By
Benjamin Njiri
April 23rd, 2024
Although experts advise investors to stay with well-known coins like Ethereum, this does not diminish the investment’s risk.
To start off, first of all, what is this thing Ethereum? Ethereum gives free access to digital money and data-friendly services to everyone, regardless of background or location. It’s the system that underpins the ether (ETH) cryptocurrency and the millions of applications available today.
It’s also worth remembering that Ethereum, like any other cryptocurrency, has value solely because people believe it does. Its price isn’t linked to any product or currency, therefore it’s susceptible to wild swings in response to external variables such as media interest or suggested crypto legislation.
How to Buy Ethereum?
Select a Cryptocurrency Trading Platform
You won’t be able to buy cryptocurrencies from a bank or an online brokerage like Fidelity or Vanguard; instead, you’ll need to use a crypto trading system. There are numerous cryptocurrency platforms available, ranging from simple to complicated displays for advanced traders.
Most cryptocurrency exchanges will let you buy Ethereum because it is so famous, but we suggest sticking to a handful of the more common exchanges like Coinbase, Gemini, or eToro. Ethereum is also one of the rare types of cryptocurrency that can be purchased via services such as Venmo or PayPal. Various platforms have different pricing, security procedures, and other amenities, so doing some research before signing up is a good idea.
Make a Deposit into Your Account
To open an account with a crypto exchange, you’ll almost certainly need to supply some personal information and have your identification verified. Then you’ll be able to fund your account by connecting your bank account or debit card. Fees will most likely vary depending on the option you choose.
Stocking your account does not imply that you have acquired Ethereum, and like with any investment account, you don’t want your unspent funds to sit in your profile. At this stage, you must purchase Ethereum in order to invest.
Place an Ethereum Order
You’ll be free to trade your US dollars for Ethereum after your wallet has been filled. Simply enter the dollar amount you want to swap for Ethereum. Depending on Ethereum’s pricing as well as how much you wish to buy, you’ll most likely be buying the stock of a single Ethereum currency.
Where Should You Keep Your Ethereum?
It’s easier to leave your crypto asset in your exchange account if you have only a little quantity. However, if you wish to shift your holdings to a more safe storage location, a digital wallet can provide extra security. There are numerous forms of digital wallets, each with varying levels of protection.
Is Ethereum a Good Investment?
Cryptocurrency is a high-risk, high-reward investment. It’s not for everyone, and you should make sure you’re comfortable with risk before investing. If you determine that cryptocurrency is suitable for you, experts suggest keeping with Bitcoin and Ethereum, the two most well-known cryptos.
Preserve any purchase to less than 5% of your total portfolio, only invest what you’d be willing to lose in the long run, and never invest at the price of other investment goals like debt repayment or retirement savings.
Although experts advise investors to stay with well-known coins like Ethereum, this does not diminish the investment’s risk. Because cryptocurrency is a unique asset class, there is no long-term data to show how it behaves over time. If you don’t want to take this risk, go with a steadier, long-term investment like a traditional index fund in a traditional retirement plan like an IRA or 401(k).
Anyways, before deciding on whether to purchase Ethereum or how to do it, first of all, try to find out how crypto works. After it, you will be ready to make your own responsible and weighted decision.