As a blockchain platform, Ethereum is known for its smart contract functionality. This platform has become immensely popular along with its currency, Ether. Ethereum is a worldwide, open-source platform, which is used for decentralized applications. Using the Ethereum platform, you can write codes to control and regulate digital values. It operates precisely as it has been programmed, and you can access it from anywhere in the world.
Ethereum can be used to decentralize almost everything, including domain names, financial exchanges, crowdfunding, contracts, agreements, intellectual property, and more. It is a DIY platform designed for creating blockchains.
What Is Ether?
Ether is the currency that is used for trading on the Ethereum platform. It is an essential component of the Ethereum blockchain network acting as the fuel of the network, helping maintain its responsiveness and functionality. Though many consider ether as the native digital currency of the Ethereum platform, it works as a form of payment or incentive for those who are participants of the network. Ether is used to execute their tasks on the network.
How to Buy Ethereum?
One of the most popular ways to buy Ethereum is by using a cryptocurrency exchange platform. Usually, exchanges that have higher trading volumes offer the most viable prices. Also, based on the exchange and method you decide on to buy Ethereum, fees can differ from 0.1% to 4% approximately. There are many cryptocurrency exchanges and each one of them offers different features for their participants. So let’s see how to buy Ethereum through Coinmama, a cryptocurrency exchange formed in 2013:
- Obtain an Ethereum wallet
- Look for your Ethereum address
- Now go to Coinmama and enter the amount of Ether to buy
- Then enter your Ethereum address and payment details
Step 1 – Obtain an Ethereum Wallet
Before you start buying Ethererum, you will have to get an Ethereum wallet to store your Ether. There are various types of Ethereum wallets, including hardware and software wallets. Let’s have a look at them:
A hardware wallet is perhaps the safest and securest way to store your Ether. It comes in the form of hardware that you can connect to your computer very much like a flash drive. It keeps your Ethereum private keys securely offline. A hardware wallet is kind of the finest combination of security and expediency you can find in the cryptocurrency industry. Two of the most popular and main hardware wallets supporting Ethereum are TREZOR and Ledger.
If you are a beginner and don’t have much Ether to store in your wallet or you can’t afford to buy a hardware wallet, you can go for a software wallet. These wallets come free of charge, but they offer less security as they are always connected to the Internet. This increases the chances of hacking. The top Ethereum software wallets for novices are Exodus, which is a desktop wallet, Edge, which is a mobile wallet, and MyEtherWallet, which is for both mobile and desktop.
Step 2 – Buy Ethereum using a Wire transfer or Credit Card
Some of the easiest ways to purchase Ether of Ethereum are listed below.
- Buying Ethereum through Coinmama
Coinmama exchange is a worldwide supplier of Ethereum that has been in existence since 2013. It allows you to buy Ethereum using your credit card or wire transfer such as SEPA (Single Euro Payments Area) and SWIFT (Society for Worldwide Interbank Financial Telecommunication). When you use SEPA transfers, exchange rates are rather reasonable.
- Buying Ethereum through eToro
Since 2008, eToro has been one of the leading online trading platforms. It is regarded as a social trading platform, and it has been designed to allow users to trade almost anything, including currencies, stocks, cryptocurrencies, etc. through web and mobile-based platforms.
If you are tracking Ethereum for price speculation and don’t want to keep the actual coins or transfer them to someone else, eToro is perhaps the easiest and most economical choice. It allows you to buy and sell Ethereum using fiat currencies such as USD and EUR. But you won’t have access to real coins. Also, you won’t need to obtain an Ethereum wallet since you won’t be getting any actual coins and send them outside of the platform.
- Buying Ethereum through CEX.io
This is a cryptocurrency exchange allowing the users to buy Ether using a credit card. Cex.io offers two services, brokerage, and trading. If you are using brokerage service of the company, i.e., purchasing straight from the exchange, the fees would be calculated to the exchange rate, and thus the rate might look higher compared to other exchanges. To get more reasonable rates, you need to go for trading services offered by this company. To buy Ethereum, follow these steps:
- First, open a CEX.io account
- Now add your bank account or Credit Card details
- Then go to Buy/Sell option and choose Ethereum
- Next, decide on the amount of Ethereum that you want to buy and enter the amount.
- Finally, click on ‘Buy Ethereum’
- Coinbase and Bitpanda
Buying Ethereum from Coinbase is a convenient and inexpensive method. Coinbase will charge you a fee based on your payment method. This cryptocurrency exchange specializes in buying and selling cryptocurrencies inside the Eurozone.
Step 3 – Transfer the Ether to your Wallet
Now that, you have bought your Ether, ensure that you don’t leave them with the exchange in case your exchange gets hacked or it becomes insolvent and you might lose all your coins. For that purpose, you should transfer your coins to your Ethereum address. The address would be a long series of characters and numbers starting with 0x.
Ethereum is a technology that could change the Internet world’s works. However, only time will tell if it becomes a success or a failure. Ethereum is gradually becoming more popular and its currency, Ether, also looks like gaining impetus and appreciation in price. Nevertheless, cryptocurrencies are a risky investment and things can turn around in a matter of minutes. On the other hand, Ethereum cryptocurrency makes a good investment choice as the company offers work products, an efficient team, strong alliances, and more. The Ether has continued to exist for a long time and holds a strong second position after Bitcoin in the market.