How to buy Ethereum
If you would like to get in on the rise of Ethereum, you have come to right place.
Bitcoin has made amazing strides over the last 12 months and people all over the world are now using it to replace traditional currency. But bitcoin is not the only cryptocurrency that is gaining in price. While Bitcoin remains the world’s most popular cryptocurrency, there are a few that are following close behind. These cryptocurrencies are often referred to as alt-coins. One of the hottest of these alt-coins is Ethereum and it’s really making a big splash in the world of cryptocurrency.
If you would like to get in on the rise of Ethereum, you have come to right place. Today we are going to learn a few different ways to buy Ethereum.
Ethereum was developed as a potential replacement for Bitcoin in the year 2014 and has been very popular ever since. Because Ethereum offers some pretty cool platform features like smart contracts, that combats fraud and the ability to use it as a fund-raising tool, it has really attracted a lot of attention. If this sounds appealing to you then you should pay close attention to the helpful information below.
How to Buy Ethereum Via an Exchange
If you are looking for an easy way to purchase Ethereum, then you should use one of the many exchanges. This is the simplest way to get your coins and many people utilize exchanges each and every day. Exchanges put in the work for you by checking prices and making the transaction for you. If you are already familiar with purchasing Bitcoin, then you already know how this process works.
Choosing an Exchange
As you have already learned, there are several different exchanges to choose from. But which one is right for you? Since there are so many of these exchanges out there, the process of picking one can be difficult. When looking for an exchange, make sure that the one you choose supports Ethereum and is insured to protect you.
Read More: How to buy bitcoin – A beginners guide
Some of the most popular insured exchanges that are perfect for the new trader include BitStamp, Kraken, and Coinbase. But if you don’t find these interesting you can find a good alternative by searching Bitcoin.com. Here you will find a helpful search engine that will give you a list of all the exchanges.
Signing Up for An Exchange
Once you have picked out an exchange, you will need to provide some basic information. You will need to be able to prove who you are, and most exchanges will require you to provide a copy of your ID. This is normally a copy of your driver’s license or government-issued ID. After you have passed the ID test, you will need to link your bank account directly to your exchange account. This will allow you to transfer funds for purchasing Ethereum. Some exchanges will also allow you to buy using a credit card that you will have to place on file.
Making Your First Purchase
Once you have completed the signup process you will then be able to make your first purchase. This process is super easy. Some exchanges give you more options but most simply allow you to put in the amount of Ethereum you want to purchase and press a buy button. Once you press the buy button the exchange will make the transaction for you and send your new crypto funds to your exchange wallet. In some cases, the transaction will take some time, so don’t be worried if you don’t see your new funds right away.
Read More: How to sell Bitcoin
When the funds have cleared you will be able to use them to make purchases or hold on to them to sell for a profit at a later date. If you do plan to keep your new currency for a longer period of time, it is wise to move it to another wallet that is separate from the exchange. This will help keep your funds safe from hackers that have been known to attack exchanges. If you are holding a large amount of Ethereum, it would be a wise decision to move these funds into a cold storage wallet that is completely offline. This will help keep your currency safe from hackers or any other online threats.
How to Buy Ethereum Via Direct Trade
If you would like to have more input in your trades and be in more control of what goes on, then exchanges are probably not for you. Instead, you might want to try your hand at direct trading. There are many different peer-to-peer platforms that will allow you to trade with other people. This will let you cut out the middleman and probably save some money at the same time. To complete a direct trade, you will have to be present at the time of the trade. This may be one turn off but not an issue for most traders.
There are quite a few benefits of direct trading. Many of the peer-to-peer trading platforms will allow you to fund your trade in many different ways including gift cards. This means that you don’t necessarily have to have a bank account to buy cryptocurrency. Sites like LocalEthereum will let you fund your trade with Amazon gift cards, PayPal, and even in-person transactions.
Having so many different options will give you more control over your trades. But before you decide to make a purchase, always check the current rates on websites like LiveCoinWatch and CryptoCompare. Finding current prices will help you get the most for your money. So make sure that you are diligent about checking rates before you agree to buy currency from someone on the platform.
While peer-to-peer trading in person is a great way to build your network and meet new likeminded people, it can be dangerous. If you decide to trade in person make sure that you make the transaction in a public place. A mall or a restaurant with lots of people are great places to trade and it will keep you safe. Also, you may want to bring a friend along with you because there is always safety in numbers.