Ethereum

How to Buy Ethereum – Forbes Advisor

Published

6 months ago

17 May, 2024

Editorial note: We earn commission from partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Although Bitcoin is the top cryptocurrency based on the value of its coins in circulation, Ethereum is not left out. With a total value of over $230 billion, it is the second largest cryptocurrency by market capitalization. Here’s how to start buying Ether, the official name of the token that runs the Ethereum platform.

How to buy Ethereum

Investing in Ethereum may be easier than you think. Here’s how to get started in just five steps:

1. Determine your risk level

There is no way around this problem; buying Ethereum can be a gamble. Although all investments carry some risks, cryptocurrencies are particularly vulnerable to price fluctuations. Just think about the impact a few hundred characters can have on the price of cryptocurrencies: after Elon Musk tweeted that Tesla would no longer accept Bitcoin as payment, for example, the coin’s value dropped by 15%.

Although Ether has seen impressive returns in the past, it has also experienced significant crashes, sometimes in surprisingly short time frames. Notably, it fell from a high of almost $4,000 per coin in May 2021 to less than $1,800 in June 2021. If you had bought at its high, you would be sitting with barely half that value a month later. That’s pretty extreme volatility.

This is why it is important to consider your risk tolerance as well as the diversity and stability of the rest of your investment portfolio before purchasing Ether. Experts recommend never investing more in crypto than you can afford to lose.

2. Choose a crypto exchange

Buying Ether is a bit more complicated than simply purchasing stocks or mutual funds through your current account. brokerage account. Cryptocurrencies are not traded on major exchanges like New York Stock Exchange (NYSE)and many brokerages do not offer crypto investing.

To buy cryptos, you must first create an account on a crypto exchange. In practice, it’s like the brokerage platforms you may be more familiar with: crypto exchanges allow buyers and sellers to exchange fiat currencies, like dollars, for cryptocurrencies like Ethereum, Bitcoin or Dogecoin. If you don’t have a crypto exchange in mind yet, take a look at our list of best cryptocurrency exchanges to find the one that suits you. Although some exchanges’ trading platforms become complex, most offer a simple purchasing interface for beginners, although it may charge higher fees than their trading platform.

Some key points: When choosing an exchange platform, make sure it offers a crypto wallet to store your investments. The vast majority do, but if not, you’ll need to get one.

And if you’re a real beginner, you can always use a platform like Robinhood or Cash App. This will greatly simplify the process of buying crypto for you, but it comes with a hidden cost: you cannot withdraw your Ethereum investment and put it into a third-party wallet or use it to pay for online purchases. Using one of these simplified exchanges means that your crypto will only be able to be traded on the exchange you purchase it on. So you will need to withdraw money from this platform and then buy it back on a crypto exchange to keep it in a separate wallet.

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3. Fund your account

Before you can buy Ethereum through a crypto exchange, you must fund your account. In most cases, you will deposit money from a bank account, such as your personal checking or savings account. You can also usually make wire transfers, use a debit card, or deposit money from PayPal.

When choosing a funding method, look at the crypto exchange’s fees; they may vary depending on the method.

A warning: some platforms allow you to purchase cryptocurrencies using a credit card. Although it may seem tempting, credit card companies generally consider cryptocurrency purchases to be cash advances. Depending on the card you have, you may have to pay a higher interest rate and cash advance fees on top of the crypto exchange’s fees.

4. Buy Ethereum

When you buy stocks, mutual funds, or exchange-traded funds (AND F), you are limited by market times. For example, Nasdaq Trading Hours are from 9:30 a.m. to 4:00 p.m. ET, and the exchange is closed on weekends and some holidays.

Cryptocurrencies like Ethereum work very differently: because they are decentralized currencies, you can buy and sell them 24 hours a day.

To purchase Ethereum, enter its ticker symbol — ETH — into the “buy” field on your exchange and enter the amount you wish to purchase. If you don’t want to purchase an entire Ethereum token or don’t have enough money in your account for a full coin, you can purchase a fraction.

For example, if the price of Ethereum is $2,000 and you invest $100, you will buy 5% of an Ether coin. It’s like when you buy a fraction of share of a stock.

5. Store your Ethereum

Once your Ethereum purchase has been processed, you need to store your cryptocurrency. Although some platforms store them for you, some people choose to store their investments themselves to reduce the risk of losing their crypto to a hack. This is understandable, but it is also important to note that most major exchanges insure their customers’ holdings and often store the majority of their assets offline to avoid mass thefts. Additionally, historically, hacked exchanges have reimbursed all losses.

But if you want peace of mind regarding your crypto, you can choose to move it to one of two types of third-party wallets:

Hot wallet: A hot wallet is connected to the Internet and can be accessed from a computer or smartphone. They are convenient and are usually provided by cryptocurrency exchanges at no extra cost, although you can also use your own if you prefer your crypto off the exchange. However, because they are always connected to the Internet, they are at higher risk of security breaches.
Cold wallet: Cold wallets, meanwhile, external devices are completely disconnected from the Internet. Depending on the type you choose, they typically cost between $50 and $200, although there are even more expensive versions. Although cold wallets are less convenient than hot wallets (you have to manually connect them to the internet every time you want to access your crypto), they are more secure and may make sense if you own a significant amount of Ethereum or other cryptocurrencies.

How to sell Ethereum

To sell your Ethereum, simply return to your crypto exchange and enter the amount you wish to sell.

If you are selling a significant amount of crypto, you may want to consult a tax specialist. Despite its decentralized nature, crypto is taxable in the eyes of the federal government. Your profits from the sale are generally subject to capital gains taxes and can significantly affect the amount you owe the IRS at tax time.

Should you invest in Ethereum?

Ethereum is extremely popular, with over 116 billion coins currently in the hands of investors. But just because it’s one of the most well-known cryptocurrencies doesn’t mean it’s right for you.

Before you buy a volatile investment like Ether, you need to make sure you’ve done your research and that your finances are in good shape. Ideally, you should have a large emergency fund, max out your retirement accounts, and have minimal debt. Even though you can check all of these boxes, it’s important to diversify your portfolio, which is why only a portion of your investments should be in Ethereum and other cryptocurrencies.

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Ethereum

QCP sees Ethereum as a safe bet amid Bitcoin stagnation

Published

4 months ago

31 July, 2024

Chain Feed Staff

QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.

Read on to find out how you can benefit from it.

Bitcoin’s Struggle: The $70,000 Barrier

For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.

Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.

QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.

The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.

Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.

A glimmer of hope

QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.

QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.

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Ethereum

Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum records $17.9 billion in spot volume despite 3% drop

An Ethereum ICO participant has emerged from nearly a decade of inactivity.

Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.

The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.

Screenshot 2024 07 30 at 171307

This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.

Recent Transactions and Movements

The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.

Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.

Why are whales reactivating?

It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.

In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.

At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Ethereum

Only Bitcoin and Ethereum are viable for ETFs in the near future

Published

4 months ago

31 July, 2024

Chain Feed Staff

BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future

Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.

In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”

Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.

BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.

Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.

Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.

Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.

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Ethereum

Ethereum Posts First Consecutive Monthly Losses Since August 2023 on New ETFs

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum sees first monthly consecutive losses since August 2023 amid new ETFs

Available exclusively via

Bitcoin ETF vs Ethereum: A Detailed Comparison of IBIT and ETHA

Andjela Radmilac · 3 days ago

CryptoSlate’s latest market report takes an in-depth look at the technical and practical differences between IBIT and BlackRock’s ETHA to explain how these products work.

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