Bitcoin is often regarded as the most valuable cryptocurrency based on its market capitalization. However, what if we told you that Ethereum is not far behind too?
Apart from being the second most popular cryptocurrency, with a market worth of over $331 billion, it is backed by strong fundamentals and great utility. Additionally, it has been a successful investment decision.
In August 2015, a $1,000 investment in Ethereum would have grown to an astounding $2.23 million, almost six years later. So, keeping the same factors in mind, it’s evident that you might want to invest in the ETH token.
But being a beginner, it’s natural for you to think about beginning your ETH investment journey. So let’s find out as we read this step-by-step guide to buying Ethereum in 2023.
How To Buy Ethereum In 2023: Your DIY Guide
Before you’re ready to invest in ETH, there are a few steps to help you prepare for your journey in the industry. Here’s a brief overview of the aspects you should consider before directly investing in ETH.
Determine The Level Of Risk
There is no getting around the fact that purchasing Ethereum might be risky. While every investment involves some risk, cryptocurrencies are particularly susceptible to price changes. Just consider the influence a few hundred characters may have on the price of a cryptocurrency: For instance, Bitcoin’s value dropped 15% when Elon Musk announced that Tesla would no longer accept Bitcoin as payment.
Ether has historically had remarkable gains and catastrophic falls, often in brief periods. So it is noteworthy that it decreased from a peak of about $4,000 per coin in May 2021 to less than $1900 in June 2021. If you had invested at the peak a month later, you would only have half the value.
So once you know the market’s volatility, it’s time to move to the next step, purchasing Ethereum from a decentralized crypto exchange.
Complete Your Crypto Purchase Journey
Step I: Choose a cryptocurrency exchange:
The first step in buying Ethereum is to select a reputable cryptocurrency exchange. For instance, you could sign up with any reputable exchange like Coinbase, Binance, or Kraken.
Step II: Create an account & verify it:
Once you have selected an exchange, you must create an account. This typically involves providing your name, email address, and password. Some exchanges may require you to provide additional personal information, such as your address and phone number.
After successfully registering yourself, the exchange might call you to verify your identity before you move to the purchase and sale of digital assets. This may involve uploading a government-issued ID or a selfie with your ID.
Step III: Add a payment method:
Once your account is set up, and your identity is verified, you must add a payment method. This can be a credit or debit card, bank account, or other supported payment method.
Once your payment method is added, you can buy Ethereum. You can do this by navigating to the Ethereum trading page on the exchange and placing an order. You can also choose to buy Ethereum with other cryptocurrencies.
Step IV: Store your Ethereum:
This step requires storing your purchased Ethereum. After you’ve bought Ethereum, storing it in a safe and secure wallet is essential. Various wallets are available, including software, hardware, and paper wallets.
Keep your private keys safe:
It is crucial to keep them safe, as they give you access to your Ethereum. If someone else gets access to your private keys, they can take control of your Ethereum and use it for their purposes.
Store Your Cryptos Effectively!
It would help if you kept your cryptocurrency after processing your Ethereum purchase. Certain individuals choose to keep their assets personally to lessen the chance that they would lose their cryptocurrency to a hack, even if some sites will do it for you.
This is reasonable, but it’s also crucial to remember that most meaningful exchanges guarantee their customers’ holdings. They frequently store most of their digital assets in offline storage to prevent significant theft.
So here are some ways in which you could be storing your cryptos effectively over the long term:
Keep your Ethereum in cold storage:
To keep your Ethereum safe from hacking, you can store it in cold storage. This is a type of storage where your Ethereum is stored offline, away from the internet, and therefore away from hackers.
Keep your Ethereum in a hardware wallet:
As the name suggests, hardware wallets are physical devices that can store your ETH in offline storage. Additionally, thanks to their no-internet feature, they are the safest means to store your digital asset.
Use a multi-sig wallet:
A multi-sig wallet is a wallet that requires multiple signatures before a transaction can be made. This can help to increase the security of your Ethereum, as it makes it more difficult for someone to steal your Ethereum.
Invest Wisely, Trade Safely!
Investing in cryptos can be exciting. However, being a beginner, you’re also an easy target. So it’s always wise to be careful with phishing attacks, which are attempts to steal your private keys by tricking you into providing them to a fake website or other malicious entity. Besides, keep your device and software updated once you start investing, as this can help protect your Ethereum from hacking and other security threats.
Lastly, buying Ethereum is a simple process, but it is important to choose a reputable exchange and take steps to keep your Ethereum safe. Remember to verify your identity, add a payment method, buy Ethereum, store it in a secure wallet, and keep your private keys safe. Also, stay vigilant for phishing attacks and update your device and software.