Things to consider when buying Ethereum | The Guardian Nigeria News

Are you thinking of investing in Ethereum? Then, find out the key factors to consider when buying Ethereum.

Ethereum doubles up as a payment protocol and an investment, but its ambitions go beyond the financial realm. Ethereum seeks to create a global decentralized supercomputer to serve as a platform where developers can rent resources for building their applications. That highlights Ethereum’s unique potential as an economic driver with a significant value proposition.

Various ways exist for gaining exposure to Ethereum. However, it is also essential to remember crypto can be a risky investment with several potential pitfalls. The following are the key factors to consider when buying Ethereum.

Choosing a Crypto Exchange
Ethereum is a widely popular cryptocurrency that you can easily buy from various platforms today, including online stock brokers, centralized crypto exchanges, and decentralized exchanges. Online brokerage firms make it easy for individuals to buy Ethereum in cash and credit cards. Centralized crypto exchanges act as middlemen in purchasing and selling crypto, with more extensive selections than online stock brokers.

Check out Bit index ai one of the popular centralized crypto exchanges. Decentralized crypto exchanges are the most secure and transparent marketplaces for buying Ethereum since they do not involve third parties. Unlike the centralized platforms, decentralized exchanges allow you to retain complete control over your funds and link buyers with sellers directly.

Payment Method
Many exchange platforms will allow you to buy Ethereum using fiat currencies or other cryptocurrencies. Some exchanges only accept buying crypto in U.S dollars, mainly paid through bank transfers, credit cards, or debit cards. Remember, those transactions may attract some fees.

Other crypto exchanges also allow crypto to crypto trading, which could be a great option if you don’t want to drain your savings into buying Ethereum. It could also be an ideal option if you already own some crypto and intend to diversify your holdings. However, keep in mind that relative cryptocurrencies’ values change constantly.

Ethereum Storage
Ethereum is a virtual asset and currency that you can only access and use online. However, every user must get a digital wallet to secure the funds. A digital wallet stores the private keys used to sign transactions. Although some online exchanges can also store your funds on their platforms after purchase, you need a personal wallet.

Various wallets exist online that you can easily download and install into your device or keep offline. An online wallet would be the most suitable for those who want to buy Ethereum for frequent transactions such as trading and shopping. An offline-based wallet is the most secure option for long-term Ethereum storage. Nevertheless, security and convenience should always take precedence when choosing a digital wallet.

Ethereum is a highly volatile asset, with constant price fluctuations like other cryptocurrencies. The market is unregulated, and even slight events could swiftly move prices back and forth. For instance, Ethereum’s price bounced between $5 and $15 per coin in 2016. The price then soared to about $1,500 in early 2018 before dropping to less than $100 by that year. The cost of Ethereum only jumped to over $500 in late 2020.

The above statistics mean those who bought Ethereum in 2018, hoping to sell in 2019, experienced significant losses as the asset lost considerable value. Ethereum’s high volatility presents a substantial risk that you must know how to leverage to avoid losses. A proper analysis of Ethereum’s price history and market events is critical to determining when to buy low.

Thanks to the numerous crypto marketplaces available online today, buying Ethereum is relatively easy and stress-free. However, please do due diligence and observe the above guidelines to buy Ethereum safely.


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