How to Buy Ethereum (ETH)
Ethereum (ETH) is the second-largest cryptocurrency in terms of market capitalization. Its market cap is US$302,535,654,310 (as of April 28, 2021), which is around a 15% market share of the total global crypto market cap of US$2.05 trillion. Its price has increased by over 50% in the last 30-days with a YTD (year-to-date) growth of 250% in 2021, which makes it one of the most traded cryptos.
Increased market interest in decentralized finance (DeFi) and cryptocurrencies have made the ETH price increase from near the US$1,000 level to above US$2,500 level in the first 4-months of 2021.
Do you want to buy Ethreum (ETH) too? This guide will help you to know more about this crypto and make an informed move.
What is Ethereum?
Ethereum (ETH) is an open-source platform, allowing developers to use a decentralized application network for connecting and collaborating with customers/others. For transactions recorded on the Ethereum blockchain, a small amount of the Ethereum coin, Ether (ETH) is given to the operators as rewards.
As an operator, you simply have to either add a block to the blockchain or verify a transaction for receiving the reward in terms of Ether. When an investor invests his/her money through a crypto exchange, he/she actually buy Ether (ETH).
Though many people compare Bitcoin with Ethereum, the network of Ethereum actually expands the usability of Bitcoin’s infrastructure. Ethereum’s network, in addition to transferring ETH digital currencies between wallets, also supports dapps creation, allowing execution of agreements between two persons or entities without using a middle person/entity.
A much higher level of security and anonymity is provided to the transactions that take place on the ETH network. This is because of the decentralized applications (as the Ethereum network is supported by a wide net of connected computers).
Pros and Cons
- Clear and consistent roadmaps have been set by the founder of Ethereum Vitalik Buterin and the development community. The investors have received a fresh boost in confidence.
- The decentralized structure of Ethereum is a major beneficial point. It provides users with a higher level of privacy and security in comparison to centralized applications.
- For any transaction on the network, no middlemen are needed.
- The smart contract technology enables users to connect with each other safely without having the need to provide service coordination. It helps them avoid censorship related to location and also unfair transaction fees.
- Ethereum platform helps other developers to create decentralized applications (dapps) for a wide range of real-world usage including banking, medical record creation, and many more.
- Scaling issues are there currently in the Ethereum network.
- Multifunctionality features of Ethereum (as it works as a ledger) can lead to more hacking and bugging in comparison to some of the competing digital currencies.
- Solidity is the programming language of Ethereum. It can be tricky to learn them, especially for new users.
- Finding beginner-friendly tutorials is difficult as the Ethereum network is Turing compliant.
- As ETH is not regulated by any central authority, the value of the same can fluctuate significantly.
Where You Can Buy Ethereum?
You can buy Ethereum (ETH) from any renowned and reliable cryptocurrency exchange. Some of the best and most reliable ones are:
Get better guidance on improving your personal finance, retirement planning, management of cash flows or capital gains, and investment ideas from financial advisors and wealth managers, especially the ones who are not averse to Bitcoin and other cryptocurrencies. While day trading, you should always try to invest only that much which you can afford to lose. Financial protection must be there in your mind always while you make cryptocurrency trades. While investing in cryptos, try to invest through centralized or decentralized exchanges and reliable online brokers.
Once you are ready to invest in Ethereum or buy Bitcoins through online brokerage accounts, you can do so in a legit way by investing through a cryptocurrency exchange. You have to open an account with such an exchange, verify details (including basic personal information), and then fund your cryptocurrency trading account.
You can fund your crypto exchange account by connecting your bank account (savings accounts or checking accounts), transferring money online through bank transfer, credit cards, debit cards, and other payment options. If you need further assistance, you may consider taking help from the vibrant and helpful Ethereum community. You can trade Ethereum with credit cards, debit cards, or other payment options.
In case you are bullish on the future prospects of Bitcoins and other digital currency, you can transfer them to hot wallets (including mobile app wallets) or cold wallets (including most secure hardware wallets) and hold them for a longer time period for a significant price appreciation.
This will help you get a higher return in the long run, much more than investing in stocks, mutual funds, index funds, real estates, yield savings accounts, real estate investment trusts, and others. In fact, many retirement funds or IRA accounts such as Roth IRA are allowing investors to incorporate Bitcoin and other digital assets of investment in the portfolio so that the prospects of these funds increase due to the higher returns of BTC, ETH, Ethereum Classic ETC, and other cryptos. Therefore, it can be concluded that holding Bitcoin and other cryptos can help you to build real wealth and multiply your net worth.
You can learn investing basics of cryptocurrencies to make more gains. You can start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in cryptocurrencies and make better financial decisions. You can learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly. As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and others.
Defi tokens and NFTs (Nonfungible Tokens) are the next generation crypto coins. These decentralized coins have started to become very popular. You can buy or sell them through cryptocurrency trading platforms too. To diversify your portfolio, you may also buy stocks through stock brokers.
How to Buy Ethereum?
You can purchase the second most popular crypto by following these steps:
Step 1: Choose a Brokerage Account with a Crypto Exchange
Most brokers offer Ethereum for purchase. To choose any one of them, you can either open an account from the ones mentioned above or look for certain characteristic features such as:
- The range of cryptos that you can buy from the platform.
- A reliable and easy-to-use platform of the broker is preferred. If you are a beginner, you may want to use a more intuitive broker such as Coinbase.
- The assets offered by the broker. While some brokers offer only cryptocurrencies, others provide a combination of both cryptos and stock accounts.
- Fees structure including commissions and maintenance fees.
- Availability of two-factor authentication, encryption, and security features.
Step 2: Open a Brokerage Account with a Crypto Exchange
Once a brokerage/exchange is selected, open an account. It would ask for certain personal information while opening an account. Most exchanges ask the following information about the user:
- Full Legal Name
- Phone Number
- Email Address
- Government-issued photo ID’s copy (such as passport, driver’s license, or military ID)
It takes just a few minutes to open an account. However, verification of the user identity may take a longer time in some cases.
Step 3: Fund Your Account
Once an account is opened, you have to link a funding or payment method so that you can transfer the money from your source of payment to the concerned brokerage account. Most brokers provide direct bank transfers and credit/debit cards as payment methods. Depending upon the broker or payment method, it may take anywhere from a few hours to few days for linking the payment source with the account.
Step 4: Place an Order
You can place orders for buying Ether (ETH) through your account with the brokerage firm. You can place an order of 1 ETH coin or fractions of it. Check the current price and place an order.
Step 4: Transfer Your ETH Coins to a Wallet
Once an order is fulfilled, the Ether coins are transferred to your account. If you want to hodl, you can secure the coins in a wallet by using your private keys. For long-term holding, storing ETH on a hardware wallet is recommended.
Choose Cryptocurrency Copy-Trading Bots to Increase ROI
Cryptocurrency Trading Robots (such as NapBots.com) automatically scan the market in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.
Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement.
NapBots.com is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.
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You may also check “Napbots Review – Simple Way To Increase Your Crypto Returns” before taking the plunge.
What’s so special about NapBots?
NapBots crypto trading software is special because it comes with:
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How does NapBots help you to Make Money?
With NapBots, you can enjoy financial independence by trading cryptocurrencies on autopilot mode and earn money automatically. To make it work on your behalf, you have to do the following:
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Why Choose NapBots?
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