Get Started
Get Started
Simplecryptoguide.com

How To Buy Ethereum (ETH)?

Ethereum 500x286 1 - How To Buy Ethereum

A common question you often see on social media from crypto beginners is “Where can I buy Ethereum?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Ethereum on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports Ethereum (ETH)

First, you will need to open an account on a cryptocurrency exchange that supports Ethereum (ETH).
We recommend the following based on functionality, reputation, security, support and fees:

1

 Binance

Create Binance Account - How To Buy Ethereum
Register

Fees (Maker/Taker)            0.075%*-0.1%*

Cryptocurrencies
Available for Trade                             500+

Sign-up bonus
 10% reduced trading fees*

Available in
Europe, Asia, Oceania, Africa

2

 Coinbase

Create Coinbase Account - How To Buy Ethereum
Register

Fees (Maker/Taker)             1.49%*-3.99%*

Cryptocurrencies
Available for Trade                              75+

Sign-up bonus
 $10 sign-up bonus*

Available in
North America, South America, Europe, Asia, Oceania, Africa

3

 FTX US

Create FTX US Account
Register

Fees (Maker/Taker)            0.10%*-0.40%*

Cryptocurrencies
Available for Trade                             45+

Sign-up bonus
 5% reduced trading fees*

Available in
North America, South America, Europe, Asia, Oceania, Africa

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Ethereum (ETH) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Ethereum (ETH)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Ethereum (ETH) or Ethereum (ETH) trading pairs. Look for the section that will allow you to buy Ethereum (ETH), and enter the amount of the cryptocurrency that you want to spend for Ethereum (ETH) or the amount of fiat currency that you want to spend towards buying Ethereum (ETH). The exchange will then calculate the equivalent amount of Ethereum (ETH) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Ethereum (ETH) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

Simplecryptoguide.com

What Is Ethereum (ETH)?

Ethereum is a decentralized computing platform. You can think of it like a laptop or PC, but it doesn’t run on a single device. Instead, it simultaneously runs on thousands of machines around the world, meaning that it has no owner.

Ethereum, like Bitcoin and other cryptocurrencies, allows you to transfer digital money. However, it’s capable of a lot more – you can deploy your own code, and interact with applications created by other users. Because it’s so flexible, all sorts of sophisticated programs can be launched on Ethereum.

Simply put, the main idea behind Ethereum is that developers can create and launch code which runs across a distributed network instead of existing on a centralized server. This means that, in theory, these applications can’t be shut down or censored.

What makes Ethereum valuable?

We touched on the idea that Ethereum can run code across a distributed system. As such, programs can’t be tampered with by external parties. They’re added to Ethereum’s database (i.e., the blockchain), and can be programmed so that the code can’t be edited. In addition, the database is visible to everyone, so users can audit code before interacting with it.
What this means is that anyone, anywhere, can launch applications that can’t be taken offline. More interestingly, because its native unit – ether – stores value, these applications can set conditions on how value is transferred. We call the programs that make up applications smart contracts. In most cases, they can be set to operate without human intervention.

Understandably, the idea of “programmable money” has captivated users, developers, and businesses around the globe.

How does Ethereum work?

We could define Ethereum as a state machine. All this means is that, at any given time, you have a snapshot of all the account balances and smart contracts as they currently look. Certain actions will cause the state to be updated, meaning that all of the nodes update their own snapshot to reflect the change.

The smart contracts that run on Ethereum are triggered by transactions (either from users or other contracts). When a user sends a transaction to a contract, every node on the network runs the contract’s code and records the output. It does this by using the Ethereum Virtual Machine (EVM), which converts the smart contracts into instructions the computer can read.
To update the state, a special mechanism called mining is used (for now). Mining is done with a Proof of Work algorithm, much like Bitcoin’s.

What is a smart contract?

A smart contract is just code. The code is neither smart, nor is it a contract in the traditional sense. But we call it smart because it executes itself under certain conditions, and it could be regarded as a contract in that it enforces agreements between parties.

Computer scientist Nick Szabo can be credited with the idea, which he proposed in the late 1990s. He used the example of a vending machine to explain the concept, stating that it could be viewed as a precursor to the modern smart contract. In the case of a vending machine, there is a simple contract being executed. Users insert coins, and in return, the machine dispenses a product of their choosing.

A smart contract applies this kind of logic in a digital setting. You could specify something simple in the code like return “Hello, World!” when two ether is sent to this contract.

In Ethereum, the developer would code this so that it can later be read by the EVM. They then publish it by sending it to a special address that registers the contract. At that point, anyone can use it. And the contract can’t be deleted, unless a condition is specified by the developer when writing it.

Now, the contract has an address. To interact with it, users just need to send 2 ETH to that address. This will trigger the contract’s code – all the computers on the network will run it, see that the payment has been made to the contract, and record its output (“Hello, World!”).

The above is perhaps one of the most basic examples of what can be done with Ethereum. More sophisticated applications that connect many contracts can – and have – been built.

Who created Ethereum?

In 2008, an unknown developer (or group of developers) published the Bitcoin whitepaper under the pseudonym Satoshi Nakamoto. This permanently changed the digital money landscape. A few years later, a young programmer called Vitalik Buterin envisioned a way to take this idea further and apply it to any type of application. The concept was eventually fleshed out into Ethereum.
Ethereum was proposed by Buterin in a 2013 blog post entitled Ethereum: The Ultimate Smart Contract and Decentralized Application Platform. In his post, he described an idea for a Turing-complete blockchain – a decentralized computer that, given enough time and resources, could run any application.
In time, the types of applications that could be deployed on a blockchain would be limited only by the developers’ imaginations. Ethereum aims to find out whether blockchain technology has valid uses outside of the intentional design limitations of Bitcoin.

What is Ethereum gas?

Remember our Hello, World! contract from earlier? That was an easy program to run. It’s not very computationally expensive at all. But you’re not just running it on your own PC – you’re asking everyone in the Ethereum ecosystem to run it, too.
That leads us to the following question: what happens when tens of thousands of people are running sophisticated contracts? If somebody sets up their contract to keep looping through the same code, every node would need to run it indefinitely. That would put too much strain on the resources and the system would probably collapse as a result.
Fortunately, Ethereum introduces the concept of gas to mitigate this risk. Just as your car can’t run without fuel, contracts can’t be executed without gas. Contracts set an amount of gas that users must pay for them to successfully run. If there isn’t enough gas, the contract will halt.

In essence, it’s a fee mechanism. The same concept extends to transactions: miners are chiefly motivated by profit, so they may ignore transactions with a lower fee.

Note that ether and gas are not the same. The average price of gas fluctuates and is largely decided by the miners. When you make a transaction, you pay for the gas in ETH. It’s like Bitcoin’s fees in that regard – if the network is congested and many users are trying to transact, the average gas price will probably rise. Conversely, if there isn’t much activity, it will decrease.
While the price of gas changes, every operation has a fixed amount of gas required. This means that complex contracts will consume a lot more than a simple transaction. As such, gas is a measure of computational power. It ensures that the system can provide an appropriate fee to users depending on their use of Ethereum’s resources.
Gas generally costs a fraction of ether. As such, we use a smaller unit (gwei) to denote it. One gwei corresponds to one-billionth of an ether.
To make a long story short, you could run a program that loops for a long time. But it quickly becomes very expensive for you to do so. Because of this, nodes on the Ethereum network can mitigate spam.

Gas and gas limits

Suppose that Alice is making a transaction to a contract. She’d work out how much she wants to spend on gas (for instance, by using ETH Gas Station). She might set a higher price to incentivize the miners to include her transaction as quickly as possible.
But she’ll also set a gas limit, which serves to protect her. Something could go wrong with the contract, causing it to consume more gas than she plans for. The gas limit is put in place to ensure that, once x amount of gas is used up, the operation will stop. The contract will fail, but Alice won’t end up paying more than she initially agreed to pay.

It might initially seem like a confusing concept to grasp. Not to worry – you can set the price you’re willing to pay for gas (and the gas limit) manually, but most wallets will take care of it for you. In short, the gas price defines how quickly miners will take your transaction, and the gas limit defines the maximum amount you will pay for it.

What are Ethereum tokens?

A large part of Ethereum’s appeal is the ability for users to create their own assets on-chain, which can be stored and transferred like ether. The rules governing them are set out in smart contracts, allowing developers to set specific parameters regarding their tokens. These can include how many to issue, how to issue them, whether they’re divisible, whether each is fungible, and many others. The most prominent of the technical standards that allow the creation of tokens on Ethereum is called ERC-20 – and that’s why the tokens are popularly known as ERC-20 tokens.

Token functionality provides innovators with a vast playground for experimenting with applications on the cutting edge of finance and technology. From issuing uniform tokens serving as in-app currency, to producing unique ones backed by physical assets, there’s a great deal of design flexibility. It’s entirely possible that some of the best use cases for easy and streamlined token creation aren’t even known yet.

Official website: https://ethereum.org/

Market Overview

Coinmarketcap.com

Find the latest Ethereum (ETH) price chart, trade volume, market cap, and other vital information to help you with your cryptocurrency trading and investing.

Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following:

Market Capitalization And Daily Trading Volume

Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)

Circulating And Total Supply

Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).

Visit Coinmarketcap
CMC - How To Buy Ethereum

Pin It on Pinterest