How to Buy Ethereum
Ethereum is a huge cryptocurrency that everyone is talking about, so in this guide, we’ll show you how to buy Ethereum for yourself.
A bit of background
If you weren’t already aware, Ethereum is the second largest cryptocurrency, behind Bitcoin.
Created by Vitalik Buterin in 2013, Ethereum is technically a platform. It allows users to build applications based on blockchain technology (decentralized Apps, or dApps) creating a new whole world of financial and services industries.
Today, the platform has over 260,000 cryptocurrencies, of which 47 are in the top 100 by market capitalization.
One of the most recognized application of Ethereum are smart contracts.
These digital agreements are built to execute a financial transaction only when the agreed terms are met.
Trustless and non-custodian in nature, smart contracts allow for nearly every kind of agreement to be made, from paying out salaries to international trading.
Is Ethereum worth it?
As the second largest cryptocurrency by market capitalization, Ethereum has always held a strong correlation to Bitcoin’s movement until late 2019, when alt coins and others started to break away.
On a year to year basis, Ethereum has been a profitable investment most of the time. From October 2015 to October 2017, it made a positive move, gaining roughly USD 431 in value.
The rise of value is mostly attributed to the ICO, or Initial Coin Offering phenomenon, where hundreds of platform and tokens were launched from the Ethereum ecosystem.
Unfortunately, little to no legal coverage, over hype and scams finally led to a big drop in demand for Ethereum. The coin witnessed a yearlong decline in value, and the history of ICOs have been marked as a cautionary tale for all cryptocurrency investors.
Thankfully, the market has since matured and recovered, resulting in an uptick and general stability in the Ethereum price.
As an investment, Ethereum and its ETH token are one of the best bets for two reasons:
1) DeFi (Decentralized Finance)
DeFi is a financial concept that is gaining serious traction in the world of cryptocurrency.
Non-custodial and trustless, it offers better financial products and services. The total locked value in DeFi recently crossed the USD 7 billion mark.
2) Ethereum 2.0
Ethereum is all geared up to shift its miners from the power hungry concept of Proof of Work (PoW) to Proof of Stake (PoS), where miners and others stake their tokens to protect and maintain the network.
This is widely accepted as the next iteration of the Ethereum network, dubbed Ethereum 2.0.
Other updates to the network include scalability, improved security and sharding, a process where blockchain is portioned to work faster and yet still be a part of the overall network.
How to buy Ethereum
One of the greatest challenges that new cryptocurrency enthusiasts face is on how to get their hands on one.
For Ethereum, users have a number of different options, ranging from easy to sophisticated:
Perhaps one of the easiest methods to buy ETH, users can either exchange their existing cryptocurrency for ETH, or purchase it with fiat money (USD, GBP, EUR etc) with a debit or credit cards, Apple Pay and even a bank transfer.
Changelly is reliable and secure, with minimal fees and fast direct-to-wallet transfers, and a easy process that walks you through how to buy Ethereum.
Another platform for quick and easy buying, BitPanda is based in Vienna and has been in operations since 2014.
BitPanda has a number of purchasing options including debit/credit card payments and bank transfers, but it also supports other payment providers like Skrill, Neteller, EPS and even Amazon.de.
A peer to peer exchange, Remitano acts as an escrow service and lets buyers and sellers connect to trade in or out cryptocurrencies including ETH against fiat. Apart from bank transfers, depending on the country in question, people can also use different localized micro banking.
Other Crypto Exchanges
There are a lots of other crypto exchanges worldwide which have fiat support to allow traders to deposit cash and buy ETH.
Here’s a quick list:
Best Ethereum Wallets
Crypto currencies are stored in digital wallets, much like one would safe keep money in a bank account.
However, since cryptocurrencies rely on being decentralized and bank free, the wallets are the ownership and responsibility of the token holders.
There are a number of different wallet available for Ethereum.
Ethereum holders can deposit, hold and transfer from these wallets with ease, requiring nothing more than their public key (the wallet address) and the private key (the password) to access and the receiver’s public key to send it.
Some of the best ETH wallets include:
MEW is a simple, web based Ethereum blockchain interface that allows users to create their wallets with ease. The MEW has strong, multiple methods of security and accessibility to the wallet. The MEW is ERC20 compatible, meaning all kinds of tokens that are ERC compliant can be stored in the same wallet.
A mobile based multi crypto wallet, TrustWallet users can store their ETH in it without any worry. The wallet also offers in built features such as buying crypto using cards and even exchanging them for other tokens.
Another multi-currency wallet, Guarda is a secure storage for ETH. The wallet offers advanced security such as multi signatures (two or more persons are required to enter their private keys to access the wallet) and even lets users stake their tokens, earning passive income through accruing interest.