So you’re curious about diving further into Ethereum? This article will go over how to buy ethereum, and common questions that investors and readers have about the process. We’ll also explain what Ethereum is, block chains, and crypto wallets.
What is Ethereum?
Ethereum is the second-largest cryptocurrency (digital currency) after Bitcoin in market cap. Ethereum was created as a decentralized computing platform that can run a wide variety of applications to support the whole Defi (decentralized finance) ecosystem. Bitcoin on the other hand was created as a store of value and a hedge against inflation.
The Ethereum network builds off the blockchain technology developed for Bitcoin. Ether, ETH, is Ethereum’s native currency. ETH fuels the Ethereum platform at every step, and applications are required to compensate for every operation they perform.
How Much Does it Cost to Buy 1 Ethereum?
How much Ethereum is worth today will be different tomorrow. There are constant fluctuations. The price for 1 Ethereum is currently trending around $3K during the second week of February 2022. Ethereum’s all time high (ATH) was $4,865.57 for 1 ETH late last year.
Where is the Best Place to Buy Ethereum?
The best place to buy ETH is from a crypto exchange (Coinbase, Binance US, Gemini, Kraken, and Crypto.com). Most exchanges offer free cryptocurrency from signing up and referring friends to create an exchange account. Therefore, research each crypto exchange before signing up or use them all for cryptocurrency trading.
Where is the Safest Place to Buy Ethereum?
Ethereum is safe due to the Ethereum blockchain technology and no central authority to facilitate peer-to-peer transactions.
The safest place to buy Ethereum are on crypto exchange platforms that has enhanced security features like its own cold storage and two-factor authentication (2FA) for users.
The best protection against fraud and hacking is move your Ethereum to a cold wallet, or hardware wallets where your Ethereum is stored on an offline device not connected to the internet like a USB drive. The cold wallet stores the user’s address and private key to access your Ethereum wallet.
How Do I Invest in Ethereum?
Investing in Ethereum is not complicated. You can buy Ethereum from cryptocurrency exchanges or from digital wallets directly. Currently, you can’t simply buy ETH from the banks or brokerage services. You will need to choose a cryptocurrency exchange to purchase Ethereum.
Some popular exchanges are Coinbase, Binance US, Gemini, Kraken, and Crypto.com.
You can also purchase ETH from apps like PayPal and Venmo. If you also have a high-performance current gen GPU, then you can also mine Ethereum to receive compensation for lending your PC’s computing power to validate transactions on the Ethereum blockchain.
How Can a Beginner Invest in Ethereum?
It may seem daunting to invest in Ethereum at its current high valuation and wishing to invest when Ethereum just came out. However, beginners can invest in Ethereum because you can purchase fractional amounts of ETH.
The best strategy for anyone is start to dollar cost average (DCA), as much as you comfortably can, every week or every month into Ethereum.
Dollar cost averaging is where you’re investing a total sum of money in small increments over time instead of all at once to reduce risk. So buy when there is a dip to take advantage of the discounted price and sell when there is a jump in price to lock in profits.
It is advised to never spend more money than what you are willing to lose because cryptocurrency is extremely volatile.
How Can I Get Free Ethereum?
Some crypto exchanges offer free crypto assets after you sign up and use their trading platform with a certain amount. For example, Gemini will offer free $25 ETH when you trade $100 on their platform within 3 days of signing up. If you plan to holding ETH for the long term and have 32 ETH, then you stake your Ethereum and earn passive income off the interest just from locking your ETH up.
Another option is cryptocurrency mining to receive ETH. Joining cryptocurrency mining pools is a common first step in the mining process. Mining pools allow individual miners to combine their mining rig’s hash rate (computing power) with other miners as a community to consistently lead to more frequent mining reward payouts.
Additionally, on rewards sites like Swagbucks you can take surveys for free cryptocurrency. Answer surveys, watch videos, play games, and complete other activities to earn rewards. Redeem them for PayPal cash, gift cards, or even cryptocurrency.
Steps to Join Mining Pools
- Choose a mining pool that you want to join. Each mining pool offers different payout percentages.
- Input the address of the pool into your mining software.
- You can also switch mining pools by simply replacing the mining pool address in your mining software.
- Connect a wallet to receive the pool payouts for solving complex mathematical equations.
- Configure your mining rig(s) to optimize performance to the chosen pool.
- Sit back and relax while you earn free Ethereum.
How Can I Get Cheap Eth?
There is no place that will offer you the ability to buy Ethereum at a discounted price. However, you can buy Ethereum on platforms that offer the lowest fees so that you can buy more ETH for your money. Binance US platform has the lowest fees for trading Ethereum at a small commission of 0.01%.
How Do I Sell Ethereum?
You will need to follow these steps to cash out your Ethereum.
- Select a cryptocurrency exchange.
- Register to create an account and connect your banking account.
- Transfer your Ethereum to the cryptocurrency exchange. (Double-check the address is correct)
- Sell your Ethereum to USD fiat currency.
- Withdraw your cash to your bank account.
Take into consideration that you may need to pay the withdrawal and gas fees. Withdrawal fees vary with each cryptocurrency exchange and the gas fees increase as the blockchain network traffic increases.
Can Ethereum Reach 50K?
Ethereum’s price trajectory to reach 50K is hindered due to its scalability issues. However, Ethereum 2.0 upgrade will make it more secure, more efficient, and lower transaction fees (gas fees).
The high gas fees are preventing Ethereum’s growth from going wild. Therefore, it is possible for Ethereum to reach 50K in the distant future when Ethereum 2.0 moves to Proof of Stake (PoS) from Proof of Work (PoW).
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