How to Buy Proof of Work Ethereum (ETHW)

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Contributor, Benzinga
September 19, 2022

Want to jump straight to how to buy Proof of Work Ethereum (ETHW)? You can buy Proof of Work Ethereum at Crypto.com.

On Sept.15, 2022, Ethereum completed the long-awaited Merge, which switched Ethereum’s consensus mechanism from proof of work (PoW) to proof of stake (PoS). The reasoning for The Merge was primarily environmental, as it saves energy costs from PoW and will allow for future upgrades to the chain. However, not everyone was entirely on board with the switch. Those that benefitted from PoW, primarily miners, wish that Ethereum had not made the switch so that they could continue to mine and make money. Some like PoW for other reasons, so the demand for a PoW Ethereum certainly still exists. Let’s take a look at how ETHW came to buy and how you can buy it.

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What is a Hard Fork?

A hard fork is when the entire code of a blockchain is copied and some small changes are made. This process creates a brand new blockchain that is similar to the original. Hard forks became popular during the initial Bitcoin craze. Several hard forks, such as Bitcoin Cash and Litecoin, became extremely popular.

In the context of the Ethereum Merge, ETHW is a hard fork of the Ethereum mainnet before The Merge. When The Merge happened, all the data on the Ethereum mainnet was transferred over to the PoS Beacon chain, which became the new Ethereum mainnet. However, a group saved a copy of the Ethereum mainnet before The Merge and used this to create a hard fork. 

What is Proof of Work Ethereum?

Proof of Work Ethereum is the version of Ethereum prior to The Merge. However, it is important to note that the chain is overseen by a group that is unrelated to the Ethereum Foundation. The chain was created by a group of miners who wanted to continue mining and was not created by anyone on the Ethereum development team. These miners use graphics processing units (GPUs) to mine tokens. Ethereum has been the most profitable token to mine for several years, so taking away the ability to mine ETH was problematic for those with GPUs, as they are far less profitable mining other tokens, such as Litecoin and Ethereum Classic. 

As of right now, the main net for ETHW has not been released, so it is unclear what will happen. Since the hard fork initially occurred in August 2022 before The Merge, many are wondering what the creators will do with the data they have. ETHW essentially took a snapshot of the Ethereum mainnet in August, so it has several options regarding what to do with the information. They could burn, or erase, all the ETHW that is in decentralized applications (dApps) on the chain. These dApps, such as decentralized exchanges (DEXs), would potentially hold lots of ETHW, which would flood the supply and could cause the price to crash.

Overall, the goal of ETHW is to allow miners to continue mining and earn rewards. However, the chain will have to make some major decisions soon regarding what they will do with the massive supply of tokens. These choices will likely have a major impact on the price and the mining rewards.

How to Buy Proof of Work Ethereum

Now that you have a basic understanding of ETHW and how it works, you may be interested in how to buy ETHW. Fortunately, doing so is easy and only takes a few steps. 

Step 1: Open an online account.

The first step in purchasing ETHW is to open an account on a crypto exchange. This simple step usually requires only an email or phone number. Because ETHW is a fairly new token, not many centralized exchanges or wallets support the token. However, it is offered on a few exchanges, such as Crypto.com.

Step 2: Buy a wallet (optional). 

After you buy ETHW you need somewhere to store it safely. Wallets differ from exchanges in that they are a decentralized place to store crypto instead of trading it. You can choose from multiple forms of virtual wallets. While having a wallet is not a necessity to purchase ETHW, it can allow for much more freedom with your tokens.

Best Hardware Wallet: Ledger

Ledger is a hardware wallet that is extremely easy to use and is compatible with several software wallets. Once you have purchased a Ledger hardware wallet, you connect it to a compatible software wallet. Hardware wallets offer an extra level of security as opposed to software wallets, but they cost money while software wallets are typically free. 

Step 3: Make your purchase.

On FTX, you can use the search feature to locate ETHW. Once you have located ETHW and have a balance, you click the buy button and enter the amount of ETHW you would like to purchase. After this, the tokens are stored on your account. You can also send it to a software wallet, such as MetaMask, if you wish. 

How to Get Free Proof of Work Ethereum

Since ETHW is a hard fork, anyone who owns ETH will have an equal amount of ETHW. So, if you had any ETH before the hard fork, you will still have it on the old Proof-of-Work blockchain. Essentially, you automatically have the same amount of ETHW as you did ETH, which you can hold or sell. 

Trade, Sell or Convert your Proof of Work Ethereum

To sell your ETHW tokens, you can either convert them directly to USD or convert them to another token. To convert them to USD, use the “Sell” feature on the token’s page, which can be accessed through your cryptocurrency exchange account.

To convert to another token, use the “Convert” feature and select the token you would like to convert to. It is important to keep in mind that ETHW cannot be converted to many other tokens at this point in time.

Current Crypto Prices

Right now, the entire crypto world has its eyes on the Ethereum Merge. This highly anticipated event has changed the consensus mechanism for ETH and will pave the way for future upgrades. 

If you want to see how The Merge is impacting crypto prices, make sure to check out Benzinga’s up-to-date crypto price chart.

Is Proof of Work Ethereum a Good Investment?

Right after The Merge, tons of people with ETH in their wallets also received the same amount of ETHW and immediately sold the tokens. As such, the price went down nearly 80% on the day of The Merge. In terms of the future, if the chain can attract enough volume for mining to be viable, there could be some success for the token. Additionally, if Ethereum’s new PoS does not work as well as intended then some could revert back to PoW. However, this is extremely unlikely.

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About Caden Pok

Caden has been involved with cryptocurrency for several years. He began trading and investing in crypto in 2018. Now, we mines multiple coins and holds positions in Cardano and Ethereum. He is very experienced with DeFi technology.