A Beginner's Guide To Ethereum
Ethereum is the leading smart contract-enabled blockchain for the development of decentralized applications and protocols.
In this beginner’s guide to Ethereum, you will learn more about what Ethereum is, how it works, and how to securely buy, send, swap, stake, and store Ether (ETH) using Trust Wallet.
What is Ethereum?
Ethereum is a decentralized, open-source platform that utilizes the blockchain to enable smart contract functionality and digital value transfer without needing a third party or middleman.
The Ethereum blockchain was created for more versatility in the use of blockchain technology than purely acting as a money transfer system.
Introduced to the public via a white paper in 2014, Ethereum was founded by Vitalik Buterin, a Russian-Canadian computer programmer. Buterin also had co-founders, including Mihai Alisie, Anthony Di Iorio, Charles Hoskinson, and Amir Chetrit with whom he launched the Ethereum blockchain in 2015.
The blockchain’s birth in the crypto space introduced decentralized applications (dApps), decentralized finance (DeFi), and the concept of easy-to-deploy smart contracts.
The incorporation of smart contracts also gave Ethereum an upper hand when it came to the non-fungible tokens (NFTs) industry. This is because most well-known NFT projects were first launched on Ethereum thanks to its advanced functionalities resulting in what was considered a revolution in the blockchain space. Additionally, most of the projects built on Ethereum helped to create a secure, open, and independent financial system that helped push DeFi’s growth, especially in 2020 and 2021.
When it comes to Web3, Ethereum continues to play a crucial role in its creation as developers can build dApps on the blockchain thanks to its decentralized and permissionless nature. Additionally, its native token, ether (ETH) is emerging as the base currency of Web3, which - to date - is largely being built on Ethereum.
Ethereum’s History & Upgrades
In 2014, Ethereum raised capital through an initial coin offering (ICO) that was then used in developing the blockchain. Between July and September of 2014, the project focused on raising capital by selling more than $18 million of ETH paid in bitcoin (BTC). ETH holders were, however, unable to use or move their ETH until the Ethereum blockchain was launched.
Despite the issues it has faced since its launch, Ethereum has undergone various upgrades geared towards providing a more secure protocol, better user experiences, and more options on how users can interact with the blockchain.
The Byzantium upgrade of 2017, the Beacon Chain upgrade of 2020, and The Merge upgrade of 2022 are some of the major upgrades that Ethereum has undergone so far. The Merge upgrade, for instance, saw Ethereum switch from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism.
With PoS, Ethereum validators can stake ETH into a smart contract to validate new blocks on the chain, with successful validators earning rewards in ETH. However, The Merge hasn’t had any impact on Ethereum’s gas fees thus far.
In 2023, Ethereum is performing the Shanghai upgrade. The upgrade - slated for April 12, 2023 - allows users to withdraw the ether (ETH) they had staked for the last three years. Additionally, the upgrade is also expected to lower gas fees and increase transaction speeds.
But that won’t be all for this blockchain as Ethereum has more upgrades in its roadmap that are expected to offer extra security, continued enhanced user experience, cheaper transactions, and future-proofing.
What Is Ethereum’s token?
Ethereum has its own native token known as Ether that trades under the ticker ‘ETH’.
ETH is the second largest cryptocurrency by market value after Bitcoin, but unlike BTC, ETH has an infinite supply. Currently, there are slightly over 120M+ ETH in circulation.
Besides being Ethereum’s native cryptocurrency, ether is used to execute smart contracts and to process transactions. Additionally, validators on the Ethereum blockchain can earn rewards in ETH once they successfully validate new blocks, which can then be securely stored and managed in a crypto wallet such as Trust Wallet.
What is Trust Wallet?
Trust Wallet is a secure, decentralized, self-custody, multi-chain crypto wallet that enables you to manage and securely store over 9M digital assets, including NFTs, across 70+ blockchains.
When you use Trust Wallet you have control over their private keys and crypto assets because it’s a self-custody wallet.
Additionally, Trust Wallet seeks to make Web3 moare accessible, and allows you to buy, deposit, send/receive, swap, stake, store, or sell multiple cryptocurrencies using the Trust Wallet app or browser extension. In addition, Trust Wallet has partnerships with third-party platforms like MoonPay, Simplex, and Ramp, among others. Such partnerships allow Trust Wallet users to buy and sell digital assets via the app.
You can also access dApps via the built in dApp browser or via WalletConnect, an open-source protocol that utilizes code scanning and deep-linking to connect decentralized apps to mobile wallets. This protocol is used to connect to dApps that aren’t supported by Trust Wallet.
Now that we know more about Ethereum, its native token, and also about Trust Wallet, let’s take a look at how you can get started on buying ETH using Trust Wallet.
How to Buy ETH With Trust Wallet
To get started, you will need to download the Trust Wallet app via Google Play Store for Android users and the App Store for iOS users. Alternatively, you can also opt to use the Trust Wallet browser extension on your desktop. However, for the purposes of this guide, we will use the Trust Wallet app.
Go to your smartphone’s Play Store/App Store app and enter ‘Trust Wallet’ on the search bar. Ensure that you have the original Trust Wallet app, as shown below, before installing it.
Next, click on ‘Install’ to download and install the app on your phone. Once successfully downloaded, click on ‘Open,’ then ‘Create a New Wallet,’ and follow the prompts to create your new wallet.
Next, create your six-digit passcode. This will give your digital assets and wallet an extra layer of security. Confirm the passcode and tap on ‘Continue’ to proceed with the setup process for your wallet.
Trust Wallet will require you to back up your secret phrase. A secret phrase is a sequence of 12 words that store the data needed to recover your account. Please note that your secret phrase should never be shared with anyone, as it provides access to your wallet and the holdings therein.
Currently, you can either back up your wallet via Google Drive or manually. Proceed to choose the manual backup option and read the instructions provided in the event of losing your secret phrase, and then check the warning boxes provided before clicking on ‘Continue.’
The wallet will then display your 12-word secret phrase on your screen. Note down all 12 words in the exact order displayed then click ‘Continue.’ You will be required to confirm your phrase by re-entering all 12 words in the correct order. Click on ‘Done’ once you have keyed in the seed phrase in the correct order.
Your Trust Wallet will now be active and ready for use.
Once your wallet is all set up, you will need to enable the ETH token. To do this, click on the icon on the right-hand corner of your screen, and on the search bar, type ‘Ethereum’ and click on the token’s slider icon to enable ETH in your wallet.
Now that ETH is enabled, you can proceed to buy Ether using your Trust Wallet account. To do this, click on Ether on the app and then on ‘Buy ETH’.
Enter the amount of ETH you want to buy and click on ‘Next’. Please note that the minimum amount of Ethereum that you can buy on Trust Wallet is $50.
Trust Wallet will then redirect you to a third-party on-ramp provider to complete your purchase of ETH tokens. In this case, MoonPay had the best market rate for ETH tokens. Click on ‘Next’ and re-enter the amount you want to spend and choose your preferred currency then click on ‘Continue’.
Once you click on ‘Continue’, MoonPay will require you to enter your personal and bank details to complete the transaction. Once your transaction is completed, your ETH tokens will be deposited to your Trust Wallet account. It’s important to note, however, that the transaction can last anywhere between a few seconds to a few minutes.
How to Withdraw ETH via Binance
Besides buying ETH via Trust Wallet, you can also withdraw ETH into your Trust Wallet account from a reputable crypto exchange. For this guide, we will use Binance as the exchange of choice.
First, go to your Trust Wallet account, click on ETH, then ‘Receive’. You will be redirected to a page with a QR code. Click on the ‘Deposit from exchange by direct transfer from your account’ option.
Next, a prompt will appear on your screen that will require you to choose the exchange that you’d like to withdraw ETH from. Click on ‘Binance’.
You will automatically be redirected to the Binance app if you already have the app set up on your phone with your Trust Wallet ETH token address auto-entered for you.
Proceed to whitelist the address. To whitelist your ETH address, copy it and go to the Binance app, click on ‘Settings’, then ‘Crypto Withdrawal Settings’.
Next, click on ‘Address Management’, then ‘Add New Address’. Select the Ether token and paste the wallet address copied then choose the origin of the wallet address. In this case, choose Trust Wallet, name your token, enable the ‘Add to Whitelist’, and click on ‘Save’.
Once done, key in the amount of ETH tokens you want to withdraw. Binance will show you the network fee cost and the amount of ETH tokens you will get in your Trust Wallet account. Tap on ‘Confirm’ to process the transaction.
Once your transaction is completed, your Ether tokens will be deposited into your Trust Wallet account.
How to Send/Receive ETH on Trust Wallet
You can send or receive ETH from your Trust Wallet account to another exchange or wallet quite easily.
To send ETH, ensure that you have the recipient’s wallet address. If you are sending ETH from your Trust Wallet account to an exchange like Binance, log in to your Binance account and copy your Ether wallet address.
Alternatively, if you are sending it to a person, ask them to share their ETH wallet address. To get their ETH wallet address, ask them to go to their crypto wallet, click on ‘ETH’ then ‘Receive’ and copy and share their ETH wallet address.
Once you have the wallet address, go to your Trust Wallet app, search for Ether, and click on the ‘Send’ option as shown below.
Next, paste the recipient’s wallet address and enter the amount of ETH tokens you want to send, then click on ‘Continue’.
Review the details of your ETH transaction as shown on your phone then confirm the transaction. Remember, you need to have enough ether in your wallet to cater for the network fee.
Once the transaction is successful, your recipient will receive their ETH tokens in their crypto wallet.
To receive ether in your Trust Wallet account, go to the Trust Wallet app, click on ‘ETH’ on your homepage, and then ‘Receive’. Copy your ETH wallet address and share it with your sender. Please note that you can also set the amount of ETH you wish to receive from your sender.
Once your sender has your wallet address, they can initiate the transaction, and once confirmed by the network, you will receive the ETH tokens in your Trust Wallet account.
How to Swap ETH Using Trust Wallet
Just like you can buy, withdraw, send, or receive ETH using Trust Wallet, you can also swap your ether tokens.
To do this, go to Trust Wallet, click on ‘ETH’, then on ‘More’. Next, click on ‘Swap’.
Enter the amount of ETH tokens you want to swap and choose the token you want to swap your ETH token for. Trust Wallet will show you the amount of crypto you will get for the selected token. Click on ‘Preview Swap’ and complete the swap.
And that’s how to swap your ETH tokens using Trust Wallet!
How to Sell ETH Using Trust Wallet
Besides swapping your ETH token on Trust Wallet, you can also sell ETH for fiat via Trust Wallet’s new crypto-to-fiat feature. To do this, click on ‘ETH’ on your app, then ‘More’, and then ‘Sell’.
Next, enter the amount of ETH tokens you want to sell and select the third-party off-ramp provider of your choice and follow the remaining instructions to convert your ETH tokens to fiat currency.
And that’s how to sell ETH tokens using the Trust Wallet app!
How to Stake ETH via dApps on Trust Wallet
With Trust Wallet, you can easily stake ETH to help secure the Ethereum network by taking part in its Proof of Stake consensus protocol and earn ETH as a reward.
So, how can you stake ETH on Trust Wallet?
For the purposes of this guide, we will stake our ETH tokens using Lido.fi. To get started, go to Lido.fi using the Trust Wallet dApp Browser.
Next, click on ‘Stake Now.’ You will see a list of various digital currencies that you can stake. Scroll to Ethereum and click on ‘Stake Now.’
You will be redirected to connect your wallet in order for you to stake ETH. On the page, click on ‘Connect Wallet’ as shown below.
Next, accept Lido.fi ‘Terms of Service’ and ‘Privacy Notice’ and then select ‘Trust Wallet’.
You will be redirected to your Trust Wallet account. Proceed to enter your passcode and connect your Trust Wallet to the Lido.fi dApp.
Now, you are ready to stake your ETH tokens. Enter the amount of ETH you want to stake and click on ‘Submit’ to complete staking your ETH tokens via the Lido.fi dApp using your Trust Wallet account.
And that’s how to stake your ETH tokens via the Lido.fi dApp on Trust Wallet!
Ethereum has an extensive ecosystem that continues to grow and evolve, creating new opportunities to take part in web3. Download Trust Wallet today to start your Ethereum journey using a secure and easy-to-use web3 wallet.
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