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How To Buy Ether
Since its launch a year ago, ethereum has skyrocketed not only in its name but also in its usage. It comes second in the cryptocurrency network after Bitcoin. The currency used in the ethereum platform, ether or ETH is also mined and traded in the same way as the Bitcoin exchange. To help you get started, here is your step-by-step guide to buying ether.
What Does The Term Buying Ethereum Mean?
Some people use the term ethereum in blockchain technology when they are actually referring to the ether. When someone says they are buying ethereum, the person simply means that they are buying ether and could be a token, part of a token, or some tokens from the ethereum blockchain technology. Tokens allotted from a blockchain have no value if not spent—by sending them to another account (similar to a bank account).
In essence, tokens that remain unused are considered burnt and this increases the value of those that are in circulation within the market. You are essentially purchasing computation or the capacity to implement computation on the ethereum network. The network is simply a system of computers that execute the ethereum protocol.
Different Approaches To Buying Ether
Despite it having one of the biggest cryptocurrency market caps, ether is still considerably new. Therefore, not all exchanges accept direct ether purchases. In most cases, purchasing Bitcoins and trading the same for ether presents a way out.
However, there exist a few exchanges that support the direct purchase of ether without Bitcoin. Some of these exchanges include Kraken, Coinbase, Coinimal, ICONOMI, Bittylicious, and Bitrush.
How To Buy Ether Directly (Wire Transfer, Credit Card, And Cash)
The easiest method of acquiring ether is by buying from any of the exchanges mentioned above following is the procedure:
- Create an account with your preferred exchange platform (Kraken, Coinbase, Coinimal, Bitrush, etc.).
- Verify the account. Here, you require uploading a few documents to prove the authenticity of the information provided. The regulation varies from one exchange to another and the verification should take from 1-2 days.
- Deposit money into the exchange by following the instructions provided. Depending on the wire transfer and your bank, this will take about 3-5 business days.
- You now have cash in your exchange account.
- Go to the ‘Buy/Sell’ section and choose the amount of ether you desire.
- Once you select enough ETH, withdraw them into your wallet. Note that exchanges are prone to hackers (although the ones listed above are quite reputable) and you may want to have your funds stored in a private and secure place.
- While you are still waiting for the verification and transfer, ensure to download and install Ethereum/ Mist wallet. Run it to enable it to sync the blockchain.
- On running it, it will prompt you to create a new account. Open the account and create a unique password that you will stick in your mind. After creating the account, it will provide you with an address which begins with the initials 0x… and this is what you’ll enter on the exchange (Kraken, Coinimal, Bitfinex, Bitrush) to shift the ether from the platforms’ account into yours.
- Three sets of information are important for the safety of your account: Your (0x) address, the private key, and your password. The private key is more like a password, though more intense and is protected by yet another password. In the case of ethereum wallet, the private key is kept in the Keystore file. It is important that you back it up just in case anything goes wrong with your computer.
- You can create a back-up by clicking on the ACCOUNTS from the top bar of your ethereum wallet, then select BACKUP, and finally on ACCOUNTS. A folder will open with a file on the inside. It is this file that is your private key. Create a copy of the same to your USB drive and store it in a separate location from your computer for safety purposes.
Trading Bitcoins For Ether
If you already have Bitcoins, then you need to transfer crytocoins into your BTC wallet in the exchange and buy ETH right away. It is very simple, right? Well, ensure that your ETH and BTC are safe in the cryptocurrency cold storage by choosing the right exchange.
To obtain ether from your Bitcoin, convert using Shapeshift.io. To achieve this;
- Configure your myetherwallet
- Launch a Bitcoin to Ether execution on Shapeshift.io by following the instructions provided by shapeshift. To do so, send Bitcoin from your exchange Bitcoin wallet to the address generated for you by Shapeshift.io.
- Confirm receipt of etherereum in your myetherwallet. That is it. There you have your ether.
Buying Ether With PayPal
Though not recommended, it is possible to purchase ether via PayPal. But first, you must purchase SLL on VirWox and then trade it for Bitcoin. After getting ATC, you can use any of the exchanges highlighted above in trading Bitcoin for ether.
Ether Prices
There has always been a profound increase in the level of interest in ethereum from users the world over. Ether has shot up by more than 1200% in the recent few months. It is currently the second largest cryptocurrency regarding the market cap.
There are numerous propositions for the spike in ether prices; their partnership with Microsoft, huge global exchanges adding ETH/BTC trading pairs, media-driven hype, scaling debates (& delays), and simply a good-old demand-oriented spike, just like the one experienced with Bitcoin in 2013.
Simply Put...
Ether can be considered as the computational fuel that can be used to enhance smart contracts. In the purchase process for ether, the first procedure is to identify and sign up for your preferred type of exchange. This will provide you a secure place to store your ether, including simple and easy methods of payments necessary to convert your local currency to digital currencies.
Once you are done with the verification steps, you are free to start the selection of ether. After having the desired selection, the exchange service will complete your purchase and deliver your Ether. The price of ether varies over time and it is important that your preferred exchange shows you the rate before you buy.
