Ethereum is a platform for developing decentralized apps. In simple words, Ethereum allows you to run your dApps on servers all over the world instead of using Amazon’s or Google’s servers. In the crypto world, Ethereum is considered the second most famous cryptocurrency that might also be as good as Bitcoin. If you are planning to buy Ethereum, then you should read this guide till the end to find out everything about how Do I Buy Ethereum.
Difference Between Bitcoin and Ethereum
The currency of Ethereum, Ether, or ETH is similar to Bitcoin in ways like they both are decentralized, digital currencies on the Blockchain. However, they are not similar at all. Founded in 2009, Bitcoin is a digital currency developed as an alternative to fiat currency such as the euro or dollar.
On the other hand, Ethereum that was founded in 2015 is developed to provide users with a platform for smart contracts. To put it simply, what Bitcoin does for money, Ethereum does for contracts.
Though Bitcoin and Ethereum are frequently discussed together, they are more complementary than competitive.
Now that you know the basics of Ethereum, let’s move to the main section i.e. how to buy Ethereum stock.
How To Buy ETH (Ethereum) | Step by Step Procedure
Buying Ethereum consists of various steps. The first step is to choose the cryptocurrency exchange from where you want to buy the stock. There are many crypto exchanges and other platforms where you can buy Ethereum easily, however, not all of them can be trusted.
Before you choose any exchange, make sure to do your research, and put your money in the right place only. Once you find the right exchange for you, you can proceed further with the blog. Given below we have mentioned some of the most trusted crypto exchanges that you can rely on for buying Ethereum.
Step 1: Choose Your Exchange
Coinbase – if you are a complete beginner, then you might be looking for a convenient option for buying Ethereum. Coinbase is considered the best choice for beginners as it is really simple to use. With Coinbase, you can easily buy Ethereum without any help and also perform many other tasks. The only drawback here is that its charges are quite higher than most other exchanges.
Binance – Binance can be considered as the best overall exchange. Go with Binance, if you want to invest in more altcoins and not just Ethereum. The exchange offers lower fees and is a good option for advanced traders.
Kraken – Kraken is known for its outstanding customer service. So if you are new to the crypto world and it’s confusing for you, you might want some assistance. Another reason to go for Kraken is that it provides fast bank withdrawals.
Gemini – Being the only insured wallet so far, Gemini is for all those security-conscious investors who are looking for the best exchange out there. If you buy Ethereum from Gemini, you will be covered for hacks or security breaches. The platform also provides you interest in your cryptocurrencies.
Step 2: Creating Your Account On the Exchange
Now that you have selected which cryptocurrency exchange you want to use, it’s time to create your account on it. The procedure is simple and similar to creating an account on a brokerage platform. It won’t take much time.
You just need to provide the required information such as your name, address, email, social security number, and documents for identity verification. Creating an account only takes a few minutes however, you might have to wait as the exchange verifies your account.
For verification, you will need to upload your documents confirming your identity, a selfie-and also make sure your account meets the regulatory requirements. The verification process can take from a few hours to a day or two depending on the exchange you are using.
Steps 3: Deposit Your Account
Now you need to make a deposit of your currency in your exchange’s account. If your exchange has the option to trade Ethereum with fiat currency, then you must go with it. It will not take much time as your account is already verified.
Make sure to add your bank/credit/debit card information and once it’s verified you can make the deposit in a few minutes. Most exchanges allow you to make deposits of as minimum as $5 dollars to more than $1000. However, we suggest you avoid trading fewer amounts as it won’t be beneficial considering the per trade fees of your exchange. Instead of trading small amounts a couple of times, trade a large amount at once to save up on fees.
Step 4: Start Trading
Now that you have successfully deposited the required amount on your exchange, you are ready to start the trading i.e. buy Ethereum. With your deposit balance, you can trade any cryptocurrency of your choice on the exchange.
The procedure differs from exchange to exchange however the steps are somewhat going to be similar. You will need to select the trading pair, in the case of fiat currency let’s say USD, select USD/ETH pair. Mention the deposit amount, complete and confirm the transaction. At last, you’ll need to allow time for processing that depends on the amount or number of transactions you requested.
Step 5: Transfer Ethereum to Your Personal Wallet
Once you receive the Ethereum into your exchange’s wallet, you should transfer it into your personal wallet right away unless you are going to trade it any time soon. You need to be extra careful during this step and enter the wallet address with care.
If you make any mistake, you can lose access to your Ether currency and won’t get it back ever. Also, make sure the wallet you are using is safe. We suggest you use a hardware wallet like Trezor one or Ledger Nano to keep up with the security.
We hope the above procedure has helped you in buying Ethereum successfully from your exchange. If you need more help with your crypto trades, feel free to contact our Blockchain support professional regarding the matter. We will be more than glad to help you out with your queries and provide you with a solution right away.