Buying, Sending, Receiving, and Trading Ether
After you've created an Ethereum wallet, you'll be ready to begin using the Ethereum blockchain. Throughout this chapter, we'll go over the basics of ether, including how to buy, send, receive, exchange, and use it.
Purchasing Ether using traditional payment methods, such as a credit card or bank transfer, may be the quickest and most convenient way to begin owning the cryptocurrency. There are a variety of options for purchasing Ether. If you create a Coinbase account, you will be able to purchase Ether with relative ease. The procedure is straightforward, and the Ether will be credited to your wallet as soon as you complete the purchase. If you open an account with a cryptocurrency exchange such as Kraken, you can also purchase Ether with a traditional method such as a credit card or bank transfer. Because your Kraken account contains a wallet that stores your Ether, the money you purchase will be available in your account immediately. For those who haven't yet set up a wallet with Coinbase or Kraken, Changelly is an option for purchasing Ether with your credit card. It is possible to exchange different cryptocurrencies on this website, as well as to purchase cryptocurrencies with a credit card. You can purchase Ether with a credit card through Changelly, which can be found at www.changelly.com. To be able to receive the Ether through Changelly, you must already have an Ether wallet, which we'll cover in more detail in the following section.
Ether is being received.
In order to receive Ether into your wallet, you must provide the person or service that is sending you the Ether with your address. This is analogous to giving someone your bank account information so that they can make a money transfer into your account. There are two primary methods for supplying this address: either by providing the public key (public address), which is a one-of-a-kind combination of letters and numbers, or by providing the QR code (Quick Response Code). Your Ethereum address will look something like this: 0x3035eE16a1CB8484Af86356D7d9C0cdbf1582957.
To receive Ethereum through a service such as Changelly, you must first enter your Ethereum address. Following your purchase of Ether, it will be delivered to your specified address. It is acceptable to provide your address if it can be copied and pasted. As you can see from the address displayed earlier, if this address was typed, it would be very easy to make a typing error and send Ether to the incorrect address by accident. It is possible that the address cannot be copied and pasted, in which case providing your QR code may be a better option to ensure that it is delivered to the correct location. A QR code is a Quick Response code that functions similarly to a barcode in that it contains information that can be quickly scanned and read by a variety of different software applications. Square boxes that look like a square barcode that direct you to a website by scanning the square box with an app on your smartphone's camera may have been visible to you in the past.
Using Ether to send a message
Sending Ether is similar to receiving Ether in terms of functionality. To send Ethereum, you'll need either the Ethereum address or the QR code on your phone. You can send ether by selecting "Send" from your Ether wallet, which is typically accomplished by pressing a send button. You will then be prompted to enter the amount of Ether you wish to send as well as the address to which you wish to send it. The amount of Ether can be expressed as a dollar amount, but it is more commonly expressed as a unit amount, such as 1 Ether, 0.5 Ether, and so on. You can either copy and paste the address to which you want to send the Ether, or you can scan the QR code. Due to the fact that if you send Ethereum to the incorrect address, there is no way to recover your funds, you could lose your entire Ether holdings, it is critical to double check the address. It is possible to send Ether to the recipient after verifying that the amount to send and the recipient's address are correct.
Buying, selling, and exchanging ether
It is possible that you will want to trade or exchange your Ether for other cryptocurrencies after purchasing or receiving Ether. Like stocks or currencies, you can trade Ether on a cryptocurrency exchange such as Kraken or Poloniex, just as you would do with stocks or currencies. The Ether you have earned can be used to purchase other cryptocurrencies on the exchange, which will be held in a wallet specific to each cryptocurrency. This can be a convenient method of acquiring and holding a variety of different cryptocurrencies in a single account. Trading cryptocurrencies in order to profit from price fluctuations is highly speculative and carries a high level of risk, so caution should be exercised. Changelly (www.changelly.com) and Shapeshift are two services that allow you to exchange ether for other cryptocurrencies (www.shapeshift.io). Using these services to exchange Ether for other cryptocurrencies entails sending Ether to a specific address, selecting the cryptocurrency to be received in exchange, and selecting the address to which the cryptocurrency should be sent. Shapeshift exchange functionality is built into software and mobile app wallets such as Jaxx and Exodus, which are both available on the App Store. This enables you to exchange Ether for other cryptocurrencies without having to leave the wallet itself.
Exchanging Ether for computing power is a common practise.
On the Ethereum network, ether can be exchanged for computing power, which can be used to run decentralised applications and smart contracts. Ether-based decentralised applications (dApps) and smart contracts are a more advanced topic that will not be covered in this book. However, it's important to note that Ether has a practical application for many developers and businesses.kens.