Ever since Bitcoin appeared on the scene a few years ago, cryptocurrencies have become popular. The popularity is because unlike other currencies, they are not regulated by a single authority but by market demand. It is also impossible to counterfeit them. Everyone wants to know how to buy and store them. The hottest altcoin in the market now is Ethereum.
What is Ethereum ?
The use of Ethereum has gone up since its launch a year ago. Ethereum is a cryptocurrency that was invented by Vitalik Buterin in 2013. It is a platform used by developers to build apps on top of it. These apps run without any third party interference. Most people confuse Ethereum and Ether. Ether is its currency. It is traded and mined just like bitcoins. Its value is however, less than that of a bitcoin.
How to buy Ethereum
Before buying Ether, you should have a secure place to store it. It is secure to store it in an Ethereum Hardware Wallet. There are a few ways of buying Ethereum / Ether. This guide is going to show you how to. You can mine it, exchange it with bitcoin or buy it with fiat currency. A number of excellent buying options exist.
The easiest way of buying Ethereum is through Coinbase. The first step is to sign up for a Coinbase account. Coinbase gives you a secure place to store Ethereum and also an option to convert your money into digital currency. After signing up, you are required to connect your Debit card, Credit card or bank account with Coinbase. After your details have been verified, you can start purchasing. They charge a fee of 3.75%. Instead of using Coinbase, you can also use Bitpanda, Gemini or Kraken.
Another good option is CoinMama. Its sign up is easy. You can get Ether in your wallet within 20 minutes of sign up. It allows you to buy less than $125 worth of Ethereum without verifying your details. It supports credit cards from most countries. Its fees are however high compared to Coinbase.
Ethereum can also be bought through CEX.io. It is based in the UK. It sells both Ether and bitcoins. Your Id has to be verified before you can start buying. They charge a fee of around 4%.
Buying Ethereum with Bitcoin. Bitcoins can be used to buy Ethereum just like any other cryptocurrency. Poloniex offers the best exchange rate.
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Another option of getting Ethereum is through mining. You can mine it yourself or you can buy a mining contract with Genesis mining or Hashflare. Buying a mining contract means that you have to leave a small percentage of the profit with the mining company. Mining on your own is not an easy affair. Most people get frustrated with the high up-front costs.
Frequently Asked Questions About Buying Ethereum
1. What is the best time to buy Ether ?
It is impossible to tell the right time to buy. It is advised to split your buys over a period of time because you cannot tell if the price will fall or rise. Charts can also be used to see if the price is high or low.
2. Are there risks in buying Ethereum ?
Ethereum is still new in the market. Before buying, do research and compare it with other crypto.
3. Can anyone buy Ethereum ?
Yes, anyone is free to trade in Ethereum. There are no restrictions.
4. What is the best payment method to use when buying ?
Banks charge a lower fee and are therefore ideal. However, for privacy, you need to buy bitcoins and then trade them for Ether. For a faster transaction, use credit cards.
5. Is it better to buy or to mine Ethereum ?
Buying Ethereum is much faster compared to mining. Mining has upfront costs that make it inconvenient.
6. How do I store my Ethers ?
For desktop, Mist is a popular choice. Android and iPhone users prefer Jaxx.io. Jaxx can also be used for bitcoin.
7. What is the difference between Ethereum and Ethereum Classic ?
Ethereum classic was created after a disagreement on how the original Ethereum was conducting business. Te disagreement was because of a who found a way and stole around $60 worth of Ethereum coins. The two are now different currencies and have different exchange rates. The price of Ethereum is higher compared to that of Ethereum Classic.