If you’re here, it’s likely that you’re interested in investing or trading in cryptocurrencies, more specifically ethereum. Before you start buying and selling ethereum, it’s important to understand what it is first.
What is Ethereum (ETH) ?
Ethereum is basically a blockchain platform with it’s own cryptocurrency coin which is Ether (ETH). This blockchain network was launched in July 2015 by a small group of blockchain enthusiasts and is developed to enable developers to build and publish smart contracts and distributed applications easily. They can then be used without risks of downtime, fraud, or other interference from third parties.
Nowadays, Ethereum is the second most popular cryptocurrency with a market cap just below Bitcoin. With the 2.0 update, Ethereum is transitioning into a proof of stake blockchain that’s more energy efficient and also faster compared to it’s larger brother, Bitcoin.
Now that you’ve got a better idea of what Ethereum is, you can trade with more confidence knowing what you’re buying and selling.
Where to Buy Ethereum
Now we’re getting to the fun part, buying ethereum.
There are many methods of buying ethereum, the most used method is to buy it from local exchanges in exchange for your local fiat currency.
Cryptocurrency exchanges are, as their name suggests, a place where you can buy and exchange money between fiat cash and cryptocurrencies. There are a lot of exchanges in the world today but the largest ones are Binance, Coinbase, Huobi, and FTX.
To help you understand the difference between the biggest crypto exchanges, we’ve created a nifty comparison table .
|Exchange||Fees (maker/taker)||Supported Coins||Top Up Options|
|Binance||0.1%/0.1%||330||Bank, Credit/Debit card|
|Coinbase||1.99%/1.99%||99||Bank, Credit/Debit card, PayPal|
Keep in mind that the fees differ based on your trading volume and also what kind of program you get into. Coinbase pro for instance offers grossly lower fees compared to the normal fees in exchange for several requirements. As a guideline, most exchange will charge a lower fee if you trade at higher volumes.
Depending on your needs and also your geographic location, one crypto exchange could be better compared to the other. Coinbase, FTX and Binance is very popular in the United States and Europe, however, Huobi is very popular in East Asian countries such as China, Japan, and Korea.
The difference in geographic focus won’t affect your trading strategies and profit taking. However, they might affect how well the exchange handles your local problems and also their customer support quality.
Because of the popularity of Ethereum, almost all of the large and popular exchanges support this cryptocurrency. You won’t have any problem exchanging cash or other coins to ethereum using this method.
If you have another cryptocurrency in your wallet and want to exchange it for Ethereum, you can also use swap websites such as SwapZone or SwapSpace.
However, you can also use peer-to-peer methods to acquire this coin, albeit it’s more risky compared to buying in exchanges. This involves transferring cash to someone so that they send their coins to your wallet. We only recommend doing this with trusted friends and acquaintances.
How to Buy Ethereum
Now that we know where to buy ethereum, we’re going to explore the methods of buying it. Pay close attention because this is an important first step in your trading and investing career. One wrong move and you can kiss your cash bye-bye.
In this article, we are going to explore 3 of the most popular methods to acquire ethereum which includes buying it in local exchanges, buying it using CashApp, and also using PayPal.
The first and easiest method to buy Ethereum is using your good old local crypto exchanges as we’ve discussed earlier. In general, it’s better to use a locally recognized crypto exchange due to the added protection of local law.
That means, there is no risk of them stopping service for citizens of your country in the event of a legal crackdown by authorities. If they’re banned, your money will still likely be safe, however, you’ll need to use other methods to access them such as a VPN or proxy which can be finicky at times.
Using crypto exchanges to buy and sell Ethereum is very easy, you’ll only need to follow 3 steps which is
- Register yourself and fill in all the relevant details
- Connect your bank account and fill in required KYC (know your customer) information
- Deposit money into your account and start buying cryptocurrencies
Those 3 steps will help guide you in buying Ethereum from nearly all of the major crypto exchanges.
However, each exchange has different requirements and might also need other minor details. Because of that, don’t forget to look at their terms of service and buying guidelines.
Want to just buy and hold ethereum without too much hassle? You can also use PayPal to buy cryptocurrencies. You heard that right, PayPal, one of the most popular online payment gateway has announced support for cryptocurrency.
With this, you don’t need to register on an exchange to buy Ethereum, you can simply use your regular PayPal account to do it instead. No need to remember another account and password to get into the crypto game.
Using paypal to buy Ethereum is very easy. These are the steps you need to follow to buy Ethereum using Paypal
- Login to your account , then choose cryptocurrency in the top right of your dashboard
- Select Ethereum, and then “buy”
- Input how much you want to buy
- Select payment method
- Click “Buy” button
- Wait a while for your Ethereum to arrive in your account
It literally can’t get any simpler than that. Only 6 steps and you don’t even need to create another account in a local crypto exchange.
If you don’t need to have many forms of coins, buying Ethereum using your regular PayPal account is a great idea. However, keep in mind that they don’t support that many coins yet so your exchange and trading options are severely limited. Not a big problem for Hodlers and investors though.
What to do After Buying Ethereum
There are two things you can do after buying ethereum, the first is to trade it and hope to scalp some profit off of the price movements, and the second is to hold it and take profit off of the capital gains. There are also other strategies such as staking and lending but that is assuming that you hold the coins first to be able to stake and lend.
Due to the revolutionary nature of Ethereum’s smart contract and proof of stake system in their 2.0 update, we at Pionex are confident that this will add value to many stakeholders in the future.
As you all know, things that add value will usually go up in price over a long enough time period due to market appreciation. However, keep in mind that this is not financial advice, you’ll need to analyze for yourself if Ethereum is a good investment or not.
Pionex: Make Money Automatically with our Smart Bots
So, you’ve already bought some ethereum, want to make some profit, but can’t always be glued to the screen to trade it? Pionex has got you covered.
Pionex is one of the leading crypto trading exchange in Asia, nowadays we’re also expanding rapidly in the United States. What makes Pionex unique is that it aggregates demand from the largest crypto exchanges such as Binance and Huobi. Because of that, the market size for Pionex is huge.
However, what makes Pionex stand out from the rest is its state of the art trading bots that can adapt to most trading strategies on the market today. Our bots will help you make money even if you’re away from the screen, enabling you to live the good life without being glued to your screen all the time.
Pionex has over 16 bots to choose from ranging from simple grid trading bots to smart trades that you can adapt based on your trading strategy. Crypto hodlers will also appreciate the addition of a moon and DCA bot to accumulate cryptocurrencies and get in on some capital gains. Pionex has bots for nearly any trading strategy you can think of.
If you’re interested in learning more about trading bots and what pionex has to offer, head out to https://www.pionex.com/ to learn more .