All this talk about NFTs taking the internet by storm might have sparked your interest in investing in cryptocurrencies. While the number of cryptocurrencies is over a thousand and increasing, experts suggest that beginners should stick to the more established cryptos like Bitcoin and Ethereum. So let’s get you started on how to buy Bitcoin or Ethereum.
Before you go into any kind of investment, since there is always a risk of a loss, be sure that you know what you are getting into and how the system works. Especially so with cryptocurrency, the quotes are very volatile. So you should keep your investments under 5% of your overall portfolio, to avoid any major crashes.
How to Buy Bitcoin or Ethereum
Once you have done your research on the cryptocurrency system and have chosen a currency to trade-in, you can now begin investing. Investing in cryptocurrency is a little different from investing in stocks, in that you can’t get crypto at the bank. You need to use a cryptocurrency trading platform to buy either Bitcoin or Ethereum.
Most online crypto-trading platforms will let you buy either at the same place. So the process for buying either Bitcoin or Ethereum is pretty much the same. Let’s go over the steps!
Step 1: Create an Account at a Cryptocurrency Trading Platform
You have a lot of options when it comes to choosing where to buy Bitcoin or Ethereum. There are a ton of different exchanges out there. You can also start investing in crypto with trading platform as well, without having to open any extra accounts at crypto exchanges!
Register your account and open a trading account in the Members Area. For Ethereum, you can even use your PayPal or Venmo account to buy it. Each of the different platforms has different fees and security measures and policies. So do your research and choose the one that suits you best.
Step 2: Deposit 100 USD to Your Account
Trading in crypto is quite easy. You don’t need a lot of money to start. With as little as 100 USD, you can begin trading on your account. You can fund your account in multiple ways at any of these online exchanges, and there will probably be a fee associated with that.
Once you have your bank account or your preferred payment channel connected, you are ready to buy the crypto. Just depositing money into your account doesn’t mean you have bought your crypto though. After the deposit, you can still go a lot of different routes to start investing.
Step 3: Choose a Terminal and Start Investing
Now you can exchange the USD in your account for either Bitcoin or Ethereum (or any of the other available cryptocurrencies). This is a lot like buying shares in a company. Instead of a company, however, you are buying a share of a single Ethereum or Bitcoin, depending on the current price and the amount you are investing.
Your account will show you how much you have purchased with a percentage, according to the amount you have invested. Remember not to go in too big, because crypto is a very volatile market. Start small and slowly build up. A good rule of thumb is to only invest as much as you are okay with losing completely.
Step 4: Storing Your Crypto
There you go! You’re done buying your first cryptocurrency. This final step is optional, as you can just store your Bitcoin or Ethereum in your exchange account. But for larger amounts, it’s better to store your crypto in a digital wallet.
Digital wallets can often offer more security and also make it easy to use your crypto across multiple platforms. There are a lot of different types of wallets you can choose from and they all offer different perks and also have separate cons. So choose wisely.
Is it Better to Buy Bitcoin or Ethereum?
Now that you know how to buy crypto, you might find yourself in a dilemma in choosing between these two. While Bitcoin was the first in the asset class and is very popular among investors, it’s hard to deny how well Ethereum is doing as well. Especially for long-term returns, Ethereum seems to be the better option.
Both these cryptos are doing well in their ways and it’s hard to compare the two because fundamentally they work in completely different ways. Bitcoin is more like a commodity or like gold whereas Ethereum is a total infrastructure that you can build digital systems on. It’s a network where the possibilities are endless.
NFTs for instance are issued on the Ethereum network. Decentralized Finance or Defi was started basically with Ethereum and its smart contracts. And with the Metaverse coming into play, it seems like this is the direction we are headed towards.
If you think about it, therefore, even if Bitcoin is comparable to gold, think of how you use money and how you use gold. Remember that gold routinely underperforms stocks. Furthermore, Bitcoin isn’t gold and its value is affected by speculation and acceptance.
So in the long run, therefore, especially in terms of appreciation, Ethereum has better prospects and price. While it does have a lot of competitors, there’s a lot of room for growth and it’s changing every day.
Having said that, however, it does come down to your goals for your investments and what you want out of it. The smart thing to do, therefore, would be to have small investments in both these cryptocurrencies. New crypto-currency investors should ideally have both and use them wisely. But for long-term investors, Ethereum or ETH should be the better option.
It’s pretty easy knowing how to buy Bitcoin or Ethereum. You can buy and trade in cryptocurrency now, from anywhere around the world. It’s just a matter of a few simple clicks. What’s hard is predicting the market and knowing how to invest smartly. So be careful and do your research before you go into this market!