Ethereum (ETH) is the world’s second largest cryptocurrency by market capitalization, and one of the most popular digital assets. Most things in web3 games, metaverses and NFT marketplaces can be bought for ETH. You will probably need it on your way as a beginning crypto investor, so let’s learn how to buy your first Ethers.
Ethereum and ETH explained
In fact, the original cryptocurrency is called Ether (ETH), while Ethereum stands for the open-source blockchain network. ETH is Ethereum’s native token that enables all operations on the Ethereum blockchain.
Things needed to buy ETH
Before we start, make sure you have:
1) A crypto wallet supporting ETH — either software like Metamask, or hardware like Ledger.
2) Or a verified account on a crypto exchange, such as Binance, Coinbase, etc. Keep in mind that verification on a trusted platform will request your ID data and may take 24 hours or more.
3) Some amount of fiat money on your account. You can deposit cash, as well as send the money from your credit card, Paypal and other financial services.
How to buy ETH
It’s easy and convenient to buy Ether on a decentralized exchange or right inside the crypto wallet. However, these ways have some differences.
Buying on a crypto exchange
First, log in to your account on a selected crypto exchange and check if ETH is traded there. It is typically available on every platform, though.
Add fiat or crypto funds to your account using cash or credit card. Most popular exchanges like Binance have built-in crypto wallet pegged to your user ID. You can also connect a third-party wallet, if you wish.
Now it’s time for the most important decision: do you just want to exchange your fiat for ETH, or trade it for a more interesting price?
Way 1: Exchanging
Choose a pair of currencies you want to exchange (e.g. USD/ETH) and simply click the ‘Exchange’ button. Fiat will automatically convert to Ether at the current exchange rate. You can’t influence the price in this method.
Way 2: Trading
Trading is a more advanced method, but it allows you to purchase crypto for a better price. There are a variety of trading techniques, but spot trading seems to be less stressful and most suitable for beginners.
Spot trading is when you make an order to buy cryptocurrency for a precise price. Orders are not guaranteed to be executed, but if the coin really reaches to your desired price, the order will be automatically completed and you will receive ETH.
For example, you see that ETH costs $1,200, but you want to buy it for $1100, and you feel that the price will go down. Just make an order and keep waiting. You won’t lose your money if the order fails to complete, but you can miss a sudden surge.
Buying in the wallet
This is simply exchanging your currencies at the current rate offered by the wallet. It’s normal to buy in the wallet when ETH prices are stable across the market, or you need to convert fiat to crypto quickly. Some wallets offer spot trading and futures, too.
Other ways to get ETH
You can obtain ETH in a variety of ways, including receiving a P2P transfer, rewards from a blockchain game or royalties from selling your own NFTs. Ethers can be also obtained as passive income from crypto loans and staking (see our previous articles).
An alternative way to buy ETH is doing so through an Ethereum ATM. Most of them are located in the US, there are also machines in Europe and Asia. Nearest ATMs can be found with the help of a Google search. You will need an Ethereum wallet to store the purchased cryptocurrency.
This financial service appears to be crypto-friendly and allows to buy ETH along with BTC, LTC and some other coins. The simplest way to do it is by using the eToro platform, which has an option to buy with PayPal.
Few traditional exchanges offer investors to buy ETH, but such an alternative also exists. One of such venues is the Chicago Mercantile Exchange, or CME. Although the deals are settled into cash, and these are not actual ETHs, the CME’s Ether futures still provide ETH price exposure for those interested in using traditional finances.
As you can see, there are plenty of alternatives to purchase ETH — not every cryptocurrency can boast with such accessibility. Pick up the perfect method and start your journey with Ethereum!