What is Ethereum?
Ethereum is a distributed, blockchain-based computing platform. As such, Ethereum exhibits significant
differences to
Bitcoin as it is not meant to be a decentralised currency, but as a virtual computing platform able to
execute
scripts using an international network of nodes. Ethereum’s cryptocurrency token is called “ether” and can
be
transferred between accounts and used to compensate nodes for computations. The ticker of the ether token is
ETH.
Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer, and
released
through after a crowdsale in July 2015.
How to buy Ethereum?
All you need to do to buy Ethereum is opening an account on a cryptocurrency marketplaces, verifying your
identity
and paying for your purchase. This process can take anywhere from few minutes (use the “Instant
Verification”
filter) to several weeks.
After selecting a marketplace on Cryptoradar and creating an account, you can verify your identity e.g. by
uploading
identity documents like your passport. You may also need to setup a Ethereum wallet to store your Ethereum
in case
the chosen marketplace does not offer one natively on their platform.
Where to buy Ethereum?
There are three major types of cryptocurrency marketplaces.
Exchanges resemble traditional stock exchanges such as the New York Stock Exchange (NYSE).
Cryptocurrency
exchanges
thereby make use of a so called matchmaking algorithm which is responsible for determining the price of
Ethereum and
finding other traders like you for your order. Cryptocurrency exchanges can be a bit confusing for beginner,
as
their advanced trading features that are tailored towards the needs of professional traders.
Broker services sell Ethereum out of their own asset stock. When you buy ETH from a broker,
you will make a
direct
transaction with the broker service is no transaction with other traders, but the broker service.
Cryptocurrency
brokers often charge a higher fee than cryptocurrency exchanges, whilst offing a better user experience and
more
payment methods than cryptocurrency exchanges.
Lastly, on peer-to-peer (P2P) directories you can trade Ethereum directly with others.
Trading on P2P
directory is,
however, more risky due to the lack of a third party.
What to consider when buying Ethereum
At last, you might be wondering: “What’s the best marketplace for you?” Rest assured, you’ve come to the
right place:
on Cryptoradar you can find some of the most popular places to buy ETH from all around the world. Simply use
our
filters to find a marketplace that meets your requirements. Things to consider when choosing a marketplace
are:
Verification: To start trading on a marketplace, you usually have to go through a identity
verification
process.
Depending on the procedure, identity verification process can take anywhere from minutes (e.g. through video
conferencing), to several weeks (e.g. manual check of uploaded documents such as a copy of your passport and
a
recent utility check).
Wallet Service: An Ethereum wallet is an app or hardware device where you can store your
Ethereum. Newbies
should
choose a marketplace that provides a built-in wallet service to get started quickly. However, note that it
is
usually the safer option to manage your wallet yourself - even though it requires some learning. Find more
information about different types of wallets here.
Prices & Fees: The price of Ethereum is determined by supply and demand. Its price while
rise when there are
more
people willing to buy Ethereum than willing to sell it. The price of Ethereum is furthermore determined by
cryptocurrency exchanges through their matchmaking algorithm. Broker services align their prices on the
current
prices of the major exchanges, but usually charge a markup and fees for their services. In addition to
trading fees,
there may be fees to deposit and withdraw fiat currencies or Ethereum.
Payment method: Before you can buy Ethereum you need to deposit money at a marketplace. Most
exchanges only
offer
wire transfer, while broker services often offer a larger number of payment methods such as credit cards or
Skrill
for an additional fee.
Security: Last but not least, you should always consider the security of your funds when
investing in
cryptocurrency.
Cryptoradar helps you filter marketplaces for security features. We also advise you not to store significant
amounts
of fiat or cryptocurrencies on marketplaces as they might go bankrupt or be subject to cyber attacks.
When to buy Ethereum?
Is now a good time to buy Ethereum? We don’t know. However, if you are looking at a specific price at which
you would
like to buy Ethereum, we can help you to not miss a favourable opportunity: Sign up for a Cryptoradar
account and
set up a price alert to get notified when Ethereum trades below or above your target price.