Guide for buying an Ether

by in Ethereum 101, Ethereum For Beginners

Buying Ether

Ethereum platform, which has a coin known as Ether, is one of the most popular blockchains nowadays. As of May 2019, Ethereum’s market capitalization has reached $26 billion. Ether is one of the most usable crypto coins in nowadays world. This is why we have decided to show you some easy ways of getting Ether.

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Use exchanges to obtain Ether

This is the easiest way to buy a popular coin. As it’s the second most known coin in the crypto world nowadays, almost every exchange lets to buy it. So, find the most suitable exchange or maybe an exchange you are already familiar with and get your coins.

If you don’t know how to use an exchange, here’s our guide for you:

  1. Registration: You will have to create an account for using exchange services. Note: that this exchange must be available in your country, otherwise you won’t be able to use any of its services. While registering, you will have to pass the checking procedures of the exchange.

  2. After the registration step, just choose the deposit model of yours. It may be PayPal, or a credit card, or another payment service. Every deposit method has its amount of charges, but they are all lower than real-life bank charges we have used to live with. Most of the exchanges accept USD and EUR, also they may accept other major currencies, like RUB or JPY.

  3. When your deposit is accepted, you can start trading. Most of the exchanges have very user-friendly websites, so you will easily understand how to exchange your fiat money with Ether.

Buying Ether with cash

Some people are not willing to register to exchange and give information about themselves. So there’s an exchange which is known as LocalEthereum. It’s an online P2P exchange that lets trading Ether with local currencies. As it uses the smart contract system of Ethereum and has escrow services, it’s considered to be decentralized.

This service is similar to eBay - it’s just like a marketplace for crypto. It lets users offer any currency in exchange for Ether. When the offer is accepted, the exchange process happens automatically. Money may be transferred in any way you choose: by a credit card, PayPal, or debit card.

One thing you must know is that the service is not free. Service takes 0.25 percent fee from sellers and 0.75 percent fee from buyers.

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Normally, the process of exchange can take several hours, but if you choose to pay higher fees, you may make the process faster.

This platform also lets buyers and sellers contact each other, so you can have your agreements no matter on which side you are.

ATM for Ethereum

Here’s the alternative model of buying Ether. The advantage of this method is that as you can buy small amounts of Ether: by this technology, there’s no need for passing KYC and AML regulations. This means that you can obtain Ether without verifying your identity.

Note, that you must have an Ethereum wallet, for being able to use Ethereum ATM.

So, if you already have a wallet, you will have to find the nearest ATM that supports Ethereum transactions. There’s a service, which is known as CoinATMRadar, it helps to find nearest ATMs for crypto coins in the location you wish. This service is concentrated on finding ATMs for Bitcoin, but there’s a search button which helps to filter and find the right ATM you need.

Now, when you have found the exact ATM you needed, just open your Ethereum wallet and find the QR code. Then hold it up so that the ATM can scan your code. Insert your money into the machine and confirm the Ether amount. That’s it: now it will take some time for the machine to transfer Ether to your wallet address.

Something you need to know about Ethereum wallets

Before buying Ether, there is one important thing that you must know. It is about Ethereum wallets and understanding how transactions are made.

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Ethereum wallets vary: they can be either a mobile app, or desktop app, or a hardware wallet. Also, there are two types of “full node” and “light client” wallets. “Full node” requires downloading the whole blockchain, and it takes a lot of memory, when “light client” is an easier version which will be more comfortable to use for a newbie in the sphere. If you have chosen the first way, we have suggested buying Ether. The easiest way to own a wallet is just to have the wallet on the exchange platform you have chosen. Note, this method is very easy, but it’s not secure to keep all of your funds in this wallet, because exchange platforms are always under the risk of hackers' attacks. So, in this case, you will have to own two different wallets, one for easy transactions and one for protected funds storage.

For protected and long-lasting storage, we will recommend you choose the hardware Ethereum wallet. These kinds of wallets are not connected to the Internet and will guarantee that your wallet won't be under hackers' attack risk.

Desktop and online wallets are also a good option because they give full control of the wallet. But there are some things you need to follow for making these wallets secure. The most important is your “private key,” Keep it private, no one has to know it. And also try not to forget it, because there’s no way of restoring private keys. This means that you won’t have access to your funds ever. And the last but not least is remember to activate two-factored authentication. This is also a step that will ensure your safety.