If You Feel Ready to Buy or Invest in Ethereum, Here Are the Basic Steps Involved
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Even if Bitcoin is trading at an all-time high, Ethereum could gain the upper hand thanks to the upcoming Dencun upgrade that brings forth proto-danksharding, which is poised to have a positive impact on prices in the long term. Jointly, the market caps of Bitcoin and Ethereum account for 70% of the global cryptocurrency market. Competitors may arise to challenge the two market leaders over the next few years, but for the time being, the most obvious choices for investors are Bitcoin and Ethereum. If you decide to invest at all, your crypto holdings should be part of a more extensive, diversified portfolio.
The flippening may or may not be in the works. What’s certain is that Ethereum continues to grow, and 2024 will be an excellent year for the token. It’s pointless to debate the virtues of Ethereum as an investment. If you’re ready to take your first step in the exciting world of cryptocurrencies, the following steps will give you an easier-to-follow roadmap:
Ask Yourself What Your Goals for The Investment Are
Embarking on a journey without a clear destination makes it devoid of purpose. In case you’re wondering how to buy crypto currency, you must have a clear goal, objective, direction, or aspiration. Ethereum is renowned for its multifaceted utility, meaning it’s not just a medium of exchange - it’s a platform that enables a decentralised, programmable financial system. You can use Ethereum to interact with DeFi apps, buy and sell NFTs, and play blockchain games, to mention a few. Looking to the future, Ethereum is progressing towards continued influence and leadership. By investing in the cryptocurrency directly, you own and control your funds. It’s not the same thing as buying ETF shares.
Investment goals are unique to each person, so they depend on factors like age, income, expenditure, and risk tolerance. There’s no need to rush things, so do plenty of research and consider the bigger picture because your ambitions will influence your investment strategy. It would be best to reach out to a professional who can provide you with a different perspective. Traditional investing prioritises returns, while goal-based investing requires harmonising your investments with your life goals (buying a dream home, financing your kids’ education, or preparing for a comfortable retirement). In case you didn’t already know, financial experts prefer goal-based investing.
Decide Where to Buy Ethereum
According to Goldman Sachs, Ethereum is the cryptocurrency with the highest real-world use potential, so you can find a wide variety of functionalities. There’s more potential for Ethereum than Bitcoin in the future. You can buy cryptocurrency at a centralised exchange, which is very easy and hassle-free for users to buy Ethereum. You’ll need a valid ID and may be asked for proof of address to transact, so have them ready. It may take longer than 10 minutes, depending on where you live. Centralised exchanges sell Ethereum at market rates. If you’re looking for one that operates exclusively within the cryptocurrency world, seek a pure-play cryptocurrency exchange; it won’t give you access to assets like stocks and bonds.
If you’re familiar with traditional brokerage accounts, there are some online brokers offering access to cryptocurrencies, but consider fees, security measures, and customer support. You can buy Ethereum through PayPal, for instance. You can buy or sell as little as $1 to as much as $100,000 every week, just pay attention to the fact you don’t enjoy complete control over your assets. You own your cryptocurrency as fiat-currency equivalent, meaning you can’t transfer the tokens across various accounts. Since you’re not an advanced investor, it’s not a good idea to use a decentralised exchange because it requires technical know-how, even if it offers security benefits.
You Can Pay with Cash or With Other Cryptocurrency
Fiat currencies are the most popular options for the purchase of cryptocurrency, so you can use regular money to buy Ethereum. A cash transaction offers a lot of privacy, so you don’t risk becoming the victim of identity fraud. Deposit cash into your account, which can be done via a bank account or wire transfer, to purchase Ethereum – it will save you a lot of time. A centralised exchange is just like a virtual marketplace. Think about eBay but with fewer bells and whistles. To make a purchase, you browse through the available offerings at a set price.
Some exchanges make it easy to purchase Ethereum with other cryptocurrencies, so if you already hold digital assets, you can use them as your funding method. You can set up recurring buys so you can continuously accumulate small amounts of Ethereum on a regular basis. Not all cryptocurrencies can be traded directly for one another, so knowledge of cryptocurrency pairs is essential to expand your holdings beyond the most common coins. Exchanges make available several pairing options based on the currencies you possess. For example, if you have Bitcoin, you can trade with any pairing listed on an exchange that includes Bitcoin.
The Most Common Way to Store Your Ethereum Is Within a Digital Wallet
Keep only what you need to trade on the cryptocurrency exchange and nothing more. You can use a decentralised exchange, as it doesn’t require you to give up control of your private keys. The best thing you can do is store your assets in a digital wallet to reduce vulnerability to unauthorised access and improve your overall security. The digital wallet doesn’t technically store your Ethereum because your holdings live on the blockchain. Most digital wallets have built-in security measures to keep your funds safe, but they can’t compare to offline storage. You don’t have to worry about malicious smart contract functions and apps.
All In All
Ethereum has an impressive ability to generate yield and good tokenomics, not to mention it offers access to the dApp ecosystem, which unlocks DeFi in all its splendour. The cryptocurrency has had its fair share of volatility over the years, but volatility isn’t always bad. It indicates there’s demand, and investors are happy to continue buying and selling Ethereum.
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