How to Buy Ethereum (ETH):
A Complete Guide for New Investors
Time to read: 10 min
Nowadays, there are more than 20,000 different cryptocurrencies in the market, each with its own unique features and potential. Ethereum may not be as big or well-known as Bitcoin, but it's still a strong player, ranking as the second crypto by market cap. What is Ether (ETH)? Where to buy Ethereum? How to buy Ethereum? Our guide will cover everything you need to know about the 'digital silver' of the cryptocurrency market!
What Is Ethereum (ETH)?
Ethereum is a blockchain platform that goes beyond just facilitating a digital currency. It supports a wide array of decentralized applications (dApps) and smart contracts. Launched in 2015, Ethereum has introduced a new paradigm in the use of blockchain technology, allowing users to create agreements that automatically execute when conditions are met, without the need for a middleman.
The platform’s native currency, Ether (ETH), serves as a fuel for operating these applications and is used as a transaction currency within the Ethereum network. Ethereum’s ability to execute smart contracts has opened possibilities in everything from finance and real estate to healthcare and the arts, establishing its reputation as a versatile and indispensable technology in the digital age.
Where to Buy Ethereum
Due to the widespread adoption and popularity of Ethereum, the coin is available on a huge number of exchanges for instant purchases. Therefore, where to buy Ethereum fully depends on your investment needs and preferences — you have a lot of platforms to choose from.
Centralized Exchanges (CEX)
Centralized exchanges serve as the most popular and easiest way to buy Ethereum. CEXs act as so-called intermediaries in the buying and selling of cryptocurrencies, and are known for their ease of use, customer support, and a vast number of additional services like storage and trading. Thus, for beginners wondering how to buy Ethereum, CEXs are often the first choice due to their growing number of benefits and strong security features.
Decentralized Exchanges (DEX)
For those who prioritize privacy, decentralized exchanges provide a compelling alternative. Decentralized platforms operate without a central authority, allowing transactions to occur directly between users through an automated process known as smart contracts. While DEXs offer enhanced privacy and reduced risk of server downtime, they can be less intuitive for new users and often lack the customer support services found in CEXs.
Hybrid Exchanges
Hybrid exchanges attempt to merge the best features of both centralized and decentralized exchanges — they aim to provide the user-friendliness and speed of CEXs with the enhanced privacy of DEXs. These platforms are relatively new and could be a great choice for users who are looking for a balance between ease of use and secure, private transactions.
Buying Ethereum Step by Step
The process of buying Ethereum can seem complex at first glance, but it's actually much simpler than you might think! Below, we have outlined the key steps on how to buy ETH in a way that even beginners can understand. Still, keep in mind that these steps can slightly vary depending on the platform you have chosen to buy Ethereum (ETH).
Choose a Crypto Exchange
The first step to purchase Ethereum is choosing the right crypto exchange. Make sure to pay close attention to the factors like security features, fee structures, and ease of use. Switchere.com is a good choice for new investors with its clean interface and robust security measures to ensure a safe exchange experience.
Create an Account
Once you’ve selected an exchange to buy Ethereum, the next thing is to create an account. This process typically involves providing your email address, setting a password, and sometimes, verifying your identity through some documentation. Keep in mind that Know Your Customer (KYC) process is crucial for preventing fraud and meeting regulatory requirements.
Deposit Funds
After your account is set up, the next step is to deposit funds. Most exchanges support a variety of deposit methods and allow you to buy Ethereum with PayPal, bank transfers, or credit cards. On Switchere.com, for example, you buy Ethereum with a credit card, which makes the process quick and convenient.
Buy Ethereum
With your account funded, you can now purchase some ETH tokens. How to buy Ethereum? Well, this is typically done through a simple interface where you select the amount of ETH you want to buy, review the transaction details, and confirm the purchase. The Ethereum you buy will then be credited to your exchange wallet.
Manage Your Investment
After purchasing Ethereum, it’s important to consider how you will manage your investment. Some investors prefer to keep their tokens in their exchange wallet, while others transfer it to a personal wallet for added security. Make sure to consider your investment goals and choose a management strategy that fits your needs.
Best Ways to Store Ethereum
Properly storing Ethereum is as crucial as choosing a secure crypto exchange since they will safeguard your investment from hackers and other risks. The main types of wallets include:
- Hardware Wallets: These are physical devices that store your crypto offline, making them immune to online hacking attacks. Brands like Ledger or Trezor are the most popular choices among those who prioritize security.
- Software Wallets: These wallets serve as apps that can be installed on your PC or smartphone. They offer convenience and are generally easy to use, making them suitable for beginners who hold smaller amounts of cryptocurrencies. Still, make sure your computer has robust antivirus and malware protection to keep your assets safe.
- Paper Wallets: Imagine writing down your secret codes on a piece of paper and then keeping that paper locked away safely. That’s what a paper wallet is all about — it prints your public and private keys onto paper. This keeps them completely off the internet, making them super secure. Still, make sure to keep in mind that while this method is very safe from online threats, there's a risk: if you lose or damage the paper, you could lose access to your assets.
Pros and Cons of Purchasing Ethereum
Before investing in Ethereum, traders need to make sure it's a smart move that will pay off over time. Below, we'll dive into why you might want to buy Ethereum — and why you might think twice.
Pros
- Wide Use Cases: Ethereum is much more versatile than Bitcoin, thanks to its wide range of uses. It not only supports its own Ether token but also forms the basis for popular apps like NFTs and is leading changes in how we think about banking through DeFi.
- Decentralization: One of the biggest benefits of Ethereum is its decentralization, which means that information stored on its blockchain is safe from government interference or control by any other agencies. This ensures that data, smart contracts, and apps on Ethereum cannot be censored.
- Interoperability & Standards: Ethereum's use of widely accepted standards like ERC-20 and ERC-721 has greatly improved how different blockchain assets work together. These standards simplify creating and trading digital assets across apps and platforms, streamlining blockchain development.
Cons
- Unlimited Supply: Ethereum has an unlimited supply of coins, which can lead to inflation. On the other hand, Bitcoin has a fixed supply, which can help its value increase over time.
- Extreme Volatility: Ethereum's value can swing up and down quite dramatically. Anyone investing in ETH should focus on the long-term rather than getting caught up in short-term highs and lows.
- Scalability Issues: Ethereum faces significant scalability issues, especially when many people are using the network at the same time. As the number of users and transactions grows, it can cause delays in processing times and higher costs for transactions.
How to Sell Ethereum
Today, most crypto exchanges do not allow you to sell cryptocurrency and receive fiat currency directly into your account. However, Switchere.com has made the crypto sale feature available to all registered platform users.
At Switchere, you can sell Ethereum using traditional bank cards issued by Visa, Mastercard, and Maestro or via SEPA. Below is a step-by-step guide on how to sell ETH with a credit card.
1. Register or access your Switchere account.
2. Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Sell ETH’ button.
3. Agree to the terms and conditions and click the ‘Sell’ button to proceed.
4. Enter your card details and click on the ‘Sell’ button.
5. This is it. You will see a crypto wallet address for transferring the required amount of crypto. Please note that you have 15 minutes to make a transfer and complete your order payment. Once it is done, simply tap ‘I’ve Sent Funds.’
Make Your Ethereum Purchase Hassle-Free With Switchere
If you're ready to start investing in ETH, Switchere.com comes as a perfect exchange choice that offers one of the safest and most convenient ways to buy Ethereum instantly. With its robust security measures and straightforward purchasing process, Switchere.com makes it easy for beginners and seasoned investors alike to purchase ETH securely.
At Switchere, you can buy Ethereum with a credit card issued by Visa, Mastercard, and Maestro, as well as through direct bank transfers. Additionally, Switchere has a full-featured mobile app available for both iOS and Android devices, allowing you to make crypto transactions and access your account from anywhere.
Conclusion
Ethereum represents a significant advancement in blockchain technology, offering numerous opportunities for innovation and investment. By understanding how to buy Ethereum, store, and manage it, you are now well-prepared to start investing in this promising cryptocurrency.
FAQ
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Nowadays, there are more than 20,000 different cryptocurrencies in the market, each with its own unique features and potential. Ethereum may not be as big or well-known as Bitcoin, but it's still a strong player, ranking as the second crypto by market cap. What is Ether (ETH)? Where to buy Ethereum? How to buy Ethereum? Our guide will cover everything you need to know about the 'digital silver' of the cryptocurrency market!
What Is Ethereum (ETH)?
Ethereum is a blockchain platform that goes beyond just facilitating a digital currency. It supports a wide array of decentralized applications (dApps) and smart contracts. Launched in 2015, Ethereum has introduced a new paradigm in the use of blockchain technology, allowing users to create agreements that automatically execute when conditions are met, without the need for a middleman.
The platform’s native currency, Ether (ETH), serves as a fuel for operating these applications and is used as a transaction currency within the Ethereum network. Ethereum’s ability to execute smart contracts has opened possibilities in everything from finance and real estate to healthcare and the arts, establishing its reputation as a versatile and indispensable technology in the digital age.
Where to Buy Ethereum
Due to the widespread adoption and popularity of Ethereum, the coin is available on a huge number of exchanges for instant purchases. Therefore, where to buy Ethereum fully depends on your investment needs and preferences — you have a lot of platforms to choose from.
Centralized Exchanges (CEX)
Centralized exchanges serve as the most popular and easiest way to buy Ethereum. CEXs act as so-called intermediaries in the buying and selling of cryptocurrencies, and are known for their ease of use, customer support, and a vast number of additional services like storage and trading. Thus, for beginners wondering how to buy Ethereum, CEXs are often the first choice due to their growing number of benefits and strong security features.
Decentralized Exchanges (DEX)
For those who prioritize privacy, decentralized exchanges provide a compelling alternative. Decentralized platforms operate without a central authority, allowing transactions to occur directly between users through an automated process known as smart contracts. While DEXs offer enhanced privacy and reduced risk of server downtime, they can be less intuitive for new users and often lack the customer support services found in CEXs.
Hybrid Exchanges
Hybrid exchanges attempt to merge the best features of both centralized and decentralized exchanges — they aim to provide the user-friendliness and speed of CEXs with the enhanced privacy of DEXs. These platforms are relatively new and could be a great choice for users who are looking for a balance between ease of use and secure, private transactions.
Buying Ethereum Step by Step
The process of buying Ethereum can seem complex at first glance, but it's actually much simpler than you might think! Below, we have outlined the key steps on how to buy ETH in a way that even beginners can understand. Still, keep in mind that these steps can slightly vary depending on the platform you have chosen to buy Ethereum (ETH).
Choose a Crypto Exchange
The first step to purchase Ethereum is choosing the right crypto exchange. Make sure to pay close attention to the factors like security features, fee structures, and ease of use. Switchere.com is a good choice for new investors with its clean interface and robust security measures to ensure a safe exchange experience.
Create an Account
Once you’ve selected an exchange to buy Ethereum, the next thing is to create an account. This process typically involves providing your email address, setting a password, and sometimes, verifying your identity through some documentation. Keep in mind that Know Your Customer (KYC) process is crucial for preventing fraud and meeting regulatory requirements.
Deposit Funds
After your account is set up, the next step is to deposit funds. Most exchanges support a variety of deposit methods and allow you to buy Ethereum with PayPal, bank transfers, or credit cards. On Switchere.com, for example, you buy Ethereum with a credit card, which makes the process quick and convenient.
Buy Ethereum
With your account funded, you can now purchase some ETH tokens. How to buy Ethereum? Well, this is typically done through a simple interface where you select the amount of ETH you want to buy, review the transaction details, and confirm the purchase. The Ethereum you buy will then be credited to your exchange wallet.
Manage Your Investment
After purchasing Ethereum, it’s important to consider how you will manage your investment. Some investors prefer to keep their tokens in their exchange wallet, while others transfer it to a personal wallet for added security. Make sure to consider your investment goals and choose a management strategy that fits your needs.
Best Ways to Store Ethereum
Properly storing Ethereum is as crucial as choosing a secure crypto exchange since they will safeguard your investment from hackers and other risks. The main types of wallets include:
- Hardware Wallets: These are physical devices that store your crypto offline, making them immune to online hacking attacks. Brands like Ledger or Trezor are the most popular choices among those who prioritize security.
- Software Wallets: These wallets serve as apps that can be installed on your PC or smartphone. They offer convenience and are generally easy to use, making them suitable for beginners who hold smaller amounts of cryptocurrencies. Still, make sure your computer has robust antivirus and malware protection to keep your assets safe.
- Paper Wallets: Imagine writing down your secret codes on a piece of paper and then keeping that paper locked away safely. That’s what a paper wallet is all about — it prints your public and private keys onto paper. This keeps them completely off the internet, making them super secure. Still, make sure to keep in mind that while this method is very safe from online threats, there's a risk: if you lose or damage the paper, you could lose access to your assets.
Pros and Cons of Purchasing Ethereum
Before investing in Ethereum, traders need to make sure it's a smart move that will pay off over time. Below, we'll dive into why you might want to buy Ethereum — and why you might think twice.
Pros
- Wide Use Cases: Ethereum is much more versatile than Bitcoin, thanks to its wide range of uses. It not only supports its own Ether token but also forms the basis for popular apps like NFTs and is leading changes in how we think about banking through DeFi.
- Decentralization: One of the biggest benefits of Ethereum is its decentralization, which means that information stored on its blockchain is safe from government interference or control by any other agencies. This ensures that data, smart contracts, and apps on Ethereum cannot be censored.
- Interoperability & Standards: Ethereum's use of widely accepted standards like ERC-20 and ERC-721 has greatly improved how different blockchain assets work together. These standards simplify creating and trading digital assets across apps and platforms, streamlining blockchain development.
Cons
- Unlimited Supply: Ethereum has an unlimited supply of coins, which can lead to inflation. On the other hand, Bitcoin has a fixed supply, which can help its value increase over time.
- Extreme Volatility: Ethereum's value can swing up and down quite dramatically. Anyone investing in ETH should focus on the long-term rather than getting caught up in short-term highs and lows.
- Scalability Issues: Ethereum faces significant scalability issues, especially when many people are using the network at the same time. As the number of users and transactions grows, it can cause delays in processing times and higher costs for transactions.
How to Sell Ethereum
Today, most crypto exchanges do not allow you to sell cryptocurrency and receive fiat currency directly into your account. However, Switchere.com has made the crypto sale feature available to all registered platform users.
At Switchere, you can sell Ethereum using traditional bank cards issued by Visa, Mastercard, and Maestro or via SEPA. Below is a step-by-step guide on how to sell ETH with a credit card.
1. Register or access your Switchere account.
2. Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Sell ETH’ button.
3. Agree to the terms and conditions and click the ‘Sell’ button to proceed.
4. Enter your card details and click on the ‘Sell’ button.
5. This is it. You will see a crypto wallet address for transferring the required amount of crypto. Please note that you have 15 minutes to make a transfer and complete your order payment. Once it is done, simply tap ‘I’ve Sent Funds.’
Make Your Ethereum Purchase Hassle-Free With Switchere
If you're ready to start investing in ETH, Switchere.com comes as a perfect exchange choice that offers one of the safest and most convenient ways to buy Ethereum instantly. With its robust security measures and straightforward purchasing process, Switchere.com makes it easy for beginners and seasoned investors alike to purchase ETH securely.
At Switchere, you can buy Ethereum with a credit card issued by Visa, Mastercard, and Maestro, as well as through direct bank transfers. Additionally, Switchere has a full-featured mobile app available for both iOS and Android devices, allowing you to make crypto transactions and access your account from anywhere.
Conclusion
Ethereum represents a significant advancement in blockchain technology, offering numerous opportunities for innovation and investment. By understanding how to buy Ethereum, store, and manage it, you are now well-prepared to start investing in this promising cryptocurrency.
FAQ
Similar guides
Hot Crypto Wallets: Meaning and Significance for Digital Economy
Roman Klochko
How to Buy Cryptocurrency for Beginners: An Ultimate Guide
Darina Perepelitza
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