How To Buy Ethereum - Ultimate Guide

With a wide range of innovative solutions to long-term issues, Ethereum is enhancing value across various industries. As a software network that enables developers to create and power new tools, Decentralized apps, and Non-fungible tokens (NFTs), Ethereum stands out from existing cryptocurrencies.

Apart from the fact that the Ethereum network is the second-most popular cryptocurrency which is a good enough reason to want to explore this cryptocurrency, Ethereum is one cryptocurrency after Bitcoin that crypto experts advise beginning investors to stick with because it is more well-established than other less well-known altcoins.

However, like every other cryptocurrency, Ethereum has its limitations and offers no resistance to the volatile crypto market.

In this guide, you will learn all you need to know about Ethereum, why you should consider purchasing Ether, and a step-by-step guide on how to buy this cryptocurrency.

Before we get into in-depth details on how to buy Ethereum, we can sum everything up in a couple of broad sentences and scenarios.

We can buy ETH in three ways:

- By buying it with fiat currency.
- By exchanging another cryptocurrency for it.
- By exchanging some other item for it (such as gift cards).

This article will mostly focus on how to easily and quickly get Ethereum by purchasing it with fiat currency. Let’s get into it!

One of the fastest, safest, and easiest ways to buy and sell Ethereum is through a reputable crypto exchange. The process of buying Ethereum on any exchange is more or less the same. So, let's understand how to buy Ethereum on the KuCoin exchange.

Step 1: Register an Account

The first step to buying Ethereum on any exchange is to have an account on their platform. You can complete the sign-up process in a few minutes, and you would be required to provide a few details such as email address, mobile number, nationality, etc.

Step 2: Verify Your Identity

To transact funds in any cryptocurrency exchange, you are required to complete the basic KYC procedure. This would involve submitting your ID (any government-issued ID like a driving license) along with proof of residence.

Step 3: Fund Your Account

You can fund your crypto exchange account with your fiat money first and then buy crypto.

Step 4: Buy Ethereum

Visit the official KuCoin website and log in to your account. Click the "Buy Crypto" button on the top left, as shown in the screenshot below.

KuCoin Home Page

Select the Fast Trade option. Here, you can instantly buy cryptos like ETH using your credit or debit card.

You will be redirected to the buy/sell page, as shown below. Click Buy.

KuCoin Fast Buy Page - Buying Area

Then do the following:

Buying Crypto With Fiat On KuCoin

1. Choose the fiat currency you want to spend to purchase cryptos. KuCoin offers numerous fiat currencies to choose from.

2. Pick the crypto you want to purchase (In this case, ETH). There’s a big list of cryptos that you can buy using your fiat.

3. Choose your preferred payment method. Besides bank cards, KuCoin supports other popular payments such as Simplex, Banxa, Apple Pay, etc.

On the screen, you can also see the limits for fiat deposits and min and max volumes of crypto you buy in this process. For instance, in the above screenshot, we can see the limit on the amount of USD you can spend, which is $5000. Also, the max amount of ETH you can buy is capped at 2.62 ETH.

Buying Crypto With Fiat On KuCoin

1. Enter the amount of fiat currency you want to spend.

2. Enter the amount of ETH you want to buy.

3. Click the dropdown to see various available payment methods and details related to the transaction fee, the final amount of crypto you receive, etc.

4. Click Buy ETH and complete the transaction.

Once the transaction is successful, the corresponding ETH tokens will be transferred to your KuCoin main account.

The method mentioned above is certainly the most straightforward way to buy Ethereum, but it is not the only one. Let's explore a few more available options to buy Ethereum coins:

Decentralized Exchanges

DEXs play a crucial role in the functioning of the DeFi ecosystem. Ethereum is one of the most popular, if not the most popular crypto, in the DeFi world. You can easily buy Ethereum on any decentralized exchange, but you must own an Ethereum wallet to do so.

As the name suggests, there is no centralized authority or any third party involved in any DEX. This makes it the most genuine medium for you to buy or sell Ethereum. Decentralized exchanges offer you complete authority over your funds so that you can directly deal with the buyers and sellers.

While decentralized exchanges offer more control and flexibility, they don't match the convenience and security of a centralized exchange. Using a DEX involves a learning curve as the UI and UX are more complicated than operating a CEX.

Also, DEXs allow crypto-only transactions, and you can't use fiat money to buy any crypto, which makes it unideal for novice crypto traders and investors.

P2P Platforms

If you want to go completely off the grid, you could use peer-to-peer platforms to trade in your funds for crypto. KuCoin offers a P2P marketplace, where buyers and sellers meet, determine their prices and terms, and exchange Ethereum and other cryptocurrencies.

Market Volatility

Like other cryptocurrencies, the Ethereum token has frequent price variations, making it a very volatile investment. As a result of the market's lack of regulation and relatively small money pool compared to other large assets, even minor occurrences have the potential to shift prices quickly.

As an illustration, the price of an Ethereum currency fluctuated in 2016 between $5 and $15. Before falling to less than $100 by the end of 2018, the cost rose to almost $1,500 early that year.

You must understand how to manage the significant risk presented by Ethereum's volatility if you want to prevent losses. Determining whether to purchase low requires a thorough analysis of Ethereum's price history and current market conditions.

Choose A Crypto Exchange — DEX or CEX

Several platforms, such as centralized crypto exchanges (CEXs), and decentralized exchanges (DEXs), have made it easy to purchase cryptocurrencies these days.

Anyone can purchase Ethereum coins with cash and credit cards with ease, thanks to online brokerage companies. Centralized cryptocurrency exchanges serve as main middlemen in the buying and selling of crypto.

Since no third parties are involved, decentralized cryptocurrency exchanges are the safest and most transparent places to acquire Ethereum. Decentralized exchanges, as opposed to centralized platforms, provide complete control over your money and connect buyers and sellers directly - however, they do so at a significant cost in terms of functionality since they require you to already have cryptocurrencies, and also pay relatively high transaction costs.

Digital Storage

Ethereum being virtual assets or digital currency, can only be accessed online.

To secure cryptocurrencies, it is expedient that every crypto user must get a digital wallet. The private keys required to sign transactions are kept in a digital wallet. It would be best if you had a personal wallet, even though some online exchanges allow you to deposit your funds there after purchase.

There are numerous online wallets that you can quickly download and install into your smartphone or keep offline.

The best option for those looking to purchase Ethereum for regular transactions, such as buying and selling, would be an online wallet. The most secure choice for long-term Ethereum storage is an offline-based wallet. However, while selecting a digital wallet, you must think about what the perfect blend of convenience and security you would like.

For those that are interested in buying some Ether, but don’t quite know what Ethereum is and how it works - here’s a quick guide on everything this cryptocurrency is and does.

Ethereum is a blockchain platform that gives everyone the ability to build decentralized software on top of it. The Ethereum-related cryptocurrency, Ether, can be used by users to communicate with the system or purchased and held as a store of value.

Vitalik Buterin launched Ethereum in 2015 after his proposal for a blockchain-as-a-platform got denied by the Bitcoin development team. The platform was made so developers could use it to deploy their code and create applications. All kinds of complex apps can be launched on Ethereum, thanks to its flexibility.

Ethereum's core concept is that programmers can design and launch code that runs over a distributed network rather than on a centralized server. This implies that these programs can't be blocked or censored, at least theoretically.

To develop a variety of decentralized finance (DeFi) projects and other applications, the Ethereum network uses blockchain technology and smart contracts.

Ethereum Smart Contracts

Simply put, smart contracts are blockchain-based algorithms that execute when specific criteria are met. They are often used to automate the implementation of an agreement so that all parties can be sure of the conclusion right away, without the need for an intermediary or additional delay.

They can also automate a workflow such that when conditions are met, the following action is executed. To ensure that every participant has an equal chance of success, the system must first hold conditions that will execute, validate, and make terminations.

Ether - The Network's Native Token

The Ether (ETH) coin that powers the Ethereum blockchain enables users to interact with applications and pay transaction fees on the network. The ERC-20 token standard is the foundation for the majority of ETH-based cryptocurrencies.

The process of creating blocks and resolving problems, known as mining, is how Ether is created, and it is similar to how Bitcoin works. The Ethereum blockchain adds a new block roughly every 15 seconds. The computer or miner who resolves the puzzle that forms the block's core is rewarded with Ether.

Tokenomics

At the time of writing, Ether has 121,904,461 ETH coins in circulation and an unknown maximum supply.

The capacity of Ethereum to host different smart contracts is the cause for its enormous rise in popularity.

As the world's second-largest cryptocurrency, Ethereum is seen by many crypto experts as a favorable investment compared to other cryptocurrencies. Analysts predict that over the long term, despite all of Ethereum's ups and downs, its price may increase. However, it has perks and disadvantages, just like any investment.

Furthermore, Ethereum 2.0, the second version of Ethereum, is one of the elements that will affect the price of Ethereum in 2022 and beyond.

Instead of focusing on mining, Ethereum 2.0 will emphasize staking and energy efficiency. Keep in mind that Proof-of-Stake entails the active validation of transactions and network support by maintaining funds in a cryptocurrency wallet for security.

Lastly, diversification matters in the world of trading, which is enough reason to invest in Ethereum. After all, Ethereum is not only a cryptocurrency but an innovative platform for smart contracts, tokens, and decentralized apps.

Users frequently do not consider the security of their finances when they are kept in a bank account, nor do they consider the possibility of a third party entering their bank account and withdrawing money without their permission.

The aforementioned scenario is, in a sense, a possibility when it comes to Ethereum wallets generally, and staying away from it is essential to the protection of cash.

So how do you keep your Ethereum cryptocurrency from hackers and thieves?

There are two methods; custodial and non-custodial wallets.

When you buy Ethereum, some cryptocurrency exchanges allow users to store their Ethereum holdings. These are called custodial wallets and are known for holding the private keys to user wallets.

While they can be a great way to access the wallet when a password has been misplaced, the general belief that “not your keys, not your crypto” deters many from using them. There is also counterparty risk involved with keeping your crypto on a custodial wallet provider.

The other wallet type where your wallets can be kept is the non-custodial wallet. Here, your private keys are given to you to keep, and you are in charge of your crypto. Although you have custody of your coins, if you lose your key, you might as well lose every crypto in the wallet.

So, where is best for you to keep your Ethereum?

Exchanges like Kucoin offer both custodial and non-custodial services, so which will you go for?

Ethereum is the most popular altcoin and is growing to be more than a cryptocurrency in the crypto world. It is positioning as a hub for decentralized apps has made it a gem, even with many other blockchains (called Ethereum killers) trying to meet up.

While it is impossible to guess the price of Ethereum (or any cryptocurrency) in the long term, a major event is happening in the cryptocurrency that will likely cause a sharp spike up. Ethereum is transitioning from its PoW to a less-intensive PoS consensus mechanism.

The Ethereum upgrade, also known as Ethereum 2.0, will undoubtedly make it more appealing to investors and will remove the regulatory claims of too much energy consumption. On top of that, the reduction in transaction fees that will come in the future will enable numerous protocols to build even larger decentralized applications.

Although this could trigger widespread use, the belief is that investors are waiting to see how dApps will react to the new transition before putting their money on the crypto. If you believe more in it, you can stay ahead of the curve.

Some of the other reasons you can decide to buy Ethereum include

High Traffic and Utilization

Ethereum hosts the largest number of NFT collections, dApps, and other smart contracts. This has, over the years, made it very expensive to transact. With the metaverse and web3 taking roots in the digital currency space, the traffic is bound to increase.

The transition to PoS means Ethereum will have a larger throughput in the future, making the system more effective. However, the upcoming Ethereum merge will not increase its throughput, but rather just change its consensus mechanism.

First Mover Advantage

Analysts frequently assert that Ethereum's "first mover advantage" has positioned it for long-term success despite the development of newer, more environmentally friendly technology. Although being the first is important, getting in first is not as important because the value of cryptocurrencies depends on user commitment.

If you want to diversify your portfolio away from Bitcoin or non-cryptocurrency assets, you might want to think about Ether. Nonetheless, you should be careful to invest wisely because the crypto market is currently unregulated and unpredictable.

This in itself is another reason to look into Ethereum. Hacks and rug pulls have marred the crypto space over the years, but Ethereum is one of the few cryptocurrencies that has proven to be. You might not get crazy upward runs like in many smaller cap altcoins, but you are more likely to preserve capital and, if patient enough, make your portfolio appreciate.

We hope you found this guide on how to buy Ethereum helpful and informative. If you need any additional help, please visit the KuCoin help center or contact our customer support team using the live chat feature on the right bottom corner of the home page.

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