant amount of money just to get started in the field.

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Cryptocurrencies mirror the current society we live in. Being able to join and take part has minimal barriers and is very simple to do. You are not required to sign any papers, visit any banks, or deal with any institutions. You can just create an account, sign up for a wallet, and begin tracking your investments with ease.

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Favorable Forecasts

If you don't have any previous experience in investing, attempting to make money through cryptocurrency on a day-to-day basis will probably lead to you losing money and becoming frustrated. Price fluctuations occur daily, and they tend to be much more volatile than what you may be used to with other traditional currencies.

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A much handier solution is to invest in cryptocurrency for the long term. Most forecasts are for cryptocurrencies to continue to grow for the next few years. As with any potentially high-return investments, these carry many risks, but they also offer a lot more independence.

2

What is Ethereum?

Ethereum is an open-source network built on blockchain technology and employs smart contracts to run transactions