How to Buy Ethereum Guide for Beginners – 2021 BEST
Ethereum is one of the cryptocurrencies that has its own blockchain and offers smart contract functionality. It was developed in 2013 with the purpose of letting developers build their decentralized applications. This feature let it earn a great reputation and as a result, its currency, Ethereum, became very popular. Below, you can find different ways to buy Ethereum.
Quick Overview on How to Buy Ethereum
Basically, all you have to do is follow the following instructions to buy Ethereum;
- Get an Ethereum Wallet
- Learn Your Ethereum Address
- Visit CEX.io and Buy Ethereum
- Pick a Payment Method and Provide Ethereum Address
Buying Ethereum is this simple. You are going to receive your coins in your wallet in minutes. In case, you do not like to use CEX.io, then you can find some of the best exchanges to buy Ethereum online by clicking this link.
Those who would like to learn more about how to buy Ethereum, information on this cryptocurrency and its systems, can check the following headings. Here are the main outlines of this guide.
What Is Ethereum?
Ethereum is the common name used for the system that allows decentralizing anything you can imagine. You can decentralize things such as intellectual property, any type of contracts or agreements, crowdfunding projects, exchanges, domains, and even voting.
You can think of Ethereum as a do-it-yourself platform to create blockchains. The is the foundation for blockchains and you are also able to create different cryptocurrencies such as ERC-20 tokens that run on decentralized applications, which are known as Dapps.
What Is Ether?
Ether is the official currency of the platform. You need to own Ether to use the platform. It is not too much different than Bitcoin and you can easily mine or trade it. There is a misconception on the internet which people confuse Ether and Ethereum and use them interchangeably. However, Ether refers to currency while Ethereum refers to the platform.
The total amount of Ether was determined publicly during the 2014 presale and in general, we can tell you the following:
- During the presale, the number of Ethers created to granted to contributors was 60 million.
- More than 20% of this (12 million) was allocated to development funds while most of it was distributed to first developers, contributors, and Ethereum Foundation.
- 3 Ethers are generated and rewarded to the block miner and a new block is generated around 15 to 17 seconds. However, this was reduced to 2 in 2019.
- You can still earn 2-3 Ethers if you will be successful to find a solution, but your block is not included in your solution. This reward is also known as uncle or aunt reward.
Founders of Ethereum define Ether as a crypto-fuel rather than a cryptocurrency. The main purpose of the Ether is to let people pay for Ethereum platform
How to Buy Ethereum?
Step 1 – Get an Ethereum Wallet
First thing first, you need an Ethereum wallet to keep your freshly bought Ethers in. You can choose between different Ethereum wallets. Below, you can find brief information on the popular Ethereum wallets you can get.
Electrum Software Wallets
Since this will be your first time buying Ether, you do not have to invest in hardware wallets to keep your low amount of Ether. This is why software wallets are considered handy for many traders. These wallets are offered for free, but they come with security concerns. Because they are always connected to the internet, they are vulnerable to hacks. Some of the Ethereum wallets you can prefer as a beginner include; Exodus for desktop, Edge for mobile, and MyEtherWallet for both mobile and desktop.
Ethereum Hardware Wallets
Hardware wallets are the most secure wallets to keep your Ethers. It is hardware that you need to connect your computer to access. In this way, you can keep your private keys offline, and these wallets are the best mixture of security and ease of use. Some of the popular hardware wallets you can prefer as a beginners are TREZOR and Ledger.
Step 2 – Buy Ethereum with Wire Transfer or Credit Card
You can easily buy Ethereum with any of the following reputable and popular Ethereum exchange platforms on the internet.
Buying Ethereum with Bitpanda
Bitpanda allows European Union citizens to buy and sell different cryptocurrencies. It is one of the most beginner-friendly platforms to buy cryptocurrencies including Ethereum. You can enjoy a quick and flawless operation. The biggest downside of the platform is there are no fixed and listed transaction fees. Every fee is embedded in the final price, which means that you need to calculate them individually.
Buying Ethereum with Coinbase
Coinbase is one of the popular and cheap platforms to buy Ethereum and it serves in more than 100 countries. Depending on your preferred payment method, the fees can vary between 1.49% and 3.99%. As usual, you will be charged more when you want to buy Ether with a credit card when compared to other payment options. Here are the steps you need to follow to buy Ethereum on this platform:
- Create a Coinbase account
- Pick and add your payment method
- Visit the Buy/Sell section and type the Ethereum balance you would like to buy
- Finalize your trade by clicking the Buy Ethereum button.
Buying Ethereum with Coinmama
Coinmama has been offering its services since 2013 and it serves all countries. You can buy Ethereum with payment methods such as wire transfers including SWIFT and SEPA, and credit cards. It offers fair exchange rates especially when you prefer SEPA transfers.
Buying Ethereum with eToro
If you are planning to buy Ethereum to speculate on price and make money, you do not need to own the coins. In this respect, eToro is one of the best options for you. You can enjoy the easiest and cheapest platform for price speculation. Moreover, you can buy and sell cryptocurrencies including Ethereum with fiat currencies such as Euro or Dollar. It also has a beginner-friendly interface to facilitate your trades.
However, eToro has a complicated withdrawal process and this is why it is not the best choice for actually buying coins. If you are planning to speculate on prices and use eToro, you will not have to buy an Ethereum wallet since you will never actually possess them.
It will be worth noting that cryptocurrencies are highly violated assets, and they are not the best options for all kinds of investors. Moreover, cryptocurrency trading is not supervised by any EU regulations. This is why you need to understand that your capital is at risk all the time. Traders living in the United States cannot use eToro since CFD trading is not available in their country.
Buying Ethereum with CEX.io
CEX.io allows its traders to buy Ether through their platform and you can use your credit card for the purchase. In case you are going to use the brokerage service of the platform, the fees will be included in the exchange rates. This is the main reason why it has higher rates compared to other platforms. However, you can enjoy better rates by preferring the trading platform which is a better choice for advanced traders.
- Create a CEX.io account.
- Pick and add your payment method
- Visit the Buy/Sell section and click the Ethereum link
- Enter the Ethereum balance you would like to buy
- Finalize your trade by clicking the Buy Ethereum button.
Exchanging Ethereum with Swapzone
You can also buy Ethereum by exchanging a different cryptocurrency with it. In this respect, you may want to check Swapzone services. On this platform, you can quickly compare exchange rates, delivery time, and user reviews for a specific cryptocurrency. Moreover, you can exchange ETH without any challenge.
There are more platforms that you can prefer to buy Ethereum, we just listed some of the most reputable and popular platforms you can prefer as a beginner.
Step 3 – Withdraw Your Ether to Your Wallet
It is important to keep your Ether in your own wallet rather than wallets provided for you. In case you leave your coins in the wallet provided by the exchange, you may lose all of your coins when they are hacked or declare bankruptcy.
This is where you need to learn your Ethereum address. You can think of Ethereum address as your email. You need to provide this information so that the sender can send your Ether to it. These addresses are made of long string of numbers and characters and look like 0x123f686643d4a755812f9cb19e1acc8565a0c9ac. You can find your ETH address in the Ethereum wallet you are going to get.
Frequently Asked Questions
How to Sell Ethereum?
If you have already bought Ethereum now want to sell it, you can prefer any of the above-mentioned exchange platforms but eToro. You can only sell Ethereum that is bought through eToro platforms on this website. In this way, your options to sell Ethereum include;
How to Start Investing in Ethereum?
You can invest in Ethereum with different methods. For example, you can buy, sell, trade, mine, and even invest with your Ethereum. Each method has its own risks and advantages. If you would like to learn more about your alternative investment options, you can click this link.
How to Buy Ethereum with PayPal?
Due to the fact that buyers can request a chargeback, most of the exchanges do not accept PayPal to buy or sell coins. If you would like to learn more about this topic, you can check the guide at this link. On the other hand, although it is costly, you can still buy Ethereum with PayPal.
The first solution is you can buy Bitcoin with PayPal and then trade your Bitcoins for Ethereum. Exchange platforms such as Binance can be very useful for you for this purpose. It requires more time and effort since you cannot buy Bitcoins with PayPal quickly. Moreover, you will need to buy more than one transaction fee in the process. On average, you will have to pay 15% more fees with this method.
Another solution is using LocalCryptos. This is a peer-to-peer marketplace, in which the platform meets the buyers and sellers to trade Ethereum. It has a similar concept to LocalBitcoins. Since you will be trading with a real person just like you, the risks are usually higher, and you need to be really cautious in your trades to not be scammed.
Differences Between Ethereum and Ethereum Classic
After a hacker found a way to steal $60 million Ethereum coins, there was a conflict about the future of the currency. As a result of this disagreement between the parties, Ethereum Classic was created as a new cryptocurrency.
Ethereum supporters believe that improvements must be carried out in the code so that similar action can be prevented in the future and the stolen coins should be re-included in the system. On the other hand, Ethereum Classic supporters claimed that the codes must not change, and they need to live with this fact. This is why ETC still uses the original Ethereum code and ETH uses a forked version of the code to create a new cryptocurrency.
As a result, two different cryptocurrencies are generated, and they have their own exchange rates independent from each other. ETH has a higher price when compared to ETC and it is regarded as the real Ethereum in the crypto world.
How to Mine Ethereum?
If you do not want to spend your money to buy Ethereum, you can mine Ethereum too. However, using your regular computer for mining, which is also known as CPU mining, may not be an ideal choice to earn money. If you use GPU for mining, you can enjoy amazing rewards. Mining Bitcoin and Ethereum are typical, and the only difference is you do not have to buy dedicated hardware to take part in the process.
Ethereum is a revolutionary technology that managed to change how the internet works. You can contribute to the future of the internet by following the above-mentioned steps and be a part of history.
With the increasing popularity of Ethereum, Ether is also enjoying increased popularity and its price is increasing every single day. However, do not forget that cryptocurrencies are highly violated and risky assets. Everything can change in minutes and Ethereum’s price drop in 2018 is a great example of this.
You can find plenty of channels and accounts on social media that are dedicated to Ethereum. Some of these platforms are the Ethereum blog, StackExchange, Reddit, Twitter, and Facebook.
If you have any further questions about Ethereum and Ether, please do not hesitate to ask them us by leaving a comment on this article. We will do our best to reply to your questions as soon as possible.
Leave a Comment