Because of its significance in establishing NFTs, you may have heard of Ethereum (non-fungible tokens). Or maybe you’ve seen that it’s the second-most popular cryptocurrency and want to join in. Perhaps you’ve seen that it’s recently set several new all-time highs and thought about how to buy Ethereum. Don’t worry! We have made this guide to simplify your experience with buying Ethereum. We will educate you on all you need to know about this much-hyped coin.
Ethereum is one of two cryptocurrencies (Bitcoin) that investment professionals recommend newbies stick to since it is more established than other lesser-known cryptos. So, if you’ve concluded that cryptocurrency has a place in your portfolio, you’re comfortable with the risks and ready to invest, here’s where to begin.
Buying Ethereum vs Trading Ethereum
Buying Ethereum can be simple – depending on wallets and exchanges – but it’s not the same as purchasing foreign cash when traveling abroad. It does not, however, necessitate a great deal of knowledge. You will be required to select an appropriate wallet and the exchange and payment of crypto coins.
On the other hand, Ethereum trading is a more short-term endeavor; Getting into the market, remaining in it for a few months, then exiting when the price reaches its peak. As a result, Ethereum traders have a reputation for being price sensitive and fleeing the market when it becomes unprofitable.
How To Buy Ethereum Online?
You need an exchange account to buy Ethereum, which is easier than you believe. Here are the 5 easy steps you’ll need to follow to buy Ethereum quickly and easily.
- Choose which exchange or brokerage you want to use to buy Ethereum.
- Create a user account.
- Carry out the required KYC checks.
- Deposit into your account.
- Purchase Ethereum and keep it in a wallet.
How To Trade Ethereum?
To invest in Ethereum, you do not need to buy it. You can exchange Ethereum instead if you prefer. Trading Ethereum is slightly different from buying it; follow the procedures below.
- Look for a broker.
- Create a user account.
- Carry out the necessary KYC checks.
- Decide on a strategy.
- Once you’ve determined how you want to trade, fill your account with Ethereum assets. You can use leverage to maximize your winnings but keep in mind that it also increases your risk of losses.
How To Buy Ethereum In Different Ways
How To Buy Ethereum By Cash
Buying Ethereum via a third party may be beneficial for various reasons. On the other hand, regulations governing such transactions may differ by location. KYC and AML processes are standard in online peer-to-peer (P2P) exchanges.
Over-the-counter (OTC) trading of local currencies for crypto assets such as BTC or ETH is facilitated via peer-to-peer (P2P) exchanges. OTC trading of ETH is aided by Ethereum smart contracts, which are based on the Ethereum blockchain’s structure.
P2P crypto services are marketplaces that allow users to send local currency to individuals in exchange for variable amounts of crypto-assets like Ethereum. Escrow features are commonly used in P2P platforms or services. Bank transfers, payment platforms, and other ways of money transfer are available.
How To Buy Ethereum from an Ethereum ATM
Alternatively, you can buy Ethereum from an Ethereum ATM, which will usually need you to provide personal information.
Using a cryptocurrency, ATM also necessitates the creation of an Ethereum wallet, which serves as a repository for the machine’s purchased ETH. We will discuss Wallets for Ethereum later in this article.
After you’ve created a wallet, you’ll need to find an ATM that accepts Ethereum transactions. Finding an Ethereum-friendly ATM should be as simple as a Google search.
Locate your nearest ATM and hold the QR code in your wallet to the machine’s camera to scan it. Then, to finish your transaction, insert your cash into the ATM and confirm the amount of Ethereum.
How To Buy Ethereum With Credit Card
Buying ETH with a credit card works in the same way as any other online transaction:
To begin, go to the website or app of the credit card Ethereum broker and create an account. At this point, some will require you to link a bank account or verify your identity by asking for a photo of your ID.
After you’ve signed up and been approved, platforms will either need you to finance your account or allow you to buy. You can use your credit card to fund the account if necessary. If you can buy directly with your credit card without financing your account, select “purchase” to fill out an order form for the ETH transaction. You can use the ticker sign ETH to search for Ethereum online.
How To Buy Ethereum Using Paypal
The eToro platform is the most straightforward way to purchase Ethereum with PayPal. The eToro wallet, effectively a contract for differences (CFD) trading platform, allows you to buy, hold, and send cryptocurrencies.
Things To Consider Before Buying Ethereum
The deposit fees you pay will vary depending on the cryptocurrency exchange or brokerage. Although cryptocurrency transactions are usually cheaper, credit card and debit card fees are the most expensive. You’ll have to pay these fees every time you deposit or withdraw money from a cryptocurrency exchange.
Like maker and taker fees, trading fees are present on almost every platform. Most of them have a tier-based structure dependent on your monthly trading volume. Your charge percentage decreases as you trade more.
Volatility is another factor to consider. It refers to the quick change in the price of cryptocurrency tokens. If you acquire Ethereum now at a specific price, it may be significantly higher or lower tomorrow.
You’ll need to follow various restrictions depending on where you are and what type of crypto exchange you use. As a result, many crypto exchanges will request KYC and AML documentation from you.
Long-Term Holding (HODL)
A HODL investment lasts for at least six months. You’ll adopt this technique when predicting the price to rise over time.
Any investment you can hold for less than a year is considered short-term holding. The goal with Ethereum is to sell as soon as the value rises rather than wait.
Is It Safe To Buy Ethereum Online?
Buying Ethereum online is risk-free if you choose a crypto exchange with stringent security measures.
Before anything else, keep your coins separate from your exchange in a wallet. You can use two-factor authentication (2FA) to add an extra degree of security to your account.
We advocate using a hardware wallet to store your money when it comes to wallets. You’ll be able to keep them off the internet— and away from prospective hackers — in this manner.
If you use a peer-to-peer P2P exchange, it’s also worth remembering that you should communicate to sellers before buying. Other measures you can take to safeguard yourself include:
- Not disclosing your account password to anyone.
- Only use authorized forums and websites to seek advice.
- Before selecting an exchange, read customer reviews.
- Not buying Ethereum on public internet connections.
How To Store Ethereum?
After your Ethereum purchase has been completed, you must store your cryptocurrency. While some platforms will store it for you, some people choose to keep their investments on their own to lessen the risk of losing it to a hack.; this is logical, but it’s also worth noting that the majority of big exchanges guarantee their clients’ holdings and frequently store the majority of their funds offline to avoid colossal theft. Furthermore, in the past, hacked exchanges have always compensated for any losses.
However, if you want to keep your crypto safe, you can move it to one of two types of third-party wallets:
- Hot wallet
- Cold wallet
A hot wallet is an internet-connected wallet. You can access it from a computer or smartphone. These wallets are convenient and frequently given at no additional cost by cryptocurrency exchange platforms. However, you can use your own if you’d rather keep your crypto off the exchange. They are, however, more vulnerable to security breaches because they are still connected to the internet.
Meanwhile, cold wallets are external devices that are not connected to the internet. Depending on the type, they usually cost between $50 to $200, though even more expensive variants are available. While cold wallets are less convenient than hot wallets because you must connect them to the internet each time you want to access your cryptocurrency, they are safer. They may make sense if you hold many Ethereum or other cryptocurrencies.
How To Sell Ethereum?
Selling Ethereum on a centralized crypto market operates the same way as buying it. To begin, select an exchange that offers Ethereum trading based in your jurisdiction and open an account with it. You’ll very certainly be asked for various personal information, including your date of birth, address, and a government-issued photo ID.
After you’ve completed your setup, you’ll have to decide whether to sell your Ethereum for fiat currency (USD, EUR, JPY, etc.) or trade it for another cryptocurrency.
For your various crypto assets on the site, exchanges have dedicated wallets and addresses. Look for a “sell,” “deposit,” or “deposit into exchange” button on the website.
If you’d rather sell your ETH directly to another person or entity, you can do it through a peer-to-peer (P2P) transaction, either in person or online through a platform. P2P platforms for cryptocurrencies are essentially online marketplaces where users may post and reply to offers. Sellers often offer specific crypto assets for sale on these platforms, along with data like their desired price and payment method.
Is It Worth Buying Ethereum Right Now?
Ethereum is still in its early stages of development. Over the years, the price of Ethereum has risen significantly, with the token trading at times exceeding $4,000 per coin. However, predicting the long-term value of any crypto asset is challenging. Ether’s value may be worthless after ten years, or it may continue to rise. The ability to scale is also unknown.
Securely purchasing and selling Ethereum has never been simpler. There are numerous excellent brokers, exchanges, and apps on the market to fit the interests of all types of investors. It’s only a matter of depositing money and converting it into ETH once you’ve looked into the choices and decided on a platform. We hope that our above guide–how to buy Ethereum has sufficiently familiarized you with the coin and its buying and selling.