Learn How To Buy Ethereum on eToro

Learn How To Buy Ethereum on eToro

Are you looking for the next big thing in cryptocurrency? Look no further than Ethereum. This technology is home to digital money, global payments and applications and has taken the world by storm, with everyone from tech giants to individual investors wanting to get in on the action. With its decentralized structure and smart contract capabilities. Ethereum offers endless possibilities for innovation and growth. So why wait? Let's explore why everyone wants to get in on the action with Ethereum!

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Guide to buying Ethereum

If you're in a hurry!!!! Quick Guide To Buying Ethereum
  1. Choose whether you want a cryptocurrency exchange or broker: Make sure you do your research, you'll want one that has a good reputation and top-notch security and, of course, has the cryptocurrency you want to buy. Coinbase is the best for beginners, CashApp is also good for beginners seeking Bitcoin, Gemini for rock-solid security and Binance for more advanced Crypto Investors.
  2. Set-up your Digital Wallet: We've used Coinbase as it is perfect for beginners, just follow the steps below.
  3. Fund your account: Depending on your country will depend on how you can fund the Wallet, normally different options are available i.e. Bank Transfer, SEPA transfer, PayPal (although PayPal is normally for payouts).
  4. Buy Ethereum Crypto: Search for ETH and buy your Ethereum.

Image Credit: LiveCoinWatch – ETH 1LiveCoinWatch – ETH https://www.livecoinwatch.com/

Let's take a look at the factors that influence Ethereum's value as well as how you can invest in Ethereum and find out what all the hype is about.

How Much is Ethereum Worth?

Ethereum is among the most popular cryptocurrencies, and ranks second in total size (Market Cap: $190 billion), behind Bitcoin. As Ethereum is has its own blockchain, its's a coin.

Why is it so special? Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority.

Ethereum is worth $1,807 as of March 2023. Its history began in 2013 when a programmer named Vitalik Buterin proposed the creation of a new platform that would be able to build upon the success of Bitcoin while also addressing its limitations. After raising over $18 million in crowdfunding, Ethereum was launched in 2015.

Since then, Ethereum has become one of the most popular cryptocurrencies, with a market capitalization of over $190 billion. It is also one of the most widely used blockchain platforms, with hundreds of decentralized applications (dapps) built on top of it.

Ethereum is also accepted as a payment method for hotel bookings, flights, train tickets and Amazon (using Bitpay).

Understanding the Volatility of Cryptocurrencies

When it comes to cryptocurrencies, volatility is king. Prices can swing wildly up and down in the blink of an eye, making them incredibly risky investments. But for some investors, that volatility is precisely what makes cryptocurrencies so appealing.

Source: The Block – Crypto Market Data.2The Block – Crypto Market Data. https://www.theblock.co/data/crypto-markets/prices

If you're thinking of investing in cryptocurrencies, it's important to understand just how volatile they can be. Here's a look at some of the factors that contribute to cryptocurrency volatility:

  1. Lack of regulation: Cryptocurrencies are not subject to the same regulations as traditional currencies or assets. This lack of regulation creates an environment where prices can fluctuate wildly.
  2. Limited supply: There are only a limited number of cryptocurrencies in existence, which means that demand can outstrip supply and drive up prices.
  3. High level of speculation: Many people invest in cryptocurrencies simply because they think they will go up in value. This speculation drives up prices even further and creates even more volatility.
  4. Decentralized nature: Cryptocurrencies are not controlled by any central authority, which makes them very difficult to stabilize.
  5. Rapid adoption: As more and more people start using and investing in cryptocurrencies, their prices will continue to be volatile.

The historical price of Ethereum can give us some insight into how volatile the currency really is. Let's take a look at the prices from the past few years.

Source: Ethereum Price Chart – CoinGecko 3Ethereum Price Chart – CoinGecko https://www.coingecko.com/en/coins/ethereum

The legal status of cryptocurrencies varies substantially from country to country and is still undefined or changing in many of them. While some countries have explicitly allowed its use and trade, others have banned or restricted it. Regulations and bans that apply to bitcoin probably extend to similar cryptocurrency systems. Check your country to see if Ethereum is legal.

Guide: Buying Crypto: Step-by-Step

Decide if you want to use a Crypto Exchange or Broker

There are a few things to consider when choosing a crypto exchange or broker. Both will let you buy crypto, although each has different pros and cons. There are more than 300 crypto exchanges and only you can decide which is best for you.

What is a Crypto Exchange?

A cryptocurrency exchange is a platform where users can buy and sell cryptocurrencies. Some exchanges also allow users to trade fiat currencies, such as US dollars, for cryptocurrencies. Cryptocurrency exchanges typically charge a fee for each transaction and have advanced charting tools which can be a little daunting for newbies.

Buy and sell crypto
Complex interfaces can confuse new users
Low fees
Advanced charting can be intimidating
Advanced charting tools

What is a Crypto Broker?

A crypto trading broker also allows you to buy and sell cryptocurrency and normally has a simple interface, reducing the complexity with a friendly “look” and easier on the eye for newbies. Most platforms also allow you to trade other assets, such as stocks, commodities, and forex, however, fees are normally more expensive. 

Simplifies crypto charts
Higher fees compared to exchanges
Easy-to-use interface
Restrictions on moving crypto holdings
Tends to be easier for newbies
Check the small print for hidden costs

Other factors to consider before making your decision

Here are a few things to consider when choosing an exchange:

Geographical location: Some exchanges only operate in certain countries. Make sure the exchange you choose is available in your country.

Payment methods: Different exchanges accept different payment methods, such as credit/debit cards, bank transfers, or PayPal. Choose an exchange that accepts the payment method you want to use.

  • fees: exchanges typically charge fees for each transaction. These fees can vary greatly from one exchange to another, so be sure to compare before making your decision.

Security: When it comes to handling your money, security should be your top priority. Make sure the exchange you choose has implemented adequate security measures, such as 2-factor authentication and cold storage.

Top 4 Exchanges to Get Started with Bitcoin

Best for Beginners

Coinbase

Coinbase is one of the most popular cryptocurrency exchanges and allows you to buy and sell Bitcoin, Ethereum, Litecoin, and more. You can also use Coinbase to store your cryptocurrencies. Coinbase Global Inc. is listed on the NASDAQ exchange.

Founded: 2012

Crypto Wallet: Yes – Coinbase has its own crypto wallet.

Assets Available: over 3,000 crypto assets like Bitcoin and Ethereum, they also offer a Coinbase Visa debit card.

Location: Available in 100+ countries.

Security: High levels of security designed to protect users (two-factor authentication / cold storage – meaning assets kept offline making it impossible to hack and the Coinbase Vault).
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.
Best for Social Trading

eToro

eToro is a leading social trading and investment platform and crypto broker with over 10 million registered users from more than 140 countries. The company offers a unique and innovative way to trade and invest in a variety of assets, including cryptocurrencies.

Founded: 2007

Crypto Wallet: Yes – eToro Money Crypto Wallet

Location: Available in 140+ countries.

Security: Levels of security designed to protect users (two-factor authentication).
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.
Best for Experienced Investors

Binance

Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It’s relatively low in fees and offers wide range of cryptocurrencies.

Founded: 2017

Crypto Wallet: No

Assets Available: 150+

Location: 100+ countries

Security: Levels of security designed to protect users (two-factor authentication).
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Tax on profits may also apply.

All Crypto Exchanges are listed on the CoinMarketCap. 4CoinMarketCap https://coinmarketcap.com/rankings/exchanges/

Guide: Set up your Digital Wallet

First up, what is a digital wallet? A Crypto wallet is essential if you want to trade crypto, it's a place where you can securely keep your crypto. There are many different options out there, the most popular being hosted wallets, other alternatives are non-custodial wallets, and hardware wallets. 

As Coinbase is perfect for beginners, we will use them as an example as they have their own Digital Wallet.

The whole process can be completed within a few clicks.

What you'll need before you get started:

  • Be at least 18 years old (they will check for proof)
  • government-issued photo ID 
  • A computer or smartphone connected to the internet
  • A phone number connected to your smartphone (Coinbase will send SMS text messages)
  • The latest version of your browser (we recommend Chrome), or the latest Coinbase App version. If you’re using the Coinbase app, make sure your phone’s operating system is up-to-date.

Account opening process: step-by-step

1. Create your account

Go to https://www.coinbase.com from a browser on your computer, or download and open the Coinbase app icon, small Coinbase app on Android or iOS to get started.

Note: We don’t recommend accessing Coinbase through a browser on your mobile device. 

  1. Click or tap Get started.
  2. You’ll be asked for the following information. Important: Enter accurate, up-to-date information to avoid any issues.
    • Legal full name (we’ll ask for proof)
    • Email address (use one that you have access to)
    • Password (memorize your password)
    • Your State (we’ll ask for proof)
  3. Read the User Agreement and Privacy Policy.
  4. Check the box and click Create account (computer) or tap SIGN UP (mobile) if you agree.
  5. Coinbase will send you a verification email to your registered email address.

2. Verify your email

  1. Select Verify Email Address in the email you received from Coinbase.com. This email will be from no-reply@coinbase.com.  
  2. Clicking the link in the email will take you back to Coinbase.com. 
  3. You’ll need to sign back in using the email and password you recently entered to complete the email verification process.

3. Verify your phone number

  1. Sign in to Coinbase. You’ll be prompted to add a phone number.
  2. Select your country.
  3. Enter the mobile number.
  4. Click Send Code (computer) or tap Continue (mobile).
  5. Enter the seven-digit code Coinbase texted to your phone number on file.
  6. Click Submit or tap Continue.

If you did not receive the code, select Resend-SMS.

4. Add your personal information

  1. Enter the information shown on your valid government-issued photo ID—you’ll need to submit a photo of this ID later.
    • First Name
    • Last Name
    • Date of Birth
    • Address
  2. You’ll also need to answer the following questions:
    • What do you use Coinbase for?
    • What is your source of funds?
    • Current Occupation
    • Employer
    • Last 4 digits of SSN
  3. Select Continue to finish the process.

5. Verify your identity

  1. Sign in to your Coinbase account.
  2. Complete ID verification.

Recommended: Set up a 2-step verification app (TOTP) to help protect against unauthorized account access.

Choose your country below to learn which payment methods are available in your country. 

For more information on all the services available in Coinbase supported countries, please visit our Supported Countries page.

You're now ready to go!

Guide: Fund your wallet

Next, you will need to deposit some funds into your newly created wallet. This can be done via bank transfer, credit/debit card, or even PayPal in some cases.

Guide: Buy Crypto

Now you have your wallet you are ready to start buying Crypto!

Choosing the Best Cryptocurrency to Buy

When it comes to investing in cryptocurrency, there are a lot of options to choose from. So, how do you know which one is the best to buy?

Here are a few things to keep in mind when choosing the best cryptocurrency to buy:

  1. Market capitalization (take a look at which coins are the highest right now and the curve of their value).
  2. Supply of coins (check whether they have a limited supply, how many coins are in circulation and how many it's possible to mine).
  3. Trading volume (how many coins have been sold).
  4. Price volatility (how risky is the potential investing).
  5. White Papers (White Papers are details about the coin: utilities, purpose and the technology behind it, this is very important to access the legitimacy of the coin).

Good websites to see what's hot and what's not!

Crypto News

Coindoo

DC Forecasts

CoinMarketCap

Learn how to buy Ethereum: The Bottom Line

Cryptocurrency is the buzzword of the decade, and Ethereum has emerged as one of the most popular digital currencies in recent years. With its decentralized platform and smart contract technology, Ethereum has proven itself to be a game-changer in the world of blockchain. We've provided you with everything you need to know it's now over to you, do your research and make the decision thats best for you.

Risk Disclaimer

need to rewite There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.

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Our research team conducts thorough testing on a wide range of features, products, services, and tools (collecting and validating thousands of data points in the process). We test all available trading platforms for each broker – whether they are proprietary or come from third-party providers – and evaluate them based on a host of data-driven variables.

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Read our full explanation and accounting of our research and testing process to learn more about how we test

Sources & References

  • 1
    LiveCoinWatch – ETH https://www.livecoinwatch.com/
  • 2
    The Block – Crypto Market Data. https://www.theblock.co/data/crypto-markets/prices
  • 3
    Ethereum Price Chart – CoinGecko https://www.coingecko.com/en/coins/ethereum
  • 4
    CoinMarketCap https://coinmarketcap.com/rankings/exchanges/
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