Based on the value of its coins in circulation, Bitcoin is the most valuable cryptocurrency, but Ethereum is pretty valuable too. It is the second most popular digital currency, with a market worth of over $232 billion, and is backed by corporate moguls like Mark Cuban.
Additionally, it has been a successful investment decision. A $1000 investment in the second-largest cryptocurrency back in 2015 would be worth over $2.23 million in 2022. Now that’s a great crypto investment for such a short period of time compared to traditional currency.
Keep reading to learn how to purchase and invest in Ether, the cryptocurrency’s official name, but first let’s dive into the topic of.
What is Ethereum
Programmer Vitalik Buterin created Ethereum in 2015, shortly after Bitcoin.
According to Ollie Leech, the lead editor at bitcoin news site Coindesk, “He discovered that Bitcoin is like a pocket calculator, intended to do one thing, and it does it incredibly well, but you can’t do anything else with it.”
As a result, Buterin developed Ethereum, a blockchain network with the potentially very versatile cryptocurrency, Ether (ETH). It even has a part in creating NFTs (non-fungible tokens)
Ethereum is a platform that software developers can use to construct new decentralized applications, many of which are cryptocurrency-adjacent or otherwise made to make purchasing, selling, and using cryptocurrencies easier. Like Bitcoin, Ethereum can be purchased and used for trading and investments. These apps might be everything from lending apps to payment platforms, much like the ones on your phone.
Is It a Good Investment?
Investing in cryptocurrency does have its risks. It’s not for everyone, so before you invest, be sure your risk tolerance is sufficient and understand that the loss of money may be a reality. If you determine that cryptocurrency is for you, experts advise sticking with Bitcoin and Ethereum, the two most popular coins in the crypto market.
Put in just what you would eventually be willing to lose, keep investments to less than 5% of your whole investment portfolio, and never sacrifice other financial objectives like debt repayment or retirement savings.
Even while experts advise sticking with popular coins like Bitcoin and Ethereum, the investment still carries a risk. Since cryptocurrencies are a new asset class, there isn’t any long-term data to show how they perform over time. If you don’t want to take on this cryptocurrency risk, go with a long-term investment that is safer, such a traditional index fund through a 401(k) or IRA (k).
How To Buy?
Get on The Right Platform
You must use a cryptocurrency trading platform since you cannot buy digital assets using a cash wire transfer or an online brokerage like Fidelity or Vanguard. Think of it as a brokerage platform that offers a massive range of cryptocurrencies to digital asset holders. There are a ton of popular platforms available, ranging from simple dashboards for newbies to sophisticated ones for veterans with excellent options and crypto assets.
Most cryptocurrency exchanges will allow you buy Ether because Ethereum is so popular, but we advise sticking to a few of the more well-known exchanges like Coinbase, Gemini, EToro USA LLC, Etoro UK Ltd, or Etoro Europe Ltd. One of the few cryptocurrency types that you can purchase using services like PayPal or Venmo is Ethereum. It’s a good idea to do some research before you sign up because different platforms have varying costs, security precautions, funding methods, and possibly other benefits.
Invest in Your Account
To open an account with a cryptocurrency exchange, you may need to supply some personal information and prove your identity. After that, you can fund your account by connecting a debit card, credit card, or bank account. Depending on the method you select, there may be different fees and payment methods, especially if you’re dealing with a bank transfer.
You haven’t actually bought any Ethereum when you funded your account, and just like with any investment account, you don’t want to keep your unspent funds in your account. At this stage, you must buy Ethereum in order to invest.
Order Your Ethereum
You can exchange your US cash for ETH once your account has been funded. Just enter the amount of USD you want to exchange for Ethereum. Depending on how much you wish to buy and how much Ethereum is currently trading for, you will most likely be purchasing shares of a single Ethereum currency. Any amount you spend will be represented as a share of the total Ether coin.
The simplest option is to leave your investment in your exchange account if you only have a modest amount of crypto assets. If you wish to store your assets in a more secure location, a digital wallet can provide greater security. It’s a great option for cryptocurrency investors since it limits the loss of money risk and has high levels of security.
Stay Informed With All Things Ethereum
Ethereum may be fairly new, but it doesn’t have to be complicated. The digital asset is proving to be an excellent option for crypto investors, becoming one of the more popular cryptocurrencies, and is bringing more users toward blockchain technology. If you want to be a part of those people with a full crypto wallet and a diversified portfolio, then you need to sign up for Ian Corzine’s newsletter today!
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