Want to buy Ethereum? Here’s how
Ethereum is one of the world’s top cryptocurrencies. Because of its high market value, it is valued by new and seasoned traders alike, given its relative stability compared to other e-currency online. Ethereum’s added allure comes from its integration within the larger, decentralized blockchain network of the same name. Indeed, if you want to be entirely precise and factual about it, you should know that the crypto itself is known as Ether, while the larger blockchain structure bears the name Ethereum. But since you are looking to start investing in it, you are probably looking for guidelines in order to start. Keep reading to understand better all the steps you need to take to make your Ethereum investments successful.
Image source: https://unsplash.com/photos/jpsocjU9R7s
Choose your platform
The first thing you must set in order before buying Ethereum is to identify the platform trading you want to work with. Before making a choice, make sure to check the accessibility of the websites. Not all countries allow all types of exchanges, so pick something available in the area where you live. The security of the platform is also very important. Since you’re trading and exchanging, you must have the guarantee of safety and reliability, or you risk coming down with serious losses. Since the crypto market is constantly changing and innovating, you must find a stable platform, or you’ll be building a foundation in quicksand.
One of the most trustworthy platforms for your investment is Binance. As the world’s leading cryptocurrency exchange, they’re perhaps the safest choice if you’re looking to purchase Ethereum. Using a streamlined process, it is easier to observe the Ethereum price fluctuations as they happen so you can choose an optimal moment to invest. Just as it’s essential to select a household name when considering the e-money you’ll invest in, it’s also important to choose a reliable platform with an established reputation.
Create an account
After deciding on the platform you want to use, the first step is to create an account. Similar to brokerage services, you’ll have to provide your name, address, and other specified forms of identification. Without these requirements, you won’t be able to trade and invest in Ethereum, so you must provide them. Afterwards, you’ll have to verify your account, an essential step to prevent fraud. The time it takes for this process to be completed can vary. In some cases, it can take a couple of hours, while in others, it extends to a couple of days, depending on the platform. However, after completing this crucial task, you can begin your crypto trading journey.
Set up a crypto wallet
You’ll need a place to store all your e-coin safely in order for you to enjoy it. These wallets come with private keys you must keep secure, as should their integrity be compromised and they would fall into the hands of hackers or thieves, they’d have complete access to your Ethereum, meaning that you could potentially lose everything. In order to decide which type of wallet works best for you, it’s important to do your research and know their specific advantages and drawbacks. The different types of wallets include:
- Hardware wallets: Resembling a USB drive, this device provides optimal safety and is the favorite option of traders worldwide. The benefits come in the fact that you can unplug your hardware wallet from your computer, ensuring it doesn’t fall prey to a malicious attack. However, be careful with the Bluetooth connection. Some devices come with this incorporated feature, and while it can be helpful for fast connectivity, it can also cause unwanted parties to connect to your wallet via the wireless signal.
- Software wallets: Coming in the form of applications, you install these virtual wallets on your computer. Apart from the chief storage function, many also help you make transactions and see your balance. Since this type of wallet is directly on your computer, you should be extra careful of malware attacks of any type. Every single one can leave your wallet potentially vulnerable and may even breach the software.
- Paper wallets: While the name can make them sound quirky, these wallets are simply paper containing keys or QR codes they can scan in order to access their crypto. However, you need to be extra careful to make sure the paper doesn’t deteriorate and isn’t damaged or lost, as this means you’d lose access to all your virtual currency.
To start buying Ethereum, you’ll make sure you have sufficient funds. Depending on the platform, you can simply add money through your credit or debit card. Since there is usually no minimum investment you are required to make, the amount can be anywhere from a few dollars to three zero sums. It’s all a matter of personal choice. Sometimes, depending on your funding method and the exchange rates, you might have to wait a few days before you can start buying crypto. If that happens, know it’s perfectly normal and no cause for concern.
However, you should be wary of extremely large deposits, as they can come with additional fees. Because most credit companies and banks tend to process e-money purchases as cash advances, that means crypto is subjected to higher interest compared to other transactions. This means that you’ll be faced with additional fees, sometimes up to 5% of the transaction total. Adding to that another 5% of the cryptocurrency or brokerage itself, and you may be facing up against a cumulative 10% loss of your Ethereum to fees. This is why you should be careful when making a deposit and don’t get ahead of yourself. Also, don’t equate depositing a large amount with more rapid success. While it’s natural to correlate the two, it is also a faulty and potentially dangerous mindset.
Plunging into the world of crypto can seem daunting. Given its reputation for volatility, you may be apprehensive about giving it a try. However, when you choose an established blockchain like Ethereum, you stand a much better chance of making a good, solid investment.