Ethereum is often hailed as ‘the mother of decentralized applications,’ being the second most active cryptocurrency after Bitcoin and one of the world’s largest super computers.
This comprehensive article will equip you with all the Ethereum (ETH) basics, exploring its history and defining features, such as smart contracts, and detailing its many use-cases.
What is Ethereum in NZ?
Ethereum is a revolutionary blockchain technology that enables you to build decentralized apps (dApps) and organizations (DAOs) in a transparent and censorship-resistant manner.
At the heart of Ethereum is a super computer called the Ethereum Virtual Machine (EVM), Each participant in the network, or Ethereum node, keeps a copy of the EVM’s state.
Ethereum is free to use, accessible to anyone with an internet connection and device, and has no comprehension of international borders; acting as a universal internet currency.
How to Buy Ethereum in NZ
To buy Ethereum or any other cryptocurrency in New Zealand, you can use one of the NZ Crypto exchanges listed below. You can buy ETH in minutes depending on the platform.
Easy Crypto NZ
Best Way for Beginners to Buy
Easy Crypto NZ is New Zealand’s most popular crypto retailer, making it safe, fast, and easy for Kiwis to buy and sell over 110+ cryptocurrencies in minutes – including Bitcoin, Ethereum, Monero, Dogecoin & XRP.
Cryptocurrency NZ Recommendation ⭐⭐⭐⭐⭐
Website: www.easycrypto.ai/nz
Why We Recommend Easy Crypto NZ
Here at Cryptocurrency NZ, we’ve used Easy Crypto without any issues for over 5 years.
They’ve helped mainline hundreds of thousands of New Zealanders into the cryptocurrency markets.
Easy Crypto is a reputable, reliable and Kiwi focused crypto retailer who without a doubt achieves their mission of making it safe, fast and easy for Kiwis to buy and sell Bitcoin and 160+ other coins in NZ.
EC typically provide rapid order speeds through their simple interface and are well suited to first time crypto investors.
Our biggest critique would be EC’s excessive compliance program, requiring users to jump through increasingly heavier identity and source of funds verification steps for users seeking to acquire privacy coins such as Monero (XMR).
For privacy focused users, non-KYC’ed options such as the NZ P2P Crypto Marketplace may be better suited.
Pros & Cons
Pros of Easy Crypto NZ
✔️ Beginner friendly: Easy Crypto’s interface is well suited to first time or casual investors.
✔️ Near instant KYC: you can typically create an account, verify your ID and trade within minutes.
✔️ Non-custodial: crypto is sent directly to your own private wallet, Easy Crypto doesn’t store it for you.
✔️ Transparent fee structure: When you place an order, you can see the exact numbers of how much you’ll receive.
✔️ Local customer support: when you need help, EC provides high quality one-on-one assistance.
Cons of Easy Crypto NZ
❌ Limited features: day traders are better suited to live exchanges like Binance NZ or Kiwicoin
❌ Excessive compliance: You can’t buy privacy coins like Monero without proving the source of your funds.
❌ No on-site wallet: users must have a secure wallet already set up to buy and sell through Easy Crypto.
❌ Slippage: There’s sometimes a difference in prices between when you locked in your fees vs current prices.
❌ KYC: You have to verify your identity in order to actually buy or sell. This data is then passed on to the government.
Reputation
Easy Crypto NZ is a homegrown, non-custodial crypto retailer with a strong reputation in the NZ crypto community.
They have a strong presence in the domestic crypto industry , sponsoring Cryptocurrency NZ’s meetups and are known to actively engage in New Zealand’s various community forums, groups and events.
Since launching in 2018, ECNZ has generated over 200,000+ users in New Zealand alone and has processed over 2 Billion NZD in order volume – securing their title as New Zealand’s crypto heavy weight.
Janine Grainger, EC’s co-founder and other members of EC’s exec team are active members in financial technology and blockchain lobbying bodies across NZ such as Blockchain NZ and Fintech NZ.
Binance NZ
Best Exchange for Advanced Traders
Binance, the world’s largest crypto exchange, is a highly popular platform for Kiwis interested in crypto trading in NZ.
Binance offers over 1400 trading pairs, such as NZD to BTC, with some of the lowest fees in the industry.
Cryptocurrency NZ Recommendation ⭐⭐⭐⭐⭐
Website: www.binance.com/nz
Why We Recommend Binance NZ
Here at Cryptocurrency NZ, we have used Binance for over 4 years without any issues.
Binance is the world’s largest crypto exchange, accounting for over 40% of the total crypto market’s trade volume. They have world class platform, access to liquidity, a plethora of coins to trade and are known to be reliable and secure.
They are however still a centralized exchange and the age old ‘not your keys, not your crypto’ still applies. We don’t recommend storing large amounts of coin long term on exchanges and instead recommend using a hardware wallet.
If you’re a day trader, looking to swing trade or practice technical analysis and chart drawing, Binance is very solid.
Pros & Cons
Pros of Binance NZ
✔️Plethora of coins: Humongous selection of cryptocurrencies available for trading.
✔️ Competitive Rates: Famously low trading fees, especially for high-volume traders and those who hold BNB.
✔️ SAFU Fund: Binance has a “SAFU’ fund to protect users in the event of a security breach or hack. Learn more.
✔️ Registered in NZ: Binance is a registered Financial Service Provider in NZ.
✔️ Advanced Features: Offers world class trading tools and charts.
✔️ IOS & Android: Mobile apps available for trading on-the-go.
Cons of Binance NZ
❌ Regulatory exposure: Ongoing regulatory scrutiny and potential for government restrictions.
❌Mixed Reviews: Some negative user reviews and complaints about poor customer service.
❌ High withdrawal fees: Withdrawing some coins can be higher than fifty dollars, depending on market prices.
❌ Customer Support: Limited customer support during high-traffic periods
❌ Centralized Exchange: Potential for hacking or security breaches.
❌ KYC: You have to verify your identity in order to buy or sell. This data is then passed on to the government.
Reputation
Binance has has over 6,000 staff globally, and since registering in Zealand in September 2022 as a Financial Services Provider, they have invested heavily into marketing, complying with NZ regulations and developing an NZ based team.
Ben Rose, Binance’s CEO is a member on the Blockchain NZ council, and many of the Binance NZ team are public.
Binance is an international exchange, headed and founded by Changpeng Zhao (CZ), one of the most well known and trusted crypto developers and entrepreneurs in the world. Binance NZ is in it’s early days, but is gearing for the long haul.
History of Ethereum
In 2013, Vitalik Buterin, a young programmer and blockchain enthusiast, published the Ethereum white paper outlining his vision for a new blockchain platform that could support smart contracts and decentralized applications (dApps).
Buterin proposed a blockchain-based system that would allow developers to build and deploy applications without the need for intermediaries or centralized control.
In 2014, the Ethereum Foundation was established in Switzerland to support the development and adoption of Ethereum. The foundation was funded by a crowd sale of Ether, Ethereum’s native cryptocurrency. Over 31,000 people participated in the crowd sale, which raised over $18 million in Bitcoin.
In July 2015, the Ethereum network launched with the release of its first software, called “Frontier.” The launch was marked by a crowdfunding campaign that raised over $18 million worth of Ether. Ethereum quickly became the second-largest cryptocurrency by market capitalization after Bitcoin.
In 2016, The DAO (the first Decentralized Autonomous Organization) raised over $150m on the Ethereum network in what was one of the largest crowdfunding campaigns of all time.
The DAO was a smart contract-based organization that aimed to be a decentralized venture capital fund. However, a vulnerability in its smart contract led to a hack that resulted in the loss of millions of dollars worth of Ether. Ethereum blockchain was split into two separate networks: Ethereum (ETH) and Ethereum Classic (ETC).
Since then, ETH has undergone several upgrades to improve its scalability, security, and functionality. In 2019, the Ethereum Foundation announced the launch of Ethereum 2.0, a major upgrade that will move the network from a proof-of-work consensus mechanism to a proof-of-stake mechanism, among other changes. The Ethereum 2.0 upgrade took place on 15th of September 2022 and was a huge success.
How Does Ethereum Work in NZ?
What is Ether in NZ?
Ether (ETH) is the native cryptocurrency of the Ethereum network, and it serves several important functions. Firstly, it is the only acceptable form of payment for transaction fees on the network. After the implementation of The Merge, ether will also be required to validate and propose blocks on Mainnet.
Additionally, ether is widely used as collateral in the DeFi lending markets, where users can borrow and lend digital assets. Ether is also used as a unit of account in NFT marketplaces, where users buy and sell non-fungible tokens.
Moreover, ether is increasingly being used as a payment method for various services and real-world goods. In short, ether is a versatile cryptocurrency.
Ethereum's Blockchain
The Ethereum blockchain is a decentralized, distributed ledger that allows for the secure and transparent transfer of digital assets, such as cryptocurrency, without the need for intermediaries. It operates on a global network of computers, or nodes, that work together to maintain and validate the integrity of the network.
The Ethereum blockchain is unique in that it allows developers to build decentralized applications (dApps) on top of the network. These dApps use smart contracts, which are self-executing programs that automatically execute the terms of a contract.
How to Store Ethereum in NZ
Ether is stored in Ethereum wallets – which are free to set up, use and operate. Except for the ETH transaction fees, which are paid to validators.
In traditional online services, accessing your accounts typically involves using your email address and password. However, in the world of cryptocurrency, your wallet access and ownership are represented by a unique public and private key pair.
Private Keys and Public Keys
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
- Private Key: Private keys is the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. Never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
- Public Key: Ethereum public keys are like your crypto bank account number – an address others can use to send you ETH. You can safely send your public key to anyone, knowing they can’t change or open your wallet, but rather use it to send you ETH.
What is proof-of-stake (POS)?
Proof-of-stake is a key concept that underlies certain blockchain consensus mechanisms used to achieve agreement across a network. In traditional proof-of-work systems, miners prove their investment by using up energy. Ethereum, however, uses proof-of-stake where validators stake capital in the form of ETH into a smart contract on the network.
This staked ETH acts as a type of security deposit which can be lost if the validator acts dishonestly or fails to carry out their duties. Validators are responsible for checking that new blocks are valid and occasionally creating new blocks themselves.
This also helps to ensure the security and integrity of Ethereum’s network.
Best Ethereum Wallets NZ
⭐Cryptocurrency NZ Recommendation 🏆
Best Bitcoin Wallet for security
Trezor Model T
Purchase Cost: $219
Cloud Storage: No
Cold Storage: Yes
At Cryptocurrency NZ, we endorse the Model T as our preferred hardware wallet for several reasons, with security being at the forefront. The Model T offers robust security features, including offline storage of private keys and the availability of a physical security key, which provides an extra layer of protection against threats.
Pros of Trezor Model T:
✔️ Versatile Crypto Support: Trezor stands out for its compatibility with a array of currencies, enabling users to store multiple assets in one wallet.
✔️ Available Touch Screen: The presence of a touch screen on certain models of Trezor enhances user interaction and navigation. This feature contributes to a more intuitive and user-friendly experience.
✔️ Highly Secure: Trezor is renowned for its robust security measures. By storing private keys offline in the hardware wallet, it provides optimal protection against online threats such as phishing attacks and malware.
Cons of Trezor Model T:
❌ Security key exclusive to Model T: While the Trezor Model T offers the added security of a physical security key, other Trezor models lack this feature.
❌ Relatively High Cost: Compared to some software wallets, Trezor hardware wallets are relatively more expensive. The investment in hardware security might deter budget-conscious users or those with smaller crypto holdings.
❌ Not Beginner-Friendly: Trezor’s advanced security features and configuration options may overwhelm beginners new to crypto. The setup process to operate the hardware wallet effectively may require some technical knowledge.
The Trezor Model T Wallet is a cutting-edge hardware wallet designed to provide top-notch security for managing cryptocurrency assets. With its sleek design and user-friendly touch screen, the Model T stands out as a versatile solution.
One of its distinguishing features is the availability of a security key, which further enhances the protection of your private keys and sensitive information. This hardware-based security approach significantly reduces the risk of unauthorized access. For New Zealanders seeking a secure and efficient way to safeguard their digital assets, such as their Bitcoin the Trezor Model T Wallet is an excellent choice.
To learn more about the features and benefits of Trezor Wallet, we recommend checking out our comprehensive guide, “What is Trezor Hardware Wallet NZ.“
Best Bitcoin wallet for beginners
Exodus Desktop
Purchase Cost: Free
Cloud Storage: Yes
Cold Storage: Yes
Cryptocurrency NZ Chooses Exodus as the best Bitcoin wallet for beginners due to its exceptional features. Being a free wallet, it offers an accessible entry point for newcomers. Additionally, Exodus provides great customer support.
Pros Of Exodus Wallet:
✔️ Built-in Exchange: Exodus offers the convenience of a built-in exchange, allowing users to easily trade between supported cryptocurrencies without leaving the wallet interface.
✔️ Good Customer Support: With responsive and helpful customer support, Exodus ensures that users receive assistance promptly, enhancing their overall wallet experience.
✔️ Easy Setup Process: Exodus boasts a user-friendly and straightforward setup process, making it an ideal choice for beginners entering the world of cryptocurrency.
Cons Of Exodus Wallet :
- ❌ Closed Source Software: The closed-source nature of Exodus’s software may raise concerns for security-conscious users, as they have limited visibility into the codebase and potential vulnerabilities.
- ❌ Lacks 2FA Security Protection: Unfortunately, Exodus currently lacks Two-Factor Authentication (2FA), which is an additional layer of security desired by some users to protect their accounts from unauthorized access.
Exodus is a user-friendly desktop and mobile wallet known for its straightforward interface and built-in exchange. With the ability to swap between over 250 cryptocurrencies, it offers great versatility for users. Beginners appreciate its simplicity and excellent customer support, making it an ideal entry point into the world of crypto.
However, more advanced users might find it lacking due to its closed-source nature, raising potential security concerns. Despite this, Exodus allows custom fee settings and ensures prompt transaction completion, adding to its appeal for users seeking cost-effective and efficient transactions.
For more in-depth information about Exodus Wallet, Cryptocurrency NZ recommend checking out our comprehensive “What is Exodus Wallet NZ” guide.
Is there a Ethereum Community in NZ?
New Zealand boasts a thriving community of Ethereum and crypto enthusiasts, many of whom gather on popular social platforms like Facebook, Telegram, Reddit and Discord.
These online communities are an excellent source of information for locals.
Check out our comprehensive list of Ethereum and Crypto communities in New Zealand:
- Cryptocurrency NZ Facebook Group – (Highly recommend)
- Cryptocurrency NZ Monthly Meetups – (Last Wednesday of every month)
- Cryptocurrency NZ Discord Group
- NZ P2P Crypto Marketplace – (NZ’s Largest Cryptocurrency P2P marketplace)
Have a community for us to list? Please reach out to us!
Cryptocurrency NZ Final Verdict
At Cryptocurrency NZ we believe Ethereum is more than just a financial investment. Its unique set of characteristics makes it stand out from traditional finance and other cryptocurrencies. ETH’s core value proposition is built around its ability to provide a decentralized and secure platform for decentralized applications and smart contracts.
Ethereum’s emphasis on privacy, freedom, and censorship-resistance also distinguishes it from centralized financial systems. ETH’s blockchain technology also provides a unique opportunity for developers to build innovative solutions.
In a world where centralization is the norm, Ethereum offers a new paradigm for decentralized systems that can change the way we interact with technology.
