Ethereum, the second leading form of cryptocurrency has a minimum supply, yet immense popularity across the EU and the UK. With Ethereum 2.0 upgrade, crypto investors are viewing it as a safe investment opportunity for future growth.
Before you read further, it’s worth mentioning that crypto assets are highly volatile. It’s an unregulated digital asset with no UK or EU regulatory guidelines. You could lose all the net worth you put to buy them. If you still looking for how to buy Ethereum, here’s what you need to know.
Determine Your Risk Level
While all investment products come with some kind of risk factor, buying Ethereum can be a lot riskier because they are vulnerable to price fluctuations. Undoubtedly, Ethereum recorded significant returns in the past, it also had shocking crashes in a short time.
If you are looking to buy crypto, consider your risk tolerance capability and invest as much as you can afford to lose.
Pick A Reliable Crypto Exchange
Investing in crypto is different to that from buying shares through brokerage amounts. You have to pick a crypto exchange and create a crypto account. These exchanges also allow buyers and sellers Across the globe to exchange currencies including dollars and pounds.
So, if you want to buy Ethereum, Dogecoin, or Bitcoin, you can make transactions in fiat currencies such as dollars and pounds.
Fund Your Crypto Account
To buy Ethereum through the crypto exchange, you will need to fund your account. Depositing money to your crypto account is easy and you can do it via bank transfer, debit card, or a third-party payment mode.
You may also use credit cards to make transactions, but not all crypto exchanges offer this facility. In case, credit card payments are acceptable, a certain transaction fee may apply.
Buy Ethereum
Crypto exchanges are decentralized and hence operate differently to that from centralized exchanges that allow you to invest in collected, funds, shares, etc. The latter operated fixed hours a day, Monday till Friday.
The cryptocurrency exchanges are not regulated and therefore, you can buy Ethereum or other crypto coins round the clock.
To buy Ethereum, you need to choose the symbol ETH and then input the amount you want to invest in the digital currency. Ethereum comes with a hefty price, so, you can buy a fraction of a coin if the price of a whole token seems overly expensive.
Store Ethereum Securely
Buying a crypto coin is not the last step in cryptocurrency investment. Once you purchase any digital currency, you need to store it safely. While several crypto exchanges give your crypto wallets to store the coins, some exchanges would require you to save them elsewhere.
When buying a crypto wallet, keep in mind that cold wallets offer more security than hot wallets. The latter keeps you connected to the internet while the former requires you to manually connect to the internet when needed.
Important Things You Should Know
- If you are unsure about the crypto exchange, research a lot to find the best exchange for you. Several exchanges charge higher fees but are simple to make purchases and transactions.
- Some renowned crypto exchanges ensure their investor’s holdings and store a majority of offline assets to prevent any major thefts. These exchanges claim to reimburse investors in case of phishing attacks.
- Although crypto is decentralized, any kind of profit from the sale of digital currency is tax-exempted. If you are selling a significant amount of digital currency, consult a tax professional.
- Hot wallets require you to connect to the internet but are more convenient than cold wallets. These wallets are usually provided by crypto exchanges at no additional cost. Since these wallets are connected to the internet, the risk of a security breach is higher.
- Cold wallets are offline external devices that store cryptocurrency and disconnect from the internet. You have to manually connect your wallet to the internet to access your digital currency and transactions.
- Since cryptocurrencies are volatile, invest only a small amount of money after assessing the risk factor. Buying crypto from a major crypto exchange that insures your losses is beneficial if it costs you a little higher.
- So, these are some of the most important things every crypto investor should know for informed decision-making.
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