Step-By-Step Guide On How To Buy And Sell Ethereum For Beginners

Overview Of Ethereum:

Ethereum is a decentralized and open-source blockchain. Vitalik Buterin first introduced it in a 2013 whitepaper. Vitalik and other co-founders raised funds for the project in an online public crowd sale in 2014. Ethereum also has its own cryptocurrency called ETH. ETH can be purchased on various exchanges online. ETH can also be bought through popular brokerage platforms such as Paypal or Robinhood.

Ethereum is developed as a smart contract platform, which runs dApps and tokens such as ICOs and NFTs. 

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According to the coinmarketcap, Ethereum is the second leading cryptocurrency globally, with a market cap of $351,515,516,323.

Around 500 companies support Ethereum, and various financial institutions use it. Witnessing this, many individuals are attracted to ETH and are investing in it.Over the years, Ethereum has multiplied by thousands of times. At the time of writing, the Ethereum price was oscillating at $2,940.45.

However, many wish to invest but are a bit confused regarding how to buy Ethereum while some might be confused on how to sell the Ethereum they have bought. This article will be a step-by-step guide on how to buy and sell Ethereum. 

How To Buy Ethereum?

• Choose A Platform For Trading: 

The first and the most crucial step in any kind of trading is to select a trading platform based on your requirements. Bitfinex, Bitstamp, Gemini, Kraken, Binance, and Coinbase, are among the top crypto exchanges that offer Ethereum.

The type of exchange is also an essential factor when it comes to identifying an exchange. Cryptocurrency to cryptocurrency (C2C) and fiat exchanges are the two options of trading platforms that traders have. 

Investors who want to trade in multiple currencies or have the choice of converting other currencies into Ethereum find C2C exchanges more suitable. On the other hand, many investors also have accounts in both C2C and fiat exchanges.

Identifying a credible platform becomes quite essential also since cryptocurrencies are highly unregulated. 

How secure the exchange website is, does the platform has the necessary license, how secure the funds would be are some questions to be considered while identifying the exchange. Coinbase Exchange is the top exchange in the United States. 

After identifying the trading platform, the next step is to open an account. The process is pretty similar to opening an account with a brokerage platform and doesn’t take much time. Name, address, specified forms of identification, social security number are some of the details that are needed to fill in while opening an account. 

The final step while opening an account is to verify an account. Often exchanges verify the account once or twice. At this point, the users would be required to upload their documents and prove their account has the necessary regulatory summon. The Verification process depends on the exchange and can take anything between an hour to a day or two. 

• Deposit Currency Into Account

The next step is to deposit currency into the account. It is a relatively simple process in the case of fiat currency platforms. Users can either use a bank account or debit card on file to add money. A fantastic benefit that crypto exchanges have is that they do not require a minimum investment and will accept any little investment, be it $5 or $1000. It is efficient to trade large amounts at once on the exchanges that have fees per trade. 

It is, however, challenging to deposit currency in C2C exchanges. The users are required to send cryptocurrency by code among different locations in these locations. The process of code transfers also takes a longer time to complete, usually up to an hour. Holding a large amount of Ethereum could be beneficial since it is the popular depositing currency for many C2C platforms.

After completing the above steps, you can start buying Ethereum along with other cryptocurrencies via the exchange. Although every exchange has a different interface, the users need to be prepared to confirm transactions and give some processing time depending on the total number of transactions requested. 

• Withdraw ETH into a Wallet

When you finally buy ETH via the exchange, the final step is to withdraw that currency into your bank account or a wallet that you control. Again, it is simple to withdraw ETH by simply selling and sending the proceeds to your bank account in a fiat exchange. C2C platforms can take more time. On the C2C platform, in a fiat currency, the users will need to code transfer ETH into a fiat exchange and then sell out to cash. You also have the choice to send ETH to a wallet on every platform. 

ALSO READ – ETC PRICE ANALYSIS: ETHEREUM CLASSIC TOKEN PLUMMETS TO THE DEEP END AMIDST INCREASED SELLING PRESSURE 

How To Sell ETH? 

The process of selling Ethereum resembles a lot with buying it. To begin with, individuals would need to identify an exchange that hosts Ether trading and also operates within their jurisdiction. Then, open an account. Fill in the different personal information such as an address, date of birth, and government-issued photo ID. 

Then, there would be the option to either sell your Ether for fiat currency such as USD or EUR or trade it for a different cryptocurrency. For example, you can send the desired amount of Ether from your self-hosted wallet to your Ethereum address on the exchange. Again, the total time of transfer would depend on the chosen fees and the traffic on the Ethereum blockchain at the time. 

Exchange platforms will have specific wallets and addresses for various cryptocurrencies for different crypto assets. You will find the “sell,” “deposit,” or “deposit into exchange” button. Wallets and their cryptocurrency  Wallets and their addresses can be found by clicking on any of these buttons.

Many tokens are built on other blockchains; for instance, the ERC-20 token is optimized on the Ethereum blockchain. It is also highly advisable to check the compatibility of the wallets you are using for any given transaction. 

You can set how much you want to sell and what currency you want to receive in return after your Ether gets confirmed. It can be achieved via a market order or limit on most centralized crypto exchanges.

After the trade is complete, you can see your funds in your account regardless of whether they are fiat or crypto. You will also have the choice to withdraw your funds into your bank account if you sell your Ether for any of the traditional currencies.

To trade Ethereum and other cryptocurrency, you need a reliable exchange no matter if you are a trader or a long-term investor. The marketplace you are identifying must contain the pair you are familiar with and also should be reliable. An ideal platform should be reliable and secured.