How to Buy Ethereum
Converter Ethereum to US Dollar
Ethereum (ETH) is on the second place in terms of capitalization in the cryptocurrency market: only Bitcoin surpasses it in this indicator. One of the most popular blockchain platforms and its native coin have become widespread not only thanks to innovative solutions in organizing their own distributed network, but also due to the personality of its founder – Vitalik Buterin, a well-known crypto enthusiast and philanthropist.
In the article, we will see into what is the most profitable way to buy ETH in 2023 using the main method as an example – on a crypto exchange.
What is Ethereum
Ethereum or ETH is the name which is used in the crypto industry for the native coin of the Ethereum network. In the Ethereum ecosystem, ETH powers decentralized applications and used as a means of paying fees.
The main innovations at the time of the launch of the Ethereum blockchain were: smart contracts, a distributed computing virtual machine (EVM) and the ability to create your own ERC-20 tokens. A few years later, many blockchain platforms began to use the principles of the Ethereum ecosystem to organize their own work.
Where is the best place to buy Ethereum
Ethereum is a widespread cryptocurrency, and there are a large number of services where you can buy it:
- Cryptocurrency exchanges;
- Banks and financial institutions (like Revolut);
- Payment services.
Cryptocurrency exchange is one of the most reliable and profitable ways to buy ETH. Exchanges differ from other platforms by increased security, high liquidity of assets and wide payment options for the purchase of cryptocurrency (bank transfers, Visa/MasterCard cards, third-party payment systems, p2p services, etc.)
Instructions for buying Ethereum
To buy ETH, you will need to follow a few steps. Step by step instructions for buying a coin looks like this:
- Tolerable risk assessment;
- Exchange selection;
- Create an account;
- Balance replenishment;
- Buying ETH.
Determine your level of risk
Before buying, you need to decide on the level of acceptable risk. The main rule of investor, no matter what assets he works with, is to invest only as much money that is acceptable to lose. Because of the increased risks of investing in cryptocurrencies that are associated with the high volatility of the crypto market, this rule becomes even more important.
Choose a crypto exchange
There are no fundamental differences between centralized cryptocurrency exchanges. However, it is necessary to study different services, because the working conditions for them will be different.
The list of the most popular exchanges for buying ETH is presented in the table.
Register an account
To trade on the exchange, you need to register a new account on it. For example, let’s open an account on a crypto exchange OKX. Registration on OKX takes several steps:
- Click on the Sign Up button in the top right exchange official website;
- Enter your e-mail or phone number → create a password → add a referral code (if have one) and click on the Sign Up button;
- In the next window enter the 6-digit code that will be sent to your email or phone;
- Await for confirmation of account creation.
Top up your account
Marketplaces may differ in available deposit methods. Some of them may support fiat currency top-ups, others only work with cryptocurrencies as a top-up. OKX refers to the latter. To deposit your account on the OKX exchange:
- Select Assets → Deposit in the top menu of the exchange → select the deposit currency (for example, USDT ) and blockchain;
- Select your account type (trade or general). After that, the exchange generates an address (also available as a QR-code);
- Select the coin to transfer in your crypto wallet (USDT in our case) and enter the address received on the exchange page (you can simply scan the QR code);
- Confirm transaction;
- Check the receipt of funds.
Buy Ethereum (ETH)
After funding your account, you can use the exchange’s terminal to buy Ethereum (ETH). For this:
- In the top horizontal menu click Trade → Basic Trade;
- Select a cryptocurrency pair, for example, ETH/USDT;
- Set the order type to buy, for example, Market (ETH will be bought at the current market price);
- Enter the number of coins to buy;
- Click Buy ETH.
How to sell Ethereum
To sell ETH on the exchange, you need to repeat the same steps as when buying a coin, but fill in the order fields above the red Sell ETH button:
Where to store ETH
ETH can be stored in any wallet that supports the Ethereum network. You also need to decide how often the cryptocurrency will be used. Users who actively use crypto or trade on an exchange will benefit from hot wallets. They are implemented in the form of applications for a smartphone or computer. Trusted hot wallets include, for example, Trust Wallet.
Among the disadvantages of hot wallets, is susceptibility to hacking. Therefore, when using this type of storage, you need to remember the basic security measures: two-factor authentication and a strong password.
If you are not going to use cryptocurrency in the near future and or for investing for the long term, then it is recommended to use hardware cold wallets like Ledger.
Hardware cold wallets are safe and secure because they are not permanently connected to the network. The main disadvantage of such devices is their price.
How to withdraw Ethereum to the wallet?
To withdraw Ethereum to your wallet, you need to create a withdrawal request. For this:
- Click Assets → Withdrawal in the user account;
- Select ETH → select network → Continue;
- Specify wallet address for withdrawing coins. The exchange will automatically calculate the commission;
- Click Continue;
- Enter password to access money and code from SMS, press Confirm;
- ETH withdrawal completed.
- Select exchange → create account;
- Top up balance;
- Go to the terminal and select a currency pair, for example, ETH/USDT;
- Set buy order type;
- Specify the number of coins to buy and click Buy ETH.
However, remember that the consequences of any investment decisions are the responsibility of the investor.