After Bitcoin, Ether is another most famous and widely used cryptocurrency. And if you are planning to purchase this cryptocurrency, you must probably be wondering how to buy Ethereum.
Don't Worry! This article is here to help you out. It is a detailed guide to buying Ethereum for beginners.
Ethereum is a cryptocurrency and an open-source blockchain available for people to construct their solutions. Networks allow anyone to create decentralized application (DApps) and use the network in general, with Ether (ETH) being an essential part of the process. Ether is Ethereum's native cryptocurrency that powers all operations on the Ethereum blockchain.
Similar to bitcoin (BTC), investors can buy and hold ether as a long-term investment in the hope that its value will increase over time. To buy ETH, follow the steps outlined in the following paragraph.
Choose An Appropriate Cryptocurrency Exchange
Perhaps, the easiest and most popular way to buy ETH is through a crypto exchange. Ether is the second largest cryptocurrency by market cap after bitcoin, so finding an online crypto exchange that operates in your jurisdiction and trades ETH is not too arduous.
For this, you must first have to select an exchange that accepts customers from your region and then registers with that exchange. Make sure you research the exchange you choose. Check its validity and if it accepts the currency you want to trade. The registration process may vary by exchange and region. Some exchanges require significant personal information and identification documents, whereas others do not require a lot of it.
Exchanges that initially require less information to create an account often require additional information to open particular activities such as extended withdrawal limits. This information is collected in accordance with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. After you acquired all the necessary information, you need to choose a deposit method.
There are different methods depending on the exchange, including bank transfers, credit and debit card payments, and SEPA (Single Euro Payments Area) transfers. Deposit and withdrawal fees may also vary depending on the type of transfer and exchange used. Details of fees can often be found at the bottom of the exchange's website.
Decide To Buy An Ethereum
To buy ETH, you need to link your bank account or debit card to fund your account. Remember that costs tend to vary depending on the option selected. Also, exchanges differ in which currency they allow transfers.
Some exchanges facilitate fiat currency transfers, such as USD and EUR transfers, as well as crypto asset transfers, while other platforms only allow crypto asset transfers. Deposit and withdrawal times vary depending on the method used and the assets transferred.
Once the funds are in your trading account, you can start trading. You can exchange your USD for Ether once your account is funded. Just enter the dollar amount you want to exchange for ETH. Depending on the price of Ethereum and how much you want to buy, you will most likely buy shares of the single currency ETH. Your purchases are shown as a percentage of the total ether.
The ease of use of this process varies by exchange, with many trying to make the process as simple as possible. On your exchange website, you can view valuable information, such as current values and related news. Once you receive your Ether, you may wish to withdraw it to your preferred over-the-counter wallet.
It's easier to keep your crypto investments in your exchange account when you only have a small amount. However, if you want to transfer your holdings to a more secure location, digital wallets can provide additional security. There are many types of digital wallets, each with a different level of security.
While choosing Ethereum, the biggest concern will most likely be its fees that differ from platform to platform. This is why exchanges and brokers advertise their fees so boldly. But don't forget that they are trying to win you over as a customer. Therefore ensure to carefully research the fee structure of the different platforms. Also, if you are new to this field, ensure to opt for a safer and known platform.