Ethereum is the second-largest cryptocurrency in the world and the largest alternative coin (Altcoin) in the market. Ethereum is one of two cryptocurrencies that experiences significant trading volumes.
Ethereum is a blockchain where developers can create and launch decentralized applications (DApps) and where smart contracts can be run.
To access the network, developers need ETH, or Ether, to pay transaction fees in Gas.
Before you buy Ethereum, you must know the following things:
- To buy Ethereum, you will need a trading account with a broker or a cryptocurrency exchange.
- You may be subject to Know Your Client and Anti-Money Laundering policies.
- You need a secure connection to the internet with low latency.
- You need an Ethereum compatible wallet where you can safely keep your funds.
- You will need a reliable method of payment to pay for your Ethereum, such as debit/credit card, bank account, and so on.
- You do not need to buy 1 ETH to own Ethereum. Ethereum is divisible into smaller units like Bitcoin.
- You may be subject to transaction fees to purchase Ethereum.
- You must keep your Private Key and recovery seed phrases safe.
- If you lose your Private Key and/or recovery phrases, your funds will be lost, and you will never be able to retrieve it unless you have a backup.
- Online wallets and exchanges are frequently attacked, and your funds could be stolen if it is kept online.
- The price of Ethereum is volatile, and it could go up/down very quickly and in great amounts.
- Ethereum is taxable, and profits made from buying/selling Ethereum is considered capital gains, which means that you must declare your gains for tax purposes.
- Buying Ethereum from a cryptocurrency ATM requires that you provide your government-issued Identity Document to verify your information.
In terms of buying methods, Ethereum can be bought with bank accounts, debit cards, and credit cards. In addition, Ethereum can be bought from ATMs, through Peer-to-Peer (P2P) Exchanges, and more.
To purchase Ethereum, you must follow these steps:
- Evaluate and choose an Ethereum Exchange Trading Platform that suits your unique objectives and needs.
- Connect your payment option to the exchange and transfer funds.
- Analyze the price on Ethereum and wait for the opportune moment to enter the market.
- Perform a buy order on Ethereum
- Store your funds in a safe, secure wallet.
1. Choose an Ethereum Exchange Platform
Cryptocurrencies cannot be purchased through a banking or investment brokerage such as Fidelity, which means that users must find and choose the right exchange trading platform.
While there are many, each platform has its own unique features, trading platforms, payment methods, fees, and functions. Ethereum is extremely popular, which means that most major exchanges have it listed.
While there are many exchanges, users are urged to use popular, trusted exchanges such as Coinbase, Binance, Gate.io, Gemini, and several others.
The benefits of choosing an Ethereum exchange relates to:
- Exchanges are user-friendly as opposed to P2P transactions and other ways of buying Ethereum.
- Major exchanges are reliable, and they offer an additional layer of security where trading and transactions are concerned.
- Access to 24/7 cryptocurrency trading.
- A wide range of trading tools that help traders refine and improve their trading strategies and skills.
- Major exchanges offer high liquidity, which means that traders will not struggle to purchase Ethereum or turn their investments into cash.
- Most exchanges allow traders to go long or short.
- Exchanges offer leveraged trading, giving traders a chance to maximize their profits by letting them open larger positions despite their initial deposit.
- Exchanges offer a level of convenience and instant transactions.
Common mistakes that users make when they evaluate and choose an exchange include the following:
- They do not conduct thorough research, and they choose an exchange that is not suited to their objectives or needs
- They fall for a scam because they do not validate the exchange
- They deposit all their funds into the native wallet of the exchange, which makes it vulnerable to hacking
- They do not ensure that the security features of the exchange are adequate
- Users do not educate themselves before they start trading
The step involved with choosing an Ethereum exchange is important because it could be the difference between success and failure. Choosing the right exchange means that the user can gain access to the right features, trading conditions, and other components that they need to streamline the process and refine their trading.
Users must choose an exchange platform in terms of the fees, deposit and withdrawal methods, security features, customer support, range of cryptocurrency pairs, education, and other components.
Apart from choosing an exchange, users can purchase Ethereum through brokers, ATMs, and P2P transactions, amongst several other ways.
Many cryptocurrency exchanges offer Ethereum, including but not limited to:
- Binance, and many more.
2. Choose a Payment Option for Ethereum Buying
Once you have successfully registered on an Ethereum cryptocurrency trading exchange or platform, the next step is to connect a payment option. It must be noted that different exchanges offer different payment methods. Therefore, the payment methods that are supported must be considered before choosing an exchange to save on fees and to ensure the convenience of fund deposits.
It is also important to note that not all crypto exchanges accept deposits in paper or fiat currency. In such cases, users must convert their fiat into Tether (USDT) so that they can buy Ethereum on crypto-only exchanges.
On exchanges that offer fiat currency deposit options, users have a choice between various payment options, including:
- Bank Accounts
- Credit/Debit Cards
- PayPal and other electronic payment gateways
The benefits of choosing the right payment option involve the convenience of depositing funds quickly and safely. By choosing a convenient payment method, users can quickly and easily deposit their funds and start buying Ethereum.
Common mistakes that users make during this step are:
- Not researching the payment processing and transaction fees.
- Not researching how the exchange works and what payment options are provided.
- Falling for scams that pose as legitimate exchanges.
- Placing all funds in an online wallet or a native exchange wallet, both of which are susceptible to cyberattacks.
Alternative methods for placing an order include:
- Buying Ethereum from a cryptocurrency ATM
- Buying Ethereum through a broker
- Trading Ethereum as a CFD instead of purchasing actual Ethereum coins.
Credit and Debit cards can be used on more secure exchanges that do not keep client funds. The easiest payment option is to convert fiat to crypto and to purchase Ethereum with cryptocurrency instead because it is faster and much cheaper than other payment options.
3. Follow the Ethereum Prices for Analyzing
One of the most common ways to analyze Ethereum is to use technical analysis in combination with fundamental analysis, focusing specifically on statistical trends, checking price movements, historical volume, and overall activity.
This will allow the trader to make well-informed forecasts and predictions on the price of Ethereum, both short-term and long-term. Fundamental analysis of Ethereum involves understanding the supporting valuations and the driving forces behind the price of Ethereum.
The benefits and importance associated with analyzing Ethereum prices before buying Ether will help traders decide on the best time for entering the market, how long they should hold their position, where they need to place their stop-loss and take-profit levels, and when they should exit the market.
Understanding price charts will inevitably help traders make informed decisions, and it will help them harness the right trading opportunities that will maximize their profit potential.
Common mistakes that traders make when they analyze prices on Ethereum include:
- Not understanding how to read price charts to identify patterns
- Following trends that might end soon
- Not using fundamental and technical analysis in combination
- Only using a single technical indicator and not comparing different metrics or data
4. Perform an Ethereum Order
Major cryptocurrency exchanges offer different types of purchase orders, including the following:
- Limit Orders allow users to set their minimum or maximum price at which they wish to buy or sell Ethereum. If there is insufficient demand or supply for the order, you will automatically be matched with an existing orde5r instantaneously. The rule for the limit price is that it must be within 15% of the market price, or it will be rejected.
- Market orders refer to an immediate-or-cancel order where you can buy or sell Ethereum at the best possible market price.
- Stop-Loss Limit/Market Order – This is an order that is seen as a risk management tool where you can limit your losses. When you open a position to buy Ethereum, you set your limit and stop price at which your order will be filled when it reaches a certain price, in addition to closing the order if it falls below a certain price.
- Stop-Loss Market/Limit Order – This order allows you to set your ideal profit level at which the order will close.
- Bracket orders allow you to place three different orders, one to open a position and two orders for take-profit and stop-loss.
By using different orders, traders can refine their trading strategies and maximize their profit potential. In addition, by using these tools, traders can effectively manage their risks and avoid losses.
The common mistakes that traders make when they trade Ethereum include the following:
- Not knowing the basics and not using a demo account before trading in a live environment where capital is at risk.
- Falling for the hype instead of conducting thorough research on price analysis.
- Trading without a strategy.
- Failing to read Ethereum charts.
- Investing large sums into only one type of asset.
- Using leverage incorrectly or abusing it.
- Not using risk management tools such as stop-loss and take-profits
A market order is the best option when you want to buy or sell Ethereum immediately, avoid missing a profitable opportunity, or cut losses immediately.
Limit orders are the best for passive trading, while both stop-loss and take-profit orders are necessary for every trade.
5. Store Ethereum Safely
Ethereum is a digital currency that requires a special type of software for it to be stored safely. This wallet will have a private and a public key. The public key is the wallet address that is like a bank account number that can be shared with others to receive funds.
When funds are sent from this account, they will be visible on the distributed ledger that can be accessed when using a block explorer for Ethereum. The private key, on the other hand, is like a PIN code or a password that is needed to access the account.
If this key is lost or stolen, the trader will lose access to their funds, and it may not be possible to recover it. Every wallet has a seed phrase that helps with the recovery of the account, and traders are urged to back their wallets up.
There are different types of Ethereum wallets, namely:
- Hardware Wallets are USB devices that store funds offline.
- Mobile wallets can be downloaded and installed on mobile devices that use iOS or Android.
- Desktop wallets that run on computers.
- Paper wallets that are QR codes printed on physical paper.
- Web-based wallets are an extension to a browser.
- Hot/Cold wallets refer to Online/Offline wallets.
Common mistakes for this step include:
- Only using a hot or online wallet
- Forgetting the private key or not keeping it safe enough.
- Forgetting the seed phrase.
- Keeping too much capital in an online wallet or trusting an exchange to take care of funds.
- Using unverified wallets or wallets from unknown sources.
- Not using enough security features to secure the wallet.
Hardware and offline wallets are the best options overall, while hot and other wallets are best for small transactions and payments.
How to understand which Ethereum Storage is safer
An Ethereum wallet is a piece of software where the necessary data is stored to access Ethereum funds. This data contains a private key, which is like a password, and a wallet address, also known as a public key, which acts as an account number would.
In terms of the types of Ethereum wallets, users can distinguish between the following:
- Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
- Hot Wallets, which are online applications that require an internet connection.
- Physical wallets are unique pieces of hardware like USB devices that keep crypto funds offline.
- Web wallets are web browser ad-on wallets.
- Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
- Paper wallets which is a piece of paper with a code or QR code on them. To access the assets, the user enters the key or scans the code to access their account.
The Best Ethereum Wallets are:
- Ledger Nano S
- Atomic Wallet
1. Ledger Nano S
Ledger Nano S is a hardware wallet that is one of the most cost-effective options to store Ethereum and a wide range of other coins. With this type of wallet, ETH can be stored offline and transacted. The user must sign in using their private key, with transactions confirmed by pressing a button on the device.
The wallet is easy to use, and it is compatible with robust and secure wallet software.
Trezor was the first hardware wallet that was initially developed for use with Bitcoin. Trezor has improved its offering by catering to other cryptocurrencies as well, including Ethereum.
Trezor can be used in combination with the MyEtherWallet web-based interface. The hardware wallet keeps the user's funds offline on a secure electronic chip.
The chip is only activated when the user logs in with their password. Trezor is light, portable, secure, and it offers a variety of colors.
3. Atomic Wallet
The Atomic Wallet is a desktop and mobile wallet that is considered one of the best options for Ethereum and other ERC-20 tokens built on the Ethereum blockchain.
The atomic wallet allows users to store, exchange, and buy Ethereum with a debit and credit card. Plans are that Ethereum can be swapped with Atomic Swaps, which is a decentralized way to exchange coins without being facilitated by intermediaries such as exchanges.
The atomic wallet supports more than 300 cryptocurrencies and encrypts the user's private keys on their device, providing the user with full control over their funds.
Guarda is another desktop and mobile wallet that is non-custodial, which means that the private keys of the user are not stored on the provider's servers.
The wallet has an intuitive and innovative interface along with robust security. The private keys are kept by the user, and personal information is not required for users to download and utilize this wallet.
Exodus is a popular multi-cryptocurrency desktop and mobile wallet that is free to use. Exodus has a very attractive user interface, and it also offers ShapeShift, through which users can exchange different cryptocurrencies.
Exodus is non-custodial, which means that the user has control over their private keys and that they are not saved to the provider's servers. Other helpful features include one-click email recovery, backup seed keys, and more.
What are the ways of buying Ethereum?
You can purchase Ethereum in the following ways:
- Debit Cards
- Bank Account
- Credit Card
- P2P Exchanges
- Low Fees
1. Buying Ethereum with Debit Cards
When users purchase Ethereum with a debit card, they use the card that is linked directly to their bank account, given that their card type supports online purchases.
Advantages of using a debit card to purchase Ethereum include:
- Fast and secure transactions
- Instant transaction execution
- Assistance in retrieving funds if anything goes wrong
Disadvantages of using a debit card to purchase Ethereum include:
- High transaction and processing fees
- Security risk if the information is saved online
In terms of legal issues, exchanges that accept payment in debit cards will require that users complete a KYC procedure as part of anti-money laundering procedures.
Buying with a debit card is safe if you use a legitimate cryptocurrency exchange that uses SSL technology to encrypt client data and information.
2. Buying Ethereum with Bank Accounts
When users purchase Ethereum with a bank account, it involves a bank transfer from their bank account into their exchange trading account or broker account. Once funded, they can use the trading account to purchase Ethereum.
This will only work with exchanges that accept fiat currency. Exchanges that are crypto-to-crypto do not accept fiat deposits. The user must first convert their fiat to crypto, for instance, USDT, which can then be used to purchase Ethereum.
The benefits of buying Ethereum with a bank account involve the fact that bank transfers are some of the most secure ways to transfer funds. With a bank transfer, there are no chargebacks, and the processing fees are lower than with credit/debit cards.
The disadvantages of buying Ethereum with a bank account are:
- Transaction processing time is longer than other payment options, between 24 hours up to several days.
- Bank Accounts are not an anonymous way to purchase Ethereum, and transactions can be traced.
In terms of legal, to buy Ethereum with a Bank Account, users must have a verified trading account with an exchange or a broker where they must complete the KYC process as part of AML policies.
Bank Accounts are one of the safest options to purchase Ethereum alongside credit or debit cards, given that the user makes use of a legitimate and verified exchange and regulated broker.
The cryptocurrency market is mostly unregulated, which means that traders and investors may not find the support they need if they run into issues with an exchange or a broker.
3. Buying Ethereum with Credit Cards
This process is the same as buying Ethereum with a debit card. The user must provide their credit card details to purchase Ethereum through an exchange that allows for fiat payments.
The advantage of using a credit card to purchase Ethereum is that transactions are carried out faster. The disadvantage of using credit cards to purchase Ethereum relate to high transaction and processing fees, strict KYC policies, and security issues with a credit card and personal information that can be stolen.
The legal issue involved with buying Ethereum with a credit card is that hackers can access the credit card information of the user, and it can lead to a significant loss.
Credit cards are not a recommended payment method because there are cheaper, more secure ways to buy Ethereum.
4. Buying Ethereum with Paypal
The process involved with buying Ethereum using Paypal revolves around creating a Paypal account or using an existing Paypal account, connecting to a broker or an Ethereum exchange, and transferring funds to the trading account.
Advantages of using Paypal to buy Ethereum include secure, instant transactions. Disadvantages of using Paypal to buy Ethereum relate to not being able to withdraw ETH from the Paypal account into a private wallet.
This means that the user cannot use their Ether for any other purpose other than selling it back to Paypal for a profit.
Legalities surround the fact that transactions can be traced because they are routed through Paypal, which takes away from the decentralization and anonymity.
5. Buying Ethereum from ATMs
Cryptocurrency ATMs can be found in major cities around the world, and they allow users to deposit cash by scanning a QR code or depositing physical cash and purchasing ETH.
The benefits of using a cryptocurrency ATM include:
- Instant transactions at lower costs
- ATMs can be found in most major cities
- ATMs are secure
The disadvantages of using a crypto ATM to buy Ethereum include:
- The transaction and processing fees are high
- There may be some security issues involved when using a crypto ATM, much like using a banking ATM.
6. Buying Ethereum via P2P Exchange
Ethereum can be bought from a peer-to-peer cryptocurrency exchange that offers over-the-counter (OTC) trading of Ethereum between users.
These exchanges allow users to create a posting that others can respond to. When using a P2P exchange, users can be assured of the following advantages:
- There are strict AML and KYC policies that protect all users
- Users on the exchanges have ratings and trust scores
Disadvantages of purchasing Ethereum using a P2P Exchange include:
- P2P exchanges are not always decentralized, and they do not always offer anonymous transactions.
- Malicious entities can use and exploit these exchanges for personal gain.
In terms of legal issues, these P2P Exchanges are not always regulated, and malicious activity is not eliminated.
7. Buying Ethereum via Cash
Ethereum can be purchased with paper money through exchanges such as eToro, Bitstamp, Kraken, KuCoin, and many others that allow users to purchase Ethereum directly.
There are also P2P exchanges that accept fiat payments for Ethereum.
The advantages of using cash to purchase Ethereum include:
- It is a straightforward way to purchase Ethereum
- It is a secure way to purchase Ethereum
Disadvantages of purchasing Ethereum with cash include:
- There are higher transaction fees
- Users may not get the best possible price, depending on market conditions
- There are time-consuming verification processes involved with buying Ethereum with cash
8. Buying Ethereum with Low Fees
Buying Ethereum with lowered fees can be done by using an exchange such as Coinbase, which has some of the lowest fees in the industry.
The advantages of buying Ethereum at lower fees include:
- The ability to trade higher volumes
- The ability to use leverage to maximize returns
The disadvantages of buying Ethereum at lower fees include:
- The exchange may charge other non-trading fees to gain its service fee
9. Buying Ethereum with Metamask
Metamask is a cryptocurrency wallet in addition to being a gateway to different DApps. Metamask allows users to buy, store, swap, and send different tokens.
The process involved with buying Ethereum through Metamask is simple, and users can select the “buy” option from their mobile app to obtain a link to a service provider in the user's location and proceed with the transaction.
The advantages of using Metamask to purchase Ethereum include:
- It is an open-source project that is reputable and trusted
- Private keys are encrypted and kept on the browser of the user
- Metamask is user-friendly
- Metamask can be used to easily access the Ethereum blockchain
The disadvantage of using Metamask to purchase Ethereum include:
- Metamask is a hot/online wallet that has some security risks
Some issues with regards to security and legalities revolve around the fact that Metamask is an online wallet and the fact that private keys are kept by the provider on the browser. This could lead to hacking attempts where users can lose their keys, funds, or both.
What are the necessities for buying Ethereum?
Before buying Ethereum, the following is necessary:
- An Ethereum compatible wallet
- Connection to an Ethereum exchange or a broker that offers Ethereum
- Completing registration and passing the security checks, which need identity documentation (Driver's license, passport, government ID, and so on, as well as proof of residence such as a utility bill or credit card statement that is not older than 3 months).
- A valid payment method, either a debit or credit card, Paypal account, bank account, or so on.
Is there an age limit for buying Ethereum?
No, there is no age limit for buying Ethereum.
There are no restrictions on age when purchasing Ethereum. However, many exchanges such as Coinbase and payment gateways such as Paypal require that users be 18 years or older.
What are the best cryptocurrency platforms to buy Ethereum?
The best cryptocurrency platforms where Ethereum can be purchased are:
Kraken is a United States-based cryptocurrency exchange that offers multiple coins, including Bitcoin, XRP, Ethereum, and several others. Kraken is unregulated but trusted, offering 24/7 trading in a secure trading environment.
Kraken offers competitive fees, flexible funding options and offers traders a wide range of educational materials that can be used.
Bittrex is another trusted exchange where traders can exchange a wide range of different cryptos, including Bitcoin, Ethereum, Tether, Cardano, and several others.
The trading platform that Bittrex offers is powerful and user-friendly. Traders have access to a wide range of educational materials, flexible funding options, and access to useful trading tools.
Coinbase is one of the largest global cryptocurrency exchange trading platforms that allow merchants, consumers, investors, and traders to transact in a wide range of cryptocurrencies.
Coinbase offers a proprietary trading platform, a range of educational materials, and useful trading tools that can be used.
BlockFi is a cryptocurrency exchange that offers interest-bearing accounts, low-interest rate loans, and feeless transactions with no hidden fees or minimum account balances.
BlockFi is based in the United States, and it is one of few exchanges that are regulated. With BlockFi, users can purchase Ethereum instantly without being subject to high commission fees.
Binance is another large, reputable cryptocurrency exchange that allows for crypto-to-crypto trades with low transaction fees. Binance offers more than 150 cryptocurrencies that can be traded and exchanged.
Binance offers fast, powerful trading platforms, a comprehensive trading academy, and in-depth market analysis.
Do Forex Traders sell Ethereum?
Yes, forex traders sell Ethereum.
- Forex Traders buy Ethereum at a lower price only to sell it once the price peaks, either long-term or within a trading day.
- Forex Traders buy Ethereum and hold their coins until the value has risen, after which they sell their Ethereum to make profits.
- Forex Traders use algorithmic trading strategies to buy Ethereum at the most ideal time and sell it automatically according to certain technical indicators.
What are the Buying Methods for Ethereum?
Ethereum can be bought using the following different methods:
- A PayPal Account
- Credit/Debit Cards
- Bank Account
- Ethereum ATM
- P2P Exchanges
When users trade Ethereum, there are several different orders that they can use when they buy Ethereum through exchanges and brokers. These follow certain buying/selling strategies, and they relate to:
- Limit Buying
- Leverage Buying
- Market Orders
- Take-Profit Order
1. Stop-Loss for Ethereum Buying
Stop-Loss orders are extremely important for traders, especially when mitigating and managing risks in a volatile market. A stop-loss order is like a limit order because it is an order that executes automatically to either buy or sell Ethereum at a specified price or better.
Stop-loss orders have some potential risks because they may guarantee a price limit, but they cannot guarantee that the trade will be executed. Stop-loss orders can prevent future gains, incur taxes, trigger taxes, and could lower the profit threshold of traders.
Stop-loss orders are ideal for beginners if they are used correctly.
2. Limit Buying Order for Ethereum
A limit order refers to an order to either buy or sell Ethereum according to a restriction to the maximum price that must be paid or the minimum price that must be received.
The risk involved with Limit orders is that there is no assurance that the order will be executed. Limit orders are best used when the trader believes that they can buy Ethereum at a lower price than the current quote.
Beginners can use limit orders to save money on commissions that their broker or exchange charges, especially on liquid coins such as Ethereum.
3. Leverage Buying for Ethereum
Leverage is a useful tool that is considered a loan where the trader can open larger positions despite their initial deposit. In return, the broker or exchange requires a certain percentage as collateral for the trade.
Leverage ratios offered by brokers and exchanges on Ethereum will not be as high as those offered with forex. This is attributable to the inherent risks involved with leverage.
Ethereum can be traded using a leverage ratio of 1:1, 1:2, and even up to 1:5 and 1:10, depending on the exchange or the broker.
The risks involved with using leverage when purchasing Ethereum is that loss can be magnified, and traders can clear out their entire account, or their account could go into a negative number.
Leveraged trading on Ethereum is not recommended for beginners until they understand the risks and they can mitigate and manage them effectively.
4. Market Orders for Ethereum
Market orders can be used when traders purchase Ethereum instantly at the current market price instead of waiting for a better price. Market orders are executed instantly or as close to instantly as possible.
The risks involved with purchasing Ethereum using a market order involve agreeing to the exchange or broker filling the order at what is considered the best possible price, which limits traders because they could be agreeing to higher prices.
Market orders can be used by beginners with great caution. Beginners must analyze the market to identify what the best price is to avoid that they pay a higher price than they would have using other orders.
5. Take-Profit Orders for Ethereum
Take-profit orders are another risk management tool that allows traders to maximize their profits without risking funds. The Take-profit order is above the purchase price chosen by the trader, and when the price on Ethereum reaches this predetermined limit, the trade will be closed.
The risks involved with these orders is that traders might set them too high/low, and it could mean that the trader either loses out on gains or they may cause loss.
Beginners are urged to use Stop-loss and Take-profits in combination to ensure that they can maximize their profits while minimizing their risks.
What are the alternatives of Ethereum?
These are the competitors of Ethereum:
- Solana (SOL)
- Cardano (ADA)
- Chainlink (LINK)
- Near (NEAR)
- Algorand (ALGO)
1. Solana (SOL)
Solana is a powerful blockchain project that is open-source, decentralized, and one of the best projects in direct competition with Ethereum, making it a suitable alternative.
Solana has faster processing speeds and can handle more transactions than Ethereum. In addition, Solana also has lower transaction fees and faster transaction confirmation. Solana was designed to facilitate billions of users and composability between different projects without using sharding or secondary layers.
2. Cardano (ADA)
Cardano is a blockchain platform and project that allows developers to create and launch DApps and a wide range of smart contracts. Cardano uses a Proof-of-Stake (PoS) consensus mechanism, and it is one of the first-ever peer-viewed projects that has unparalleled security and sustainability.
Cardano redistributes power to individuals and aims to restore trust to systems from around the world, creating an overall economy that is secure, transparent, and sustainable.
3. Chainlink (LINK)
Chainlink is a powerful smart contract platform with an oracle network that offers users reliable and tamper-proof inputs, as well as outputs, run through smart contracts.
Chainlink has a flexible framework that can retrieve great amounts of data from any given API, integrating this data with the user's system and any blockchain. Chainlink is open-source and has high-performance oracle networks with quality node operators that secure the network.
4. Near (NEAR)
Near is an open-source and decentralized platform that accelerates the development of DApps by providing developers with the tools and support that they need.
Near offers exceptional developer and end-user experience, featuring a high-performance infrastructure and a secure DApp platform. The token economy of Near involves lower transaction fees and the ability to earn passive income through staking.
5. Algorand (ALGO)
Algorand is one of the best-decentralized finance (DeFi) platforms that allow for seamless, frictionless finance. Algorand is one of the first open, permissionless, and pure PoS protocols immune to forking that offers some of the highest scalability, security, and decentralization.
Algorand has impressive and advanced smart contract capabilities that allow for the development of innovative DeFi solutions and DApps, which can scale to over a billion users, tens of millions of transactions daily, and negligible transaction fees, making Algorand one of the best alternatives for Ethereum.
Why should you invest in Ethereum?
Ethereum is considered more than just a cryptocurrency. It is seen as a massive global computer where smart contracts and DApps can be developed and launched.
While Bitcoin is one of the best stores of value, Ethereum's capabilities make it equally important. Ethereum has seen an increase in price since its launch, and it is the largest altcoin and the second-largest cryptocurrency in the world.
Ethereum has increased significantly from the start of 2021, and it does not show any sign that this is about to change. Experts believe that Ethereum has potential for significant growth and that an investment in Ethereum could be a smart financial decision long term.
One of the main reasons why investors are flocking towards Ethereum surrounds the transition to Ethereum 2.0, an upgrade on the algorithm where Ethereum will go from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS).
The advantages that Ethereum has in technology that make it a good investment include:
- Ethereum can be used to create and develop projects and ERC-20 projects and tokens.
- Ethereum can be used for peer-to-peer transactions and the transfer of value.
- Ethereum is used to create smart contracts and DApps, which are fuelling the rise of DeFi across all sectors and industries.
- The Ethereum network is used to generate unique identities for Nonfungible tokens (NFTs).
Can Ethereum replace Bitcoin?
Yes, Ethereum is expected and forecasted to overtake Bitcoin by 2026, according to experts.
Ethereum is considered the next global standard, and that it is just a matter of time before Ethereum becomes the King of Cryptocurrencies. Ethereum is expected to become the ultimate settlement layer for DeFi as adoption and use cases spread around the world.
Ethereum features some of the most innovative technology and robust growth that is already starting to catch up to Bitcoin. In 2021, Ethereum saw more than 240% growth while Bitcoin only saw 38%.
Ether and Ethereum have a much higher level of real-world uses, and investor enthusiasm for the transition to Ethereum 2.0 is extremely high.
How to sell Ethereum
Ethereum can be sold in the same way that users purchase Ethereum, namely:
- A PayPal Account
- Credit/Debit Cards
- Bank Account
- Ethereum ATM
- P2P Exchanges, and others.
Selling Ethereum is different to purchase because the trader is converting their Ethereum for either fiat currency or other cryptocurrencies. The reasons why users sell them Ethereum relate to:
- Having reached a certain profit target
- According to selling signals that were triggered, indicating the perfect time to exit a trade.
- According to stock chart patterns that signal price volatility and repetitive patterns, showing that a trend is about to end.
- According to Fibonacci ratios and geometric price patterns.