Are you thinking about buying Ethereum soon? Wondering where to buy Ethereum?
While there are many cryptocurrencies out there, ether (ETH) is one of the most popular of them all, ranking just behind Bitcoin in market value. While the cryptocurrency has had quite a ride of ups and downs over the years, it has begun to rise quite a bit in 2021, and many more investors are hoping to get in on the action.
If you’re thinking about buying ETH, Ethereum’s blockchain token, then you need to keep reading now. Below we’ll tell you everything you need to know before making a purchase.
Things to Know When Buying Ethereum
Before learning how to buy ETH, it’s important to start with the basics. Here are a few things you should know about Ethereum.
Is Ethereum a Cryptocurrency?
Ethereum is more than just a cryptocurrency, but is several things at once. Ethereum is an open-source operating system, computing platform, and programming language that is blockchain-based.
Ethereum is made with the Turing-complete scripting language and is used to run apps that are decentralized. These are known as DApps. These DApps are computer programs that are run on Ethereum.
By using Ethereum, you’ll be able to create smart contracts. Smart contracts and DApps can be created and used in a decentralized way and without interference from third parties.
In addition to the Ethereum platform, there is ether, which is a cryptocurrency. In addition to being traded like other cryptocurrencies, such as Bitcoin, ether is also used inside of the Etherum platform to operate applications and monetize certain work.
When investing in ether, one of the things to think about is where its value comes from. Like with other cryptocurrencies, Ethereum relies on special blockchain technology which serves to create a decentralized currency. With the adoption of this cryptocurrency, its value will rise. Those who buy Ethereum are banking on the fact that the technology used will become more and more prevalent as time goes on.
How Volatile is Ethereum?
An important thing to remember when buying Ethereum is that it can be considerably volatile, so you’ll need to be prepared for it. As far as investments go, Ethereum and other cryptocurrencies remain pretty risky. Because of this, you should be sure that you place them in the proper place in your portfolio and remember what you’re dealing with at all times.
While some great gains are possible when investing in ETH, some great losses are possible too. Ether was once at almost $1500 in early 2018, but throughout most of 2019 and 2020, it was worth less than $500. In 2021, the price has been steady at over $2000.
While ETH may continue to rise, it’s possible that it will go down considerably in the coming months. The value of Ethereum and other cryptocurrencies is hard to predict, so it’s important to be careful and to stay realistic with your expectations at all times.
How is Ethereum Different From Bitcoin?
If you’re thinking about buying ether, you might be wondering how it varies from the most popular cryptocurrency, Bitcoin. While both of these cryptocurrencies seem very similar at first glance, the truth is that they have some important differences.
Both Bitcoin and Ethereum are fueled by the usage of distributed ledgers, decentralized transactions, and blockchain technology. However, one of the key ways in which they differ is that Bitcoin is primarily intended to be a monetary system while ether primarily exists to enable and monetize the use of Ethereum smart contracts and decentralized applications (Dapp).
While both ether and Bitcoin can be considered cryptocurrencies, their intended usage and trajectory for the future are a bit different.
5 Steps to Buying Ethereum
So now that you know about the basics of Ethereum and what it is, how do you go about trading it? We’ll walk you through how to do it in just a few steps.
1. Choose Your Platform
The first thing you’ll want to do if you’re planning on trading Ethereum is to find a platform to use to do it. Some of the best platforms out there for trading ETH, along with other cryptocurrencies, include Coinbase, Kraken, Gemini, Bitstamp, and Binance. If you’re Canadian and want to buy Etherium, you’ll also want to check out https://virgocx.ca/en-buy-ethereum/.
There are many other exchanges that you can use for trading as well. However, you’ll want to research them carefully to ensure that they’re legitimate and offer everything you need for the types of investments you want to make.
Another thing to think about is what type of exchange you want to use. There are both fiat exchanges and cryptocurrency exchanges (C2C).
You may want to choose to use a fiat exchange if you’ll only ever be changing your cryptocurrency into a local currency. A C2C exchange may be the better choice if there are multiple types of currencies you want to trade and you may want to convert one to another. In a C2C exchange, for example, you would be able to easily exchange Ethereum for Bitcoin, and vice versa.
2. Make an Account
Once you’ve decided which trading platform is right for you, you’ll then need to create an account to become authorized to make transactions.
If you’ve opened a brokerage platform or other types of online accounts before, the process won’t be very foreign to you. Typically, to create an account you’ll simply need to enter your name, your address, a social security number, proof of identification, and a few other details.
Many online cryptocurrency exchanges will also require some kind of verification and additional documents to prove your identity and ensure that you are who you say you are. This often will only take an hour or two but may take a day or more depending on various factors and the specific exchange you choose.
3. Deposit Funds
Once you’ve created an account with a cryptocurrency exchange, the next step is to make a deposit. The way that you go through this process will vary depending on the exchange you chose to use and whether it is a fiat exchange or a C2C exchange.
With a fiat exchange, you’ll usually be able to easily deposit money with the use of a traditional bank account or with a debit card.
When it comes to C2C exchanges, the process can be a bit more involved. You’ll usually need to transfer cryptocurrency by using a code. These transactions will likely take a bit more time than a bank transfer on a fiat exchange, and you may need to wait about an hour before trading with the funds you’ve deposited.
4. Make a Trade
Once you have an account on a cryptocurrency exchange and have been fully verified, you can then start trading ETH. The way you do this with each exchange might vary a bit, but it’s usually a very simple process. Transactions aren’t always instant, so you may need to wait some time for your transaction to complete.
Also, keep in mind that the minimum investment amounts may vary based on the platform you use, but usually there aren’t too many restrictions for how much you have to trade at once. On the other hand, there will be fees for each trade, so it’s often a good idea to trade larger amounts if possible.
5. Place It in Your Digital Wallet
One of the final things to think about when buying ETH is how to keep your currency safe and secure.
After purchasing ETH, you’ll need to store it in a digital wallet to ensure that nobody has access to it but you. There are many different types of wallets to choose from, so you’ll want to consider the different options that are available to you.
Some crypto exchanges will host wallets for you in addition to allowing you to trade the cryptocurrency. The exchange will store your information and your passwords and will keep your cryptocurrency secure for you.
Getting a separate wallet that is different than the exchange you use is also a choice. This can include both online wallets, known as hot wallets, or offline storage devices which are known as cold wallets.
Whatever type of wallet you choose, the process of getting ETH onto your wallet is usually a simple one. You’ll simply need to transfer it to your wallet from your trading platform by taking a few simple steps.
Using These Tips to Easily Buy Ethereum
While investing in a cryptocurrency such as ether is not a decision to be taken lightly, making the decision to buy Ethereum could be a good one. Be sure to consider all of the information above if you’re thinking about investing in Etherreum.
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