How to Buy Ethereum: A Breakdown for New Crypto Users!
- By Ian Cheeseman
- June 26, 2023
Ethereum — the closest crypto competitor to Bitcoin by market cap — is redefining cryptocurrency. More than just a currency, Ethereum is a multi-purpose platform that’s home to the coin Ether (ETH), as well as user-made applications, non-fungible tokens (NFTs) and more. The many uses and benefits of the Ethereum network have made it a very popular community with those looking to invest in crypto and other digital assets.
If you're ready to purchase Ethereum for the first time, it’s important to understand the different ways you can go about it. So, let’s get started! This quick guide will cover all you need to know about how to buy Ethereum.
Browse This Content:
- Dive Into Ethereum: What Is It?
- Ethereum Quick Facts & Stats
- The Ethereum Buyer’s Toolkit: What You Need to Start Buying Ethereum
- 3 Best Ways to Buy Ethereum
Dive Into Ethereum: What Is It?
Let’s get into Ethereum and discover what this coin has to offer!
Launched in 2015, Ethereum was inspired by the decentralized nature of Bitcoin. However, unlike Bitcoin, Ethereum was not created just to be a digital currency. Ethereum is a blockchain-based platform, and Ether coin was born as a method of payment for the platform. Ether coin is decentralized and encrypted, and it can be bought and sold between parties without an intermediary, such as a bank.
What’s more, the Ethereum platform allows software developers to create decentralized applications (“dapps”). A dapp is a user-made computer application that runs on a decentralized system such as the Ethereum network. Because they are decentralized, they often do not require users to give up their personal information, and they cannot be censored or otherwise influenced by a single party. You can use dapps for gaming, insurance, crowdfunding, trading cryptocurrency and more.
Find out the difference between Bitcoin and Ethereum here.
What’s the Difference Between Ethereum and Ether?
Although the terms are often used interchangeably, it’s important to note that “Ethereum” technically describes the platform that “Ether” is used on. Ether is the name of the crypto coin associated with Ethereum.
Ethereum Quick Facts & Stats:
It always helps to have a solid knowledge base around the coins you’re looking to buy. Here are some quick facts and stats on Ethereum, and some additional resources for you to check out as well.
- As of January 2022, Ethereum has a market capitalization of more than 375 billion with over 119 million coins in circulation.
- The creators of Ethereum were some of the first to recognize the potential of blockchain technology outside of just currency trading. They describe it as “the world's programmable blockchain.”
- Ethereum also popularized the use of smart contracts. Smart contracts are written in code and execute on their own when certain conditions are met. Smart contracts are especially beneficial for developers who create apps that facilitate trades.
- Ether miners use a “proof-of-work” model to verify transactions for rewards and bring new coins into circulation.
- Ether will move to a “proof-of-stake” model in 2022 that does not incentivize large amounts of energy use the same way that proof-of-work does. A representative from Ethereum says that this shift will decrease the coin’s environmental impact by 99%.
Keep reading to find out about how to buy Ethereum now!
The Ethereum Buyer’s Toolkit: What You Need to Start Buying Ethereum
So you’ve got the information you need about Ethereum and Ether. Now it’s time to get organized to make your purchase. Depending on how you choose to buy Ethereum, here’s a breakdown of what you’ll need to make a purchase.
1. An Ethereum-Compatible Crypto Wallet:
Crypto wallets are a necessary part of any cryptocurrency transaction. You’ll need to set up your wallet of choice and get familiar with how it works before you get to the point of purchase. It’s also important to make sure your wallet is compatible with Ethereum.
2. A Method of Payment:
You will need one of the following methods of payment handy:
- Debit or credit card (Yes, you can buy Ethereum with a debit card!)
- Canadian or American bill(s)
- PayPal account
- Wire transfer
- Gift cards (for peer-to-peer transactions)
- E-transfer information
3. Personal Identification:
Many exchange platforms, brokers, trading apps and cryptocurrency ATMs require identity verification. This may also depend on the amount of Ethereum you are buying.
4. Directions to A Local Crypto ATM:
If you’re using a crypto ATM to purchase Ethereum, find an ATM that’s easy for you to get to, whether you’re coming from home, work or running errands in the neighbourhood. You can find the Localcoin ATM nearest you here.
5. An Account on an Exchange, Trading or Peer-to-Peer Platform
If you’re using an online platform to purchase Ethereum, set up an account with a secure internet connection.
3 Best Ways to Buy Ethereum
You’re finally ready to buy Ethereum! The only thing left is to choose how you’d like to buy them. Buying crypto for the first time can seem daunting; you can’t just buy Ethereum at the bank, and a quick online search will generate thousands of options. But it’s easier than you think!
Here are three popular methods for how to buy Ethereum (ETH):
1. Online Crypto Exchange Platforms
One of the most common ways to buy, sell and trade cryptocurrencies like Ethereum is through online exchange platforms. These are marketplaces that use internet-connected crypto wallets to facilitate crypto transactions. Once you’ve made an account, you can purchase coins using traditional currencies such as the Canadian dollar, or by trading between crypto coins.
- Cryptocurrency exchanges allow for convenient transactions but come with security risks
- Exchanges may collect your personal information to verify your identity
- Ethereum transaction fees on exchanges vary widely between exchange platforms
2. Peer-to-Peer Platforms
In contrast to exchange platforms, peer-to-peer marketplaces match up individual buyers and sellers, making direct trades possible. These platforms operate without holding any funds during the trade, and even allow you to trade for other commodities such as gift cards. That said, these exchanges can invite scams and fraudulent behavior. The security, safety, privacy and asset control associated with these peer-to-peer exchanges can vary drastically. This makes them a less than ideal option for newcomers to cryptocurrency.
- Peer-to-peer platforms allow users to make direct trades with other users
- Other users may use peer-to-peer platforms fraudulently
- They may also collect personal information to verify your identity
- Ethereum transaction fees can vary widely
3. Cryptocurrency ATMs
Using a local crypto ATM is an excellent, user-friendly option for newcomers discovering how to buy Ethereum (ETH) altcoin. These internet-enabled terminals help both newcomers and experts buy and sell crypto safely, securely and with ease. They work by connecting directly to blockchain networks, allowing you to purchase cryptocurrency with cash or sell cryptocurrency from your wallet. Because they don’t host your wallet, you have the freedom to choose which crypto wallet works best for you! Once you’ve located your local crypto ATM in your neighbourhood, the process is simple and straightforward:
- Step 1: If the ATM offers buying/selling services for more than one currency, select Ethereum (ETH).
- Step 2: Find the QR code associated with your public address in your wallet.
- Step 3: Scan the QR code using the built-in camera.
- Step 4: Insert your bills when prompted.
- Step 5: Confirm the amount and complete your purchase. Transactions are usually instantaneous but may take anywhere between 10–30 minutes, or even 1–2 hours in some cases.
- Step 6: It’s recommended to wait for at least one confirmation on the blockchain before spending or sending your purchased funds.
- Cryptocurrency ATMs are physical locations that make crypto transactions easy, safe and secure for those learning how to buy Ethereum .
- Identification may be required for transactions over a certain dollar amount.
- ATM service fees are tied to changes in the price of Ether.
- Many different Ethereum-compatible wallets work at crypto ATMs, so choose the one that’s best for you!
Buy Ethereum with Localcoin!
By understanding how to buy Ethereum, crypto enthusiasts can potentially benefit from Ethereum's long-term growth prospects by making an informed investment decision.
Localcoin ATMs offer a simple, user-friendly way for anyone to buy and sell Bitcoin, Ethereum, Litecoin and Dogecoin. Newcomers and experts alike can easily access Localcoin ATMs when and where they need to. As one of North America’s largest Crypto ATM networks with more than 900 terminals, we provide the best way to buy crypto by making the transaction process easy and accessible for crypto enthusiasts in their communities.
At Localcoin, our mission is to provide a simple, secure buying and selling experience of digital currency for customers across North America. From running North America’s largest Bitcoin ATM network to our online retail platform, we are constantly seeking to innovate in the blockchain infrastructure space. Welcome to our blog, where customers can educate themselves on the world of cryptocurrency, learn more about our company vision and more!