Ethereum vs. Bitcoin. Here's Your Answer to How to Buy Ethereum In Canada

Ethereum has become a popular cryptocurrency alternative to Bitcoin over the last year. However, unlike Bitcoin and rival currency Litecoin, Ethereum has been adopted by many companies and startups as a way to transact. Here's a guide to help you understand how to buy Ethereum in Canada.

In the cryptocurrency wars, Ethereum like the diamond of the currencies has both an intrinsic value and an industrial value. Compare this to Bitcoin, which operates like gold with not much industrial value, but people buy it and sell it based on its intrinsic value to the holder.

Given the popularity of Ethereum, many people are curious about what it actually is, how it's different from Bitcoin, and how to invest in it. It's also important to note the risks of investing, and the potential to mine it and create your own wealth of Ether. Before we dive in, it's important to note that to look at, use, and transact in Ethereum, you need a digital wallet. 

Basics Of Ethereum

Ethereum is basically software that is decentralized and allows developers and programmers to run the code of any application. You see, Bitcoin uses a technology called blockchain specifically for conducting monetary transaction. It's a straight currency. Ethereum uses blockchain technology to allow the creation of applications that can be executed in the cloud, can be protected from manipulation, and much more. However, a bi-product of this is that Ethereum uses a token called Ether, which is like Bitcoin, to transact. This is the monetary value portion of Ethereum.

Because of its unique abilities, Ethereum has attracted all types of attention - from finance, to real estate, to investors, software developers, hardware manufacturers, and more.

How Ethereum Is Different From Bitcoin

As we mentioned above, Bitcoin was designed to be a currency. It uses the same underlying technology principles, but uses them to facilitate monetary transactions.

Ethereum, on the other hand, was designed to facilitate software processing using a token system called Ether. Ether has become more valuable as a result of people becoming interested in the technology.

However, there are a lot of apps being developed on Ethereum, and even some major financial companies are getting involved in the space. It could be interesting to see what develops from this over the next few years. Ethereum is also the basis for transacting in NFTs and other collectables online. So, if you want to buy an NBA Top Shot or other NFT, you need ETH.

How To Buy Ethereum (ETH)

If you're interested in investing in Ethereum, and specifically Ether, you need a digital wallet connected to a cryptocurrency exchange. Ethereum doesn't trade on any major stock platform. You can't go to your online discount broker and buy Ethereum. You have to convert it into your wallet.

We recommend using Netcoins as a XRP Canada exchange. It's incredibly easy to use, allows you to invest in Bitcoin and Litecoin as well. It's important to remember that Ether (ETH) is a currency, and should be treated as such by investors. You don't buy shares of Ether like you would stocks or ETFs. Instead, you are exchanging your dollars for Ether tokens. There are no dividends, no payouts. Your only hope is that in the future, other people on the Internet will pay you more for your tokens than you bought them for.

If you're not sure about using a digital wallet, and want to invest via an ETF, you can't do it yet with the help of Netcoins.