Before I explain how you can buy Ethereum, here’s an overview of what Ethereum is about.
What is Ethereum?
Ethereum is a decentralized blockchain platform that runs smart contracts. Smart contracts are applications that run exactly the way they are programmed to with no possibility of censorship, fraud, third party interference or downtime. The Ethereum with smart contracts basically allows developers create whatever operations they want to for example storing registries of promises or debts, creating markets, moving funds, etc. all these with no middleman or risk of the counterparty. Ethereum allows for programs to run on a virtual machine. The value of Ethereum is similar to stocks or property because it is determined by the forces of demand and supply (that is, buying and selling) in the open market and so, its prices fluctuate daily. It allows users send and receive tokens that represent value over an open network.
The currency of Ethereum platform is Ether, and as a result of the Ethereum fork, two currencies emerged out of it, which are Ethereum (ETH) and Ethereum Classic (ETC), they both have two different exchanges. The main focus of this article is on Ethereum (ETC). So Ethereum is a type of cryptocurrency that is gaining popularity and according to coin market cap, is the number 2 cryptocurrency after Bitcoin.
How to buy Ethereum
- Get an Ethereum wallet
Before you can buy Ethereum, you need to have an Ethereum wallet which is where the amount of Ethereum you purchase will be stored for maximum safety. There are several types of wallets available such as desktop wallets, mobile wallets and even hardware wallets (which are seen as the safest wallets by most people these days). So decide on what type of wallet you want to have.
- Find an Exchange
An exchange is where cryptocurrencies can be purchased or sold. There are several Ethereum supported exchanges such as Kraken, Coinbase, Poloniex, HitBTC, Gatecoin, BitTrex, Coinmama, Gemini, Coinhouse, etc.
- Create an account on the exchange
After finding a suitable exchange, create an account. You should, however, know that different exchanges require different purchasing methods. Some exchanges will require you to buy Ethereum with fiat currency either through a credit card, wire transfer or cash in a particular currency denomination. Some can allow you buy Ethereum with bitcoin (in which case you need to have bitcoin). A transaction fee may also be charged for each Ethereum purchase, and this may vary according to the medium (credit card, wire transfer, cash used for the exchange).
- Make a deposit into your exchange account
Before you can actually buy Ethereum, you need to fund your exchange account depending on whatever amount you may decide. You should fund your account with fiat currency or bitcoin.
- Begin trading
After your wallet has been successfully funded, you can then buy ETH. Different exchanges have interfaces that work differently so you may need to exercise patience and allow for processing time.
Related: TOP 5 CRYPTOCURRENCY EXCHANGE SITES
- Withdraw your ETH into your wallet
After successfully purchasing ETH through an exchange, withdraw your Ethereum into your wallet for safety and control by inputting you wallet account address into the exchange so that your ETH can be transferred successfully. Do this because your exchange account is gullible to attacks and can be hacked and you may end up losing your cryptocurrency.
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