We tell you different ways on how to invest in Ethereum. First of all, lets explain the basics of what Ethereum is all about. Ethereum is a software program that launched in 2015, and is powered by blockchain technology. It ranks as the second most popular token after bitcoin. However, Ethereum is different from bitcoin as it can be used for smart contract and Decentralized Applications (dApps). When bitcoin first come onto the scene it was an ingenious new form of digital money, which can cut out the middle man (banks for example). It is blockchain technology that paved the way for bit coin. Over the years people started to realise you can do more with blockchain, such as owning digital assets!
Not only can you send funds directly to a person without the need for a middle man (bank), you can also own a digital product. The blockchain technology is a digital ledger which proves who owns the asset at any time, and who previously owned it.
What is Ethereum currently used for?
- Non-Fungible Tokens (NFTs).
- Digital cryptocurrency.
- Decentrilized Applications (dApps).
How to Invest in Ethereum
You will not be able to buy cryptocurrencies such as Ethereum via a bank or an online brokerage. However, there are actually many online platforms where you can buy crypto coins. We have listed only two below, because these are probably the most well known methods to buy Ethereum. It is important you know that the crypto market is a highly volatile, speculative investment. We recommend you do your own research, and learn how the crypto and blockchain technology works before investing. We recommended using Coinbase to exchange your local currency into crypto coins. And then transferring your crypto from Coinbase to Metamask. This is the most cost effective a secure way. If you add Ethereum directly from your Metamask, then you may incur very high gas fees. There is little to no gas fee when purchasing crypto within Coinbase.
Step 1: Create Coinbase Account
Coinbase is an easy to use cryptocurrency exchange. This platform allows users to purchase many types of digital coins such as Bitcoin, Ethereum and Solana. Coinbase is a well known and secure digital coin storage system within crypto world. Using Coinbase is probably the most cost effective way to buy some digital coins such as Ethereum.
- Go to the Coinbase home page.
- Click the “Getting Started” button.
- Follow the steps on the coin base website to setup your account.
- They will probably collect information from you to confirm your identity.
Step 2: Fund Coinbase with Local Currency
- Click the trade tab.
- You should now see the menu below. This is where you can fund your Coinbase account with your local currency and simultaneously buy crypto.
- Type in how much to you to spend.
- Select the cryptocurrency you want to buy. In this case select Ethereum ETH.
- Now select the method you wish to pay for this cryptocurrency. If you already have this setup, then select your bank account. If not, then it should give you the option to add one.
- Now click the buy button. It will confirm your order before you submit. Double check it first.
- Once you have purchased your cryptocurrency, wait about 10minutes for it to enter your Coinbase account. Click the assets tab to double check it has gone in.
Step 3: Transfer Crypto from Coinbase to MetaMask
Metamask is slightly different to Coinbase as it offers higher security levels, such as a seed phrase. However, buying Ethereum (ETH) directly from Metamask can be very expensive due to gas fees. The best way to get ETH in your Metamask wallet is to transfer ETH from Coinbase to Metamask.
- Click the “Send/Receive” tab in Coinbase.
- Click pay with tab. Then select Ethereum. Or whatever crypto you want to send to Metamask.
- Now this part is very important. In the “To” box, you will need to insert your public Metamask address. If you do not know where this is or how to copy it, then follow this guide by Metamask.
- Now click continue.
- You will probably now have to confirm what you are sending. Once sent, your crypto currency will transfer from your Coinbase, into your crypto wallet.