How to Buy Ethereum Safely| Few Legit Exchanges to Acquire ETH in 2021: Steps to Acquire ETH in 2021

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✔️.   Ethereum is not backed by any authority (decentralized), an independent blockchain network, in addition to smart contracts can be hosted.  Smart contracts are pieces of code that perform automatically once a particular set of conditions has been met.

🔴Introduction to Ethereum

Ethereum was created by Vitalik Buterin back in 2013 when he was 19 years old. He was able to gather a team of developers to launch the network in July 2015. Since the time of its launch, Ethereum has gained popularity and market capitalization to be the second most valuable digital currency after Bitcoin.

What’s behind its popularity? Easy, it’s a platform. Different from Bitcoin, clients can launch their own blockchain project on the Ethereum network. This setup has made it easier for traders and investors to utilize the blockchain technology without having to create their own blockchain networks. To get a slot to launch a project on the Ethereum network, you will have to own some Ether coins, thereby making the virtual currency needed and more valuable in the marketplace.

This article states the popular means to buy Ethereum in 2021, this includes using credit/debit cards, bank transfers, PayPal, cash and exchanging them for other digital currencies like Bitcoin via exchange platforms.

⬛ What is Ethereum?

  Ethereum is not backed by any authority (decentralized), an independent blockchain network, in addition to smart contracts can be hosted. Smart contracts are pieces of code that perform automatically once a particular set of conditions has been met.

Besides smart contracts, there is also a native digital currency hosted within the Ethereum network. It’s also known as Ether or ETH for short.

The Ethereum network is managed and overseen by a community or group of clients, miners or potential stakers, and developers. To have a perfect functioning network all 3 groups have to be present.

Since its network launch, Ethereum’s core developers have been working on advancing it to Ethereum 2.0 (upgraded version). This upgrade is supposed to increase the network’s security and boost its throughput to process more transactions faster.

Ethereum 2.0 is different from the original Ethereum (version 1.0) in one main aspect: the consensus mechanism.

Ethereum 1.0 uses the Proof of Work (PoW) system, whereby miners invest in equipment and consume energy to mine Ethereum. Meanwhile in the upgraded version, the network will now change to a staking model using the Proof of Stake (PoS) consensus mechanism. In Proof of Stake, miners are the stakers and must stake some ETHER coins to be able to verify transactions.

◻️Some popular decentralized applications (dApps) also known as smart contracts hosted on Ethereum are CryptoKitties, UniSwap, Compound, MakerDAO, Synthetix, Decentraland, Aave, and many more

🔘Ethereum 🆚 Bitcoin

  As a blockchain network, Ethereum has loaned a lot from Bitcoin, and for that reason, these two networks are similar in most aspects. Ethereum is different in some significant aspects.

☑️ Similarities between Ethereum and Bitcoin

  In the aspect of similarities, the two networks share three major ones:

  • ◻They both use blockchain technology: The Bitcoin network was the first to successfully make use of the blockchain technology, a public ledger (used to record transactions). This public ledger is shared across nodes that are involved.  A node is a computer that has a complete updated copy of the ledger. But the Ethereum network goes deeper than just encoding value transfer records like what Bitcoin does. In addition to that, it is a computing platform that hosts dApps.
  • Native digital currencies: The two networks have native crypto currency assets. For Bitcoin, it’s BTC, meanwhile the Ethereum network’s native coin is the ether or ETH.
  • Proof of Work (PoW) mining: When discussing block generation, the two networks make use of the tried-and-tested PoW consensus mechanism stated above. Meanwhile, as earlier stated, Ethereum is upgrading its network to version 2.0, which uses the PoS staking mechanism. The first enforcement (Phase 0) of this change has already been launched in December of 2020.

✅ Differences between Ethereum and Bitcoin

  Even though it has taken a lot from the Bitcoin network, Ethereum has both crucial and insignificant differences from Bitcoin. Some are:

  • ◾Smart contracts :  The Ethereum network does more than value transfer which is the main focus of Bitcoin blockchain. When it comes to Ethereum, customers are able to design and run decentralized Applications, enlarging the network’s functionality higher than the initial blockchain.
  • ◾Block generation : Ethereum has faster block creation times as well as smaller block sizes when compared to Bitcoin. On Ethereum, block origination time and size are between 13 to 14 seconds and about 40 to 45Kb placed against Bitcoin’s 10 minutes and 1.5MB, alike.
  • ◾Coin issuance: In the Bitcoin network, the limit is 21 million coins in circulation once mining ends. However, Ethereum has no limited number of coins that will ever be mined. But, it limits the number of coins that can be minted in a year to 18 million.

🔘Ethereum 🆚 Ethereum Classic

  It is important to note that Ethereum Classic, as another virtual currency asset, differs from Ethereum. But, they have a history.

Between the months of June and July in 2016, Ethereum faced a controversial and determinative moment that led to a faction of the community leaving due to a difference in opinion. The debate was about a major theft where a hacker got away with $150 million worth of ETH. Some suggested regressing the Ethereum blockchain to invalidate the theft, but others stood against this action.

Which led to the network undergoing a pugnacious hard fork, a permanent cut off with no backward rapport. Hard forks are common in software development and especially in the blockchain market. This occurs whenever a new version of a piece of software carries out significant changes.

Although, whenever the upgraded version is disagreeable within a blockchain community, this most times leads to a division in the network, where a part of the community supports the changes while the other part stands against it. This is what happened to Ethereum. A greater part of the community that were in support of the changes formed the Ethereum (ETH) camp. And the remaining numbers who were against the changes renamed their blockchain Ethereum Classic (ETC).

◼️Reasons to buy Ethereum (ETH)

    Because of its impressive value gains since the time of its launch, most individuals and institutions have invested in Ethereum. Although, there are many reasons why others are still interested in investing in it.  These are some of them:

  • Network upgrade. The core developers of Ethereum are upgrading the network to the highly expected Ethereum 2.0, which aims to expand transaction throughput and security. Ethereum will be much faster and more secure if this objective is accomplished, attracting more clients and investors.
  • DeFi boom. Decentralized Finance (DeFi) is best explained as the initiative that allows decentralized networks to convert old financial products into trustless and transparent protocols that work without go-betweens. It is an autonomous financial engineering firm that is mainly based on the Ethereum network. DeFi grants investors the ability to earn passive income. 
  • Increased blockchain adoption.    Blockchain is still in its developing stage notwithstanding its decade-old history. More firms and individuals are discovering blockchain and its aim to decentralize the internet and bring about financial freedom. Ethereum is growing to be a focal point in the whole new financial economy. For that reason, the value of ETHER and the Ethereum network is expected to keep growing.

✴️Ways to invest in Ethereum

There are different ways to invest in Ethereum. These include:

  • Mining/staking. In virtual currency, mining means the art of confirming transactions and participating in a blockchain’s security and management. To be able to do that in Ethereum, you require an expensive GPU machine suitable for mining Ethereum. The ongoing upgrade of the Ethereum 2.0 version will put an end to the phase of miners and then be replaced by stakers. The new version of Ethereum will require clients to stake their ETH tokens in exchange for a reward in the form of newly mined ETH coins.
  • Cryptos trading. This is a well known means of investing in Ethereum. The objective is to buy at a lower and make profit by selling at a higher.
  • Hodl. Full meaning of ‘Hodl’ is holding onto dear life. This is whereby an investor of an asset is willing to hold their investment of that asset not minding the drop in value. A ‘hodler’ is known as a long-term investor.

🔳Risks of investing in Ethereum

Notwithstanding all the benefits of investing in Ethereum as mentioned above, there are various risk factors to be considered before taking a step into the ecosystem. Some of the major are:

  • Volatile prices: Digital currency prices are known for undergoing wild swings. It is quite normal to see 30 to 50% fall in value in hours and increase in the same manner. Make sure to never invest more than you easily let go.
  • Theft: Billions of dollars in the digital market have been stolen over the years from individuals and institutions alike. To safeguard yourself from these malicious hacks, you need to adhere to strict security measures and avoid keeping your ETHER in exchanges.
  • Scams: Late 2017 and all through 2018 which was the ‘ICO mania’ period, the scamming of investors was a frequent occurrence. Full meaning  of ICOs is Initial Coin Offerings which was launched, offering quick returns to gullible investors after the coins are enlisted on digital currency exchanges. A whole lot of these projects were created on the Ethereum network. Sadly the majority of the investors lost their investment when the scammers made away with their money.
There are more risks worth taking note of; when investing in Ethereum, and relying on your choice of investment plan, there are other risks you stand to face. DYOR (Do your own research) (DYOR) and invest smartly.

❇️How to buy Ethereum (in 6 steps)

There are various means to purchase Ethereum, depending on your choices and place of residence. These are the six quick methods to own some ETH coins:

▪️Step 1. Select a payment method

  This is a necessary step that will affect you on how you proceed. Your payment method will decide on which platform to use. Five available well known payment methods are:

  • ▫️Payment using a bank account via wire transfer or cheque;
  • ▫️Payment with cash;
  • ▫️Payment using debit or credit card;
  • ▫️Payment using PayPal (or other online payment processors);
  • ▫️Payment through another crypto ▫️Coin like bitcoin (for example, exchanging BTC for ETH).

After choosing a payment method, you can then take the next step.

▪️Step 2. Choose a platform

  Take Note: Make sure to select only a credible and trusted exchange for the security of your funds. 

It’s not impossible to buy ETHER coins without an exchange. Depending on the payment method you choose, you can avoid using an exchange. For example, if you decide to buy ETH using an ATM, you don’t need to create an account on any platform. Although a higher fee charge will apply opposed to other well known buying options.

If you decide to use a trading platform or just a crypto brokerage service to purchase ETHER coins, there are two major types of platforms you will go through:

  • ◼️Centralized exchanges. These are exchanges runned by a company. We will look at some of the best centralized crypto exchanges in the market later on.
  • ◼️Decentralized exchanges. These platforms are managed or runned by a community or employ smart contracts to facilitate trades between clients. Lots of them are housed in the Ethereum network, making it easier and faster to purchase or exchange your tokens for some ETHER coin.

▪️Step 3. Create an account

  Creating an account in a centralized exchange is the same in all the exchanges. It involves the following steps:

  • Create an exchange account by providing your name and email address;
  • Authenticate your email address and phone number by verifying them;
  • Provide personal information;
  • Complete verification of KYC (know your customer) procedures;
  • Select a payment method like connecting a bank account or debit card.

These steps are a lot easier when using a DEX (decentralized exchange). DEXes often do away with the use of KYC to verify the identity of clients.

▪️Step 4. Deposit funds to your account

  After you have set up your account, the next step to take is to pay in money into the account. If your method of payment is a debit card or bank account, you will be asked to deposit money to your exchange account to buy ether.

Different platforms have various means to achieve this activity, but they all have and use the ‘Deposit’ funds. A normal ‘Deposits’ page will give a detailed instruction on how to transfer cash from your bank account or debit/credit card to your account on the Exchange.

▪️Step 5. Buy Ethereum

  After depositing money to your account on the trading platform, you can then buy ETH. It is as easy as that.

▪️Step 6. Store your Ethereum

  This is the last and most important step in the process. Safeguarding your coins. Investors tend to neglect this step to their disadvantage.

Once you’ve bought your ETH coins, transfer them to a wallet whose keys are fully under your control. Your coins are at risk on an exchange. Even with its custody in your hands, you still need to observe extreme security caution to make sure that your coins remain as your own.

In the next section, we will go through some of the best Ethereum wallets to keep your coins.

⬜Top 5 best exchanges to buy Ethereum

As the second most famous virtual currency, it is hard to see a crypto exchange that does not support Ethereum. But even at that,, it is safe to stay away from most market platforms as they don’t have the liquidity to support a large number of purchases. Other platforms have not so strict security measures.

We will go through three of the best centralized digital currency exchanges. Here are some of the most reliable Exchanges you can use to buy ether.

⬛Binance Exchange

  Binance is the largest virtual currency exchange platform when talking about the number of trades. The Binance Exchange was launched in 2017, the platform is fast becoming one of the fastest growing digital platforms. At a point in 2018  the Exchange got so popular that it had to temporarily stop new registrations at a point in 2018 because of an influx in new signups.

At the beginning the platform was based in China, but because of regulatory restrictions, the exchange moved to Japan for a while and finally ended up in Malta.

Binance was launched via an ICO (initial coin offering) for its native digital coin, BNB. At that time it was hosted as an ERC-20 token on the Ethereum blockchain, but it later moved to the Binance blockchain.

The platform claims to have one of the broadest asset support of any digital exchange presently, with more than 100 assets and over 500 trading pairs. And normally, ETHER is a significant trading asset on the platform.

At the beginning, Binance launched only as a crypto-to-crypto trading platform. But, it has added several payment methods with its expansion, enabling users to directly buy crypto using debit and credit cards, with many others.

⬜Supported payment methods in Binance

  Binance allows various methods of payment it’s usage depends on the users’ location.

  • ◽SEPA Bank Transfer. This payment method are for those users in the UK and the wider region of Eurozone;
  • ◽Faster Payments – for users in the UK;
  • ◽Credit/Debit Card – enabled for users across all countries in which Binance is allowed to operate;
  • ◽PayID and Standard Bank – for users in Australia and South Africa alike;
  • ▪️Third-party payment channels – extra channels of payment due to strategic partnerships which includes ADVcash in Russia, Flutterwave for clients in Nigeria and Uganda, Papara for users in Turkish, Simplex, and Etana;
  • ▪️Crypto to crypto conversions – if your choice of payment is not yet supported, you use the crypto option to convert other crypto coins into ETH.

Binance Fees

Binance trading charges are among the cheapest in the cryptos market. The fees are 0.1% worth of transaction for every trade. In addition, if you decide to pay the trading fees using BNB, you get a discount of 25%.

Deposits are free, meanwhile withdrawal of ETH attracts a charge fee of 0.005 ETH (0.05%) for each withdrawal.

✳️Buy Ethereum on the Binance Exchange

⬛Coinbase Exchange

Coinbase is one of the oldest digital currency platforms in the market today. Coinbase was launched in the US in the year 2012. It is completely regulated to work in over 40 US states and available for users across 100 countries.

Coinbase operates in two versions: a standard user interface known as Coinbase and a professional focused interface known as Coinbase Pro (initially known as GDAX). Coinbase Pro is more advanced, giving more features and a better rate of transaction fees.

Coinbase currently offers more services, which includes brokerage, staking, and crypto custody for institutional clients. You can also access the exchange via a mobile app that also serves as a mobile wallet.

⬜Coinbase Supported payment methods

Depending on your place of residence, Coinbase has the following supported payment methods:

  • ▪️US Residents. Clients in the US have the option to pay in money into their Coinbase account via bank transfer (ACH), wire transfer debit card, and PayPal. Clients can use bank and wire transfer for large investments. Debit cards are only allowed for small purchases. PayPal can only be used to withdraw cash and not able to deposit funds;
  • ▪️UK residents. Residents in the UK can use the following payment methods: Faster Payments, SEPA Transfer, 3D Secure Cards, PayPal, and Instant Card Withdrawals. Amongst these payment methods, only the 3D Secure Cards option supports crypto purchases. The others can be used to pay in money to your Coinbase accounts, withdraw cash or do both;
  • ▪️Eurozone Residents. In the larger Eurozone region, clients of Coinbase can do both deposits and withdrawals via SEPA payments, Instant Card Withdrawals, PayPal, and Ideal/Sofort. To directly buy coins, they can only make use of 3D Secure cards;
  • ▪️The rest. Users outside the US, the UK, and the Eurozone, plus Australia and Canada, have a limited available payment method. Their options are between using 3D Secure cards to directly buy coins and using PayPal to withdraw cash. Although, most clients in other permitted countries can not buy or sell cryptos on Coinbase. They can only transfer their current assets.

Coinbase Fees

  The charges for selling and buying transaction fees on the platform ranges from $0.99 to $2.99, which depends on the value of the transaction. For crypto to crypto convert, the platform charges a spread margin not more than 2% of the conversion value.

✳️Buy Ethereum on Coinbase

⬛Kraken exchange

  Kraken is one of the largest digital currency exchanges based in the United States and its headquarters in San Francisco, California. A crypto enthusiast Jesse Powell created the exchange in 2011 and in 2013 it was launched, after 2 years of active development.

The platform was first launched to be a brokerage and trading platform but has developed to offer more products, like; a cryptocurrency staking pool and automated trading software with time. It was called a Cryptowatch and is used to automatically trade on up to 25 other crypto Exchanges via APIs.

Trading facilities supported by Kraken are; spot, margin, Futures, and over-the-counter (OTC) trading. Spot trading is where trades are immediately settled at the prevailing market prices. Meanwhile margin trading is the use of leverage to multiply trading positions, thereby increasing potential profits or losses.

Futures trading is the settlement of trades via contracts between buyers and sellers of assets. Meanwhile OTC trades, these are direct trades between the buyer and seller. OTC trades are basically large orders that the prices can be affected if they are recorded in the exchange order book.

Kraken is permitted to operate in all US states besides Washington and New York. It is registered as a (MSB) Money Services Business by FinCEN in the US and by FINTRAC in Canada.

🔳Kraken Supported payment methods

  There are two major means to pay in money to your Kraken account – crypto or traditional currencies. 55 of the available digital assets have unlimited Crypto deposits; but, the traditional method has restrictions based on the client’s geographical location.

⬜There are seven fiat currencies allowed on the Kraken platform – USD, EURO, GBP, AUD, CAD, JPY, and CHF. Here are the deposit choices aligned with each traditional currency:

  • US Dollars (USD)
  • Local US transfers – Deposits made by FedWire can be processed by either of these banks MVB Bank, Etana Custody, Signature Bank, Silvergate (SEN), or Synapse.
  • Transfers for international clients– SWIFT deposits pass through Signature Bank, Silvergate Bank, or Etana Custody. Cash deposits for Professional Business accounts can go through any of these banks; Bank Frick, Signet, or the Silvergate Exchange Network (SEN).
  • Euros (EUR)
  • Domestic (EEA zone) transfers — SEPA-free deposits pass through any of these banks Fidor, Bank Frick, ClearJunction, Etana Custody or InCore Bank,
  • International transfers — deposits performed by SWIFT are categorically handled by any one of these banks; Bank Frick, Fidor, or Etana Custody
  • Canadian Dollar (CAD)
  • Local transfers – wire transfers are processed by the Credit Union and In-person deposits using the Canadian Post.
  • Transfers for international clients– SWIFT deposits can be processed by either Bank Frick or Etana Custody. Deposits made into Professional Business accounts are made through wire transfers and then processed by InterFIN.
  • Pound Sterling (GBP)
  • Local transfers (for users within UK and Gibraltar) – deposits are done through FPS, BACS, CHAPS and are processed by ClearJunction.
  • Transfers for international clients– deposits are made through SWIFT and go through either Bank Frick or Etana Custody.
  • ▫️Australian Dollar (AUD)
  • Local transfers – deposits are done by local bank transfers, Osko, and PayID processes the payment.
  • International transfers — Deposits are performed by SWIFT and treated through Etana Custody.
  • ▫️Swiss Franc (CHF)
  • Local transfers ( only for Liechtenstein and Switzerland) – deposits are made through SIC and go through Bank Frick.
  • International transfers – deposits done by SWIFT and go through Bank Frick.
  • Japanese Yen (JPY)
  • All deposits (for both local and international users) are done using SWIFT and go through Etana Custody.

⬛Kraken Fees

Kraken boasts of low and competitive fees across its products. The trading fees change according to each account’s prior 30-day number of trades, and the higher the number of trades, the lower the charged fees.

Trading fees for markers go between 0.16% to 0% and 0.26% to 0.10% for takers. Makers generate liquidity by posting trades to the order book, while takers decrease liquidity by fulfilling the orders within the order book.

Fees for stablecoin and FX pair trades goes between 0.2% and 0.0%, the higher your number of trades in the first 30 days. Futures fees also go between 0.02% to 0.00% and 0.05% to 0.01% for makers and takers, alike. Kraken offers free coin Staking.

✳️Buy Ethereum on Kraken

◾LocalCryptos (initially LocalEth) Exchange

  LocalCryptos is a peer to peer (P2P) virtual currency exchange that permits users to trade with four main assets, which are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dash (DASH). At the initial stage, it was created as LocalEthereum to support P2P trades of ETH but in 2019 it was rebranded because of an increase in the number of supported assets.

  It is the biggest P2P platform for Ethereum. LocalBitcoins is also a P2P marketplace where you can purchase virtual currency, although its main focus is on Bitcoin at the same time allowing customers to purchase BTC using tradition or using other cryptos like ETH.

⚫Another point to take note of; LocalCryptos are cryptos that use smart contracts to carry out safe trades. The smart contracts, that operate in the Ethereum network, are set up to escrow the assets during a trade and are only released after both parties have confirmed that funds have been successfully sent and received respectively.

◼️Supported payment methods

LocalCryptos perhaps has the largest selection of payment options than any crypto exchange platform. There are more than 40 allowed payment methods in LocalCryptos. They include:

  • ▫️Debit/Credit card transfers;
  • Cash;
  • ▫️PayPal, Skrill, Payoneer, Venmo, Wise (initially known as Transferwise), among other online payment processors;
  • ▫️Western Union, Moneygram;
  • ▫️Bank transfers (such as SEPA, ▫️Faster Payments for residents in the UK, wire transfers, etc.);
  • ▫️Alipay, Wechat, MPesa;
  • ▫️Giftcards;
  • ▫️Other cryptos.

Whatever payment method is available in your geographical location, the chances of you comfortably trading on LocalCryptos is high as long as you get another trader who is willing and able to deal in your supported payment method.

◾ LocalCryptos Fees

To work on one of the most significant flaws in virtual currency exchanges which is; “theft of funds” LocalCryptos brought in the idea of a non-custodial wallet solution. This way users don’t have to store their coins in their accounts in an Exchange. Rather, they only need to deposit the coins when the trade is happening. And in the event that deal fails, these coins are sent back to the owner. It does away with deposit and withdrawal fees.

The only fees charged on the platform are maker and taker fees. A maker carries out the duty of posting a trade, meanwhile a taker takes and fulfills that posted trade.

Makers and takers are charged a 0.25% and 0.75% fee, alike.

✳️Buy Ethereum on LocalCryptos

⬛PayPal (for only clients in the US)

  With more than 346 million active users on the platform, PayPal stands as the largest online payment processor globally. In the month of October 2020, it released a new feature enabling its US customers to buy, sell and hold four cryptocurrencies, which are; Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

PayPal released this service in partnership with Paxos Trust Company enabling its US clients with PayPal Cash and Cash Plus accounts to buy cryptos. The firm promised to expand that service to some selected markets outside the US in 2021.

But PayPal does not support transfers of any cryptocurrency. After purchasing Ether, you can only sell it or hold it within your account. You are not allowed to send it to any external wallet, crypto exchange or to transfer it to another PayPal account. Crypto currencies in your PayPal account cannot be used as a means of payment for goods and services, either.

◾PayPal Fees and Limits

✔️.   To use the new feature, just log on to your PayPal account and click on the Crypto tab. This method is only made available to clients in the US currently (besides users in Hawaii).

❎   Limited purchases for Ether are; maximum of $20,000 each week or for every single purchase and yearly limit of $50,000. Minimum of $1 purchase.

Transaction fee list:

Amount (USD)  Fee
1.00 – 24.99   0.50 USD
25.00 – 100    2.30%
101 – 200   2.00%
201 – 1000   1.80%
Over a 1000    1.50%

☑️   There are no charges for keeping your Ether coins in your PayPal account.

✳️Buy Ethereum on PayPal

🔳Best wallets to keep your Ethereum coins

After buying your Ether coins, you need safe storage to place them. As mentioned above, you are advised to keep your coins off an exchange wallet because they are more vulnerable to attacks. The best way is to have a self-custody wallet where you have total control over your private keys.

⬜The two major choices for self-custody wallets are:

▪️Hot wallets. Hot wallets are wallets linked to the internet, that is to say they are remotely accessible. They are most times Free to use. Which include:

  • Desktop wallets;
  • Mobile wallets;
  • Web wallets.

▪️Cold wallets. These are wallets that are not connected to the internet and cannot be remotely accessed. They provide the best form of protection against theft for your Eth coins. These include:

  • Hardware wallets;
  • Steel wallets;
  • Paper wallets.

Web wallets

Web wallets are software applications hosted on a website guaranteeing the utmost convenient storage to users but often at the cost of security. They are easily connected to the large Ethereum network of decentralized applications making it fast to send and receive funds between accounts and dApps.

The greatest fault of these wallets is that they are highly centralized and rely on the website provider to safeguard the account. Also they can always be accessed via the internet.

⬜Two well known Ethereum web wallets are:

  • MyEtherWallet (MEW) is a free client-side interface currently available as a web and mobile wallet.

Desktop and mobile Wallets

Desktop and mobile wallets are ideal options for web wallets. Desktop wallets are created to work on Windows OS, macOS, or Linux operating systems, however mobile wallets are made to run on Android and iOS systems.

The desktop version could be either lite or full node clients meanwhile the mobile wallets are all ‘lite’ clients. The desktop wallet version can download the complete blockchain ledger to the device, while the mobile wallet version does not hold the complete copy of the ledger. Rather, lite client wallets obtains information about the blockchain ledger from the full nodes.

⚫Take Note: The greatest concern about desktop and mobile wallets is that they are hot wallets and are often linked on the internet. That's to say that they are constantly exposed to the risk of remote attacks.

⬜Examples of common desktop wallets that enables Ethereum are:

  • Exodus wallet;
  • Atomic wallet;
  • MyCrypto wallet.

⬜Examples of mobile wallets that enables Ethereum are:

  • Coinbase wallet;
  • Coinomi wallet;
  • Atomic wallet;
  • MEW Wallet.

🔳Hardware wallets (suggested way to store Ethereum)

Hardware wallets are devices that can physically store digital assets offline, enabling clients to interact with different kinds of blockchain networks without running the risk of revealing their private keys. This is made possible because hardware wallets can hinder remote access to these keys.

Hardware wallets come in various shapes and sizes but most times are small in size and have a display screen to quicken communication with the device.

When compared to hot wallets mentioned above, hardware wallets are not free. The cost is basically a small amount depending on your investment amount. Looking at the positive side, hardware wallets sell for about $500 and cost as little as $50. It all depends on your choice and decisions.

⬜Popular hardware wallets that allows Ethereum include:

◼️Steel and Paper wallets

Steel and paper wallets generally apply the same method. This sort of wallet enables clients to imprint or print their Ethereum account’s secret keys on a steel plate or on a piece of paper, personally. Any of the two are later kept in a safe place.

The steel plates provide a solution to one major issue to where papers are vulnerable. Natural elements. Basically, paper can easily get destroyed through fire and water or degrade. Using steel prevents these possibly unfortunate incidents.

Paper is free and has easy access, thereby making paper wallets cost effective and a secure means of storing your Ether token. Meanwhile, steel wallets are expensive but they assist in reducing the risks involved in using paper wallets.

⬜Here are 3 popular steel wallets in the market you can use to store Ethereum:

ColdTi Get it Here On Amazon

Billfolds Get it Here On Amazon

SteelWallet Get it Here On Amazon

🔲Conclusion

We’ve gone through some of the best ways to buy Ethereum and how to safely store it.

To revisit, we looked at what Ethereum is and why you’d want to invest in it. We talked about some of the best ways to invest in Ethereum. We also went through how to select the best platform to buy the asset and suggested some popular platforms you can start from. 

Once you’ve gotten your coins, you need to transfer them to a secure place, which is a wallet. We went through the various types of wallets in the marketplace and how to select which one suits your investment goals. We also suggested some popular wallet providers to consider.

It’s necessary to always store your tokens in a wallet of which you have complete control over. Do not leave your Ether in an exchange platform’s wallet for a long time.

🔳FAQs about Ethereum

How to buy Ethereum with a debit/credit card?

The step is almost the same in most exchanges. Below are the steps buy ETH using a payment card:

 1. Choose an exchange that accepts traditional currency deposits like Binance and Coinbase;

2. Create an account and verify your identity on the Exchange;

3. Link your credit/debit card to your account on the Exchange;

4. Deposit cash from your card to your account;

5. Buy Ethereum.

How to buy Ethereum with PayPal in the United States?

Applies to clients in the US with PayPal Cash and Cash Plus accounts:

1. Create a PayPal account;

2. Log in to your PayPal account;

3. Select ‘Crypto’ from dashboard;

4. Select Ethereum from the list;

5. Click on the ‘Buy’ button.

Is it worth investing in Ethereum?

  The value of Ethereum changes regularly making it an ideal asset for short-term traders. Long-term traders may also find out that the probability of increased blockchain adoption makes Ethereum a great assortment of assets to add in their portfolios.

What are the best crypto exchanges to buy Ethereum?

   There are several recognized virtual currency exchanges that enable customers to safely buy Ethereum. The most acknowledged and highly trustworthy are Binance, Coinbase and LocalCryptos P2P exchanges.

What is the safest wallet to store Ethereum?

The safest wallets to keep Ethereum are the hardware wallets. These wallets are not linked to the internet and therefore making it remotely inaccessible by hackers. 

Popular hardware wallets for Ethereum are Trezor and Ledger wallets. Paper and Steel wallets are also great choices in the hardware wallets as they are almost indestructible.

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