What is Ethereum?
Without going deep into the technical details, Ethereum is a decentralized, blockchain platform that is used for its cryptocurrency (ETH). It was created in 2014 and now, it's second only to Bitcoin. Its market cap (total value of all coins) is almost 20,000,000,000 (20 billion!) dollars!
This is why thousands of people want to find a way to get ETH/ETC — and as usual, there are 2 ways to get a cryptocurrency: you can mine it and you can buy it. Mining ETC/ETH is not worth it in 2020 — as with any other popular coin, the difficulty of mining gets too high. That's why the only thing you can do is buy Ethereum. In this article, we’ll tell you where to buy Ethereum, respond to your questions about ETH/ETC, and explain how to buy Ethereum!
How Do You Buy Ethereum?
Thinking about buying Ethereum? It's a really good choice because the answer to the question “is Ethereum worth buying?” is certainly “yes”. The thing is, although we can't say that trading ETH/ETC for real goods is very common, it’s still a very popular asset in the market — you can participate in an ICO, buy altcoins with Ether, and even exchange it for fiat money.
Here’s a short guide on how to buy Etherium:
Get a wallet. There are hardware and software wallets. The first one is a flash drive with the keys — it's the most secure way to store cryptocurrencies. However, software ones are also good (and they are free, btw). You can use them on any device, from PC to smartphone.
Then, choose where to buy Ethereum and what currency you are going to use — you can buy Ethereum with a credit card, Bitcoin, etc. There are lots of exchanges, so you will have to find the best place to buy Ethereum.
Then, deposit on the Ethereum exchange (your transaction will not take long).
After that, you can buy Ethereum classic or ETH, sell and send a certain amount of Ether to anyone.
Exchanges to Buy Ethereum
Now, when you know more about buying Ethereum, let’s choose the best Ethereum exchange. Read these short Ethereum exchanges descriptions and make your choice!
This website has more than 20,000,000 users. How to buy Etherium here? It's very simple — you can buy Ethereum with a CC/transfer, and the limits are quite high (up to $1,000 worth of ETC/ETH a week even if you haven't confirmed your ID and phone number yet). Unfortunately, the support service of Coinbase isn't that good — thus, there is no live chat here. Another problem of Coinbase is that you can't buy coins with your PayPal account, you can only withdraw to PayPal.
Bitpanda is another big name in the crypto world. It's focused on European customers, there are almost 1,000,000 customers here, and it's not only a cryptocurrency exchange — its users can also invest in gold and silver here. How to buy Etherium here? You can use your credit card, your Skrill account, and even cash (if you live in Austria, you can buy coupons in a post office). The customer support isn't that good here, too (long waiting time), but on the other hand, it looks like the support specialists do their best to help the customers. Bitpanda only supports the EU countries, so the Americans can't buy cryptocurrencies here.
Bitstamp was created in 2011, so it's the oldest exchange in the world. It doesn't support lots of currencies — only Bitcoin/Bitcoin Cash, Ripple, Litecoin, and Ethereum, of course. How to buy Ethereum on Bitstamp? Well, if you're from Europe, you can make a bank transfer via SEPA (wire transfers are supported as well). Of course, you can also use your credit card, but the fee will be quite high in this case (8%). But other than that, the fees are quite low here, especially for wire transfers (0.05%). Unfortunately, the verification process is quite long here.
Bittrex is the best Ethereum exchange for those who want to find a secure and safe website — the two-factor authentication is a must here, and this is one of those exchanges that have never lost any Bitcoins. How do I buy Ethereum here, you might ask? It's not that simple: you'll have to be approved for fiat trading, deposit, and withdrawals first. You can't pay with your credit card, so the number of deposit methods is quite low. On the other hand, the commission is very low here (0.25%).
Binance is not the best Ethereum exchange in the world, but it's still worth your attention. You can buy coins with your credit card here — the fee is very low here (0.1%), and the deposits are free. What we like is that this exchange offers more than 100 altcoins and that the reputation of the company is quite good. However, it's not the best option for the beginners who want to know where to buy Ether — the interface is quite complex, it's impossible to withdraw fiat currencies, and the customer support is not that good here.
If you're going to buy Bitcoin, buy Ethereum, buy Litecoin, and lots of other coins, you can't miss Kraken exchange. The thing is, it's the largest Bitcoin exchange, so it's certainly worth trying. You can pay with SEPA and wire transfers, which is cool, but the deposits are not so fast (your payment will arrive in 1-5 business days). This exchange supports 20 coins, and it has very low fees. The US traders are welcomed here, and the customer support is also very good — so it's a great choice for those who want to start a crypto trade.
Difference between Ethereum and Ethereum Classic
In 2016, a loophole in DAO (Decentralized Autonomous Organization) was exploited. Some people thought that it was an Ethereum problem — actually, it wasn't, but still: the users of Ether cryptocurrency were disappointed, and the community decided to make a hard fork. Not 100% of the community, though. This whole situation caused a split in the community of the Ethereum users — and as a result, those who stayed true to the philosophy of immutability stayed with ETC (Classic). Those who wanted to feel safe and secure went to ETH (Ethereum).
We don’t want to dive deep into the technical details, as we’ve already said. So, let’s just take a look at the pros and cons of each coin.
It stays true with the philosophy of Ethereum — "don't mess with the chain", that's how it sounds. "Immutable blockchain" is "the blockchain that can't be undone" — so the philosophy of Ethereum Classic means that the history of transactions can't be rewritten and that no one but the owner can move his funds.
ETC has set a limit of 230,000,000 tokens, so its users believe its value will rise because of this fact.
No access to the new updates. Thus, ETH changed itself to Proof of Stake concept (in short, it's the more ETH you have, the more mining power you have), while ETC has stayed with a Proof of Work protocol.
ETH is growing constantly.
ETH is being updated constantly.
ETH is backed by a group of big players (Enterprise Ethereum Alliance). When we say "big players", we mean Microsoft, Toyota, JPMorgan Chase & Co, and others.
Higher hash-rate than Ethereum Classic.
ETH doesn't stay with the "immutable blockchain" concept.
Well, it looks like the winner is obvious.
So, is Ethereum worth buying? Yes, it is. But it’s not that simple.
To invest in this currency, you’ll have to analyze lots of things to understand when to buy Ethereum and when to sell it. To buy altcoins, you’ll have to do even more research to not waste your money and time. But on the other hand, ETH is great for both beginners and professionals. This currency is 100% stable, safe, and secure (which is good for beginners), and it’s a perfect investment because it has a huge capitalization, great developer team, and strong partnerships (which is great for professionals). So, here’s what we can say: if you want to try crypto trading, try Ethereum — this currency is 100% worth it. If you are a professional trader, well, you already know that.
Frequently Asked Questions
How do you sell Ethereum?
First, you'll have to buy Ethereum (skip this step if you are a miner). Choose an exchange, create an account, and verify it (some exchanges don't require verification, so this step is not obligatory). Then, make a deposit — the majority of exchanges accept payments in credit cards and PayPal. Then, select your Ether wallet and click "Sell". Choose the currency/altcoin you’d like to get. Basically, that’s all.
How do I start investing in Ethereum?
It's not like stocks: there are no dividends and payouts here. You can go long or short — if you go long, you buy ETH and wait for, say, a month, a year, or even more for its price to go up; if you go short, you do the same, but in this case, we're talking about minutes and days instead of months and years. ETH doesn't look like a good choice for short-term investment — it has a high market cap and a high trading volume. But still, it's up to you to choose when to buy Ethereum and when to sell it.
How do I buy Ethereum with Paypal?
PayPal is often called the best way to buy Ethereum — it's fast, it's widespread, and it's quite easy to buy any cryptocurrency with PayPal.
If you've already chosen the exchange website, create an account and verify it (if it's needed; some websites require verification while others don't). Then, select PayPal as a payment method, enter the amount of ETH/ETC you wish to buy, and wait for a few minutes (sometimes this process takes longer, so be prepared, especially if it's your very first transaction). You can also use a peer-to-peer platform, but be careful, because the risk of fraud on peer-to-peer platforms is usually quite high. So, always choose only reputable traders.