The purpose of this guide is to introduce you to the different ways you can buy Ethereum. To buy Ethereum we buy Ether, the cryptocurrency from the Ethereum network. To learn more about this network you can consult our guide: What is Ethereum?
How do Ethereum buying platforms work?
What is it exactly?
Ethereum’s trading platforms are sites where you can buy, sell, or trade Ethers for other digital currencies like Bitcoin or traditional currencies like the Euro.
We can distinguish three types of platforms:
- Trading: They connect buyers and sellers and charge fees for each transaction. These are for example platforms such as: Etoro, Gemini, Kraken, Coinbase Pro (GDAX), and CEX.IO.
- Direct exchanges: These platforms offer direct exchanges between buyers and sellers, they allow their users from different countries to exchange currencies. The price is then freely established according to the supply and demand of the market. The Coinbase, LocalEthereum and Coinmama sites offer this type of service.
Brokers: These are sites that anyone can use to buy Ethers at a price set by the broker. We can notably cite brokers like Binance, Bittrex and Poloniex.
How it works ?
Even though the purchasing process can vary from one platform to another, the principles remain essentially the same. Don’t worry if you are new to Ethereum buying, indeed, many platforms offer a very easy to use service.
Most of the time, you will have to carry out the steps described below:
Register for the exchange platform of your choice by submitting some personal data. After that, you can start to understand the platform and how it works before buying Ethereum.
Verification of your identity:
In order to validate this step you will need to provide a home address as well as upload an ID. Platforms must perform these checks for security reasons and in particular to avoid money laundering.
Select a deposit method:
Each Ethereum purchasing platform will offer its own banking methods. The payment methods offered often include: bank transfers, SEPA, credit / debit cards, PayPal or Skrill payments. Each platform will generally charge a fee for each payment method, check these fees to have all the necessary information before purchasing.
Deposit money on the platform:
Make a deposit in Euro or in the currency of your choice among the currencies supported by the platform. Deposits can take a few days to reach your exchange account. Deposit times vary from exchange to exchange and depending on the deposit method chosen.
Once your fiat money has arrived in your trading account, you can use it to buy Ether. Platforms for beginners such as Coinbase have made this process very simple.
How to choose the right exchange platform?
There is no better trading platform on the market than another as long as they all have features. It is therefore necessary to study them scrupulously in order to choose which one will be the most suitable for carrying out your Ethereum purchases.
Here are a few things to check before making your first trade.
The best way to find an exchange is to search user reviews, read reviews available on the Ethereum forums to learn more about user experiences with each platform.
Before registering and purchasing Ethereum, make sure you understand the deposit, transaction and withdrawal fees. Fees may vary depending on the exchange you use.
What are the payment methods available on the platform? Credit / debit card? bank transfer? PayPal? Check that the payment method you want to use is available on the chosen platform.
Identity verification requirements:
The vast majority of trading platforms require identity verification in order to make deposits and withdrawals. Make sure you have the necessary identity documents up to date and available in digital format in order to download them from the platform’s website.
Certain specific functions offered are only accessible from certain countries. Make sure the exchange you want to join gives full access to all the tools and features of the platform in the country where you currently reside.
Some platforms may ask you to convert your Euros to Dollars before you can buy cryptocurrencies in exchange for dollars. Consult the exchange rates used, these may vary. It is not uncommon for rates to fluctuate up to 10% and even more in some cases.
Securing your Ethereum purchases in an Ethereum Wallet
Trading platforms are not wallets. If you leave your ethereum purchases on the platform, you risk losing your Ethers if the platform is the victim of a cyber attack or bankruptcy.
Which Ethereum portfolio to choose?
There are three types of wallet to store your Ethers, online wallets, offline portfolios as well as physical portfolios.
- Online portfolios:
In addition to the Mist portfolio, the standard portfolio of the Ethereum network. You can also manage your Ethereum purchases through online wallets such as MyEtherWallet.com, EthereumWallet.com and EthAddress.
MyEtherWallet is the most popular web wallet. But be aware that web wallets are the least secure type of wallet.
- Offline wallets on your computer desktop:
Exodus.io is a desktop type wallet which supports Ethereum and many other cryptocurrencies. It offers an easy to use user interface.
- Physical portfolios:
They often take the form of USB keys, these physical devices can contain private keys electronically and facilitate payments. For example, you can opt for the physical Trezor or Ledger wallets to store your Ethers.
What payment methods are available to buy Ethereum?
What are the different payment methods to buy Ethereum?
The possibilities concerning the payment method you wish to use are numerous as you will see below:
You can buy ether (ETH) directly if you have a VISA / MasterCard credit or debit card. Some trading platforms have started to accept credit cards:
The PayPal service can also be used to buy Ethereum to avoid the high bank charges applied when converting currencies in particular. A number of Ethereum exchange platforms accept deposits / withdrawals via PayPal such as:
Skrill is an online payment application similar to Paypal that allows users to send funds quickly with reduced transaction fees. It is a means of payment that has developed in the cryptocurrency sector. It is especially possible to use this method of payment on platforms:
Just like buying Bitcoins in cash, you can buy Ethereum with cash. There is currently no ETH distributor, but you can use the LocalEthereum service. This allows you to make an appointment with another individual to make the exchange.
Our advice to buy Ethereum and why it can be very profitable?
Before buying Ethereum, study the price of Ether well and choose an investment strategy. Based on these decisions, you can then choose the trading platform that suits you, paying attention to the points explained above.
Start by studying the Ethereum course, to do this, visit our page: Ethereum course.
Then, if you want to know more about Ethereum and the reasons to buy Ethereum in the cryptocurrency market you can check out our guide called: What is Ethereum?
Here are some important features of the Ethereum network that allow us to be optimistic about the ethereum price increase in the future:
Ethereum could have more apps than Bitcoin
Bitcoin’s use of blockchain technology is fairly basic. Ethereum uses technology differently, offering more promise to developers.
Ethereum is written in full-Turing code language. By using this language, any code can be executed on Ethereum. Ethereum’s blockchain records transaction processing much faster than Bitcoin’s, in 12 seconds, as opposed to Bitcoin’s 20 minutes.
The Ethereum blockchain thus becomes the best network to support any business or program. His ability to solve problems with precision has no rival in the market.
As open innovation is increasingly adopted by companies, Ethereum’s speed and ability to serve as a platform have caught the attention of dozens of companies, all of whom aspire to be the first to use and take advantage of the Ethereum blockchain.
Ethereum is being adopted by financial institutions.
While banks are not in favor of adopting Bitcoin which aims to remove them from the transaction value chain, the Ethereum Blockchain can allow financial institutions to innovate by offering faster services thanks to smart devices contracts in particular.
Bank of America is the first financial institution to work with the Ethereum blockchain. The company previewed an Ethereum-based application that will ultimately help customers secure their transactions. This application was created with the help of Microsoft and to accelerate the adoption of Ethereum technology by the general public.
Guillaume has been passionate about Blockchain technologies and cryptocurrencies for 2 years now. He firmly believes in the massive adoption of these in the years to come. Eager for crisp news and always on the lookout for the latest trends in the cryptocurrency market, he enjoys sharing with you all their secrets!