Ethereum has emerged as the second largest cryptocurrency with a market cap of 161.66 billion, falling just behind Bitcoin’s roughly 332.56 billion. Considering the present market scenario, the market cap of the biggest cryptocurrencies has been slashed in half due to abrupt crypto firms collapses and bankruptcies.
However, it also makes a good time to “buy the dip” to participate in the next bull run. For that to happen, you must know the basics of crypto trading and in particular, we would be talking about steps on how to get started with Ethereum trading. Following the steps in this article, you can pretty much figure out how other major cryptocurrencies can be traded as well.
Since blockchain technology is the underlying concept behind how crypto works, Ethereum includes benefits such as higher security and transparency, no need for trust between parties, and low-cost transactions. With this new innovative protocol, the global economy is made more efficient and in the coming years, it can also become a viable asset to hedge against inflation.
Ethereum has the potential to revolutionize the global economy by providing equal opportunities and empowering anyone to participate in this economy. Now, it’s time for you to understand what Ethereum is and how you can start Ethereum trading.
What is Ethereum?
Ethereum is a decentralized blockchain platform that runs smart contracts, where applications are built and run without any downtime, censorship, fraud, or third-party interference.
It’s a blockchain-based firmware platform similar to the hyper ledger. It uses a Turing-complete language to code up to any plan, such as buying Lego blocks or sending money across borders quickly and seamlessly.
Is it too late to Invest in Ethereum?
Ethereum as a project is still very much in development. Recently, it has also moved from proof-of-work to proof-of-stake with its successful Merge upgrade.
So, do continued innovations suggest that ETH is a good investment? To answer this question, you must know that a significant number of solutions have been built on the Ethereum blockchain.
Although scaling for such widespread usage has been an issue, Ether managed to establish itself as the second most well-known cryptocurrency to date. It is valued with the second-largest market cap among all crypto assets.
Ethereum’s price has sustained a number of significant pushes upward over the years, It’s difficult to predict any crypto asset’s long-term value, however. In 10 years’ time, Ether’s value might continue rising. All these facts combined make it a better investment crypto asset. So let’s see how you can hop on to this opportunity.
How to start Ethereum trading?
To begin Ethereum trading and investing, there are multiple options available but the easiest one is to buy it from an exchange and store it in a wallet.
1. Use a Cryptocurrency Exchange
To start Ethereum trading, you will need an ethereumcode.app, which will function as a middleman between you and the market, holding your funds on your behalf. Cryptocurrency exchanges are digital marketplaces for users to buy and sell cryptocurrencies using fiat or other cryptocurrencies.
Some exchanges provide a direct market for buyers and sellers of cryptocurrencies, matching buyers with sellers and taking a fee from each transaction.
Each cryptocurrency exchange has rules about what types of payments are accepted. Some exchanges are also preferable because they are simple and fast, while others are more complex and take longer to access the relevant market.
The advantage of using an exchange is that it provides a secure method to store your tokens. Also, it’s convenient to get tokens off the exchange once you wish to sell them so that you do not lose the tokens’ value in the process.
2. Place an order to start Ethereum trading
You must fund your account using a debit card or bank account in order to purchase ETH. Depending on the option you select, fees may change. Exchanges also differ in terms of the currencies that can be transferred.
While other platforms might only let crypto-asset transfers, other exchanges enable transfers of fiat currencies, such as dollars and euros as well as crypto assets. Depending on the method used and the asset transferred, deposit and withdrawal times vary.
You can begin Ethereum trading as soon as the funds are transferred to your exchange account. Once your account is loaded, you can exchange your USD for ETH.
All you have to do is, enter the dollar amount you wish to convert to ETH. You may purchase shares of a single ETH currency, depending on the price of Ethereum and the amount you wish to purchase. A percentage of the total amount of Ether will be shown for your purchase.
The user-friendliness of this process varies depending on the specific exchange, many of which want to make it as simple as possible. On the website of your exchange, you can view varied quantities of useful data, including current value and relevant news updates. Once you’ve acquired Ether, you might want to withdraw it from the exchange to a wallet of your choice.
Also Read: How to create a wallet on Metamask
3. Create an Ethereum wallet
An Ethereum wallet is software that contains your public and private keys and allows you to interact with the blockchain of Ethereum. In addition, it contains all transaction data of the account’s history and current balances for each address. An ether wallet grants access to your public address and a unique private key that holds money on the blockchain of Ethereum during transactions.
The advantage of an ether wallet is that it holds all the information needed to make and receive transactions in the Ethereum blockchain, allowing users to keep complete control of their funds at all times.
