How To Buy Ethereum

The second-largest cryptocurrency according to market cap, Ethereum purchase is a popular investment option for many. It runs on several decentralised tokens, such as NFTs and ICOs. It is optimised as a smart contract platform having a net worth of almost a quarter trillion dollars as of May 2022. ETH is a native token of Ethereum which can be traded using several exchange platforms.

If you are wondering how to invest in crypto, keep scrolling for the detailed steps.

Steps To Buy Ethereum

Below are the steps you need to take to make a promising investment in crypto:

Step 1: Select the appropriate trading platform

Several crypto trading platforms are available, such as Coinbase, Binance, etc. These platforms come with unique features suitable for different types of investors. Hence, choosing the right trading platform is extremely important to meet your expectations from crypto trading. These platforms are majorly categorised into types based on the nature of exchange:

• There is a fiat exchange platform that is highly suitable for Ethereum trading.
• The other platform type is the C2C (Cryptocurrency to Cryptocurrency) exchange platform, where traders can trade multiple coins, including Ethereum.
• In addition, several stock brokers sell crypto online, such as Robinhood.
• Moreover, various payment apps allow users to buy crypto from their app.

At times, traders can have accounts on multiple platforms to get the best of all and maximise their profit. However, C2C platforms are popularly used by traders to trade in Ethereum. 

Step 2: Open a trading account

Creating a crypto trading account involves similar steps as opening an account on any other trading platform. The steps involved are:

• Enter your personal and contact details. This includes name, contact number, and address.
• Verify your account
• Submit all the necessary documents

Sometimes you might have to wait up to two days to verify your account. There can also be different ways to verify an account for different exchange platforms.

Step 3: Deposit money into your account

After verifying your account, choosing the right coin you want to trade in is the most critical task. It would be best if you had a clear idea of coins and their fluctuations. Next, deposit a sufficient amount in your trading account. This step again differs with platforms.

Depositing currency on fiat platforms is much easier as compared to C2C platforms. You can deposit as less as $5 using your debit card to buy a coin. On the contrary, for investments using C2C platforms, you will need to send codes to different locations. This is a time taking process and, at times, might require up to 1 hour or more. 

Step 4: Start buying Ethereum

As soon as the above processes get completed, you can kick start your trading journey. Unlike stocks, you can trade crypto coins at any hour of the day. Buying Ethereum involves the following steps:

• Navigate to the exchange section
• Scroll to the buy section
• Tick Ethereum symbol
• Enter the amount 

In case of a capital crunch, you always have the option of purchasing coins as fractions.

Step 5: Store Ethereum 

After buying, you need to store ETH to protect them from hackers. If you store them in exchange platforms, they will likely get trapped. Hence, it would be best if you stored them in crypto wallets to keep them protected. These can keep your coin safe and readily available whenever required.

Step 6: Sell Ethereum at a higher price

Certain risks are inevitable if you are looking to invest in crypto coins as a long-term investment. Frequent market fluctuations top the list and are most common in any trading. But you will have to hold the coins until the price rises. This will incur an increased profit in the long run. You can also opt for exchanging crypto for other coins instead of cash.

Things to keep in mind before Ethereum investment 

You must keep in mind the following points to ensure smooth trading:

• There are several technical challenges that you might encounter during trading in Ethereum.
• Since you are looking for an investment, you might not receive extensive profits within a short period. 
• Ethereum trading is extremely competitive. Hence, it would help if you plan your strategies before trading.

How To Protect Ethereum? 

Being a decentralised investment, you must take certain steps to keep ETH safe. These include:

• Use wallets: There are several wallets to store ETH. This ensures the safety of your coins from hackers and gives you sole control. If you do not use wallets, there lie high chances of losing funds.
• Follow wallet instructions: Since wallets store all your coins, keeping your wallet credentials safe is necessary. Several safety instructions come with your wallet. You must follow them strictly to maintain the safety of your coins.
• Verify ETH address: You must check your wallet address at least twice before sending coins while exchanging crypto. A wallet address is immediately visible when you download one.

There are several types of wallets, such as:

• Cold wallet: These are completely detached from the internet, and you will have to connect them to the internet during an exchange manually. Since they are usually external devices, you need to buy them separately. The prices vary with the type, and some wallets can be expensive. These wallets are comparatively safer.
• Hot wallet: Unlike a cold wallet, hot wallets are connected to the internet. Hence, you can easily access them using your smartphones. These are provided along with crypto exchange platforms. Hence, you do not need to pay any additional cost. You can easily access and transfer coins using this type of wallet. However, these wallets are susceptible to online attacks and are not as safe as cold wallets. 

Conclusion 

Due to its high volatility, Ethereum might be a risky investment. Also, online hackers can steal your funds. Hence, you must trade strategically and take safety measures to protect yourself from hackers and fraud. If correct investment decisions are made, the returns can be grand.