Before knowing how to buy , let us first understand what is Ethereum ?
Ethereum is according to SofiLearn is not a cryptocurrency but a programmable platform which was built using a blockchain technology. This was launched back in 2015 is currently the second largest crypto after bitcoin.
To buy buy Ethereum there are things you need to know first
- Crypto Wallet
- This is not just the storage of your crypto it is also a type of software or hardware which protects the private and public keys that allows you to trade your ether (a term for ethereum’s token) and other crypto. The difference of software wallet and hardware wallet is :
Software wallet – is also called hot wallet because you need a secure internet connection to access it.
Hardware wallet – is also called cold wallet which is more secure hence has downside because if you lose the device you will also lose your crypto assets.
- Public and private Keys
- Public keys are some sort of address which is mainly used by parties making the transaction
- Private keys – are obviously private and can only be accessed by the user. So basically if you lose or like misplace or forget it , you’ll not be able to access your crypto.
- Choose where you want to trade
Crypto exchanges has three exchanges
– centralized means there is a middleman that helps conduct the transaction
– decentralized it enables direct peer-to-peer transactions ( no middle man needed)
– hybrid is a combination of positive features of centralized and decentralized
- Identify Platform where you want to trade
Before trading , you have to choose the platform that is best for you. Some options are Coinbase, Kraken, Bitstamp,Binance. All of this offers an exchange for Ethereum.
Some question you need to consider are :
– Do they have license ?
– Level of the websites security ?How secure are the funds?
– Who are managing the executives ?
- Account creation
After deciding on a platform trading that suits you, opening an account will be the next. In doing so , you will need to provide your basic infos such as your name , address, social security number etc.
- Deposit Currency
Next step would be depositing currency into your account . This will mean you have to add money using your bank account or debit on file.. This process will require you to send cryptocurrency by code from one location to another. This usually will take an hour.
- Trading Begins
After your account has been verified , you can immediately start trading by first purchasing ethereum and other cryptocurrencies via exchange. Processing time vary depending on the total number of transactions requested.
- Withdraw ETH into a Wallet
Once you’re done with purchasing ETH through the exchange , you can withdraw the currency into your bank account or wallet rather that is controlled by you.