Finance

How to Buy Ethereum (ETH) on 5 Different Exchanges

The Bitcoin boom has revolutionized money markets.  Its meteoric rise has made many people millions of dollars and many people are left wondering if they’ve missed the opportunity. The good news is, there are other cryptocurrencies available. And there’s one cryptocurrency quickly being adopted by many blockchain projects and financial institutions: It’s called Ethereum.

Ethereum logo

This article aims to provide you with an understanding of Ethereum, how it differs from Bitcoin, and how you can purchase and add this cryptocurrency to your portfolio.

(Please note: Cryptocurrency prices can fluctuate wildly depending on various fundamental and technical factors.  This is an informative article and not intended to be investing advice.)

What is Ethereum and how does it differ from Bitcoin?

The monetary unit of Ethereum is known as Ether, and just like cash and other cryptocurrencies, you can use it to make transactions and to send or receive it between your friends and family.  This is the main advantage of investing in cryptocurrencies like Ethereum.  Ethereum is immediately usable and tradeable, which is unlike stocks or precious metals.

Beyond the monetary aspect, Ethereum also provides a decentralized software element that enables developers to run code on any application. Ethereum, like Bitcoin, uses blockchain technology. However, where Bitcoin uses blockchain to conduct financial transactions, Ethereum utilizes a technology called “Smart Contracts” to create applications.

These apps can be cloud-executed, secured, protected against outside manipulation, and more. And one of the byproducts of this development is Ether – the ‘currency’ aspect of Ethereum.

This utility of Ethereum and its monetary potential has garnered attention from a host of different sectors including finance, hardware manufacturing, real estate, software development, and many more.

Its price may be another draw for many investors as, at the time of writing, Ethereum (ETH) is priced at $2014.24, while Bitcoin (BTC) is $41469.88. So, you can see the potential growth that Ethereum has.

How can you buy Ethereum?

If you’ve decided to get aboard the crypto boat and want to buy some Ethereum, you’re in luck!  With the advancements in blockchain technology, it’s easier than ever to acquire them.

You can buy Ethereum with conventional payment methods such as credit card, bank transfer, or Paypal. And there are hundreds of online platforms where you can make your purchase. 

To get you on your way, here are a few methods of buying Ethereum:

1. Coinbase

Coinbase is America’s largest cryptocurrency exchange in terms of trading volume as of 2021. It was formed in 2012, and it operates on a remote basis without any official headquarters.

Here’s how to buy Ethereum on Coinbase:

  • Visit Coinbase.com.
  • Go to the Buy/Sell page.
  • Enter the amount of local currency you want to buy.
  • Select payment method.
  • Review and confirm your order.
  • Click ‘Buy.’

On the Coinbase App:

  • Tap Menu icon.
  • Select ‘Buy.’
  • Select local currency.
  • Enter the amount of Ethereum to buy.
  • Select payment method.
  • Review and confirm your order.
  • And Tap ‘Buy.’

2. Binance

Binance is the world’s largest bitcoin exchange and altcoin crypto exchange in the world by volume.  It’s a place where users can trade cryptocurrencies like stocks and it provides a crypto wallet for its traders, where they can store their electronic funds.  They even have their own token currency called Binance Coin.

Here’s how to buy Ethereum on Binance:

  • Visit Binance.com (or Binance.us if you’re in the US)
  • Click the yellow “Get Started” button to create an account.
  • Complete a verification process to gain full access to your account (including buying, trading, and withdrawing funds)
  • Once completed, click “Deposit” or the “Add Payment Method” Button to deposit funds.
  • Deposit funds via ACH, Debit Card, or Wire.
  • Confirm your account balance.
  • Click “Buy Crypto” and select “Ethereum” in the dropdown menu.
  • Place an Ethereum Buy order and you’re all set!

3. Kraken

Operating since 2011, Kraken is one of the oldest and largest cryptocurrency exchanges in the world.  And with the growing security concerns over cryptocurrencies, many users turn to Kraken as a source to obtain their tokens.  They currently allow purchases of 40 different cryptocurrencies to 176 countries.

Here’s how to buy Ethereum on Kraken:

  • Visit Kraken.com
  • Create a Kraken account.
  • Verify your account (name, birthday, country, phone number)
  • Make a deposit via cryptocurrency, Fedwire, SWIFT, Etana Custody, and Silverage Exchange Network (SEN) — or for International Users, they accept Wire Transfer, Etana Custody, and Silvergage Exchange Network (SEN)
  • Wait for processing to complete (1-5 business days.)
  • Confirm your account balance.
  • Then you’re ready to buy Ethereum!

4. Gemini

In 2016, Gemini became the first licensed Ethereum exchange. It’s another large cryptocurrency exchange that operates in the United States, Canada, Hong Kong, Singapore, and the United Kingdom.

Here’s how to buy Ethereum on Gemini:

  • Visit Gemini.com
  • Create a Gemini account.
  • Confirm your account.
  • Set up two-factor authentication.
  • Add your bank details.
  • Verify your bank account.
  • Place funds in your Gemini account.
  • Start trading Ethereum.

 Conclusion

Investing in cryptocurrencies in the past few years has triggered a Bitcoin boom with a flood of investment and speculation into this relatively new sector.

Ethereum is shaping up to be an instrumental cryptocurrency in its own right with potential for high returns. However, investing in cryptocurrencies, including Ethereum, can be a risky business, and you should understand that the price can fall as well as rise.

Unlike Bitcoin and other pure cryptocurrencies, many companies use Ethereum as a building block rather than mere transactions. This added utility could make Ethereum an exciting prospect for investors in the future.

Based on the price of Ethereum today, compared to Bitcoin, there appears to be plenty of scope for growth, which means this crypto boat may not yet have sailed. If you’ve been thinking of coming onboard, this may be the best time to do it.

(Disclaimer: Cryptocurrency investment is not “risk-free” and prices can be volatile. This is not intended to be investment advice.)

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