Frequently asked questions (FAQs) about Ethereum
The price of ethereum, one of the most popular cryptocurrencies, is currently at $2,704.70 as of 8 a.m. ET. This marks a significant increase from its 52-week intraday low of $1,640.00 on Oct. 26, 2023. Ethereum has a global market capitalization of $316.75 billion and has seen a 61% increase year over year.
Ethereum is a blockchain-based network that allows for secure and decentralized financial transactions using its native crypto, ether. Its programmable blockchain enables users to verify and execute code through smart contracts and decentralized applications. Ethereum’s network also supports a variety of applications for socializing, gaming, gambling, and decentralized finance, as well as nonfungible tokens.
Users of the ethereum network must pay gas fees to support its operation, similar to highway tolls. These fees fluctuate based on the supply and demand for transactions and are expressed as gwei, with one gwei representing one billionth of one ether.
Investors interested in ethereum can buy it on popular cryptocurrency exchanges like Binance, Coinbase, and Kraken, as well as through online brokerages and payment apps like Venmo and PayPal. To store ethereum safely, users must have a crypto wallet, which can be either hot (connected to the internet) or cold (offline) for added security.
Ethereum ETFs, such as the ProShares Ether Strategy ETF and the Grayscale ethereum trust, allow investors to speculate on the ethereum market without directly buying the cryptocurrency. The approval of ethereum spot ETFs in July 2024 may indicate a growing acceptance of cryptocurrencies in the financial market.
While ethereum has seen significant growth since its launch in 2015, investors should be aware of the extreme volatility of cryptocurrencies and the uncertainty of future performance. The price of ethereum is determined solely by supply and demand, and there is no guarantee of continued growth in the long term.
