Ethereum is not only a cryptocurrency but an ecosystem on top of which many blockchain applications are developed. ‘ETH’ is the tradable token that is designed to be the fuel to the Ethereum Blockchain, whilst also having use-cases similar to conventional crypto and fiat currencies.
Now that you have bought your Ethereum, you may think about different ways to spend and store them apart from simply having them in your wallet. In this article, I guide you through 10 different things and platforms that you can spend or store your Ethereum on, plus some bonus tips if you keep reading till the end. Disclaimer: All the views mentioned here as those of the author alone.
Participate in an Initial Coin Offering
You could use your Ethereum to buy tokens from independent ICOs (Initial Coin Offering) and potentially gain a significant profit if the project succeeds. An ICO or Initial Currency Offering is a type of funding using cryptocurrencies. Mostly, the process is done by crowdfunding but private ICOs are becoming more common. As always, ensure you do your due diligence before investing in any crypto project.
HODL your Ethereum
If you believe in the long-term growth potential of Ethereum tokens themselves, you could HODL (Hold) your Ethereum tokens in a Desktop Wallet, Hardware Wallet, Paper Wallet, or Mobile Wallet. I will explain each of these wallets in more detail to help you make your choice.
Desktop Wallet
Desktop wallets are installed on a desktop computer and provide the user with complete control over the wallet. Desktop wallets enable the user to create a Bitcoin address for sending and receiving the Bitcoins. They also allow the user to store a private key.
Mobile Wallet
A mobile wallet, as the name implies, includes mobile clients that can be installed in a compatible smartphone and can be connected online to make transactions. This can be in the form of either a light client or a full ethereum client, with the latter being more secure as it validates transactions by itself. Mobile wallets to
Hardware Wallet
A hardware wallet is a special type of bitcoin wallet which stores the user’s private keys in a secure hardware device.
They have major advantages over standard software wallets:
Paper Wallet (Not Recommended)
A paper wallet is the name given to an obsolete and unsafe method of storing bitcoin which was popular between 2011 and 2016. It works by having a single private key and bitcoin address, usually generated by a website, being printed out onto paper.
This method has a large number of downsides and is generally not recommended to be used.
For storage of bitcoins, a much better way to accomplish what paper wallets do is to use seed phrases instead, where the user writes down 12 or 24 random words generated by their wallet.
Trading Ethereum for Products/Services
Similar to other cryptocurrencies, Ethereum can be traded for other products and services, as long as the product/service has an associated wallet address. The benefits of using Ethereum over Bitcoin include a faster transaction process and cheaper transaction fees, whilst the Smart Contract system within Ethereum’s protocol makes it even more secure to transfer, thus eliminating any middlemen.
Companies & Brands that accept Ethereum
Apart from the use-cases mentioned here, there are several companies and businesses that now accept Ethereum. Some of them are mentioned here:
Note: All views mentioned in this article are solely those of the author. Definitions and examples sourced from BitcoinWiki, Wikipedia, and CoinSutra.
Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news