How To Buy Ethereum (ETH)?
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).
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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.
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.
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?
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.
What is a smart contract?
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.
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.
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?
What is Ethereum gas?
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.
Gas and gas limits
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?
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/