Last Updated on January 20, 2022 by Arty Fisher
A guide on how to buy Ethereum, including a list of the most popular ETH trading sites.
Ethereum is a decentralized platform that runs smart contracts. While Bitcoin was created primarily as a digital currency, Ethereum was built with a Turing-complete programming language, enabling developers to build any kind of applications on top of it.
Step 1: Create an Ether Wallet The first thing you’ll need to do is create an Ether wallet (also known as a crypto currency wallet). This is where you’ll store the Ether you purchase. Depending on the security of your computer and how much money you plan to invest, you may want to consider purchasing the desktop version of MyEtherWallet as opposed to using a web-based wallet. You can also use an offline storage method like a USB drive or even write your private key and public address on piece of paper. Just make sure that if you go this route, it’s stored in a safe place!
Step 2: Find an Exchange There are a variety of exchanges out there that allow users to buy and sell Ethereum. Some of more popular options include Coinbase, Gemini and Bitstamp.
Step 3: Transfer your Ether Once you’ve chosen an exchange, transfer your fiat money from your bank account into your exchange account. For most exchanges, this will involve depositing funds into your account using the bank wire option or using a credit or debit card to purchase digital
It’s easy to buy ether (ETH), the native token of the Ethereum blockchain, but it might not be easy to find an exchange that allows you to do so.
The world’s second largest cryptocurrency by market capitalization, Ethereum is a rising star in the crypto world. It started 2017 valued at around $8 and has since risen to more than $400, making many early adopters into millionaires. In the last year, dozens of new cryptocurrency exchanges have entered the market and they all claim they can offer better services than their competitors.
So where do you start? What are your options? Like most cryptocurrencies, Ethereum isn’t bought and sold on regular exchanges. Instead, you have to use so-called “token exchanges” because specific smart contracts are needed to trade these tokens. Token exchanges also allow people to trade other cryptocurrencies for Ethereum and vice versa.
When deciding which exchange to use for buying Ethereum, you should consider how much information you are willing to give away. If you want the fastest way of purchasing Ethereum with minimum hassle, use the exchanges that require less identification. However, if you don’t mind being asked questions about yourself – do more research and find an exchange where you are comfortable sharing personal data.
Disclaimer: Cryptocurrencies are highly speculative, complex and involve a lot of risks – they are highly volatile and sensitive to outside activity. Their performance is very unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. The author may have holdings in any of the cryptocurrencies discussed.