How to Buy Ethereum($ETH) Online 

 January 28, 2021

By  Jackson Rivers

The Ethereum blockchain token Ether (ETH) is one of the top three cryptocurrencies in the world. As of April 2019, it has the third highest market value at $16.34 billion, trailing Bitcoin at $92.56 billion and Ripple at $29.35 billion.

Cryptocurrency assets have declined since their peak in December 2017, but there is still a good reason to buy them as the market continues to see innovation. The value of ETH is trading at around $152 as of April 2019. The primary appeal of the digital currency is its integration with the Ethereum network.

Essentially, ETH is the driving force behind the capabilities of the Ethereum network as a whole. Because the Ethereum network offers tremendous development opportunities, ETH is an investment that many see as more promising than Bitcoin. Ethereum is also backed by several Fortune 500 companies and is used by several financial institutions. For all these reasons and more, many investors are quickly adding ETH to their portfolios.

Here's how to integrate Ethereum into your investing:

Identify a platform for trading

As a basis for placing trades, it is important to identify the best trading platform for your needs. There are a few options when it comes to cryptocurrencies with some of the top platforms including Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex. All of these exchanges offer astraleums.

One of the biggest considerations when choosing a cryptocurrency trading platform is the type of exchange. Cryptocurrency trading platforms can either be fiat exchanges or cryptocurrency for cryptocurrency (C2C) exchanges. As one of the three largest cryptocurrencies in the world, investors can easily trade Ethereum on fiat exchanges. Some investors who want to trade multiple currencies or have the ability to easily convert other currencies into Ethereum may want to take a closer look at C2C exchanges. Many investors also have multiple accounts with a fiat exchange and a C2C exchange.

Keep in mind that cryptocurrencies with rapid innovations are highly unregulated. This can create a great market opportunity, but it can also increase the risk of fraud, so it's important to trust the credibility of the trading platform you choose. Some important questions to ask when making an exchange are: Where is the headquarters located? Do you have a license? How secure is your website?, How secure are your funds?, and who are the directors?

Globally, Binance is the leading exchange by trading revenue. In the United States, Coinbase tops the list.

Create An Account

Once you have decided on a trading platform that suits your needs, the next step is to open an account. This process is similar to opening an account with a brokerage platform. You will need to provide your name, address, social security number, certain forms of identification, and more. Once you are familiar with a website, the account opening process can usually be completed fairly quickly

Account verification is usually the last step in the account opening process. Most exchanges require you to verify your account in one or more ways. Here, you will likely need to upload documents to verify your identity and ensure that your account passes regulatory muster. The verification process can take anywhere from about an hour to possibly a day or two, depending on the exchange.

Deposit Currency

Next, you will need to deposit currency into your account. For fiat currency platforms, this can be relatively easy after verifying your payment information. Simply add money via your bank account or debit card on file. Cryptocurrency exchanges generally do not have high minimum investments, so you can invest as little as $5 or as much as $1,000 or more. Most exchanges have per-trade fees, so it may be best to trade large amounts at once.

Depositing currency in C2C exchanges can be a bit more difficult. For these exchanges, you need to send cryptocurrency from one place to another via code. Ethereum is a popular deposit currency for many C2C platforms, so holding large amounts of it can be beneficial. Code transfers take a bit longer, usually up to an hour.

Start Trading

With a verified account and money deposited into it, you can buy Ethereum and other cryptocurrencies through the exchange. Each exchange has an interface that works slightly differently, but is ready to confirm transactions and then allow processing time, which can also depend on the total number of transactions requested.

Withdraw ETH into a wallet

Once you have purchased ETH through the exchange, you can withdraw this currency to your bank account or a wallet that you control. Fiat exchanges make it easy to withdraw ETH by simply selling the proceeds and sending them to your bank account. C2C platforms require a longer period of time. On a C2C platform, you would need to encode your ETH, transfer it to a fiat exchange, and then sell it to cash out. On all platforms, you generally also have the option to send ETH to a wallet.

We Recommend: Ledger - Hardware Wallet

Jackson Rivers

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