What should you know before buying Ethereum?
If you are considering buying Ether cryptocurrency then it is worth checking the basic information about it first. Below are some basic facts about Ethereum and the Ether token. In turn, in the following text we describe how you can buy ETH relatively safely.
Ethereum is an open-source blockchain that is designed to create decentralized distributed applications (DApps). The platform has a lot of potential. It allows the transfer of currency and NFT tokens that can represent any asset, as well as the execution of advanced processes using “smart contracts.”
In summary, with Ethereum, developers have the Ethereum network at their disposal to create decentralized applications (dApps) and issue new crypto assets in the form of ERC-20 tokens. Ethereum is the leading platform in the DeFi market – between it, industry giants such as ChainLink, Uniswap or DAI are based on it.
It is worth noting that Ethereum is a cryptocurrency protocol, and its token is Ether (ETH). In contrast, the two names are often used interchangeably in everyday language. So Ether is used to pay for operations on the Ethereum network. At the same time, it is one of the best-known and most popular cryptocurrencies. To be more precise, for many years it has been Ether that ranks second in the ranking of cryptocurrencies with the largest market capitalization.
As with most other cryptocurrencies, transactions using ETH are based on decentralization. As a result, such transactions take place without an intermediary.
Conducting transactions via ether is fast, convenient and, according to popular opinion, secure. Each transaction is protected by a strong encryption algorithm.
It is worth noting that transactions performed on the Ethereum network involve some fees. A transaction fee in the form of Ether (the so-called gas fee) is charged for executing a transaction or completing a smart contract.
The maximum supply of ETH units is unknown. In other words, ethereum, unlike Bitcoin, does not have a limited supply. Ether units are added to the pool and at the same time lost after some time. Which causes their availability to fluctuate over time. As a result, an important difference between Bitcoin and Ethereum is that ETH has no deflationary pressure.
Ethereum has been in the midst of a major update for some time now, which is commonly known as Ethereum 2.0. The key element is a change in the way ETH is mined, thanks to a move from Proof of Work to Proof of Stake. As a result, instead of digging with hardware diggers, miners can stake ETH. This change is significant not only for miners, but for the entire network, as it makes the network more scalable.
The ETH exchange rate reached its ATH during the bull market of 2021, when 1 ETH was priced at $4858.82 on November 10. It should be noted that ETH has seen many impressive rises and equally large declines during its history. Nevertheless, ETH and BTC are cryptocurrencies that are a bit more stable than most altcoins.
Ether is by far one of the most popular cryptocurrencies. That’s why it is available on almost all reputable exchanges. Here’s a look at what it’s like to buy ETH on ByBit and OKX exchanges.
ByBit – how to make an Ethereum (ETH) purchase on the ByBit exchange?
ByBit exchange is one of the fastest growing cryptocurrency platforms on the market. It attaches great importance to security, so funds are kept in cold wallets, and numerous technological solutions are implemented to maintain high security standards. Moreover, the process of registering an account is very simple and does not require going through a KYC procedure. Buying cryptocurrency, on the other hand, is intuitive and not a problem even for novice users.
Registering an account on the ByBit exchange
To register on the ByBit exchange, visit its website and click the yellow “Sign Up” button in the upper right corner. Then enter your e-mail address and password, and wait for a confirmation code to be sent to the e-mail box you provided. To secure your account, you will need to set up additional security, such as through an SMS code or the Google Authenticator 2FA app. After completing the registration procedure, you may (but need not) go through the KYC procedure. ByBit does not require verification through the KYC system for withdrawals of up to 2 BTC, so traders can trade with privacy.
Deposit funds to ByBit exchange
It is possible to deposit funds into the exchange market using 4 different methods: One-Click Buy (credit card), P2P Trading, Fiat Deposit and Crypto Deposit.
Buying Ethereum (ETH) using a credit/debit card and the One-Click Buy option
- To purchase ETH using a credit card, click One-Click Buy on the left side of the ByBit home page.
- Select the currency in which you want to pay, and then choose your credit card as the payment method.
- Later, enter the necessary card information, such as email address, name, card number, expiration date and CVC code. Click Continue to continue. If the transaction details match, click the Pay and Confirm buttons to complete the transaction.
- To check the status of the purchase, click View asset.
For full instructions on how to purchase ETH with a credit card and the One-Click Buy option, click here: h ttps:// www.bybit.com/en-US/help-center/bybitHC_Article?id=000001570&language=en_US
Buying Ethereum (ETH) using P2P Trading:
Another option for buying ETH on ByBit is P2P Trading. To purchase Ethereum on the ByBit website, click the “Buy Crypto” button and select the currency of your choice. Then enter your login and select the offer to buy ETH. After you enter the amount you want to spend on the purchase, click the “Buy” button to get a summary of the transaction. To complete the purchase, press the “Go to Pay” button. Remember that your bank account must match the name you registered on ByBit. Once you have made your payment selection, click the Payment Completed button. To check the status of your purchase, you can go to the Orders tab. The above purchase process using P2P Trading is described in detail here: h ttps:// www.bybit.com/en-US/help-center/bybitHC_Article?language=en_US&id=000001446
How to buy ETH on ByBit using fiat currencies?
To deposit funds in fiat currencies, go to bybit.com/fiat/trade/deposit/home, where you enter the amount and select the currency. The currencies that can be deposited in Bybit are RUB, TRY, BRL, ARS, EUR and GBP. It is not possible to deposit PLN. After selecting SEPA Transfer as the payment method, the transfer time is 1-3 business days. In the next step, using spot market trading, you can exchange the purchased funds for cryptocurrencies. For example, EUR can be exchanged for USDT. Then in the next step USDT to ETH.
OKX – how to make an Ethereum (ETH) purchase on the OKX exchange?
OKX is one of the world’s largest cryptocurrency trading platforms. The exchange processes billions of dollars worth of transactions, so securing users’ funds is extremely important to it. For this reason, OKX implements a wide variety of technological solutions, such as offline wallets, emergency backups, two-factor login authentication, anti-phishing codes, withdrawal passwords and more, to ensure the security of its users.
After completing the account registration and depositing funds, you need to select “Trade” and then “Spot Trading” in the menu and choose the ETH/USDT currency pair (or another if you want to buy Etherum in another currency). Then on the right side of the screen you need to specify the amount of ETH you intend to buy. at the end a summary of the order is displayed, if everything agrees then just confirm the execution.
Registering an account on the OKX exchange
To register on the OKX exchange, select the “Register here” button at the top of the website. In the form you will need to provide standard data, among other things you will need to provide a phone number or email address. It is important to provide correct data, as a verification code is sent via email or SMS (depending on the method chosen). After successful registration, you will be asked to present a valid ID for KYC verification. Verification time can range from a few hours to several days.
Deposit funds on the OKX exchange to purchase Ethereum (ETH)
There are three different ways to deposit funds on the exchange: using a credit or debit card (such as Visa or Mastercard), P2P trading or using a third-party operator (such as Simplex or Banaxa).
Depositing funds on the OKX exchange using a credit/debit card to purchase Ethereum (ETH)
To purchase cryptocurrency on OKX using a debit or credit card, simply select the “Buy Crypto” section and choose “Buy with card.” Then simply select the type of card you are using (MasterCard, Visa, Revolut, etc.), then specify how much ETH you want to buy, and follow the on-screen instructions to finalize the transaction. The process of buying ETH on OKX is presented in detail here: www.okx.com/learn/how-to-buy-crypto-with-a-credit-card-on-okx
Buying Ethereum (ETH) on OKX using P2P trading
To purchase Ethereum via P2P trading on OKX, go to okx.com/p2p-markets/. Then you need to select the Ethereum offer. Once you have placed your order, you need to pay the fee using the payment method of your choice (e.g. bank transfer), and then follow the instructions you get on the screen to complete the transaction.
Purchase Ethereum (ETH) on OKX with the help of a third-party operator (such as Simplex or Banax)
- To buy Ethereum through a third-party payment service provider, you need to create an account on OKX, pass KYC verification and provide your phone number and email address.
- Then select “Buy cryptocurrency” in the menu and click “Third-party payment.”
- In the next step, choose the currency you want to buy ETH or other cryptocurrency. Before finalizing the transaction, check the purchase limits of the specific operator and the payment processing time. Sometimes you can receive the cryptocurrency immediately after the payment is credited and with some operators you have to wait for about 30 minutes, for example.
For more information on how to buy Bitcoin on OKX through third-party payment providers, visit this link: www.okx.ada.support/api/articles/633665c2084d3fcdaf447411/?chatter_token=7ad95483-c046-403f-a4ed-7ccb37eabefa
Trading ETH on OKX
After registering an account and successfully depositing funds, you can proceed to trading. To do this, select the “Trade” section and then “Spot”. This will give you access to the trading platform. On the left side of the screen or in the upper left corner, you can select the appropriate currency pair (e.g. ETH/USDT). Then enter in the appropriate fields the amount for which you want to exchange the selected currency for ETH and continue to follow the on-screen instructions so as to finalize the transaction.
What are the other ways to buy Ethereum (besides centralized exchanges)?
Cryptocurrencies (including ETH) can be purchased outside of traditional centralized exchanges. Examples of available solutions include decentralized exchanges (DEX), cryptocurrency exchanges, bitmats and P2P platforms (which allow you to buy and sell cryptocurrencies from other users).
Decentralized cryptocurrency exchange (DEX)
Decentralized exchanges (DEX), unlike centralized exchanges, provide the opportunity to exchange cryptocurrencies without the use of an intermediary. Transactions of this type take place directly between cryptocurrency wallets on the blockchain. Most DEXs use the ethereum blockchain.
Cryptocurrency exchange offices
Exchange offices are another way to buy and sell Ethereum. Some such platforms operate as an online platform, allowing users to make transactions through a dedicated website. while some exchange offices operate in the form of locations located in many cities in Poland. With such a solution, it is possible to perform transactions for buying or selling ETH in a classic, physical location resembling a regular exchange office.
Cryptocurrency exchange offices have their advantages and disadvantages. The advantage is that an exchange office is usually more friendly to novice users, due to the fact that you can buy ETH at such a point using cash, which is deceptively similar to the usual exchange of fiat currencies at a classic exchange office. The downside, on the other hand, is that fees are usually higher than at exchanges.
P2P Services
Taking advantage of escrow services offered by P2P platforms is another way to acquire cryptocurrencies. The service then acts as an intermediary between buyer and seller. An example of such a platform is, for example, Paxful. Advanced users can search for interesting offers to sell cryptocurrencies (including ETH) with very attractive prices. While using such a platform is convenient, finding real price bargains requires more time and commitment from the user than buying Ethereum on an exchange or at a currency exchange.
How to buy Ethereum (ETH) without passing KYC verification?
Buying cryptocurrencies without KYC verification is possible on some exchanges that do not require identity verification for withdrawals. For example, on the ByBit exchange, KYC verification is not required when withdrawals are less than 2 BTC. However, keep in mind that more and more exchanges are required to verify their users, so it’s best to check the current information on the website of the chosen service.
An alternative way to buy ETH of having to undergo verification is to use exchange offices or bitmachines, as some of them offer the possibility to make transactions up to a certain amount without the KYC procedure.
Where to hold Ethereum (ETH) after purchase?
Cryptocurrency exchanges are places where you can buy and trade cryptocurrencies. However, there is no denying that cryptocurrency exchanges have long struggled with the challenge of maintaining adequate security. Therefore, according to a well-known recommendation, it is advisable to hold long-term cryptocurrency assets on cold wallets based on blockchain technology.
It is worth remembering that a cryptocurrency wallet is different from a cryptocurrency exchange account. There are two types of wallets in which you can store cryptocurrencies: hot wallets, which are constantly connected to the Internet, and cold wallets, which are applications that do not require a constant connection to the network. The use of cold wallets is recommended, as in this way the risk of losing funds due to hacking attacks can be significantly reduced.
