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Ethereum essentials: A guide to purchasing cryptocurrency safely

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Photo by Shutterstock.

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If you want to buy Ethereum, you may have heard about how complicated blockchains are, how wallets and keys can be stolen, and how some cryptocurrency markets have a bad name.

You don't need to know a lot about blockchain technology, though, to buy and use Ethereum.

As long as you take the right safety measures, it's now safer and easier than it was before.

This blog will talk about the steps you can take to safely store and buy Ethereum in this guide.

Choosing a trading platform

It is very important to choose the right trading site when buying Ethereum. When it comes to cryptocurrencies, you have a lot of choices.

Knowing the difference between centralised (CEXs) and decentralised (DEXs) platforms is important for making your choice.

As companies, CEXs take care of keys, help people trade, and charge fees. Due to smart contracts, users of DEXs have power over their keys and wallets.

What you do rests on what you want and how much risk you are willing to take.

Cryptocurrencies move quickly and aren't closely controlled, which makes them vulnerable to fraud. It's important to make sure the base is real.

Before you go ahead with your plans, find out about the company's offices, licenses, website security, fund safety, and management.

Setting up an account

This process is similar to setting up an account on a brokerage website. You will be asked for personal details like your name, address, taxpayer identification number, and certain types of ID.

Once you know how to use a site, setting up an account is usually quick.

Verification of the account generally ends the setup process. The majority of exchanges need you to share documents to prove who you are and that you follow the rules.

Verification times vary from exchange to exchange, but they are usually anywhere from an hour to two days.

Funding your account

Once you've confirmed your payment information, this process is easy for centralised systems.

You can just use a debit card or bank account to add money. Cryptocurrency platforms usually don't have high minimum investments. This means that you can put in as little as $5 or as much as you want.

Keep in mind, though, that most companies charge fees for each trade, so trading more at once may save you money.

Decentralised exchanges (DEXs), on the other hand, can make it harder to input money. You have to move cryptocurrency from one wallet to another to use these sites.

On many DEX platforms, Ethereum and USDT are widely used as deposit currencies. Having large amounts on hand can be helpful if you plan to do a lot of trading.

Buying or trading Ethereum

Through the exchange, you can now buy Ethereum and other cryptocurrencies.

No matter what exchange you use, you should be ready to confirm deals and allow time for processing, which can change depending on how many transactions are being processed at once.

Optimal method for purchasing Ethereum safely

If you want to buy Ethereum safely, you should use a centralised, regulated market.

The best way to store your keys after you're done shopping is to put them in your wallet and keep them on a cold storage device.

Considering an investment in Ethereum

Ethereum has become very famous, and investors now hold more than 116 billion coins. However, just because it's well-known doesn't mean it's a good choice for everyone.

Before putting money into an unstable asset like Ether, you should do a lot of study and make sure your finances are stable.

You should have a big emergency fund, put as much as possible into your retirement savings, and not take on too much debt. Diversifying your portfolio is still important, even if you meet these requirements.

Because of this, you should only put a small amount of your money into Ethereum and other cryptocurrencies.

This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange. This is not intended for use as investment, financial or legal advice as each individual's need will vary.