Understanding Cryptocurrency Units
One aspect regarding cryptocurrencies that many people find hard to grasp is the way that they can be divided up into much smaller units.
As such today I will be giving you an insight into the way that Ethereum can be split up into smaller units and will be enlightening you on why that is the case.
One of the main reasons why any cryptocurrency and not only Ethereum can be split up into small units, is that if the value of a single full unit does grow in size, then it would be very expensive to buy, and many people would not be able to purchase and use expensive cryptocurrency.
Also, when you do use a cryptocurrency for its intended purpose that being to buy or sell things or pay for goods or services or to receive payments for goods and services, rather than as an investment, then you will need to be able to split up a cryptocurrency to be able to pay the actual purchase price or cost of services you are paying for.
If you could not split up a cryptocurrency into smaller units then you would end up paying more for those goods or services, which would be the case if you could only ever buy a cryptocurrency in a full single unit!
Keep in mind though that every different cryptocurrency will often have its own individual units, and whilst some cryptocurrencies, coins and tokens are based on one of the major ones, such as Ethereum, you will be best advised to learn about those units before buying into any of them.
Units of Ethereum
Let me now give you an insight into the units of Ethereum that are available, below you will find the way each unit of Ethereum has been divided up and you will find the name of those much smaller units below too.
The smallest unit of Ethereum is known as a Wei and being the smallest unit when you make any type of transactions on the Ethereum blockchain you are going to have to pay something known as “gas”.
That transaction fee is the cost of performing a transactions on the blockchain which everyone does have to pay, it can vary and users can select a fee they are willing to pay, but the higher the fee the faster the transactions are processed
The next largest unit is known as a Kwei and that is made up of 1,000 Wei. Next you will find the Mwei which is simply 1,000,000 Wei. The next largest unit of Ethereum is the Gwei and that is made up of 1,000,000,000 Wei.
Moving onto the next largest unit, that is the Microether and that is made up of 1,000,000,000,000 Wei, next you have the Milliether which is made up of 1,000,000,000,000,000Wei.
The largest unit of Ethereum you can buy, sell and use is an “Ether” and that is made up of 1,000,000,000,000,000,000 units of Wei.
At the time of writing this news story one single “Ether” was worth $923.30, and as you can see from above that is why using much small units do come in handy and allows you to send payments in much smaller units depending on what you are paying for.
Using Ethereum to Pay for Goods or Services
If Ethereum is a cryptocurrency you do like the look of and are interested in using then it is not going to be very difficult for you to be able to start to use that digital currency, but you will be required to get a few things in place before you set about buying and using it.
The very first thing that any user of Ethereum is going to have to get for themselves is something that is known as a digital wallet.
A digital wallet can be downloaded onto your computer in a matter of seconds and there are numerous ones available, however one of the more popular ones is MyEtherWallet. Once you have downloaded that digital wallet and have made a note of your passwords and private keys etc, then you will need to find a digital currency exchange at which to buy Ethereum from.
You then simply purchase the units of Ethereum you wish to buy and will be given the option of paying of it using all manner of different payment methods, once purchased the digital currency exchange will then send your Ethereum directly into your digital wallet which you can then use for anything you wish to pay for.