How to buy Ethereum

While Bitcoin is the most valuable cryptocurrency in terms of the number of coins in circulation, Ethereum isn’t far behind. It’s the second most valuable cryptocurrency, with a market capitalization of over $232 billion, and it’s backed by corporate moguls like Mark Cuban. It may be simpler than you think to invest in Ethereum. Here are five simple steps to get you started.

Estimate Your Risk Level 

There’s no avoiding the fact that purchasing Ethereum is a risk. While all investments carry some risk, cryptocurrencies are particularly susceptible to price changes. Although Ether has had some amazing returns in the past, it has also experienced some big crashes, often in a matter of minutes. It dropped from about $4,000 per coin in May 2021 to less than $1,800 per coin in June 2021. If you bought at the peak, you’d be sitting on half the value in less than a month. That’s a lot of unpredictability. That’s why it’s crucial to think about your risk tolerance as well as the diversification and stability of the remainder of your portfolio.

Selecting a Crypto Exchange 

Purchasing Ether with your present brokerage account is a little more involved than purchasing equities or mutual funds. To purchase cryptocurrency, you must first open an account with a crypto exchange. In terms of functionality, it’s similar to the brokerage systems you’re probably more familiar with: Buyers and sellers can trade fiat currencies like dollars for cryptocurrencies like Ethereum, Bitcoin, and Dogecoin on cryptocurrency exchanges. You can also utilise a programme like Robinhood or Cash App if you’re a complete beginner. This will make purchasing crypto much easier for you, but there is a catch: it comes at a price: You can’t take your Ethereum investment and place it in a third-party wallet.

Make a deposit into your account 

You must first fund your account before you can buy Ethereum on a cryptocurrency exchange. You’ll most likely deposit funds from a bank account, such as your personal checking or savings account. You can also make wire transfers, utilize a debit card, or make a PayPal deposit in most cases. Examine the crypto exchange’s fees when deciding on a funding option; they can vary depending on the method. Wire transfers, for example, are free on Gemini, while debit card transfers are charged a 3.49 percent premium.

It is recommended not to buy cryptocurrency from credit cards as you will have to pay it back with a higher interest rate. 

Storing your Ethereum

After your Ethereum purchase has been completed, you must store your cryptocurrency. While some platforms will store it for you, some people choose to keep their investments on their own to lessen the risk of losing it to a hack. This is logical, but it’s also worth noting that the majority of big exchanges guarantee their clients’ holdings and frequently store the majority of their funds offline to avoid huge theft. Furthermore, in the past, hacked exchanges have always compensated for any losses.