How to buy Ethereum?
Ethereum is no slouch to Bitcoin. With a market value of $331 billion, Ethereum is second place for the most prominent cryptocurrency. Crypto economics is as familiar with ETH as with Bitcoin. Thus, new investors scratch their heads as to how to buy Ethereum?
Additionally, Ethereum is more stable, thus making it an obvious choice for new crypto investors. Essentially, ETH is driving the capabilities of the Ethereum Network.
As Ethereum is backed by many Fortune 500 companies and financial institutions, it offers vast development opportunities. Notably, numerous gurus of the crypto-market tip Ethereum as more rewarding than Bitcoin.
For all these reasons, many existing investors are filling their baskets with Ethereum. So, to all new investors looking for answers to the question – how to buy Ethereum? We will discuss a simple step-by-step guide to answering this question.
So, let’s get started.
Step-by-step guide for buying Ethereum
Buying Ethereum is easier than you think. Here is how you can own ETH.
- Determining Risk Level
Firstly, investing in Ethereum is a gamble. Imagine how a few words from a business tycoon can change the currency’s value. It happens quite often, thus making cryptocurrencies highly volatile.
Although Ethereum has sustainable pricing patterns, it is vulnerable to price fluctuations. Determining the amount of risk of losing your investment is vital. It is advisable to put only some of your eggs in one basket.
Differing from all the positivity, it went down less than $1900 in June 2021 from a high value of $4000 in May 2021. You’d be sitting with half the value in a short time of one month. It is pretty volatile.
Consequently, determining your investment portfolio’s risk tolerance and stability is essential before buying Ethereum. Experts recommend only putting an amount in cryptos you can afford to lose.
- Selecting a Crypto Exchange
Buying Ethereum is not as simple as you can buy any other mutual funds through your brokerage. Importantly, cryptocurrencies are not traded on conventional exchanges.
To buy Ethereum, first, you need to have an account with a crypto exchange. Practically, crypto exchanges allow buyers and sellers to exchange fiat currencies (like dollars) with cryptocurrencies (like Ethereum).
A few crucial points to keep in mind before choosing a crypto exchange are:
- Almost all exchanges charge fees, so it is better to know them at-hand
- Make sure the exchange you have chosen offers digital wallets to store your investment
- Check the after-sale service of the deal through online feedback
- Look out for the data security features of the exchange
- If you are making a bulk buy, opt for bulk discounts
- Fund your Account
Once you have opened your account with an exchange, you now need to put money into your account. It is achievable through an easy fund transfer request from your banker. You can deposit cash or make a bank transfer. Additionally, many crypto exchanges accept debit and credit card transfers.
Importantly, make sure to check the exchange’s fee. Usually, prices vary depending on the nature of the transfer option being used. Since exchanges do not have a minimum investment level, you can start with any amount you like.
A C2C transfer is slightly more complex and time taking. Such exchanges require you to send cryptos by code. Luckily, Ethereum is a popular depositing currency, so funding it can be beneficial.
Additionally, keep in mind the time taken by each type of transfer. For instance, a C2C transfer takes up to an hour, while an international wire transfer will take about four to five working days.
- Buy Ethereum
You are now all set to trade Ethereum. With your verified account and fund deposited – you can buy your desired cryptocurrency, like Ethereum, via exchange. Obviously, each exchange has its own set of rules.
Traditional exchanges have limited working hours, but crypto exchanges never sleep. So, set your time and trade Ethereum with your deposited money.
To purchase Ethereum;
- Enter Ethereum’s ticket symbol – ETH – in the “Buy” option of the exchange
- Enter the amount you wish to buy
- Click the “Buy” button
- Verify transaction detail to your exchange
- Receive Ethereum in your digital wallet
Notably, if you need more money in your account, you can still buy Ethereum. It is buyable in a fraction of one. For instance, you will get 5% of an ETH coin if you invest $100, and the price of the Ethereum is $2000.
- Store your Ethereum
After a successful purchase, the next step is to store your cryptocurrency. Most exchanges offer storage facilities; however, many investors keep a separate wallet to avoid hacking.
Undoubtedly, many exchanges have a high level of security to prevent unwanted access and loss of digital assets.
Apart from this, the more secure option is to transfer your cryptocurrency to third-party wallets. There are two main types of wallets.
- Hot wallet: A digital wallet is always connected to the internet. You can easily access a hot wallet from your smartphone or laptop. These are the most common type of wallets, and most exchanges offer them at a minimal charge. However, these are risky since they are always connected to the internet.
- Cold wallet: Alternatively, cold wallets are only sometimes connected to the internet. These are more expensive; however, they offer high security. Furthermore, you have to connect them to the internet manually.
Frequently Asked Questions
Should I invest in Ethereum?
Despite being the second most popular cryptocurrency, there may be better choices for your investment than Ethereum. Make your to have sound finances in backup before investing in a volatile industry like cryptocurrency.
How to buy Ethereum?
It is easy; you only need to open an account with a cryptocurrency exchange. Secondly, transfer fiat money to your cryptocurrency exchange account. Now buy Ethereum by using this money. Lastly, store your money in your desired digital wallet.
Can I buy Ethereum with a credit card?
Many famous exchanges accept credit card payments so that you can purchase Ethereum with a credit card.
What is the best place to buy Ethereum?
Below are a few famous exchanges where you can buy Ethereum,
Can I buy 1 Ethereum?
Yes, you can buy 1 Ethereum, as cryptocurrency trading has no investment limits.
Well, now you know everything about how to buy Ethereum?
Buying Ethereum is like a walk in the park. You can quickly get your dream cryptocurrency by following a simple series of steps, which have been discussed in this guide.
A few essential points to keep in mind are to choose the suitable exchange and check the deal before making a transaction. Choose the right time for exchange (when ETH is lowest), and check your acceptable risk level.
Ethereum is running second to Bitcoin when it comes to valuation. While it is grabbing new investments, the future looks promising. However, always seek expert opinion before investing in a highly volatile cryptocurrencies.
Leave your thoughts in the comments section. Let us know your experience with buying Ethereum.