{"id":180706,"date":"2026-04-23T11:30:02","date_gmt":"2026-04-23T15:30:02","guid":{"rendered":"https:\/\/ibkrcampus.com\/glossary-terms\/ethereum\/"},"modified":"2026-04-23T11:30:02","modified_gmt":"2026-04-23T15:30:02","slug":"ethereum","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/ethereum\/","title":{"rendered":"Ethereum"},"content":{"rendered":"\n<div class=\"videoWrapper\">\r\n            <div data-youtube-id=\"FODbH0_2Leo\" class=\"yt-video-blocked video-overlay lazyload\"\r\n                 style=\"background-image:inherit;\" data-bg-image=\"url(&#039;https:\/\/img.youtube.com\/vi\/FODbH0_2Leo\/hqdefault.jpg&#039;)\">\r\n                <div>\r\n                    <p class=\"text-large mb-4\">\r\n                        To watch this video you must accept functional cookies.\r\n                    <\/p>\r\n                    <button class=\"btn btn-primary w-50 manage-cookies\">\r\n                        Manage Cookies\r\n                    <\/button>\r\n                <\/div>\r\n            <\/div>\r\n        <\/div>\n\n\n\n<p><\/p>\n\n\n<p>Ethereum was created to support smart contracts and decentralized applications, with its associated cryptocurrency, Ether, initially distributed in 2014 \u2013 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.<\/p>\n<p>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\u2019s blockchain, which, unlike Bitcoin, is programmable, and allows custom logic beyond simple transfers.<\/p>\n<p>Some investors find ETH attractive because it underpins a large ecosystem of applications and may benefit from network usage growth.<\/p>\n<p>Trades placed through Interactive Brokers are executed via regulated partners, with custody and settlement handled through those intermediaries.<\/p>\n<\/p>\n\n\n<p><\/p>\n\n\n\n<p>Investing in cryptocurrencies such as&nbsp;Ether (ETH) involves significant risk. Digital&nbsp;assets are highly volatile and may experience rapid price fluctuations, including complete loss of value. The&nbsp;Ethereum network, smart contracts, and decentralized applications rely on evolving technologies that may be subject to bugs, cyberattacks, regulatory changes, or operational failures. Trading through Interactive Brokers involves execution, custody, and settlement handled by regulated third\u2011party partners, which introduces additional counterparty and operational risks. Cryptocurrency products are not legal tender, are not backed by any government, and may not be suitable for all investors.&nbsp;<\/p>\n\n\n\n<p>Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. For more information about the risks surrounding the trading of Digital Assets please see the &#8220;<a href=\"https:\/\/ndcdyn.interactivebrokers.com\/Universal\/servlet\/Registration_v2.formSampleView?formdb=4249\" target=\"_blank\" rel=\"noreferrer noopener\">Disclosure of Risks of Trading Digital Assets<\/a>&#8220;.<\/p>\n\n\n\n<p>IB is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company (&#8220;Paxos&#8221;) or Zero Hash LLC (&#8220;Zero Hash&#8221;) exchanges. Any positions in digital assets are custodied solely with Paxos or Zero Hash and held in an account in your name outside of IB.<\/p>\n\n\n\n<p>Digital assets held with Paxos or Zero Hash are not protected by SIPC.<\/p>\n\n\n\n<p>For more information about eligibility to trade digital assets with Paxos or Zero Hash, please see the&nbsp;<a href=\"https:\/\/www.ibkr.com\/faq?id=182858938\" target=\"_blank\" rel=\"noreferrer noopener\">FAQ.<\/a><\/p>\n\n\n\n<p>Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.<\/p>\n\n\n\n<p>INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA&#8217;S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.<\/p>\n\n\n<\/p>","protected":false},"excerpt":{"rendered":"<p>Ethereum is a blockchain-based platform recognized for its support of Ether (ETH), as well as dApps (decentralized apps), and smart contracts, which are generally used in concert with blockchain technology by decentralized finance (\u201cDeFi\u201d) and other applications.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13254,13251],"class_list":{"0":"post-180706","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-e","6":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- 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