Ethereum, or ETH, is one of the most popular cryptocurrencies in the world and has been gaining a lot of attention recently. If you’re interested in buying ETH, you’re in the right place.
This article will guide you through the process of buying Ethereum and will cover everything you need to know, including how to set up a wallet, where to buy ETH, and how to store your purchased ETH in your wallet.
Whether you’re a first-time buyer or a seasoned crypto investor, this article will provide you with all the information you need to get started with buying Ethereum.
(Please note: Cryptocurrency prices can fluctuate wildly depending on various fundamental and technical factors. This is an informative article and not intended to be investing advice.)
What is Ethereum?
Ethereum, often referred to as ETH, is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps).
It was first proposed in 2013 by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine. Ethereum has its own cryptocurrency, also called Ether, which is used to pay for transactions and computational services on the network.
How does Ethereum differ from Bitcoin?
Ethereum differs from Bitcoin in several ways. One of the main differences is its purpose. Bitcoin was created as a digital alternative to traditional currencies, with the main goal of allowing for peer-to-peer transactions without the need for intermediaries.
Ethereum was created as a platform for the creation of decentralized applications and smart contracts, which are self-executing contracts with the terms of the agreement directly written into lines of code.
Another significant difference is the way transactions are processed on the two networks. Bitcoin transactions are processed through a process called mining, which involves solving complex mathematical problems to add new transactions to the blockchain.
Ethereum uses a different consensus mechanism called “proof of stake,” where instead of mining, validators are chosen to create new blocks based on the amount of Ether they hold and are willing to “stake” as collateral.
Additionally, Ethereum has a more flexible programming language. It allows for more complex and varied types of decentralized applications to be built on its network compared to Bitcoin.
Reasons for Buying ETH
There are several reasons why someone might want to buy ETH. One of the main reasons is as an investment. Ethereum, like other cryptocurrencies, has seen significant price fluctuations in the past, and many people believe that it has the potential for strong returns in the future.
Additionally, some people may want to buy ETH to participate in decentralized finance (DeFi) applications, which are built on the Ethereum network. It allow for things like lending, borrowing, and trading of assets in a decentralized way.
Another reason is the potential use cases of the Ethereum blockchain, such as tracking supply chain, voting systems, and gaming. Make sure you do your own research and make your own decision regarding buying and holding Ethereum.
How can you buy Ethereum?
If you’ve decided to get aboard the crypto boat and want to buy some Ethereum, you’re in luck! With the advancements in blockchain technology, it’s easier than ever to acquire them.
You can buy Ethereum with conventional payment methods such as credit card, bank transfer, or PayPal. And there are hundreds of online platforms where you can make your purchase.
To get you on your way, here are a few methods of buying Ethereum:
Coinbase is America’s largest cryptocurrency exchange in terms of trading volume as of 2021. It was formed in 2012, and it operates on a remote basis without any official headquarters.
Here’s how to buy Ethereum on Coinbase:
- Visit Coinbase.com.
- Go to the Buy/Sell page.
- Enter the amount of local currency you want to buy.
- Select payment method.
- Review and confirm your order.
- Click ‘Buy.’
On the Coinbase App:
- Tap Menu icon.
- Select ‘Buy.’
- Select local currency.
- Enter the amount of Ethereum to buy.
- Select payment method.
- Review and confirm your order.
- And Tap ‘Buy.’
Binance is the world’s largest bitcoin exchange and altcoin crypto exchange in the world by volume. It’s a place where users can trade cryptocurrencies like stocks, and it provides a crypto wallet for its traders, where they can store their electronic funds. They even have their own token currency called Binance Coin.
Here’s how to buy Ethereum on Binance:
- Visit Binance.com (or Binance.us if you’re in the US)
- Click the yellow “Get Started” button to create an account.
- Complete a verification process to gain full access to your account (including buying, trading, and withdrawing funds)
- Once completed, click “Deposit” or the “Add Payment Method” Button to deposit funds.
- Deposit funds via ACH, Debit Card, or Wire.
- Confirm your account balance.
- Click “Buy Crypto” and select “Ethereum” in the dropdown menu.
- Place an Ethereum Buy order, and you’re all set!
Operating since 2011, Kraken is one of the oldest and largest cryptocurrency exchanges in the world. And with the growing security concerns over cryptocurrencies, many users turn to Kraken as a source to obtain their tokens. They currently allow purchases of 40 different cryptocurrencies to 176 countries.
Here’s how to buy Ethereum on Kraken:
- Visit Kraken.com
- Create a Kraken account.
- Verify your account (name, birthday, country, phone number)
- Make a deposit via cryptocurrency, Fedwire, SWIFT, Etana Custody, and Silvergate Exchange Network (SEN) — or for International Users, they accept Wire Transfer, Etana Custody, and Silvergate Exchange Network (SEN)
- Wait for processing to complete (1-5 business days.)
- Confirm your account balance.
- Then you’re ready to buy Ethereum!
In 2016, Gemini became the first licensed Ethereum exchange. It’s another large cryptocurrency exchange that operates in the United States, Canada, Hong Kong, Singapore, and the United Kingdom.
Here’s how to buy Ethereum on Gemini:
- Visit Gemini.com
- Create a Gemini account.
- Confirm your account.
- Set up two-factor authentication.
- Add your bank details.
- Verify your bank account.
- Place funds in your Gemini account.
- Start trading Ethereum.
Setting up a Wallet
There are several types of wallets that can be used to store Ethereum. The most common types are:
- 1. Software wallets: These are wallets that can be downloaded and installed on a computer or mobile device. Examples include MyEtherWallet, MetaMask, and Exodus.
- 2. Hardware wallets: These are physical devices, similar to USB drives, that are used to store cryptocurrency offline. Examples include Ledger Nano S and Trezor.
- 3. Paper wallets: These are simply printouts of a person’s public and private keys, which can be used to store Ethereum offline.
- 4. Online wallets: These are web-based wallets that can be accessed through a browser. Examples include Coinbase wallet and Blockchain.com wallet.
When choosing a wallet, be sure to consider factors such as security, ease of use, and compatibility with other platforms. It’s also imperative to select a wallet that supports Ethereum and other ERC-20 tokens, as not all wallets do. For example, a Bitcoin-only wallet won’t be able to store Ethereum.
Setting up a wallet is a simple process. Software wallets can be downloaded and installed on a computer or mobile device.
Hardware wallets need to be purchased and then set up according to the manufacturer’s instructions.
Paper wallets can be generated on a website and then printed out. Online wallets can be created by visiting the website of the provider and following the instructions.
Regardless, make sure to write down and store the recovery seed phrase. This will be needed to restore the wallet in case the device is lost or stolen.
In summary, buying Ethereum (ETH) involves setting up a wallet, finding a platform to buy from, and then making a purchase. The key is to choose a wallet that is secure, easy to use and compatible with Ethereum and other ERC-20 tokens.
Once you have set up your wallet, you can purchase ETH from a variety of platforms such as cryptocurrency exchanges, peer-to-peer marketplaces, or ATMs. After the purchase, it is important to transfer your ETH from the platform to your own wallet for safekeeping.
When buying ETH, take safety precautions to protect your investment. This includes keeping your private keys and recovery seed phrase secure and not sharing your personal information with anyone.
It also means not leaving your cryptocurrency on an exchange for long periods of time. In addition, make sure you keep your computer and mobile device secure with up-to-date anti-virus software and a strong password.
The future outlook for Ethereum and the cryptocurrency market is uncertain. However, many experts believe that the growth in decentralized finance (DeFi) and the increasing interest in smart contracts will drive the demand for Ethereum.
Additionally, many believe that the increasing institutional investment in the cryptocurrency market could lead to more mainstream acceptance and adoption of Ethereum. However, it’s important to keep in mind that cryptocurrency prices are highly volatile, and past performance does not guarantee future results. Do your own research and make your own decision regarding buying and holding Ethereum.
(Disclaimer: Cryptocurrency investment is not “risk-free” and prices can be volatile. This is not intended to be investment advice.)