Interested to invest in the second biggest cryptocurrency after Bitcoin? Here’s how to buy Ethereum on Coinbase in five easy steps.
A quick primer on Ethereum
If you’ve been following cryptocurrency, then you are familiar with Bitcoin, the de facto leader in crypto. It is closely followed by Ethereum, which is a global computing network for decentralized apps that enable a host of innovative features. Following its birth in 2015, the altcoin has grown immensely.
Using Ether as its digital currency, the Ethereum network has its own programming language called Solidity, enabling coders to write programs called “smart contracts.” These smart contracts can be used to build full-fledged applications like automated market makers (AMMs) and decentralized exchanges (DEXs).
In fact, you can use the Ethereum network to run applications that allow:
- Direct peer lending that earns interest
- Payments without the payment processing company
- Insurance without an insurance company
- Art auctions without an auctioneer
- Music streaming that directly supports the artist and not the record label
- Online gaming
- Marketplaces for non-fungible tokens
- Code collaboration sans the central server
This custom programming language and the huge team of developers behind it make Ethereum valuable for so many. As more people get into cryptocurrency and adopt new Ethereum-based technologies, it’s likely that its market value will continue to grow.
Should you invest in Ethereum?
Currently, the Ethereum price on Coinbase is at $1,981.12, with its total market cap reaching more than $232.72 billion this July.
One advantage to buying Ethereum is its flexibility. Unlike Bitcoin, Ethereum is a widely used technology that has a variety of applications, like non-fungible tokens, decentralized finance and enterprise blockchain solutions. In other words, even if Ethereum fails as a crypto, it can still be used in other ways in the long run.
Another advantage is that it’s more energy-efficient, which is a big plus among environmentally-conscious investors. The Ethereum network also destroys some Ether as it undergoes changes, leading to a limited supply that can rise up in value in the future.
How to buy Ethereum on Coinbase
Now that you know what Ethereum is and understand its advantages, it’s time to start buying shares and further diversify your portfolio today. Here are five easy steps that’ll teach you how to buy Ethereum on the trusted trading platform, Coinbase.
1. Set up your Coinbase account
If you already have a Coinbase account, you may skip this step. If not, then you would be glad to know that Coinbase, the U.S.’ biggest crypto trading exchange by volume, has made it incredibly easy for any beginner to start buying and trading on its platform. To sign up, visit the Coinbase website and click “create your account.” Provide the required information, add a payment method and verify your account.
For a more detailed explanation of Coinbase’s features and how to sign up, click here.
2. Click buy and choose Ethereum from the available crypto assets
Once you’re done setting up your account, open the Coinbase app (or website) then click “buy” to open the table of available cryptocurrencies to buy. Currently, Coinbase offers over 25 cryptocurrencies for investment, trading and staking. Pick Ethereum to proceed.
3. Input how much ETH you’re buying
Next, input how many shares of Ethereum you’re going to buy. Do note that while Ethereum is currently selling for $1,981.12, you can put any amount and buy the equivalent portion of Ethereum. For example, if you buy $50 worth of Ethereum, it will be equivalent to 0.025 Ether. This enables anyone to own crypto and start getting potential gains.
4. Preview your purchase
Once you’ve settled on an amount, click “preview” to check your purchase. In this window, you’ll see the amount of Ethereum shares you’ll be buying, the current price of an Ethereum share, the payment method and the Coinbase fee. Do note that Coinbase takes its fee from the amount you purchase, so if you buy $50, a total of $1.99 will be deducted from it. You can pay through your bank account or credit card.
5. Confirm and receive a confirmation email
Congratulations! You have now purchased Ethereum. You should receive an email confirmation containing all relevant information shortly. From here, you can hold, trade or sell your Ethereum, or you can store them on your Coinbase wallet for extra security.
Bitcoin or Ethereum?
The cryptocurrency industry is a volatile market and Ethereum is no exception. Still, Ethereum is a powerful technology with the potential to further our global currency system.
It has more applications than Bitcoin, is backed by multiple Fortune 500 companies and is being incorporated by financial institutions. In fact, Ethereum is the only technology being utilized by major institutions even though they’ve had more than a decade to collaborate with Bitcoin. This speaks volumes for Ethereum’s long-term profitability and potential for success.
Interested in buying your first Ethereum share? Sign up on Coinbase by clicking here.