With the price of Ethereum back above $330 many are asking how to invest in the Ethereum price.
Ethereum is a cryptocurrency that is picking up a lot of interest and demand. More and more applications are using the cryptocurrency and investment in Ethereum has gone through the roof especially in places like Korea and other Eastern countries. So savvy investors may be wondering how they can join the party and get in on the Ethereum action. In this piece we will explore exactly how investors can go about investing in Ethereum. Let’s take a look at what you need to know to start investing in the exciting cryptocurrency Ethereum.
Creating a Wallet
Since Ethereum and other cryptocurrencies like BitCoin are blockchain, you can’t very well hold a physical Ether or BitCoin. Thus, it is necessary to have a secure place online where your cryptocurrency can be stored and traded. Really, what is being stored in your wallet is a key code known only to you and your wallet that represents a certain amount of coins. Your wallet also acts a ledger of transactions for you as well as a secure storage place for key codes.
Before you can buy or sell Ethereum or any type of cryptocurrency you need to create a wallet. Now, most cryptocurrencies highly recommend that you use their official wallets for transactions. Official wallets are typically more secure than third-party choices, and if you are a beginner when it comes to investing in cryptocurrency than they are probably your best option. The official Ethereum wallet can be found here.
There are a few third-party wallets that are widely used because the offer the user the ability to store multiple forms of cryptocurrency in one place instead of needing a separate wallet for each form. The best and safest universal wallet is HolyTransaction.
Linking Your Accounts
Once you have established a wallet for storing your Ether key codes, you will need to input your banking information so that you can begin purchasing Ethereum. Using official wallets is important because you will need to use your banking information to buy and invest in Ethereum and therefore it is important that you use an official wallet that you can trust. Once your information is entered and verified you are ready to begin!
Now that you are linked up with your wallet and accounts, you can purchase Ether or any other cryptocurrency online. However, if you really want to get in on the action of trading and buying cryptocurrencies like Ether, you will need to open an account on an exchange. There are plenty of options when it comes to which exchange you can use but Poloniex and Kraken are two of the biggest.
You will need an e-mail address and password to create an account and depending on the quantity of cryptocurrency you intend on trading you may need to enter more information such as address, and utility and passport details. The amount of registration and regulation varies from place to place and exchange to exchange depending on local laws and regulations, so you if you live in New York you won’t even have the ability to use an exchange like Poloniex because there are regulations there that the exchange does not feel like complying with.
Once you are completely registered and set up on an exchange you can begin trading your Ether with whoever you please for fiat currency, or other cryptocurrencies etc. You can sell or trade to the highest bidders and put your own bids in to purchase more. The prices for Ether and Bitcoin change in real-time so if you are a savvy trader you can make yourself a lot of money trading Ethereum. Especially, since the price of Ethereum continues to rise. The sky is the limit!