Ethereum aims to become a decentralized world computer that will perhaps one day change most currently existing services, a one-stop Blockchain solution for all. As long as they own Ether, the network enables basically anyone to build decentralized apps and generally use the network. Ethereum’s native cryptocurrency that enables all operations within the Blockchain as well as its updates is Ether. There are many ways of obtaining Ether andall of those are presented in this handy guide.
Ethereum: Better Than Bitcoin?
Better control over payments to sellers is offered for buyers by Etherium. For example, the Ether is locked in a smart contract, when a buyer initiates an escrow transaction. The buyer may release the funds to the seller Once the buyer confirms that the seller fulfilled the obligation.
Transaction fees are also minimal. Dellers pay only a small percentage Escrow fee, plus a 0.25% developer fee at Escrow. On the other hand, buyers do not have to pay any fees at MyEther. The cryptocurrency experienced network difficulties, and hash rates hit new levels, when Ethereum traded at an all-time high. This signals the coin’s robustness. The long-term prospects are strong, Despite the expected volatility ahead. During volatile valuations, supporters are willing to mine Ethereum.
Determine a Payment Method
This step is really simple. You need to decide how you’d like to buy Ethereum.
Common methods of buying ETH include:
- Credit or Debit Cards
- Bank or Wire Transfers
- Bitcoin or other cryptocurrency
Choose a Platform
You’ll need to find a platform that supports that payment method when you’ve decided which payment method you want to use.
Create Your Account
It’s time to create an account, after you’ve chosen a platform. For the most part, it will consist of the following even if the process of creating an account is slightly different on each platform :
- Creating a Username and Password
- Protecting it with Two-Factor Authentication
- Going through a “Know Your Customer” process where your identity is confirmed
- Occasionally a waiting period before you can buy
It’s time to deposit money, now that your account is set up on your preferred platform. In the “Deposit” section of the platform, usually you can find this setting.
Buy your Ethereum
Its time to do what you came to do with your money on deposit : buy Ethereum!
Exchanges to buy Ethereum
Buying through an exchange is the easiest and perhaps the most popular way of buying Ether. Finding an online exchange that operates within your jurisdiction and trades in Ether won’t be that difficult, as Ether is the second most valued, stable and well-known cryptocurrency behind Bitcoin.
First of all, you will need to register with an exchange. Make sure it operates in the country you live in and accepts the currency you wish to trade in, before doing so. Submitting a few general personal details will be required in the registration process.
Often,when it comes to withdrawals and deposits, there are full identity checks included later on. You will most likely need to provide a proof of address as well as a photo identification, in order to pass those checks . This is done in compliance with Anti-Money Laundering (AML) regulations and Know Your Customer (KYC).
You will need to choose a deposit method, after passing all the necessary checks. There are various ways of doing so, depending on a particular exchange. They include credit and debit card payments, bank wire transfers, SEPA or PayPal payments. There is generally a little deposit fee charged by an exchange, and that will depend on the deposit method. The fees details can often be found in the footer of an exchange’s website or in the ‘about’ section.
An ultimate majority of exchanges accept US Dollars and Euros, with some of the exchanges accepting other major fiat currencies such as British Pound Sterling, Russian Ruble, Chinese Yuan, Japanese Yen as well. Depending on a particular exchange and the chosen deposit method, it usually takes at least several hours for your deposited funds to appear in your exchange account.
You can start trading, as soon as the funds are in your exchange account. With many of them striving to make the process as easy as possible, the user-friendliness of this process depends on a particular exchange. On your exchange’s website, you will be able to get all the valuable information, such as current value, market capitalization and related news. It is recommended you withdraw it into a designated wallet of your choosing, once you’ve obtained Ether.This guide will cover various ways of storing Ethereum later on.
Buy Ethereum with cash
While simultaneously avoiding the hassle of going through Know Your Customer and Anti-Money Laundering related checks, for various reasons, some may prefer purchasing Ether anonymously. It is possible to purchase Ether from an online peer-to-peer exchange like LocalEthereum, even if this might be frowned upon by regulators in some jurisdictions.
LocalEthereum attempts to do for Ether what LocalBitcoins does for Bitcoin, that is to facilitate over-the-counter trading of local currencies for Ether. The main difference is that LocalEthereum is a completely decentralized service, with escrow services and arbitrage being achieved through the use of Ethereum smart contracts.
Very much like eBay, the service works – it’s essentially a marketplace, which enables users to offer any local currency in exchange for a certain amount of Ether. When the offer is accepted by a seller, the exchange of funds takes place automatically. Money can be transferred via bank wire transfer, credit and debit cards, PayPal payments as well as other major cryptocurrencies such as Bitcoin.
The service isn’t free. Sellers are typically charged a 0.25 percent fee, while buyers need to pay 0.75 percent, which is still significantly lower than most centralized exchanges offer. The processing of a transaction can take up to few hours, while miners are confirming the amount and are recording it into the Blockchain. As miners receive the transaction fee, it is possible to speed up the transaction by choosing a higher fee, giving the miners an incentive to process your transaction first.
Local Ethereum also enables the parties to exchange messages, so it is possible to set up an eye-to-eye meeting with a seller and exchange Ether for hard cash. When doing it, make sure that you meet in a public place and take every precaution necessary when conducting a financial transaction with a stranger. To sign off for the transaction, you will also need active Internet access .
There is always an option of finding a local Ethereum or general cryptocurrency-related meet-up, if you’re worried about setting up a one-on-one meeting with a stranger off the Internet . While simultaneously learning from and exchanging opinions with like-minded cryptocurrency enthusiasts, you can safely trade Ether there. On a dedicated page of Meetup.com, you can find a list of Ethereum meet-ups.
The most private and secure way available is Trading Ether peer-to-peer. Moreover, when it comes to trading pairs, as well as no buying or selling limits, it offers unparalleled flexibility . However, especially when meeting in person, this way of trading requires a certain level of trust between the two parties. On top of that, it is your responsibility to ensure you’re complying with your local regulations, if you’ll decide to engage in over-the-counter trades.
Purchasing Ether through an Ethereum ATM is an alternative way of doing so. For users, traders and investors looking to buy small amounts, it is perhaps an ideal way to obtain Ether. that there is no need to comply with Know Your Customer and Anti-Money Laundering regulations, which means there is no need for full identity verification, as the vast majority of cryptocurrency ATMs limit transactions to relatively small amounts .
You will need to get a wallet before being able to use a cryptocurrency ATM . Different kinds of ways of setting Ethereum wallets and different kinds of Ethereum wallets will be covered by this guide later on.
You will need to locate your nearest ATM that facilitates Ether transactions, Once you have a wallet. There is a handy service which provides a comprehensive list as well as a map of cryptocurrency ATMs called CoinATMRadar. You can use a search bar on the map to find local ATMs that also trade in Ether and some other major crypto currencies even if the service focuses on Bitcoin ATMs .
Find a QR-code in your wallet and hold it up to the machine’s camera so it can scan it, after locating your nearest ATM . Then, to complete your purchase, insert your cash into the ATM and confirm the amount of Ether. To the provided address, the Ether you purchased will be sent . The transaction might take up to several hours in some cases but normally takes around 30 minutes.
It is essential to gain a good understanding of how Ethereum transactions work in general and wallet software, before buying Ether. There are several different types of wallets: you can use a hardware wallet as well as a wallet provided by a cryptocurrency exchange using a desktop application, a mobile/web app. At Ethereum.org, there are official Ethereum wallets available for download.
Another thing to consider is whether you want to use a so-called ‘full node’ wallet, which requires you to download the entire Ethereum Blockchain (many gigabytes in size) or a ‘light client,’ which doesn’t require a full Blockchain to operate. Of course, if you’re new to Ethereum, a light client would be a preferred option. MyEtherWallet provides light client wallets. Atomic Wallet a popular crypto solution, allows you to Buy Ethereum right in the app, it also supports other cryptocurrencies and exchange more than 500 coins.
If you’re buying your Ether from an exchange, using a wallet provided by the same platform is the easiest option, but it’s probably the least secure option to store your funds. Unfortunately, the cryptocurrency world is filled with instances of exchanges falling under hacker attacks. If a hack happens and someone steals money from the exchange, including the users’ wallets, an exchange is extremely unlikely to refund its customers.
Thus, as a desktop, mobile or online wallet provides users with full control over their funds, using them is a more secure option. However, some precautionary security measures that need to be taken are still there. Most importantly, your wallet’s password, which is called a ‘private key,’ a secret, should be kept. Moreover, if you lose or forget it, there will be no way of accessing your wallet ever again, and whatever funds you’ve had there will be essentially lost. Finally, setting up a two-factor authentication to access your wallet would also be a good idea.
You can take an extra security step by investing in a hardware wallet, if you intend on storing large amounts of Ether. Such devices generate and store your private key offline, they don’t connect to the Internet. This essentially mitigates the risk of digital theft, which is the most common vector of attack on cryptocurrency holders. Upon the creation of a wallet, there’s also a recovery password provided by the device, and a PIN code is used to access the device itself.
Apart from your wallet’s password, a private key that you will need to access it and sign for a transaction, your Ethereum wallet will generate several receiving addresses, which are known as ‘public keys.’ Without risk of theft, those addresses can be distributed safely. One of those addresses will be used byPeople wishing to send some Ether to you.
It takes around 20 seconds for Ethereum transactions to go through. It means that the transaction was deemed legitimate and was added to the Blockchain, where it’s visible to anyone when it happened. It is important to note, though, there is the receiver’s address and the amount of Ether sent as that is the only information about the transaction stored.
Difference between Ethereum and Ethereum Classic
Split from one original Ethereum after a ‘hard fork’ approach was implemented as a response to around $150 mn worth of Ether being stolen by a hacker, Ethereum and Ethereum classic are essentially two different platforms. The two platforms which are completely identical all the way until the hard fork happens, exist on different Blockchains. With new rules that were implemented to avoid such hacker attacks in the future, Ethereum became a new platform. While around 10 percent of others have stayed with Ethereum Classic, the majority of users, developers and decentralized applications have migrated to Ethereum.
The split is mostly ideological and ethical. Those who stayed with Ethereum Classic were believers in the immutability of the Blockchain and the strong supporters of ‘code is god’ principle. However, as it managed to come together and handle the worst hack in the cryptocurrency history, the split can be viewed as a landmark for the Ethereum community.
The biggest issue with Ethereum Classic is perhaps that it isn’t backward compatible with the Ethereum hard fork. This means that all of the updates and improvements implemented in Ethereum are not available for and are not compatible with the Ethereum Classic network.
The single most important consequence of a hard fork is the actual fact that it took place, when it comes to Ethereum. Many people are even speculating that leaders of the Ethereum community might manipulate a hard fork for their own benefit, whereas some believe that it opens up possibilities for future hard forks. To make a substantial change in the network while going against its mathematical objectivity, something that it was always hailed for, the new Ethereum platform is also criticised for allowing the community .
In terms of value, Ethereum Classic was valued at $34.07, whereas at the time of writing Ethereum was worth $735.83. For a while now, both tokens have been recording steady increases. Their price seems to correlate, moreover. Both cryptocurrencies are worth the investors’ attention, no doubt that.