The blockchain industry has many promising virtual currencies that promote a more transparent ecosystem, but none do it like Ethereum. Taking a chapter from the bitcoin revolution, this virtual currency is here to unleash the technology’s full potential.
With Ethereum, decentralized transactions with maximum anonymity are the key USP. What’s more, it has its own currency, Ether, to operate. This makes transactions safer by fleshing out every 3rd party limitation in the trading system. If that already got you excited, you need to know how to navigate your way through this cryptocurrency.
In this post, we reveal to you the best methods and strategies to invest in this powerful cryptocurrency: where and how you can buy them, and more importantly, should you buy them at all.
How to Buy Ethereum: Everything you Need to Know
In order to have a complete understanding of the best method to buy Ethereum, it is critical to understand the operational framework of the virtual currency. This will give you a better understanding of the potential risks and gains associated with it.
Let’s dive in.
What is Ethereum?
Ethereum is a decentralized application network powered by multiple computers connected over a common network connecting developers with end customers. The technology operates on a network of computers residing globally, verifying transactions, unlike the traditional centralized application.
As a verification reward, the operators commonly known as miners receive a small, token reward amount of Ethereum’s cryptocurrency, Ether.
Although similar to Bitcoin, Ethereum’s infrastructure is an extension of that of Bitcoin. What follows is that this virtual currency allows higher usability than Bitcoin.
Ethereum’s network is designed to support multifarious functions. From coin exchange between wallets to decentralized applications, it powers all. This ensures that DApps are capable of executing end-to-end complex payment agreements without any 3rd party interference. Instead, here the possible outcomes are automated with smart contracts.
When it comes to safety, the Ethereum network is unbeatable. The anonymity and involvement of innumerable connected computers ensure higher network security. Relatively new, this technology shows promising improvement and growth in verticals like finance, Medtech, supply chain, and more.
So now, that you have a complete idea of what Ethereum is, let’s find out when is the best time to invest in this powerful technology.
What is the Best Time to Buy Ethereum?
The best time to plant a tree was 20 years; the second-best time is now. This Chinese proverb holds true for Ethereum.
With decentralized and uncensored access to the internet, Ethereum brings in the next wave of technological revolution. So, if there your doubts are still holding you back from investing in this technology, here are a few benefits that can remove them successfully.
1. Enables the development of blockchain programs
The development community of Ethereum had a clear mission behind its creation- to create an authentic, secure, transparent, and free internet landscape where developers could create decentralized protocols and tools. The founding member’s goals and mission build high confidence in the investor landscape.
2. Shift from traditional centralized to decentralized currencies
Ethereum’s decentralized framework provides users with higher levels of security and privacy when it comes to money transactions.
3. Complete removal of the middleman
Ethereum’s smart contract technology allows omitting 3rd party intrusions between two end-users. This helps users avoid unfair transaction fees and limitations.
4. Instant access to the Ethereum wallet
The Ethereum wallet allows you to get involved in the Ethereum network while holding the cryptocurrency. Here you can create your smart contracts seamlessly.
5. Ethereum operates on its own currency
Ethereum is more than just an exchange platform. The creators of Ethereum also created Ether, the technology’s very own currency. This has enabled the platform to create powerful solutions in varied verticals like banking and finance, medical records, and more.
Now, let’s look at how you can buy Ethereum.
How to buy Ethereum in Canada?
If you have had any experience investing in cryptocurrency, buying Ethereum will not be a challenging task to achieve. However, if this is your first attempt, you do not need to look any further than a trade exchange that offers crypto investment opportunities. Being one of the most coveted cryptocurrencies, laying hands on it is hassle-free.
However, we give you the four major steps you need to do a successful Ethereum transaction for your easy understanding.
1. Open your crypto account
The very first stage of a successful Ethereum investment comprises opening a trading account that supports cryptocurrency trading. Here’s how to do this. Being a popular cryptocurrency, there are high chances to get access to transact in Ethereum from your desired exchange. The best option? If you can open your account with the bank that you already trade.
However, how do you know which one is the best for you?
The best exchanges would offer access to multiple cryptocurrencies, a dedicated exchange platform for each cryptocurrency, integration capabilities with other forms of stocks, account maintenance, and commission fees, and security features like two-factor authentications and encryptions. At this stage, all you would need is proof of your identity (government-issued) and supporting personal information to be filled in at your selected exchange to have an operational account.
2. Link your account with a fund
After the successful opening of your account, the second stage is about establishing a link between your trading account and the fund’s account.
The account that you link to your trading account is your investment payment source. This means to have smooth transactions, you need to ensure that the fund’s account is never nill. Most often, you can fund your trading account by direct transfers from your bank account. But there are other possibilities for buying cryptocurrencies via credit cards. It is a good practice to clarify the buying options with your selected bank or trading exchange.
If you link your bank account with your trading account, there will be token deposits in your accounts for verification which you would have to report back to the bank. This verification process usually can range anywhere from a couple of hours to a couple of days to complete.
3. Place your first order
After successful opening and verification of your trading account, it is time to place your first order. Here’s what you can do.
Start with checking Ether’s real-time market price for a coin. This will help you to estimate how much Ether you want to buy. It is a good practice to start with smaller investments to get acquainted with the system first.
In this phase, you need to be aware of the order type you choose for buying Ether. There are multiple ways you can do this that directly impact the coin money you pay and how fast your order is processed.
4. Transfer your Ether coins to your Ethereum wallet
After a successful order, your coins will be reflected in your exchange account.
Here, if you don’t have trading plans for your coins scheduled within a day, storing your Ether coins in an Ether wallet secured by private keys is an essential step. An Ether wallet is a high-security storage device that protects crypto coins from every exterior hack and unauthorized infiltration. Moreover, your wallet can double as your crypto investment portfolio tracker helping you to better manage your holdings over a period.
Now that you know how to buy Ethereum, there is just one vital question left to answer.
Where can you buy Ethereum?
There are multiple areas from where you can buy Ethereum in Canada.
1. Trading exchanges
The most hassle-free way to buy Ethereum is through a crypto exchange. Now you may ask what is a cryptocurrency exchange. It is a crypto app or desktop platform enabling end-to-end transactions (buying and selling of orders of cryptocurrencies).
It is very similar to the concept of a stockbroker. You create and verify an account, add the required funds for transactions to occur, and place the order. This is where your exchange performs the transaction activity on your behalf.
There are multiple exchanges to buy Ethereum across the globe. Wirex and crypto.com are some popular platforms.
However, the one best for you supports transactions in multiple virtual currency formats from one place. This makes your complete investment landscape integrated into a giant working machine where you can handle everything seamlessly. If you are located somewhere in Canada, getting hold of an exchange looks like the simplest job you could do.
2. Peer-to-peer exchange
Peer-to-peer exchange portals like LocalEthereum are designed to create more anonymity around your crypto transactions. You can offer your local currency in exchange for Ethereum coins. The best part? You can do these transactions via credit or debit cards.
3. Ethereum ATM
When it comes to small transactions, Ethereum ATMs are the perfect solution. All you need is an Ethereum wallet. You can scan your wallet’s QR code to put your desired Ether equivalent money to complete the transaction successfully.
There is no doubt that Ethereum has the potential to change the future in so many different ways. It can earmark the start of a more transparent, secure, and decentralized way of transactions.
However, it is remembered that virtual currency is still in its early stage of development. Its creators are deeply invested in developing a concept to eradicate the mining requirements completely, a process called proof of stake (PoS).
Even more, Ethereum is a highly volatile investment. This makes you open to market risks at all times. If you are not prepared for its volatility, you will not be able to witness the true power of the cryptocurrency. The best way to deal with it is to spread your complete investment portfolio between volatile and stablecoins for the best, sustainable performance. So now that you know what Ethereum can do for you, when are you planning to buy it?