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How to buy ETH
Ether is the transactional token that is responsible for all the operations on the Ethereum network. All the processes implemented within this ecosystem require computing power, which must be paid for. ETH is the form of payment for network participants. With the help of this coin, they can execute operations on the network.
In fact, Ether is the fuel of the Ethereum blockchain. It is more than just a cryptocurrency. Ether tracks and facilitates all transactions in the network. This procedure differs from all other processes connected with a standard cryptocurrency.
Ethereum technology uses blockchain development to make third-party internet companies the basis of its ecosystem. A blockchain is a unique type of database. Here, data is stored in blocks that are chained together. The chronological order of these blocks was originally used to record Bitcoin transactions. Today, it provides the foundation for most major cryptocurrencies.
There are in fact three major ways to buy the Ethereum network’s native cryptocurrency:
- Centralized exchanges (CEXs)
- Decentralized exchanges (DEXs)
Most major Web3 wallets offer the option of buying ETH.
1. MetaMask has Wyre technology, allowing you to buy ETH. All you have to do is just push the ‘buy’ button in the extension and it will take you to the ‘Continue to Wyre’ service.
Here you can choose any fiat to ETH exchange and select a payment method that includes Apple Pay. Wyre charges a standard transaction fee for all exchanges.
2. Trust Wallet gives you the option to purchase a minimum $50 and up to $20,000 (USD) worth of Ethereum using a credit card.
Just enter the amount you want to buy, click on ‘Continue’ and complete the payment.
If you choose a centralized or decentralized exchange, you should stick to some essential steps that precede the buying procedure.
1. Identify the platform for trading
First, you need to choose the best platform for your needs. There are some top-notch exchanges out there that offer the option to buy ETH: Coinbase, Kraken, Bitstamp, Gemini, Binance and Bitfinex.
It is also important to take the type of the platform into consideration.
Cryptocurrency trading platforms can be either fiat exchanges or cryptocurrency to cryptocurrency exchanges (C2C). Investors can also easily trade Ethereum on fiat exchanges.
2. Create an account
After you have chosen the best platform for your needs, the next step is to open an account. It is similar to opening an account on a brokerage platform. An ordinary exchange requires users to answer a series of questions, including the provision of your name, address, social security number, special ID forms and other standard documents.
Then you’ll need to verify your account. Usually exchanges offer several options to do that.
You will likely need to upload some documents to verify your identity. The verification may take from 30 minutes to a day or two, depending on the exchange.
3. Deposit currency
The next step is to deposit some currency into your account. If you deposit fiat, then you just need to verify your payment info. Before that, simply add money through your bank account or debit card. Usually there is no minimum threshold for investments on cryptocurrency exchanges, so you can invest as little as $3 or as much as $10,000 or more.
However, if you want to deposit currency on a C2C exchange, this can be a little bit more difficult. In this case, you’ll have to send cryptocurrency by code from one location to another. The transfer may take from 10 minutes to 1 hour at the most.
4. Start trading
Now that your account is verified, you can start the trading process. When you start purchasing ETH, be prepared to confirm your transactions and to allow for the processing time. The latter may depend on the total number of transactions requested.
5. Withdraw ETH
After the purchase, you are free to withdraw ETH to your bank account or a wallet. If you are registered on a fiat exchange, you can freely withdraw the currency into your bank account or a wallet. C2C platforms take a longer amount of time. Here you’ll need to code transfer your ETH to a fiat exchange and then sell to cash out.
Almost all platforms offer the option to send ETH to a wallet.
However, you should take into account that it’s not the best idea to store large amounts of money on exchanges for a long time. Hackers’ attacks are common in this sphere, so it is always better to send your ETH to a wallet after you bought it on a centralized or decentralized exchange.
To date, there are a lot of wallets to choose from, ranging from online ‘hot’ wallets to physical ones, also known as ‘cold’ wallets. You can start looking for a proper wallet for your needs on Ethereum.org. Just choose the ‘find a wallet’ feature that filters wallets based on your specific preferences.
NB! For purchases on NFT STARS, you’ll need to upload ETH on your Metamask or other platform-compatible wallets!