Key Takeaways:
- Understand the process of buying Ethereum (ETH) on various platforms and learn about the different types of wallets to securely store ETH.
- Discover various methods of buying ETH, including cash, credit card, and PayPal.
- Learn how to use the Crypto.com App to buy and store ETH.
- Be aware of the risks and responsibilities associated with trading and storing ETH.
Determining Risk Tolerance
When considering how to buy ETH, Ethereum’s native cryptocurrency, it’s crucial for users to evaluate their level of risk tolerance. Trading cryptocurrencies, including Ethereum, can be unpredictable, and prices can be volatile — significantly fluctuating in a short amount of time. This may lead to potential losses.
It’s essential for users to diversify their portfolios and only trade what they can afford to lose.
Choosing a Cryptocurrency Exchange
To buy ETH, first choose a cryptocurrency exchange, which allows users to trade fiat currencies (like USD) for cryptocurrencies (like ETH). When choosing an exchange, users must ensure it operates in their jurisdiction and offers a secure wallet to store their Ethereum. The Crypto.com Exchange is a popular choice in the industry.
Get started with Crypto.com.
Creating and Funding Account
Once a user has chosen a cryptocurrency exchange, they’ll need to create an account and fund it. Typically, users can deposit funds via bank transfers, debit cards, or wire transfers. Keep in mind that fees may vary depending on the deposit method and exchange.
Avoid using credit cards to fund accounts, as credit card companies may consider cryptocurrency purchases as cash advances and charge higher interest rates and fees.
Buying Ethereum
After a user funds their account, they’re ready to buy Ethereum. To do so, enter its ticker symbol (ETH) and input the amount to buy. Users can purchase fractional amounts of Ethereum if they don’t have sufficient funds or want to buy a whole token.
Remember that cryptocurrencies (like Ethereum) can be traded around the clock, unlike in traditional finance (TradFi), such as stocks.
Storing Ethereum
Once a user has purchased Ethereum, they’ll need to securely store it. While some platforms store crypto for users, others may require them to use a third-party wallet. There are two main types of wallets:
- Hot Wallet: A hot wallet is connected to the internet and can be accessed via a computer or smartphone. Hot wallets are convenient, and they are often provided by cryptocurrency exchanges, like the Crypto.com App. However, because they’re connected to the internet, they’re at a higher risk of security breaches.
- Cold Wallet: Cold wallets are external devices disconnected from the internet, providing a more secure storage option for a user’s ETH. They usually cost between US$50 and US$200, depending on the type and features.
How to Buy Ethereum With Crypto.com
The Crypto.com App makes buying and storing Ethereum simple and convenient. Once an account is created and funded, users can easily purchase Ethereum within the app.
Additionally, Crypto.com offers a secure, easy-to-use wallet for storing ETH and other cryptocurrencies.
Buy Ethereum with Crypto.com.
TradFi Alternatives to Buy Ethereum
For those who prefer TradFi systems, consider Ethereum futures trading or the Grayscale Ethereum Trust, which offers Ethereum in stock share form.
Is It Too Late to Buy Ethereum?
While past performance is not a guarantee of future results, Ethereum remains a popular cryptocurrency with significant potential for growth. However, users should perform their own research and due diligence before deciding to trade Ethereum, as the market can be volatile and unpredictable.
Conclusion
Buying and storing ETH can involve various methods, platforms, and wallets. By evaluating their risk tolerance, choosing a reputable exchange like Crypto.com, and securing their ETH, users can safely and successfully trade this popular cryptocurrency.
Download the Crypto.com App to start trading Ethereum.
Due Diligence and Do Your Own Research
All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.
Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
