✔️ Information reviewed and updated in April 2024 by Pedro Martínez González
The cryptocurrency market is growing by leaps and bounds and new facts and features about this exciting digital currency are being discovered every day. One of the currencies that is gaining popularity is Ethereum, which is presented as a very strong alternative in the cryptocurrency market.
To know ✅ how to buy Ethereum, its operation must be understood and all the advantages it has to offer, it can be purchased in many ways and all are recommended, it is only a matter of the user choosing the one that best suits their needs.
What is Ethereum?
Ethereum is a decentralized system (essential feature of cryptocurrencies), this means that it is not controlled by a governing entity. The vast majority of companies, online services and businesses are based on a centralized governance system.
This approach has been used for hundreds of years and although history has proven many times to be flawed, its application is still necessary when there is no trust between the parties involved.
In a centralized system, online applications and servers are highly vulnerable to hacker attacks and power outages, among other problems.
Since the ✅ Ethereum works in a decentralized way, is totally independent and no one at all is in its control. It does not have a central point of failure, because thousands of volunteers around the world run it from their computers, so it can never be disconnected.
Users' personal information stays on their computers, while content is controlled by its creators without having to follow the rules dictated by hosting services such as YouTube and the App Store.
Ethereum is based on the same, or very similar technology behind Bitcoin and has managed to greatly expand its capabilities. It became an entire network that has its own payment system, an Internet browser and even a coding language, which allows users to create decentralized applications on the Ethereum Blockchain.
How to buy Ethereum?
📌 The Ethereum cryptocurrency is called Ether (ETH), although many sites on the Internet use both terms. To buy Ethereum, three ways of buying can be followed:
⦁ Through a wallet
⦁ Through brokers
⦁ Mining Ethers
These are the most common ways to buy this currency, the person must choose the one they like the most and with which they feel most comfortable. The Ethereum price, is usually the one that marks the market, which varies a little every day. Below we will detail some of the characteristics of each method to buy Ethereum.
Through a wallet 💳 - cryptocurrency exchange
The most common and probably the most convenient way to buy Ether is by doing it on cryptocurrency exchanges.
The user must find an exchange page that trades in Ether, that operates in the user's jurisdiction, and then open an account on it. To buy the currency, you can use a bank account, a bank transfer, a bank card and even ✅ buy Ethereum with PayPal.
These are kept in a wallet, which can be provided by the exchange itself or by other specialized services. Many exchanges have Ethereum calculators for currency conversion. To open an account in an exchange, the following steps must be followed:
- On the home page, the personal data that are required, as they usually are name, surname, email and password that the user chooses.
- Then it is given to accept to certify that the user is of legal age and that he accepts the user contract and the Privacy Policy.
- In the email provided, a link will be sent to verify the person who created the account. By clicking on the link, the user will be redirected to the page again.
- A selfie of the user, a photograph of a document and even proof of address will probably be requested.
- Then the verification of the user's phone number is done. This security system is called two-step verification that verifies the account password and the security code sent to the user's mobile phone.
- On the page, the user's country of origin and the telephone number are placed. Immediately a message will arrive with a code, it must be placed on the page to link the phone.
- By completing this, the account will already be created. Depending on the exchange that is chosen, these steps may change.
Many wallets are exchange houses or exchanges at the same time, that is, you can sell and buy cryptocurrencies. Other wallets collaborate with exchange houses to buy Ethers directly in an account and without the need to register with an exchange, some of the most popular are Blockchain and Coinbase.
Through online brokers 💰
If you really want to invest in Ethereum and make a profit by taking advantage of the volatility in its price, there is a much easier and faster way to buy Ethereum, through an online broker.
Through an online CFD broker, there is no need to acquire ownership of the Ethers, it is traded on the price of the currency and benefits are obtained with the rise or fall of its price. All this by making buy and sell operations quickly with just one click, from the broker's investment platform.
📌It is very important to select a good broker, a broker that is regulated and authorized by international supervisors and regulators, who comply with the current regulations that regulate the financial markets. 📌
⛏️ Mining Ethers 🔨
Ethereum mining consists of placing computers to run a program that solves complex mathematical problems, and every user who solves these problems is paid for it. Paid with Ethereum. This is basically mining ⛏️ cryptocurrencies.
It is not an easy thing, because it requires a lot of resources, a lot of time and computers - computers with really a lot of processing power. Miners receive payments in exchange for providing solutions using Blockchain technology, the same process used with Bitcoin mining.
The miners are in charge of keeping the Ethereum network safe and stable, releasing new ETH and verifying each transaction made by users, these will be incorporated into the Blockchain.
The ETH coin uses an algorithm called Ethash that guarantees the update of the data set every time 30000 code blocks are reached, so the miner must make an effort to read the data, extracting ethers with the use of GPUs from desktop computers.
📌 Do you have any doubts or questions about buying Ethereum? Would you like to add something to our article? Leave us a comment. 📌
Very good explanation, it has clarified my doubts and I have understood it perfectly! Thank you!!