Want to know how to buy Ethereum? Well you have landed on the right article.
These days, people are focusing on investments to make their future secure. For this purpose, they have started consulting experts.
These experts suggest investing in areas where they can safely park their money. Even if you are a beginner, you must have come across cryptocurrency. It is a new kind of investment. Cryptocurrency has several further sub-areas.
The most popular among them are Ethereum and Bitcoin. Both areas are safe to invest in with low risks. Ethereum is one cryptocurrency that even beginners can buy.
It is because of its popularity and established presence. But, before you invest in Ethereum, you should have enough knowledge related to it.
How To Buy Ethereum?
What is Ethereum?
Vitalik Buterin is the programmer who invented Ethereum in 2015. It was invented after Bitcoin, the base upon which Ethereum was created. Both are among numerous cryptocurrencies in the market today.
Ethereum is a blockchain network that increases its potential when Ether is added. Ether (EH) is yet another associated cryptocurrency or a token.
If you are searching for a safe investment, you can invest in Ethereum. But Ethereum is not just an investment option; it is also a boon for software developers.
Software developers use Ethereum as a software platform. They do this to create new applications that are related to cryptocurrencies. It makes the entire process of handling cryptocurrency easier.
An aim of Ethereum is decentralized finance. Anyone using the internet can access the products and services that Ethereum provides. Thus, it is an open-source investment area. It allows anyone with developer skills to change it.
They can also create new cryptocurrencies over it. If you are a beginner, you can consider it a long-term investment option. Its value will continue increasing over a long period.
What Is Ethereum Worth?
Although developed in 2015, Ethereum was launched only in 2018. In the beginning, it didn’t make enough profit. But the price started increasing and reached its height in 2021.
In November 2021, it went over $4,800. Since then, there has been a moderate fluctuation in the price. It ranges from $1,000 to $4,800 per coin.
The price of Ethereum has not increased since the high peak of November 2021. Thus, we can say that although its price dropped, it didn’t go below $1,000 till today.
Although the price of Ethereum changes, it still earns a large amount of profit. But this is possible only if you are investing in long-term returns.
So, you must not invest in Ethereum or any other cryptocurrency if you are seeking a short investment period.
It is also something to consider that Ethereum has great value because of its immense popularity. If people continue to consider it as important and direct their attention to it, chances are that its price will cross even greater heights.
The price of Ethereum is not secured by currency or commodity of any kind. Its price can also vary depending on the proposed regulations of cryptocurrency.
Where to Buy Ethereum?
1. Identify a platform for trading: It is extremely essential to identify and select the best platform for trading to fulfil all your requirements. Several Ethereum exchanges provide such a platform. There are a number of criteria to identify the right platform. One of these includes selecting the exchange type.
There are two types of exchanges:
- Fiat
- Cryptocurrency to cryptocurrency (C2C)
Investors prefer fiat exchange because of its wide range. Investors trading multiple currencies or converting them prefer using the C2C exchange.
2. Create an account: Once you have selected the right trading platform, you need to open an account. If you are familiar with opening an account in a brokerage platform, this process will be relatively simple for you.
Fill up all the necessary personal information including, the verification certificates. Once you complete the entire verification process, your account will take virtually no time to open.
Verification is the final step for any exchange and you need to upload the original documents for that. It will take fewer than two days to complete the entire process.
3. Deposit currency: Once you have opened an account, you need to deposit currency. The currency is deposited depending on the platform that you have chosen. Once the payment information is verified, the entire process becomes extremely easy for the fiat currency platform.
You can transfer money from your debit card or directly from your bank account. You can invest as much or as little as you want. In the case of the C2C exchange, the process becomes complex.
The process involved in C2C exchange takes time because cryptocurrency is transferred from one location to another in the form of code. If you are investing a large amount in Ethereum, use this exchange.
4. Begin trading: Once you verify your account and deposit money in it, you can begin your trading process. You can now purchase any cryptocurrency; you can purchase Ethereum in exchange for the deposited money.
There is a difference in every exchange because of the interface. Once you are sure of what and how much you want to purchase and confirm the transactions, you must then allow the required processing time.
This processing time is dependent on the overall requested transactions. Trading should be done very smartly because several potential risks are involved in these investments.
5. Withdraw ETH into a wallet: After purchasing ETH by exchanging it with money that has been deposited, you need to monitor whether it is making a profit or not.
If, at any point, you want to withdraw the enhanced amount, you can do so easily. You need to withdraw the money in the expected currency from the bank account to which it is linked. You can easily withdraw money with the help of fiat exchanges. This exchange sells currency and sends the proceeds to the listed bank account.
On the other hand, as previously mentioned, C2C exchanges are complex and take more time because the transfers happen in the form of a code. It is then sold to get cash in the wallet or the bank.
Should you invest in Ethereum?
It doesn’t matter if you are a beginner or an expert in investing in Ethereum. Before you invest, you need to have enough knowledge of its value earned. Also, you should have enough monetary security. It is because there is enough risk involved in this kind of investment.
Cryptocurrency in any form is transparent and has a highly volatile nature. It is considered an unpredictable investment. You should not invest more than 5% of your entire portfolio.
Also, if you are not planning to invest in it for the long term, then it is better not to invest at all. It is not worth investing only for a few years because of its unpredictable nature.
Before investing, make sure that other vital goals like retirement savings are fulfilled. There could be the possibility of higher risk and losing money. Thus, people with enough extra money should invest.
Top Ethereum stocks
To add value to your portfolio, it is essential to have a wide knowledge of Ethereum stocks. Several Ethereum stocks are illustrated below.
1. Grayscale Ethereum Trust
If you want to add more value to your brokerage account by adding Ethereum, then Grayscale Ethereum Trust could be a choice. It works as a managed fund; once you buy the shares, Ether tokens are added to each share in a fixed amount.
It is also important to note that the share price of the fund is less than Ethereum. This is because it is arrived at by considering the current value. Do keep in mind that the annual management fee of Grayscale is 2.5% which is very expensive.
Also, there is no opportunity for trading the price. It is because Ethereum cannot be exchanged with other shares. All this makes it a hard decision for some shareholders.
2. Bitwise Ethereum Fund
It works as a managed fund to handle several types of cryptocurrency. Bitwise is a crypto index fund manager and is considered to be the biggest worldwide. Investors can place money and extract it in this fund because of its relatively low investment of $25,000.
The manager of the fund also aims at reducing the cost of the transactions. This is done by holding the offline version of Ethereum in a safe place, also known as cold crypto storage.
By doing this, the manager can secure the stock and make it cost-effective. The annual management fee is also less than the other stocks, i.e., 1.5%.
3. Coinbase
If we observe the cryptocurrency exchange in the U.S, we can recognize Coinbase to be the largest. An enormous array of cryptocurrencies is provided to the buyers and sellers of this stock. A transaction fee is charged for all.
Ethereum blockchain is used in this stock by several other types of cryptocurrencies. Ever since cryptocurrency came into the market, Coinbase has profited more than any other stock.
There is a remarkable increase in the number of users in just one year, from 1.5 million to 8.8 million. Also, net revenue has increased from $178 million to a whopping $2.03 million.
4. Staked ETH Trust
If you are an active investor, you are aware that Ethereum 2.0 is to be released soon. The upgraded version of Ethereum promises to do more. In this, transactions are verified by converting them in a proof-of-stake model.
Also, for validating transactions, crypto is staked by the token holders of Ether. By doing this, they can earn remarkable rewards. Staked ETH Trust offers Ethereum exposure to all shareholders.
This will result in staking rewards too. Permitted investors will get private access to this stock with an expense ratio of 1%. This stock has $25,000 as the lowest investment amount.
5. HIVE Blockchain
This is a firm with a specialization in cryptocurrency mining. It uses incredible know-how like green energy, to do so. Transactions are validated, and earn a lot of rewards, thanks to the use of computation power.
Bitcoin and Ethereum are currently mined by HIVE Blockchain. It has also mined Ethereum Classic. This firm is open to changes and will be upgraded shortly.
When this happens, the proof-of-work model will also be upgraded to a proof-of-stake model. Thus, transition validation will no longer need crypto mining. Presently, this stock is still being used to gain exposure until the new version is released.
6. Robinhood Markets
This stock flourished in the era of trading as a discount broker when the deals were made free of commission. It is because of this incredible move that it is running ahead of any other stocks in the market.
Bitcoin and Ethereum are some of the cryptocurrencies it trades in. These were offered as crypto grading by this stock in 2018. Post this, several other cryptocurrencies were also included.
This stock does not provide cryptocurrency but provides exposure to the shareholders.
Conclusion:
Ethereum is a cryptocurrency. Since cryptocurrencies are transparent and modifiable, they can be upgraded. The future of Ethereum lies in its new version. Ethereum 2.0- will be released shortly and is greatly anticipated by investors all over the world.
It implements the concept of PoS verification. It will also increase the speed of transactions and performance of Dapp. This will make it more scalable and sustainable.
It is also known that half of the transition has already taken place. But the merging process is not yet been done. The final stage of upgrading this new version of Ethereum is the sharding process. It will help to reduce the congestion and glitches in the network.
This can be done by splitting up the transactions into shards. These shards are individual chains that replace the horizontal database. There is also a possibility of more upgrades, making this investment space less risky.
This move will usher in a new era of Ethereum, one that promises newer and better things.
I hope you liked our article on how to buy ethereum, if you have any comments or suggestions do share them in the comments below.
Frequently Asked Questions
1. Is Ethereum a safe investment?
Yes, Ethereum is a safe investment. Ether has less possibility to fluctuate. Although its value is unpredictable and more volatile, in the long run, its price will increase and will prove to be an excellent investment. Buyers need to safeguard it against hacking, which is a risk
2. How can I get free Ethereum?
Several online trading sites provide Ethereum for free. To get free Ethereum, you need to sign up for their referral programs. After that, complete the KYC process and add a bank account. Anyone older than 18 years of age can get them.
3. Which Cryptocurrency is best?
Bitcoin is the best Cryptocurrency worldwide. The second best is Ethereum. Any crypto investor prefers buying Bitcoin because its value is tested. It has reached approximately a $900 market cap over the past 13 years. It is considered the most matured cryptocurrency and is backed by Tesla Inc. and MicroStrategy Inc., making it more popular.
4. What is Ethereum Used for?
Ethereum is used for:
- Smart Contracts
- Decentralized Applications
- ERC-20 Tokens
- Non-Fungible Tokens
- Permissioned Ledgers
- Enterprise Software
Apart from these applications, Ethereum is known as a programmable blockchain. It is also known as digital silver because it has similarities with precious metals.
5. What is the most secure cryptocurrency?
Although it is transparent, Bitcoin is the most secure cryptocurrency. Ethereum stands next in line. It has a very high hash rate when compared with other proof-of-work coins. There is also a possibility that the transactions conducted will maintain anonymity. It is possible by upgrading the core code.
