Ethereum is the second-largest cryptocurrency after bitcoin and the largest altcoin with a market capitalization of $402,343,696,805. It is currently priced at $3,375.12 per ether. Ethereum runs on its own blockchain, which can be used by developers to create applications known as “decentralized applications” (DApps). This means that the developers would need to buy Ether (ETH), Ethereum’s native token, in order to be able to access the network, and users would be required to pay in Ether as well if they wish to interact on the network. These are just a couple of the uses of ether, but the average investor may not be a developer or be interested in decentralized applications, so they want to buy and sell ether for financial gains. It works the same way as Bitcoin. Investors can buy and hold ether for as long as they want with the hope that its value will continue to increase over the long term, and indeed, its value is increasing. If you had bought one ether when it first launched at $0.31, today that ether would be worth over $3,000, and that’s a lot of increase. Now you see what the fuss surrounding Ethereum’s native coin is. People who missed out on Bitcoin see Ether as a second chance, and it honestly is. The price is actually moderate for the current utilities of the blockchain. In fact, it is cheap just like Security Tokens, which is why now is the very best time to buy in.
How to Buy Ethereum
Ethereum is a well-established cryptocurrency, and so it is listed on major exchanges, which makes buying it relatively easy. Buying Ethereum is super easy, as has already been noted. All you have to do is choose a cryptocurrency exchange platform, fund your account, place a buy order for Ethereum, and there you have it. You just purchased Ethereum. Now all you need to do is store it. Easy peasy, yes? But I would still be breaking down these processes for ease of understanding.
Choose a cryptocurrency exchange platform. Some popular ones are Binance, Kraken, and Coinbase. They have different features ranging from utility to security to complexity, so it is a good idea to do some research of your own before you sign up. As previously mentioned, Ethereum is a popular cryptocurrency, so finding a crypto exchange to buy from would be a walk in the park. If you’re just looking to experiment, maybe you just want to own a small portion of cryptocurrency so you can be qualified as a member of the digital world, there are payment systems that let you buy Ethereum, like Venmo and PayPal. Basically, your Ethereum sits in your PayPal wallet and you use it to make purchases.
Fund your account. Funding your account can be done through your debit card or your credit card. For very obvious reasons, it is not advised to use a credit card for buying cryptocurrency. But before you can even connect your bank account or your debit card to fund your account, financial laws require the exchange platform to do a KYC (Know-Your-Client). For this to be done, you have to provide some personal information like a government-approved ID, social security number, and house address to verify your identity. You will also need to provide an email address because that is where the link to verify your account will be sent. Once your account has been verified and approved, it means that the signup process is complete and you can now fund your account. You will likely pay transaction processing fees and they may differ based on the method you choose to fund your account with (debit card, debit card, or bank transfer).
Place a buy order for Ether (ETH). After your account has been funded, you will be able to trade your US dollars for Ethereum. You will see something like this on the buy page: “USD/ETH”. It means that you are trading USD for Ether, so since that is what you intend to do, you should click on that. Simply put in the amount of USD you want to trade for Ethereum and you will see the amount of Ethereum that amount of USD can buy. My advice is to invest small if you’re just starting, so you would be buying a fraction of ETH, probably 0.0000456ETH.
Keep your ETH safe. Cryptocurrencies are usually stored in wallets. There are hot wallets and cold wallets. For ease of use, major cryptocurrency exchanges have their own wallets, so if you only have a small amount of crypto, it is preferable to leave your investment in your exchange account. But a digital wallet, which is a form of hot wallet, can offer more security if you want to move your crypto to a more secure storage facility.
How to Sell Ethereum
The procedure for selling Ethereum is very similar to that for purchasing it. You must ensure that an account has been created on your preferred exchange and that all requirements have been met. Make sure that the exchange you choose supports Ether, though this is unlikely to be an issue. You can then transfer your ether from your digital wallet to the exchange’s wallet once everything is set up. You can also trade Ether against other currency pairs, so selling ETH for cash isn’t the only way to cash out on your Ethereum holdings. You’d then have to decide whether to sell your ether for fiat currency (cash) or trade it for another cryptocurrency. You can now specify how much ETH you want to sell and the currency you want to receive in exchange.
The processes are simple, and the main thing is to sign up with a trusted and easy-to-use exchange. There’s usually a follow-through step that sets you up once you open the app or visit the website. Beware of phishing sites that may look like the crypto exchange’s site but are not. If possible, type out the address by yourself. Happy Trading!