Ethereum: Ether, the native token currency of the Ethereum Blockchain Network is the second most popular cryptocurrency in the market. Currently, the market capitalization value of Ether is $380 billion just after bitcoin at $800 billion.
Hence, most investors see immense potential in investing in Ether (ETH). Although the cryptocurrency market shrank in 2018 and 2019, it has gained momentum again in 2021. And even in January 2022, the market is seeing a rise in values and the number of investors.
However, if you are a beginner, you might be wondering how you can buy Ether on Ethereum Blockchain Network. Hence, here is a simple guide for you that will help you to invest in Ether.
Tip: Although we advise you to keep reading more about the cryptocurrency market, different coins, and strategies to get a proper idea of how to successfully keep investing in this market.
Here are five steps that you can follow to buy Ether (ETH).
- Find a High-Quality And Secure Trading Platform
Just like stock market trading, you will need a trading platform that is exclusively dedicated to cryptocurrency trading. And the one that offers Ethereum. Now since it is the second most traded cryptocurrency, most cryptocurrency trading platforms offer Ethereum.
Some of the leading trading platforms for cryptocurrency are Coinbase, Binance, Bitstamp, Kraken, Gemini, and Bitfinex.
There is one major thing that you need to consider when choosing a trading platform. Does it trade using fiat exchanges or cryptocurrency to cryptocurrency exchanges (C2C)? Both types of trading platforms can be used by traders based on the requirement.
If you are planning on investing only in Ethereum, you can easily do so using fiat exchanges. But if you want to invest in multiple currencies, using a C2C platform will be the best bet.
Also, you must consider factors such as license of the platform, secure exchanges and trading features, headquarters of the platform to determine whether it is a legit trading platform. This is important to avoid fraud.
- Create an account
Once you have confidently chosen a trading platform, you need to create an account. Just like any trading account, you need to provide certain information to open a cryptocurrency trading account.
This information includes name, address, social security number, and certain important identification documents. Since you will be providing personal information, you need to be the utmost sure of the trading platform you are choosing to avoid identity theft.
Once you have provided all the information, the platform will carry out verification. This will either take one hour or a day or two. This will depend on the type of trading platform you choose. Once your account is verified, you can start trading.
- Deposit currency
Now you have an active trading account, you need to deposit currency. For fiat exchanges, you can directly transfer funds through your bank account or debit cards. However, for C2C exchanges, you need to transfer deposits using codes. This code transfer will take longer than your usual instant transfers.
- Start trading
Now you have an active account, money deposited in the account, you are all set to start trading. You can now start buying cryptocurrencies. Be ready to provide commands that confirm your transactions and process your trade. This will take time depending on the platform you use. Also, the trading interface of each cryptocurrency trading platform is different.
So, practice a little to get a feel of the interface to trade in larger amounts in the future.
- Withdraw ETH
Once you have bought ETH, you can withdraw it into your bank account or wallet. Again, on fiat exchanges, it is easier to withdraw ETH to your bank account. However, for C2C platforms, you need to send codes that will take some time to process.
With these five steps, you can successfully buy Ethereum and start trading in the cryptocurrency market. Since the cryptocurrency market is evolving with new technologies, we suggest you should keep reading about any changes and updates in the market. This will help you make wise investments and earn profit.
You can keep following us at Coin Informer to get more insights into this market.