There is a consistent demand for Ethereum; many investors in the cryptocurrency industry have realized that they can leverage ETH to achieve so many benefits. Ethereum has features that could potentially improve businesses and the way we make payments today. Also, the ETH network supports a wide range of applications, which makes it a unique feature in the Blockchain network. It would help if you learned all about ETH and how to buy it. This post features all the information you need to know about buying ETH.
You can buy Ethereum directly from exchanges, mining pools, or with cash from people who are willing to sell some of their coins.
Buying Ethereum from exchanges
The most convenient way to buy ETH is from exchanges. However, not all exchanges offer this service, so you have to confirm before signing up for an account. At the moment, ETH is one of the most stable coins in the crypto industry. It is also valued at a high price, just below BTC. That is why you won’t need to search far before finding an exchange where ETH is sold.
To buy ETH from an exchange, you need to own an account. The registration process is fast and easy. Please ensure that the exchange you have chosen to register with can operate in your region, where you live. Also, check the currencies acceptable on the platform so you do not run into problems when it is time to make your purchase. The registration process involves identity verification because of the nature of the transaction you want to perform. You may be required to provide a valid ID, proof of address, and passport photograph.
After completing your registration, you can proceed to make a deposit for your purchase. The deposit options are clearly indicated on the platform. You can find options such as direct bank transfer, credit cards, or online payment platforms such as PayPal or Skrill. The money you deposit covers the fees for the transaction and the equivalent value for the ETH you want to buy. If you are not too sure about the fees charged, please visit the pricing page on the exchange to view a breakdown of the fees charged for the purchase of coins on that exchange.
Generally, if you would like to make your purchase with currencies such as the USD, GBP, Euro, or Yen, you shouldn’t have any problems because these currencies are often accepted by many exchange platforms. You can make a deposit with a click after your funding source has been confirmed and linked to your account on the exchange. The deposit is credited into your account; it takes a few hours, depending on the backlog of transactions pending.
After making a deposit, you can select the option to buy ETH, you will receive coins that match the deposit you have made, the value is credit into your exchange account. You can choose to withdraw your ETH into a local wallet or trade with it. A good exchange sends you information such as the market value of your asset, current news about events trending in the crypto industry, and market capitalization index. This information is helpful if you plan to start trading or prospecting.
Some of the popular exchanges where you can buy ETH are as follows;
GDAX – This exchange offers its services to a global audience. You can purchase ETH via direct bank transfers, which is convenient. The minimum purchase on this exchange is $1.
Bitfinex – This is another global exchange that accepts deposits via bank transfer. The minimum purchase on Bitfinex is $10, and it is a reputable exchange.
Bithumb – Based in South Korea, Bithumb has added more deposit options for its customers. You can buy ETH by making a deposit via bank transfer or using your bank cards, they also accept gift cards.
Binance – This is one of the popular exchanges. You must have heard the name before. It is based in China, and deposits can be made via bank wire transfer. The minimum purchase is capped at $1.
Bitstamp – This exchange has a global reach, which is also very convenient for investors in different parts of the world. The purchases are made via credit cards or bank transfers. The minimum purchase that can be made on Bitstamp is $5.
Kraken– This exchange is open to clients from all over the world, bank transfer deposits are accepted, and the minimum purchase is $5.
Etoro – This global exchange brand has built a remarkable reputation, and it allows you to make deposits via bank transfer, Credit or debit cards, and PayPal. The minimum purchase on Etoro is $200.
Coinbase – Coinbase serves clients from all over the world as well. The users can make a deposit via bank transfer and bank cards. The minimum purchase on Coinbase is $1.
BitPanda – The minimum purchase permitted on BitPanda is $25. You can make a deposit from different parts of the world via bank wire services or using a credit/debit card.
Gemini – This exchange is open to clients from every country. They only accept bank transfer deposits, and the minimum purchase is $1.
How to buy Ethereum with cash
Many investors would rather avoid leaving a digital trail or going through the registration process on exchanges by purchasing ETH with cash. The industry regulators do not encourage cash purchases; however, it still happens. You can find offers to sell ETH on exchanges that permit peer-to-peer deals. LocalEthereum is one of the exchange platforms you can use to buy ETH with cash.
Buying ETH from LocalEthereum is safe and fast. The platform is decentralized, and you can use the escrow service if you do not want to take risks during the transaction. This means you will need to sign up on a smart contract for the deal. LocalEthereum has made a name in the industry as one of the platforms that support the use of local currency to purchase ETH conveniently.
How to make purchases on LocalEthereum?
The platform is a marketplace where people who want to sell ETH post their offers and prices. You can view the offers from sellers and accept a deal to proceed. The deposit is made via bank transfer or credit cards. Deposits are made through a secure platform.
On the platform, buyers pay a commission on deals, the fee for purchase is 0.75%, and sellers pay 0.25%. Transactions are completed in a few hours to allow the miners to confirm the details of the deal and upload the records on the Blockchain. Miners could work faster to complete the deal if they will earn a higher commission.
You can send private messages to a seller on the platform if you have questions about the deal. Also, you can make arrangements to meet in a safe public place to do business. A fast internet connection is needed to complete transactions, so ensure you choose a good location with Wi-Fi.
Buying Ethereum through conferences
Investors and other people interested in buying and selling ETH often arrange networking meetings where trading is done openly. You can get the schedules and dates for these meetings and attend. At the meeting, you will find people offering different deals for ETH. Transactions are done during the meeting, and everybody leaves at the end. This is a safe way to buy ETH with cash.
Many investors would rather buy ETH from peer-to-peer groups because there are no limitations or rules for the transactions. You can buy any value you want, and many times, you do not get to pay any commission fees. However, the local regulations for trading cryptocurrency must be followed during these deals.
Buying Ethereum from an ATM
Believe it or not, there are ETH ATMs available in different countries. All you need to do is get your local wallet, find an Ethereum ATM and scan your wallet’s QR code. Deposit your cash into the ATM, and you will receive the ETH credited directly into your wallet.
To locate an Ethereum ATM near you, go to CoinATMRadar.com. You can find maps and directions that will help you find ATMs nearby. It takes about thirty minutes to receive your ETH after making a deposit. However, some transactions may take a longer time to be completed. Please ensure you do not make any mistakes while entering the information for the transaction to avoid delays.
Things to know before buying Ethereum
To complete a deal, you need to have certain tools. Read more about it below;
You need to have active wallets before buying Ethereum. Your wallet is the place where you hold the coins you buy. Please note that there are different types of ETH wallets with varying features. Some wallets are designed for desktops, and others can work on desktops and mobile devices. You can use hardware wallets that work offline and are safer to protect your ETH from hackers. To access the official ETH wallets, you should visit Ethereum.org to download a wallet address.
Before buying Ethereum, you should decide if you would like to use a full node wallet that requires the entire Ethereum Blockchain. The other option is using a light client wallet. Many professionals use the full node ETH wallets for more features. However, you will need large storage space because your downloads include the entire Ethereum Blockchain, which is very large in size. You can get the light client wallet from MyEtherWallet.com. Also there is an application called Atomic, which allows you to buy Eth directly from sellers.
Buying ETH from exchange
To have a seamless experience, it is best if you buy ETH from exchanges that provide a wallet. However, this is not a secure option that guarantees you will be protected from hackers based on the online security protocol used by the exchange. If your wallet is hacked, the exchange may not be willing to offer refunds, so it is a risk you can take to enjoy the convenience and then move your coins to another wallet.
Secure options to purchase ETH
Generally, you get more security when you buy ETH with a desktop or mobile wallet. In such transactions, you have complete control over your funds. However, you are responsible for keeping your private key safe. Losing your private key means you may never get access to your funds stored in the wallet. Also, consider using a two-factor authentication set up to secure your coins.
Secure options to store large ETH purchases
If you have decided to invest a huge sum of money to buy and hold ETH, you should consider using an offline hardware wallet. These devices are offline and protected from hackers. However, you will need to keep your private key safe, preferably in a safety deposit box. Also, explore ways to set up a password on the hard drive as an extra protective measure.
Information required to receive ETH
After making payment for ETH, you need to send some information to the seller. These are usually cash transactions. The seller requires your public key, which is the wallet address. This information is enough to complete a transaction. Also, when the transaction is completed, only the value of ETH sent is visible to you, the seller, and anyone who wants to view the transaction on the Blockchain.
Ethereum and Ethereum Classic
After Ethereum was created, the DAO suffered a hacking attack, which led to a split among the ETH community. Ethereum worth a total of $150 million was lost in that attack. The dispute was resolved by agreeing to create a second version of Ethereum, it was called Ethereum Classic. The new version was created after the developers implemented a hard fork to stop the heist. Ethereum and Ethereum Classic exist on different Blockchain, but they have similar features. The members of the ETH community have a choice to migrate to any platform they wish to use.
The Ethereum community survived what has been described as the worst hacking event in the crypto industry. In many ways, people view the split and creation of the Ethereum Classic as a blessing because it has made the ETH platform more secure.
However, observations indicate that many of the essential updates may not be applicable on both platforms. Without regular updates, some members of the community may be at a disadvantage.
Also, some community members have criticized the creation of a new version for ETH because the features have not been aligned with the traditional mathematical foundation on which the first Ethereum network thrived.
Generally, holders of both Ethereum and Ethereum Classic have significant opportunities to become very rich because the tokens are stable, and the market prices appreciate steadily.
When is the best time to invest in Ethereum?
The developers and forefront pioneer of Ethereum Vitalik Buterin have confirmed that there is so much more to accomplish with the Ethereum project. This means that even though many investors have made so much money, there are greater opportunities to become richer in the coming future. Some of the potential projects under development include exploring ways to make Ethereum become a global computing system, processing micropayments across international borders, and facilitating different types of transactions.
This is the best time to invest in Ethereum. The brand has been established in the world of alternative currency. It is ranked second on the list of top and preferred coins under the Bitcoin. Millions of investors all over the world trust ETH, and it is apparent the price will only appreciate in the coming months.
While the speculations about the excellent future of Ethereum have been making the rounds on media platforms, it should be noted that no predictions for cryptocurrency are foolproof. The cryptocurrency market is volatile, and anything can happen. This is why investors make shrewd decisions.
Tips to protect you during transactions
The Ethereum platform does not permit chargebacks. This means all transactions are not reversible. To avoid mistakes, you should not enter your public keys manually. It is easy to miss one of the characters that way. Also, the keys are case-sensitive, including numbers and letters. Always check your details again before approving a transaction.
It is best if you transfer your token from a wallet provided by an exchange after the transaction is completed. You have no control over wallets provided by exchange platforms, and there is no guarantee of safety. You could lose all your tokens during a cyber-attack. When you plan to hold large amounts of ETH, consider using an offline hardware wallet. Also, set up a two-factor authentication protocol to add an extra layer of protection to your hardware device.