Ethereum, the second-largest cryptocurrency to be found in the world - is it a suitable investment?
Purchasing Ethereum involves the conversion of US dollars into ETH, which is the Ethereum blockchain currency. People who have Ethereum can use it as a mode of payment for multiple services and products. In addition, it can be used to cover the costs of processing power needed to carry out the transactions in the fields of computer science, art, and finance.
In addition, Ethereum can be used as an investment ever since the crypto world has gained some acceleration. In the last bits of 2021, Ethereum enjoyed an all-time high and started gaining leverage over Bitcoin due to capitalization. However, it doesn’t mean you can go in blindly which is why we have the guide available for you.
Purchasing The Ethereum
When it comes down to purchasing Ethereum, you need to select the cryptocurrency exchange, payment method, and storage of the currency. So, in the section below, we are sharing details about purchasing Ethereum!
Choosing The Crypto Exchange
Since Ethereum is one of the most circulated and used cryptocurrencies out there, there are various options that you can try to purchase the currency. Keep in mind that which crypto exchange you choose will directly influence the storage and payment solution. Some of the common exchanges include;
Purchasing the cryptocurrency from an online broker is one of the most convenient methods but there are some concerns associated with it. It has become easy since it’s efficient and affordable but you must check out the fine print to see the transactions.
This is one of the most common ways of purchasing the crypto exchange. For instance, what happens if bitcoin becomes a country's currency and can work as a platform for selling and purchasing the cryptocurrency and will also have a wide selection. These centralized exchanges offer a user-friendly experience but you must have awareness of the basics.
The decentralized exchanges have become the basic and easiest way of trading cryptocurrencies since there are no third parties involved. It offers full control over the currency and trading. However, you must have proper knowledge and experience to navigate through the crypto exchange
The Payment Method
Depending on if you want to own Ethereum or simply want a part, you need to select between paying with U.S. dollars or paying with other cryptocurrencies. In the section below, we are sharing different payment methods to purchase Ethereum, such as;
Like every other product and service in the world, you can also purchase Ethereum through fiat currency. In fact, some exchanges only accept fiat currency to purchase Ethereum, such as centralized exchanges. This is because these exchanges depend on bank transfers for funding the account.
Some places allow crypto-to-crypto exchanges and trading, which is a great advantage if you want to purchase Ethereum without losing your savings. It’s a helpful strategy if you already own other cryptocurrencies, such as Bitcoin and if you want to diversify your portfolio
It’s evident that Ethereum is a digital asset but you still need to ensure secure storage. For this purpose, digital wallets are used that can store the private keys to access the digital currency. Even more, some online platforms that sell Ethereum can also hold the currency for you. So, whenever you are choosing between an exchange, you have to consider the storage as some allow the users to hold the coins in their own wallet while some don’t. Having said that, let’s check out the available storage methods;
When the wallet is hosted by the exchange or broken, you don’t need to worry about losing the key to the wallet. However, you can use on-platform storage to host all the information and have control over the wallet.
This is an advanced solution but it is not suitable for holding a large amount of cryptocurrency. However, it offers more security options.
Selecting the right way of holding and purchasing Ethereum comes down to your convenience and experience and for how long you want to hold. For the most part, you can use a combination of methods to use a platform to have long-term holding and efficient trading. So, start your research!