- Actually, it is not very difficult to learn how to buy Ethereum, it is the easiest thing in the world. The truth is that we must take into consideration several factors before doing so.
- Making an investment in cryptocurrencies without being cautious and being carried away by emotions is not a good idea.
- If we are going to invest, we have to be willing to lose the entire investment, especially in a market as volatile as the crypto industry.
By now we've all heard of cryptocurrencies, especially Ethereum, largely thanks to the role it plays in creating NFTs (non-fungible tokens). It is the second most popular cryptocurrency on the market and is one of the reasons why many people are curious about how to buy Ethereum ; although we must take into account a few things before launching to invest..
What do I need to know before buying Ethereum?
Launched in 2018, it had several all-time highs in 2021, the last one surpassing $4,800 in November 2021. Although the value of the cryptocurrency has dropped since then, it is still in a highly acceptable price range and ideal for investment. For example, as we write this article, the price of Ethereum is hovering around $3,400.
Like all cryptocurrencies, the price of Ethereum fluctuates a lot. It is important to know how to anticipate price fluctuation with any crypto investment. In case we are not comfortable with short-term price fluctuations, it is best to reconsider investing in cryptocurrencies..
Something else to consider is that, like most cryptocurrencies, Ethereum only has value because people think it does. The price is not tied to any product or fiat currency. This means that it is prone to considerable changes depending on different factors that can influence it. From celebrity comments, media attention, crypto regulation, etc.
How to buy Ethereum
Choosing a cryptocurrency exchange
It is not possible to buy cryptocurrencies through a bank, we will have to use a cryptocurrency exchange platform. There are many, some are easier to use than others, but the ones that we will recommend are very serious and reliable..
Because ETH is too popular, the vast majority of cryptocurrency exchanges will allow us to buy ether, but it is best to stick with trusted exchanges such as Coinbase, eToro, Gemini , or Binance.
Additionally, Ethereum is one of the few cryptocurrencies that can be purchased on other platforms such as Venmo or PayPal. Obviously, each platform has different rates, security measures and may have other characteristics. The ideal in this case is to do a little research before buying, to see which ones best suit our needs.
Deposit funds into an account
In most serious exchanges it is essential to provide certain information and verify our identity in order to register. After this we can connect a bank account or debit card to deposit funds. It is also feasible to use an intermediary to buy (P2P trade) although we only recommend using intermediaries provided by the platform itself.
Adding funds to our account does not mean that we have already bought ether. In order to invest, after having funds, we will have to proceed to buy Ethereum.
Place an Ethereum order
After depositing funds, we can exchange our dollars for Ethereum. The only thing we will have to do is enter the amount of USD that we would like to exchange for Ethereum. It is possible that we will buy shares of a single Ethereum coin, depending on the price of it and the amount we wish to acquire. Any amount we purchase will be displayed as a percentage of a total ether coin.
Save our ETH
If we have a small amount of cryptocurrency, it is really safe to leave it in the exchange account. However, we also have the option of a cryptographic wallet or wallet that offers greater security. There are many kinds of wallets with different levels of security.
Should we invest in Ethereum?
We must consider that investment in cryptocurrencies has a speculative base that is too volatile. It is not for everyone and we must be aware that there is a very great risk of losing the entire investment. Experts recommend investing in Bitcoin and Ethereum, especially when we are just starting out.
In these cases, the ideal is to make sure to keep our investment at less than 5% of our total portfolio. The only thing we must invest is what we are willing to lose; we should never do them at the expense of other financial goals like paying off debt or saving.
Experts recommend sticking with known coins. Let's remember that there are risks associated with investing and cryptocurrencies are a new asset class, there is no long-term data that can show how they will behave several years from now.
If this is too risky for you, it is best to think about investing in other more conventional sectors.
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