Ethereum is an open-source blockchain platform project that is powered by its native token, the cryptocurrency Ether (ETH). Ether is rated the second most valuable cryptocurrency in the world on cryptocurrency exchanges. At the time of this article, the Ethereum price in Canada is listed at around $2,400. Ether is commonly referred to as “the gas” as it provides the funds to power Ethereum blockchain projects.
What is Ethereum
Ethereum entered the cryptocurrency scene in 2014, after Bitcoin, the first successful cryptocurrency, was established in 2008. The Ethereum blockchain and its token Ether were conceptualized by wonder-kin Vitalik Buterin in 2013.
When Ethereum began its crowdfunding with its Initial Coin Offering in 2014, they raised over USD 17 million worth of Ether. Ethereum’s ICO is one of the most successful crowd-sourced projects in history to date.
Ethereum uses the same basic technology as Bitcoin, blockchain. However, Ethereum is the larger project, and ETH is the cryptocurrency that runs the blockchain. The Ethereum blockchain was designed to build a blockchain platform where developers could build their own projects on top of it. The projects built on Ethereum’s blockchain are all decentralized applications (dapps).
Many believe that decentralization is the essence of cryptocurrencies. Cryptocurrencies such as Ether and Bitcoin are decentralized because there is no central authority that governs them. Instead, transactions and projects are run by thousands of individual nodes, or computers, all around the world. What maintains the integrity of these currencies is automation which is run by a code, as well as blockchain’s signature encryption method.
Smart contracts are the foundation of Ethereum’s blockchain function. These are automated contracts that rely on code. Smart contracts are only approved once all of the conditions of the code are met. As such, they do not require intermediaries such as lawyers or banks for approval.
Instead, smart contracts are approved once all necessary passwords and payments are provided. If any of the conditions of the contract are not met, the code remains incomplete. And, in that case, the contract is not completed.
Buying Ether
Purchasing ETH is just like purchasing Bitcoin, which is much like banking or shopping online. To buy Ether in Canada, potential investors can use an approved Canadian cryptocurrency exchange or a decentralized exchange.
If you are more comfortable with decentralized exchanges, then to buy ETH, investors simply need to use their preferred exchange to find a willing seller. Decentralized exchanges operate primarily as platforms to connect buyers and sellers.
Canada has remained quite hospitable to cryptocurrencies, which means that they are treated much like securities. It also means that as of April 2021, exchanges that operate cryptocurrencies sales in Canada now need to be registered with the necessary authorities.
For the most part, this means that exchanges must register with FINTRAC. FINTRAC is a government agency that is charged with credit and identity protection and anti-money laundering prevention.
The upside is that now many Canadian cryptocurrency exchanges allow users to purchase cryptocurrencies like Ethereum, with Interact, debit transactions, and e-transfers.
Below is a list of exchanges that sell ETH for CAD, accepts Canadian e-transfers and debit transactions, and are FINTRAC registered:
- CoinSmart
- Newton
- BitBuy
- NDAX
- Coinsquare
- Wealthsimple
Choosing an Exchange
Essentially, users should find an exchange with a transparent fee structure, easy methods of payment, and are overall user-friendly. Other factors to consider are trading volume and what level of investor you are.
If you are new to investing in cryptocurrency, then you may want to find an exchange that is easy to use, has low purchase minimums, and excellent customer service support to answer all of your questions and concerns.
Alternatively, if you are an investor interested in purchasing higher volumes, then you may want to explore exchanges that offer volume discounts. Several exchanges in the above list offer premium services to high-volume traders. Again, the decision is individual, and it is essential to research multiple exchanges to find the best fit for your investment needs.
