In market capitalization, Ethereum (ETH) stands second among cryptocurrencies in the world. There seems to be no lag in performance and interest in the minds of most investors, through the possibilities of blockchain-related technologies. If you want to learn how to buy Ethereum crypto, this guide will show you how to do it in a safe and efficient way.
Understand Ethereum
But first, before looking at how to buy Ethereum, let’s run over the basics of what it is. Ethereum is more than a digitized currency; it is an open-source decentralized platform for a plethora of uses: smart contracts, decentralized finance (DeFi), non-fungible tokens, etc. All these applications use the base cryptocurrency for transaction fees and executing these activities: Ether (ETH).
Platform to Buy Ethereum
The very first step in getting Ethereum is choosing the platform from which to buy it. There are two key categories to choose from:
- Centralized Exchanges (CEXs): These are platforms where buyers and sellers are connected through intermediaries. CEXs are usually self-explanatory with multiple payment methods and easy to use, so they are very suitable for beginners. The downside to trading on these exchanges is that you give up the control of Ethereum holdings; they are kept in the wallet of the exchanger. Popular CEXs include Coinbase, Binance, and Kraken.
- Decentralized Exchanges: DEXs enable P2P transactions without central authority, which in line allows users more options with their cryptocurrency. That said, it has a sharp learning curve and supports only a few payment modes. Prominent DEXs are Uniswap, SushiSwap, and PancakeSwap.
What to Keep in Mind with a Platform
- Regulation: Use an exchange that is in a clear regulatory environment. The regulation offers security and consumer protection.
- Security: Ensuring that they have in place all the necessary security measures, such as two-factor authentication and cold storage of users’ funds.
- Fees: Check the transaction fees for both deposits and withdrawals, as well as trading, to make sure the most cost-effective approach is taken.
- Payment Modes: Confirm the list of payment modes the service accepts. Some of the popular ones are bank transfers, debit/credit cards, and the peer-to-peer mode, which is abbreviated as P2P.
Registration and Verification of Accounts
With the choice of platform behind the line, everything else is about creating that account. Most of the time, during registration, one is required to fill in their basic data: name, email, and phone number. Most platforms will require identity verification (KYC) to conform to this regulation, which may include uploading a government-issued ID and proof of residence.
Deposit / Top-Up Your Account
Once you create an account and have already verified it, you proceed by logging in and depositing money into your account. The methods of deposit are given and they revolve around the selected platform. That said, here are some methods of deposit:
- Bank transfer: Generally the most inexpensive, though it may be relatively slow.
- Debit/Credit Card: Instant access to your money, albeit at possibly higher fees; however, just watch for those banks that restrict buying cryptocurrencies on their credit cards.
- P2P Transactions: Directly connect with other users to purchase Ethereum from them using a wide range of payment solutions. This may actually provide you with better rates, yet it might come with some extra steps when verifying your transactions.
The Buying Process
Once the account is funded, proceed to online platforms under ‘Buy’ or ‘Trade.’ Find Ethereum (ETH) and click on the buying option that you intend to purchase. You will then need to enter the specific amount of Ethereum that you wish to purchase or the amount of fiat currency you wish to spend. You will just be shown the estimated amount of ETH to accrue and charges associated with that.
Review all transaction details before confirming payment.
Keep Your Ether Securely
While some come with their wallets, it really is highly recommended for one to transfer their Ethereum to a safe private wallet. Here are two main wallet types:
- Hot wallets: They simply refer to software wallets which make access and transactions with cryptocurrencies easier for users; they are, however, easier to hack than cold wallets. Some popular hot wallets in the market today are MetaMask and Trust Wallet.
- Cold wallets: These are hardware wallets with much more security, as they can store cryptocurrencies offline. Leading providers include the Ledger and Trezor
Important considerations
- Volatility: Cryptocurrency itself is volatile. Look at the history of prices with Ethereum and any potential risks before investing.
- Investment Strategy: Determine your investment objective and your risk tolerance before you allocate funds. Be certain Ethereum is an investment for the long term.
- Regulation: The cryptocurrency regulatory landscape is highly dynamic. Stay abreast of such developments that might impact your investment.
Conclusion
All in all, with these steps taken and the main aspects considered, the acquisition of Ethereum can be safe, and you become a part of this huge Ethereum ecosystem. Mind that these are just some of the first steps of buying Ethereum crypto. Always do research and invest wisely.