Trading in cryptocurrency has become a paramount global phenomenon. Millions of people across the world are taking up this lucrative investment opportunity, and many are succeeding. Still, there are plenty of factors you need to mull over before joining the crypto bandwagon. Without carefully considering these options, you're more likely to fail in your cryptocurrency endeavours. Doing this is especially beneficial to greenhorn and inexperienced traders. While there are several elements involved in crypto trading, perhaps the most crucial factor is understanding the cryptocurrency in which you wish to invest.
When faced with the question of which cryptocurrency you should invest in, many people would go for Bitcoin. Given that Bitcoin is the oldest and most popular crypto, this decision is not a bad one. Nevertheless, Bitcoin has gained an immense market share, which heightened the price of the digital currency. Currently, one Bitcoin is worth well over 50,000 dollars. For this reason, the average Joe may find it tough to invest in this digital currency. Ethereum is arguably the next best thing after Bitcoin. The crypto is currently second in market share and doesn't cost as much as Bitcoin. For those who may be interested in getting their hands on this crypto, you can buy Ethereum with credit card on koinal.io. Even so, before exploring how you can purchase Ethereum, you need to understand it.
What Is Ethereum?
Contrary to what many people may think, not all cryptocurrencies have the same architecture. Although they are all supported by blockchain technology, some cryptocurrencies have a different structure. For instance, Ethereum is essentially a decentralized, open-source platform that allows developers to connect and collaborate. While Bitcoin and some other cryptocurrencies use blockchain technology solely to log monetary transactions, Ethereum does a lot more.
Ethereum is used to allow developers to create new applications that are free from manipulation. The Ethereum network enables individuals to build decentralized applications that permit users to execute agreements without brokers. Even so, there is a monetary aspect to Ethereum. The tokens used to facilitate transactions within the platform are known as Ether. This byproduct of the Ethereum network is the cryptocurrency that powers the entire system. The unique abilities possessed by Ethereum have made it famous far beyond the financial realm.
How to Invest In Ethereum (Ether)
Before investing in any cryptocurrency, the first step would be to get a digital wallet. Since Ether and other cryptos don't trade in the stock market, you'll need a crypto wallet to store it. Once that's out of the way, here are the steps you'll need to follow to purchase Ethereum successfully.
Identify a Suitable Crypto Trading Platform
Essentially, cryptocurrencies can be acquired, sold, and traded on crypto trading platforms. For this reason, the first step when looking to buy Ethereum is finding one that suits your trading needs. The platform you choose plays a huge role in determining your success in crypto trading; therefore, you'll need to do your due diligence. One thing to keep in mind when looking for a suitable platform is that the industry is highly unregulated. Depending on how you view this information, it can present an immense market opportunity or an incredible risk of fraud.
Another thing to keep in mind when choosing a crypto trading platform is the type of exchange offered. Some trading platforms only allow exchanges from fiat currencies to cryptocurrencies, while others only allow crypto to crypto (C2C) exchanges. Since Ethereum is widely popular, either option can be suitable depending on your trading needs.
Register an Account
After identifying a crypto trading platform that's to your liking, the next step would be to create an account. In most cases, all you need to do is provide a few personal details and create a password. Some of the information that may be required include your name, address, social security number, and contact information. After you've completed the registration process, which is often moderately quick, you'll need to verify it. Account verification is usually the last step when opening an account. Most platforms would typically necessitate that you validate your account in various ways, ordinarily by uploading documents that affirm your identity. Verifying your account can take anywhere between a few hours and a few days.
Fund Your Account
Once your crypto trading account is active, the next step is funding it. Depending on the type of exchange that your platform allows, this process may vary. If the exchange only facilitates fiat to crypto exchanges, financing your account will be relatively easy. All you're required to do is provide your banking information and deposit money using your credit or debit card. Since most exchanges don't have a high minimum investment, you can start trading with as low as a few dollars. On the flip side, depositing funds on C2C exchanges is relatively more complex. For these types of crypto trading platforms, you'll need to send cryptocurrency from one location to another using code. It's important to note that Ethereum is a popular depositing cryptocurrency; thus, it can be very beneficial to have large amounts of it.
Make Your Purchase
After successfully opening and funding your crypto trading account, the next step is buying your Ethereum. With a verified and financed account, you can begin purchasing and trading Ethereum. Different exchanges have various user interfaces and experiences. Nevertheless, the process of acquiring cryptos on many of these platforms is relatively similar. One thing to remember is that you'll need to allow the exchange to process your transaction before you can withdraw your Ethereum.
Withdraw Your Ethereum To Your Crypto Wallet
The final process when buying Ethereum is to withdraw your newly acquired cryptocurrency to your wallet. While fiat to crypto exchanges have a quick withdrawal process, C2C trading platforms make it a little more complicated. Nevertheless, all the elaborate transactions when withdrawing Ethereum from the latter are for security purposes.
Investing in Ethereum is an exciting undertaking. However, there are dire consequences if you go about this process blindly. If you're looking to buy Ethereum, reading the information presented above is a step in the right direction.