What Is Ethereum?
Ethereum happens to be the second most popular cryptocurrency in the world today after Bitcoin. In January 2022, it ranked second highest in market value, amounting to about 380 billion dollars after Bitcoin, at 800 billion dollars.
Ethereum, also known as Ether, is more promising than Bitcoin due to its integration with the Ethereum Network, making it much more than a simple medium of exchange or a store of value, unlike other cryptocurrencies. This means that it is part of a blockchain network in which all transactions are verified and recorded on a public ledger or a record-keeping system that everyone can access while keeping the identities of the participants anonymous.
While there was a drop in cryptocurrency assets between 2018 and 2019, they have soared to great heights in 2021.
How to Buy Ethereum?
Before you begin investing in Ethereum, assess the level of risk involved. Cryptocurrency values can fluctuate sharply. While there may be excellent returns, there are also sharp crashes. You must remember to invest wisely and only invest the amount you can afford to lose. Here is a simple guide explaining how you can buy Ethereum in just five simple steps:
1. Choose the Platform You Want To Invest In
Since cryptocurrencies don't work like the Stock Exchange, you can't buy them through a brokerage account. Instead, you need to create an account on a crypto exchange platform. There are many available in the market today, such as Kraken, Coinbase, Gemini, Binance and more. You must choose your preferred exchange, ensuring that it is not a fraudulent trading platform. To authenticate, check where its headquarters are, how secure the website is, who the managing executives are, and if they have a license.
2. Create Your Account
Once you have chosen a verified trading platform, proceed to create an account. You will be asked to provide your personal information, such as your complete name and address, contact information, social security number, and identification card. Verification of the account takes between an hour and a day.
3. Deposit Funds into Your Account
Next, you need to transfer funds to your account to be able to begin trading. This can be done via PayPal, wire transfer, or using a debit card. Each exchange has a fee upon transferring funds. So before choosing a funding method, make sure to review the applied fees.
4. Start Buying
Once your account is set up, you can begin trading. Unlike the Stock Exchange, which has specified work hours, cryptocurrency trading can happen round the clock and is not affected by weekends or public holidays.
Whenever you want to purchase Ethereum, enter its ticker symbol ETH in your exchange platform's 'buy' fields and put the amount you wish to buy. It is not necessary to buy the full coin if you can't afford it or wish to play it safe. You also have the option of buying a fraction of the coin.
5. Withdraw Ether in Your Wallet
Once you have bought your share of the Ether through the exchange, you can now withdraw the currency into your bank account or your crypto wallet.
Investing in cryptocurrencies is fairly new and risky, and it is best to learn more about them through courses or other experienced people before you begin trading. Here's a legit company that you can use to access your cryptocurrencies and have any further questions addressed. Click here and learn more.