Ethereum (ETH) is one of the most talked about cryptocurrencies in the crypto ecosystem, and rightly so. It is the world’s second-largest cryptocurrency, behind only Bitcoin, and supports a host of decentralized applications (dApps) and a burgeoning DeFi ecosystem. Recently, Ethereum made its highly anticipated switch from Proof-of-Work to Proof-of-Stake, bringing a host of benefits to the platform, such as better efficiency, lower entry barrier, reduced risk of centralization, and more.
What Are The Different Ways You Can Purchase ETH?
You can purchase ETH in several ways, such as centralized trading platforms, decentralized trading platforms, or crypto brokers. A centralized trading platform works similarly to a stock exchange, acting as an intermediary between buyers and sellers, enabling them to trade various cryptocurrencies and other digital assets. They are often considered the gateway to the larger cryptocurrency ecosystem.
On the other hand, a decentralized trading platform allows direct peer-to-peer transactions directly from your wallet, cutting out any intermediary from the transaction. Examples of such platforms are Uniswap, PancakeSwap, dYdX, and others. However, decentralized exchanges face several issues, such as low liquidity, smart contract vulnerabilities, and limited speeds and functionality, to name a few. They are also relatively complex and not ideal for new investors.
Alternatively, you can also purchase ETH through cryptocurrency brokers such as Robinhood. Crypto brokers function similarly to stockbrokers, acting as intermediaries, enabling buyers to place orders for the desired cryptocurrency through the broker. This allows an extremely simple experience when it comes to buying crypto. However, while convenient, cryptocurrency brokers may place restrictions on moving your holdings off the platform.
Choosing A Cryptocurrency Trading Platform
A cryptocurrency investor must consider several factors before choosing a trading platform.
- Jurisdiction – Choose a trading platform available in your geographical region.
- Ease-of-Use – The user interface of some trading platforms can be quite intimidating. If you are a new investor, it is important to choose a beginner-friendly platform. On the other hand, advanced users may need a more sophisticated trading platform.
- Liquidity – Liquidity is critical since it enables users to make trades instantly. Choose a platform that offers sufficient liquidity.
- Security – Trading platforms are a frequent target of hackers and other bad actors. It is critical to choose a platform with robust security measures that holds most of its assets in cold storage.
- Customer Support – New users may have many questions and need a lot of help when making their foray into crypto. Markets move quickly, which is why choosing a platform that offers quick customer support is vital.
- Transparency – Transparency is key. If a platform is evasive about its finances, its jurisdiction, and its security protocols, it may signal a lack of transparency.
- Regulation – As we have seen with the recent FTX debacle, it is more prudent for you to use a platform compliant with all regulations.
CoinSmart offers all of the above, and is publicly listed, making it the ideal platform for both new and experienced investors.
How To Purchase ETH On CoinSmart
Let’s look at how you can purchase ETH on CoinSmart. First, log in to your CoinSmart account. Once you log in, you will be directed to your dashboard. Here, you can view the funds you hold in your account. You can add more funds to your account by clicking on the “Add More Funds” option.
When adding funds, you have three options, SEPA, Wire Transfer, and Credit Card.
Purchase ETH Using Fiat
You can also directly purchase ETH using fiat currency. Choose the fiat currency you wish to use. Then choose the crypto you wish to purchase (in this case, ETH) and purchase the asset using fiat.
CoinSmart’s SmartTrade feature allows you to swap one cryptocurrency for another directly. Let’s assume you have some BTC. Through SmartTrade, you can directly swap your BTC for ETH.
With the recent collapse of FTX, traders are understandably wary of centralized trading platforms. While there are other options out there (DEX, crypto brokers), they have glaring shortcomings. Centralized trading platforms are still considered the safest and easiest avenue in the cryptocurrency ecosystem. As a publicly traded platform, CoinSmart must comply with all financial regulations and ensure all operations are transparent.
CoinSmart also has a staking feature coming soon. You can stake coins like ETH and earn rewards.
Disclaimer: The content of this email is strictly for information purposes only. All of the opinions expressed in this email are not connected to CoinSmart and are not intended to provide you with investment advice. It is important that you do your personal research and/or consult an investment advisor to determine what is right for you.