ETH/ILS - Ethereum Israeli Shekel

Ethereum is a digital crypto currency developed on an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications that run smart contracts. Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Discover what crypto is and how it works in our Academy.

The value token of the Ethereum blockchain is called Ether. It can be used to pay for transaction fees and computational services on the Ethereum network.

Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ substantially in purpose and capability. While the bitcoin blockchain is used to track ownership of digital currency (Bitcoins), the Ethereum blockchain focuses on running the programming code of any decentralized application.

Smart contract is a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares, or anything of value. Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third-party interference.

Blockchain is a digital ledger in which transactions made in cryptocurrencies are recorded chronologically and can be viewed publicly.

The Ethereum Wallet is a gateway to decentralized applications on the Ethereum blockchain. It allows you to hold and secure Ether and other crypto-assets built on Ethereum, as well as write, deploy and use smart contracts.

The most common way to buy Ethereum is through cryptocurrency exchanges such as GDAX, Poloniex or Bitfinex, or directly from other people via marketplaces and auction site. Purchases can be made in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or even using other cryptocurrencies.

There are a number of factors to take into consideration when choosing with which cryptocurrency exchange to start investing and trading. Critical factors include: transaction fees, accessibility, liquidity conditions, reputation, transparency and even in which country the exchange is located. At the end of the day, there is no right or wrong exchange with which to start trading, but doing your homework first is highly encouraged.