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Ether (ETH)

Trading Term

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Ethereum was created to support smart contracts and decentralized applications, with its associated cryptocurrency, Ether, initially distributed in 2014 – and now issued through proof-of-stake. Ether, or ETH, is used to pay transaction fees and power applications like decentralized exchanges or digital collectibles.

For example: Use ETH to deploy a smart contract for a decentralized app, such as a developer launching a decentralized voting app, where users stake ETH to vote. Transactions deploy and interact with smart contracts on Ethereum’s blockchain, which, unlike Bitcoin, is programmable, and allows custom logic beyond simple transfers.

Some investors find ETH attractive because it underpins a large ecosystem of applications and may benefit from network usage growth.

Trades placed through Interactive Brokers are executed via regulated partners, with custody and settlement handled through those intermediaries.

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IBKR FAQ: What is Ethereum?

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