Ethereum (ETH) is a decentralized open source platform that is based on the innovative blockchain technology. The Ethereum network serves as the basis on which smart contracts, which are programmed in the form of decentralized applications (DApps), can be launched. The advantage of DApps over the current internet applications is that they are often safer, more reliable and more privacy-friendly.
Ethereum is a platform that focuses on smart contracts. Smart contracts are programs that have been developed to automatically execute agreements in the manner agreed in advance without the intervention of an intermediary.
The example below illustrates how this works:
Suppose you want to buy a house and pay with ETH. The buying agreement is coded in a smart contract. The contract states that the purchasing party must pay the purchase price on the agreed date and the selling party must hand over the key and ownership papers.
The smart contract will keep thie funds in custody until both buyer and seller have fulfilled their part of the agreement. This ensures that the agreement is either fully executed or no money changes hands.
When the Ethereum blockchain is used, this type of transaction is paid in the currency called ""Ether"".
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store Ethereum. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing Ethereum and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store Ethereum without any technical knowledge. Here is a brief overview of the existing wallet options to store your Ethereum:
Hosted wallets are wallets where the private keys to your Ethereum are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your Ethereum online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your Ethereum. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your Ethereum, and if malicious parties have access to your device, your private keys (and therefore your Ethereum) can be stolen.
A hardware wallet is a physical device on which you can store your Ethereum offline. It is one of the safest ways to store your Ethereum, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your Ethereum is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive Ethereum. Once you have purchased Ethereum on Bitvavo, you can choose to send your Ethereum from your Bitvavo wallet to your own software or hardware wallet.