Ethereum is a PoS-powered blockchain platform with smart contract functionality. The blockchain technology behind Ethereum allows decentralized applications to be built on top of it. As a result, Ethereum has become a popular platform for building blockchain-based applications. While the platform was designed with developers in mind, it’s increasingly being used as a currency for trading goods and services, which has driven up demand and set the stage for its widespread use in the future.
With the recent surge in the popularity of Ethereum, many people are looking to get involved with the platform and purchase Ether, the primary form of payment on Ethereum’s network, but have no idea how to get started. The process for buying Ethereum isn’t too different from what you would expect from other digital currencies, but there are some important details you need to keep in mind, as well as a few things to avoid while you are making your purchase. This guide will walk you through everything you need to know about buying Ethereum in an easy-to-follow format.
What is Ethereum: A Complete Explanation
Ethereum is a decentralized platform that enables developers to build and deploy decentralized applications (dApps), which are essentially software programs that run on the Ethereum Blockchain. It was created by Vitalik Buterin in 2013, who wrote the white paper describing the concept. Because of its Turing-complete system, Ethereum is able to support a wide range of applications and use cases, from financial services to governance.
A key feature of Ethereum is smart contracts. Smart contracts are digital contracts that are self-executing when certain conditions are met. For example, you can create a smart contract that automatically pays you if a certain event occurs. Or you could create a smart contract that automatically transfers ownership of an asset if an event happens. Another important feature of Ethereum is the ability to store value on the Blockchain. Anytime you make a purchase with Ether (ETH), the transaction is recorded on the Blockchain. This makes it possible to track ownership over time, eliminating the need for third parties like banks.
How to Buy Ethereum
Here is a step-by-step guide on how to purchase Ethereum.
Step 1: Choose a Platform for Trading
Choosing a platform for trading Ethereum is the first step in this process. There are several platforms that offer some of the best features and tools available. Each exchange has its own pros and cons. For example, some exchanges allow you to trade fiat currency for a cryptocurrency (and vice versa), while others do not; some have low trading fees, while others charge high fees. The most popular platform is Coinbase, which allows users to buy and sell Ethereum with a credit card or bank account.
If you are new to cryptocurrency trading, it is probably best to choose an exchange with its wallet so that you do not have to use an external wallet. Some exchanges also offer web-based wallets that can be accessed through their website directly instead of using an external browser window. This way, there is no need for an extra installation or download process when opening up the website to gain access to your funds within the wallet itself.
Step 2: Create an Account
To buy Ethereum, you need to create an account with a cryptocurrency exchange. You can do this by visiting the site of your choice, signing up for an account, and following the instructions to complete your registration.
The final step in the account opening procedure is usually verification. Most exchangers will need you to validate your account in one or more ways. You will most likely be required to provide papers to authenticate your identity and confirm that your account meets regulatory requirements. Depending on the exchange, verification can take anywhere from an hour and a day or two.
Step 3: Fund Your Account
You must first fund your account before purchasing Ethereum on a cryptocurrency exchange. You’ll, most of the time, deposit funds from a bank account, such as your personal checking or savings account. In most cases, you can also perform wire transfers, utilize a debit card, or deposit funds through PayPal.
It is crucial to examine the costs charged by the crypto exchange before selecting a funding option; they can vary depending on the method. Wire transfers, for example, are free on Gemini, but debit card transfers are subject to a 3.49% cost.
Step 4: Start Buying Ethereum!
After depositing your funds, you’ll be able to buy Ethereum with them. It’s just like buying any other cryptocurrency on the market — you’d go straight to the site where it’s available and then select “Ethereum” in the drop-down menu at the top of the screen. Once there, click “Buy.” You’ll see a page that says how much ETH it costs and how many coins you want to buy (or sell). Fill out all of those fields correctly and press “Confirm Buy.”
Step 5: Store Your Etherium Safely
You should store your coins in a wallet that is not connected to the internet, as this could be hacked or used for nefarious purposes. Although some exchanges allow you to use their wallets, it is best to keep your private keys offline and transfer them only when you want to sell or spend them. This way, if something happens at the exchange, you will immediately access your funds.
Reputable Platforms to Buy Etherium
Buying Ethereum can be a confusing and intimidating task. However, the process is actually straightforward, with reputable platforms that have been in the industry for some time offering their services.
Here are some of the best platforms to buy Ethereum:
Coinbase is an exchange platform founded in 2012 and based in San Francisco, California. They offer users various payment options, including credit and debit cards, bank transfers, and wire transfers. This means that you can easily buy Ethereum through this platform without worrying about your money being stolen from you by someone else. It also has an Android and iOS app, making it simple to purchase Ethereum and other digital currencies.
Binance is another popular exchange platform that offers users a wide range of payment options. Its user-friendly interface makes it easy for beginners to use and understand how it works. Binance charges a 0.1% trading fee on all trades made through their platform, so you won’t lose any money when you trade on this exchange.
Kraken is a trusted platform for buying cryptocurrencies, including Ethereum. You can deposit funds from your bank account, debit card, or credit card and then trade them for Ether at the market rate. The platform has a good reputation among consumers, so it’s one of the best options for beginners who want to get started with cryptocurrency trading because they offer low fees and fast trading times.
Bitstamp is another reputable exchange that allows you to buy Ethereum in euros or dollars. They’re based in Europe and have been around since 2011. Their fees are above average compared to other platforms, but they have low fees for smaller amounts of money. It offers a wide range of features for new and seasoned traders.
Gemini is an exchange based in New York City that Tyler and Cameron Winklevoss launched in 2014. It is known for its high-security standards and advanced trading tools. You can use Gemini if you want an easy way to buy Ethereum with your USD or GBP currency, as well as PayPal or credit card. The platform has a user-friendly interface that makes it easy for beginners looking for a quick way to buy Ethereum with their fiat currency without having to deal with complex exchanges.
Bitfinex is a popular exchange that offers BTC, ETH, and USD trading pairs. Unlike most other exchanges on this list, Bitfinex allows margin trading. If you are experienced in cryptocurrency and want the ability to make leveraged trades, then this may be a better option. Margin trading also means Bitfinex can offer some of the best rates for buying and selling cryptocurrency. Fees vary depending on how much you trade.
How to Sell Etherium
The most popular way to cash out your Ethereum is through a peer-to-peer cryptocurrency exchange, but you may also sell it to an individual user directly, either through a friend or through advertising. If you decide to sell directly, it’s a good idea to prioritize security: Verify that the trader has the necessary resources and is prepared to commit to the deal before you proceed. Recheck your data for mistakes: Verify the public exchange address, the quantity you are selling, the purchase price, the exchange rate, and associated costs.