Apart from mining, you can get Ethereum by purchasing it from exchange websites. Each of the platforms has its unique buying process and payment options which include credit cards, Bitcoin, cash, PayPal and others. Here, you will learn the various methods of getting and paying for ETH in these trading networks.
Get ETH with Credit/Debit Cards
The majority of the exchanges accept credit card payment. The type of plastic card that you can use to purchase Ethereum depends on the website you operate on. But the well-known and common ones are Visa and MasterCard.
| Card Name | Limits | Processing Time | Restricted Countries |
|---|---|---|---|
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up to $20,000 | 1-2 min |   |
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up to $10,000 | up to 1 min |   |
Purchase Ethereum with Cash
Cash payment is one of the options of paying for Ethereum in a number of exchanges. Some of the trading platforms that operate offline take physical money in exchange for Ether. There are some individual sellers that can transfer Ether to your wallet in exchange for bank notes. These people are available on some exchange platforms like LocalBitcoin.
The anonymity of this method gives it an edge of some other methods of payment. Note that in some of the trading sites, users will only purchase Bitcoin with hard currency. But this is not a problem because it is easy to convert BTC to ETH.
| Currency Type | Deposit Limit | Transaction Time |
|---|---|---|
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$50-100 for the first transaction | up to 7 working days |
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up to 10,000 EUR | up to 7 working days |
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77-100 GBP | 2-7 working days |
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around 11,510 RUB | 2-5 working days |
Buy Ethereum with Wire Transfer
Some exchanges accept payment via credit transfer which is widely known as a wire transfer. Bank transfer as it is also called is a method of sending money directly from one’s account to another person’s account. Normally, this service which is an easy-use one attracts some charges. Your bank will ask for the recipient’s account details. With these data, they will send the money to the receiver.
| Transfer Type | Deposit Limits | Transaction Time | Available Countries |
|---|---|---|---|
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$50,000-250,000 | up to 3 working days | accepted in 212 countries |
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1,200 EUR | 1-2 working days | only for the EU countries |
However, despite the advantages of this method of payment, a significant number of trading platforms do not accept it due to the downsides associated with it. First, the transaction is not reversible. If you make a mistake and the money gets to another person, there is not much your bank can do for you.Besides, payment can be delayed for a number of reasons such as a disruption in banking network. Criminals also use this method since they know that it is not reversible. This method is also more expensive than most other means of purchasing Ether.
Purchase ETH with Bitcoin
The easiest means of buying Ether is to use Bitcoin. There are a number of exchanges that trade Bitcoin-Ether pairs. If you are not able to find the proper currency to purchase Ethereum, first buy BTC and exchange it for ETH in a website that allows such trade.
In case you already have some Bitcoin, register with an exchange platform that carries out BTC-ETH trade, move your Bitcoin to their wallet and get Ether in return.
Buy Ethereum with PayPal
At the moment, you cannot pay for your ETH directly with PayPal on exhange sites. They will only allow you to purchase Bitcoin with Paypal. After paying for BTC, you can easily trade it for Ether. The reason why direct purchases with PayPal are not allowed by these exchanges is to protect themselves against the chargeback.
Ethereum Exchanges Regulation
There are many platforms where you can trade Ethereum and other cryptocurrencies. Unfortunately, it is risky using the services of a good number of them. If you want to get involved in such a transaction, it is advisable that you transact in reliable websites with some certain form of regulations. With these platforms, chances of being a victim of fraud are highly reduced.
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How to Buy ETH on Exchange Platform?
So, you are ready to buy Ethereum but have no clue what to start with. Well, the process of purchasing ETH is quite simple and you can easily pass it. Below are the steps to follow.
1. Create Account
The first step is to choose an online exchange to operate on. Create an account on the platform. Many of these websites will require you to submit a number of documents such as ID, phone number and proof of address as proofs of your identity and ownership of the accounts.
The verification process may take up to 24 hours or more. The next thing to do after the account has been confirmed is to fund it through any of the methods explained above. If this is not required, you have to link your account to your card which will require more time.
For example, with CEX.IO you will need just to register by using your email and creating a strong password as it showed here:
And after that the two-factor authentication will be offered. This procedure will make your account strongly secure:
2. Trade
Begin trading now but bear in mind that the transaction process, as well as the charges and time, differs from one exchange to another. Trading is the most interesting part of the purchasing, here you can use your mental capabilities to sum up the situation with desirable cryptocurrency and make a decision. You will need to get acquainted with the following items.
Check Trading Indicators
Ethereum exchanges work in a similar manner with Forex. It is important that you carry out the market and technical analyses before placing any order. You can use tools known as trading indicators for the easy assessment of the market trend. These tools include:
The Bollinger band indicator shows the highs’ and lows’ relative boundaries. It is known as the middle band as it indicates the stock’s intermediate-term trend.
EMA which is an acronym for exponential moving average displays short-term and long-term moving average to enable traders make informed decisions.
MACD indicates how two moving average of prices are related.
RSI measures the change as well as the speed of the price movement change. It is fully known as Relative Strength Index.
On CEX.IO you can check the trading pairs, market depth and the latest price changes of cryptocurrencies:
Select Orders
There are three main types of orders that you can place, namely, stop, limit and market. The choices are available on the order panel of the exchange platform. Usually, it’s not hard to find it.
Market
Here, Ethereum is sold at exactly the current marketing value. If you prefer this type of order, click on the market option located above the buttons for buy/sell. The buy or sell page will appear. Click on the transaction button you want to carry out.
Choose the amount you want to transfer or procure as the case may be and choose your currency for the transaction and then click on the button for the completion of the deal. Bear in mind when you make a choice of a trade and complete the form, it will not be possible for you to cancel it once you click on the submit button.
Limit
This type of order gives traders the freedom of deciding on the amount to pay for or collect in an Ether deal. You will also be able to fix options of certain advanced order execution. The process is similar to market order process.
Except that the order you place will appear in several views such as depth chart, order book and open. Besides, it is also possible not to fully complete the order form as there are rooms for increasing your price.
Stop
Here, you are at the liberty to stipulate the price at which a deal should be carried out and it is helpful for stop loss and similar strategies. Select stop and indicate the price at which order will be implemented. Bear in mind that this kind of transaction may incur slippage and it is executed as the market orders.
3. Withdraw and Choose a Secure Storage
It is not the ideal to keep your token in an exchange because it can be stolen by hackers. You should have a cold storage also known as the offline wallet to secure your Ether once you have purchased it. You need to download one that has ETH features. You will have a key for accessing the wallet after you have created an account.
Only your account address should be used for withdrawal of your Ethereum into your wallet. In case you want to keep trading or sell your token, just move it back to the exchange. Don’t utilize your private key, password and wallet address on the exchange otherwise, you stand the risk of being dubbed by hackers.
СEX.IO offers the following methods and procedures which you need to complete for the successful withdrawing of your currency:
FAQ
1. Which One Is Better Investment – Ethereum or Bitcoin?
2. What Are the Risks with Buying Ethereum?
3. Is It Better to Mine or Buy This Cryptocurrency?
4. How to Choose A Secure Exchange Platform?
When choosing an exchange platform, there are a lot of factors to consider to ensure the security of your investment. Here are points to bear in mind:
- Good support system
- Payment systems allowed
- Accessibility
- Ease-of-use
- Fees
- Security
- Good reputation
- Insurance for the stored currency
- Minimal deposit feature and decent exchange fees
- Verification of ID requirements
- Geographical restrictions
Features of Ethereum Cryptoplatform
Ethereum was a brainchild of Vitalik Buterin. It was released for the first time on 30 July 2015. But the events of 2016 which culminated in the collapse of DAO project resulted in the splitting of the blockchains into two, Ethereum classic which was the continuation of the initial one and Ethereum which is the newly created blockchain. But unfortunately, the platform was hacked and dubbed of $50 mln by the anonymous entity.
The event caused a dispute among the developers of ETH. The disagreement in the community brought about the split. However, since after the separation, the developers worked hard to overcome any loophole that will lead to a repeat of DAO. Among other cryptocurrencies, it has the second largest market capitalization after BTC.
Proof of Work Algorithm
Proof-of-work is a slow, expensive and hard to generate a piece of data which others find simple to confirm and meet the conditions attached to it. PoW is generated through an uncertain process with little chances of success. The Hashcash proof-of-work protocol is utilized in the BTC’s block generation.
Proof of Stake Prospects
Proof of Stake which is normally abbreviated as PoS is a consensus algorithm process which validates transactions based on the validator’s economic share in the network as opposed to PoW which rewards users that solve a cryptographic puzzle as an avenue of authenticating and setting up deals and new blocks respectively.
In this model referred to as the Casper implementation, a group of validators will not only propose but also cast vote on their propositions and ex-block. The size of the voters’ stake will determine the weight of their vote. In this model, the block selection is randomized. PoS does not consume energy and this makes it to be more cost-effective than PoW.
Another advantage of the Casper implementation is that it creates rooms for the use of various techniques that utilize game-theoretical mechanism design as a means of forestalling the formation of centralized cartels and stop them from acting in a manner that is injurious to the network if they are eventually formed.