Chapter 8

How to Buy Ethereum

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How to invest in Ethereum

Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (ETH or Ξ) is the native cryptocurrency of the platform, but the term is often used interchangeably with Ethereum. Amongst cryptocurrencies, Ether (or Ethereum) is second only to Bitcoin in market capitalization.

Thanks for the introduction, but how do you buy Ethereum? Let’s take a look.

Choose a cryptocurrency exchange

It’s not all that complicated to buy Ethereum, but just like any cryptocurrency on the market, the first thing is to determine the level of risk tolerance you have. Cryptocurrencies can be quite volatile and the prices tend to fluctuate quite a bit. All of this to say never invest more in cryptocurrency than you can afford to lose.

To get started, the first step is to choose a cryptocurrency exchange, the best place to buy Ethereum. An exchange allows buyers and sellers to exchange fiat currencies (ie. dollars) for cryptocurrencies such as Bitcoin, Ethereum, or Dogecoin. This essentially allows you to buy Ethereum with a credit card.

There are many different exchanges available, all with different pros and cons. Some of the more popular ones include Coinbase, Binance, Kraken, Crypto.com, and FTX. Keep in mind the most popular exchanges often charge higher fees, although the user interface is typically simpler for beginners. In Canada, you can also look into Shakepay, Newton, and Satstreet. Using a larger exchange is typically the fastest way to buy Ethereum.

When choosing an exchange, look into whether it offers a crypto wallet to store your investments. If not, you’ll need to get one of your own, such as MetaMask.

Fund your account

Before you buy Ethereum through a crypto exchange, you will first need to fund your account. In most cases, you can deposit fiat currency directly from your bank account, but you can also wire transfer, or use a debit card or credit card. If you want to buy Ethereum with PayPal or buy Ethereum with Bitcoin, you can also do that as well.

Always keep in mind the fees that are associated with different types of transfers. Credit card companies tend to consider cryptocurrency purchases to be cash advances, and hence you might have to pay a higher interest rate on top of the exchange’s fees.

Buy Ethereum

Unlike stock markets, cryptocurrencies like Ethereum can be purchased at any time of the day, 24/7. To purchase Ethereum, enter ETH in your exchanges’ “buy” field and input the amount you want to buy. Keep in mind that you can purchase fractions of a token if you don’t want to purchase a full coin. You can input the dollar value you would like to purchase, and you will receive ETH in a fractional amount, similar to purchasing a fraction of a stock.

Store your Ethereum

After purchasing Ethereum from the exchange, you now have to store it in a wallet. You can either store it in a custodial or non-custodial wallet. A custodial wallet is one that exchanges offer on their platform, while a non-custodial wallet is off the exchange, ie. MetaMask.

For more information on how to set up your wallet, take a look here: How To: Set Up A Wallet.

After that, you’re all set! You now have Ethereum in a wallet, and you are ready to purchase NFTs!