Since Ethereum’s launch in 2015, there has been no looking back. Why?
Today, Ethereum is second only to Bitcoin in global market capitalization, and it continues to solidify itself in the crypto market. With exceptional blockchain technology and excellent community backing, the future for Ethereum or ETH is probably brighter than Bitcoin.
As a result, everyone who understands digital currencies is rushing to buy this coin.
After all, who doesn’t like to buy a coin at zero price and trade it off for thousands of dollars in a few years?
Sounds interesting, doesn’t it?
With Ethereum’s price expected to hit $20,000 by 2025, you may be intrigued to catch Ethereum’s train before it’s too late.
But with cybercriminals out there looking for a single opportunity to rob your hard-earned money, buying Ethereum securely is what matters the most.
To make your life easier and prevent you from the falling trap of cheats, we’ve curated a list of secure solutions to use when buying Ethereum in Canada, the US, or any other country.
Here are six secure solutions for buying Ethereum:
1. Buying Ethereum Through a Cryptocurrency Exchange or Brokerage
Perhaps the easiest and simplest way of buying Ethereum is through a cryptocurrency exchange. So, search for a cryptocurrency exchange within your jurisdiction and trade in Ethereum without facing disruptions.
As Ethereum is a popular coin, some brokerages let customers buy crypto alongside their other stock market offerings. In contrast, you will encounter exchanges dedicated to crypto and offer much higher functionality than mixed brokerage exchanges.
So, search for one that meets your requirements and choose an exchange. If you already invest in stock and plan to invest in a digital currency, your existing brokerage might help you.
However, a dedicated cryptocurrency exchange makes more sense as it offers additional security features, helps you trade a selection of coins, and allows you to move your assets in a wallet.
Exchanges offer a range of secure payment methods, like wire transfers and credit/debit cards. You may have to pay a higher deposit fee for credit/debit cards and lower for wire transfers.
While most crypto exchanges accept Euro and US dollar, before making a trade ensure your country is supported by the exchange you choose. Wealthsimple and Coinbase are some good examples of cryptocurrency exchange and brokerage firms.
2. Buying Ethereum at an ATM
Investors who are skeptical about dealing in cash for buying ETH can use Ethereum ATMs.
Similar to cash dispensing automated teller machines (ATM), you have an Ethereum ATM for buying ETH. However, unlike a cash ATM that dispenses cash, an Ethereum ATM transfers your purchased coins in an Ethereum wallet of your choice.
Before using an ATM to buy a digital currency, let’s understand the steps required to use such an ATM:
- Step 1: Create an ETH wallet: To ensure an extra layer of security and make your transactions safer, choose any hardware wallet supporting Ethereum. Some popular hardware wallets are Trezor One, Metamask, Exodus, and Mist.
- Step 2: Find the nearest ATM: Conducting a regular Google search would display a list of Ethereum ATMs in proximity.
- Step 3: Create your order: Using the ATM, make your order by following instructions. Some ATMs may ask for your ID or phone number for verification. So, provide your required details.
- Step 4: Scan the QR code to make your purchase: Access your ETH wallet and search for your public key. Scan this public key using the ATM’s camera and insert the required cash and follow the instructions.
- Step 5: Receive your cryptocurrency: Once you receive confirmation, you will receive your digital currency in your wallet.
3. Buying Ethereum Using a Credit Card
If you’re accustomed to buying everything from your credit card, you may be happy to know that you can even purchase Ether using a credit card. The good news is most cryptocurrency exchanges allow an investor to buy digital currency using their credit card. For instance, Moonpay offers the best route to buy ETH using a credit card.
Most exchanges, and brokerage firms dealing with ETH prefer only Visa and MasterCard.
Paying for ETH is like online shopping using your credit card. Enter the card details like your name, card number, expiry date, and CVV code, and you can purchase any digital currency.
Purchasing digital currency using a credit card is completely safe. You no longer have to worry about specific skills and knowledge required to trade in ETH with a credit card. It means there is a minimum chance of exposing your digital currency to potential hackers and cybercriminals.
4. Buying Ethereum from a Decentralized Exchange (DEX)
A decentralized exchange is a cryptocurrency exchange that operates in a decentralized manner and lacks a central authority. Often, these are a safer option than centralized exchanges because you don’t have to store coins in the exchange.
When you buy ETH using a DEX, you’re likely to come across a bouquet of services with each boasting of security and ease of purchasing ETH. So, be careful while selecting your DEX, as some exchanges may not fall into the category of DEX but still market themselves as DEX.
One good example of DEX is Uniswap, which allows trading pairs through their smart contract without seeking help from a centralized exchange.
With DEX, you have full control over your coins, and you can trade directly with potential buyers.
5. Buying Ethereum with cash
Another secure way of purchasing an ether is directly from another party in cash. People who run a business and have a surplus of cash may find this as a viable option. Buying Ethereum in cash from another party is also called peer-to-peer exchanges (P2P).
It’s a completely secure method of buying ETH because it still involves AML and KYC processes, thereby reducing the probability of thefts and crime.
Unlike cryptocurrency exchanges, a P2P exchange facilitates over-the-counter (OTC) trading for local currency to buy and sell Ethereum.
A platform like LocalCryptos can function as a marketplace that allows investors to pay local currency in cryptocurrency exchanges in varying amounts of digital currency. Most of these P2P exchanges use escrow features to add money through different payment platforms and bank transfers.
The presence of an escrow feature makes P2P exchanges secure. To ensure a safe transaction, scavenge through the review of a seller before spending cash to buy Ethereum. In contrast, you may find this option risky because you meet a stranger to buy ETH.
Once there has been enough interaction, and you deem the person trustworthy, you can message them using a P2P platform and complete your purchase.
6. Buying Ethereum Using PayPal
While many exchanges don’t recognize PayPal because the buyer protection program of PayPal allows a buyer to reverse transactions, thereby opening up the gateway for frauds.
Though using PayPal, you can purchase cryptocurrency, but it doesn’t allow withdrawals to a wallet. Interestingly, you cannot transfer or send ETH to other PayPal users. All you can do with an ETH in your PayPal account is speculating the price and getting happy when the value of ETH increases.
One way to overcome this issue is by purchasing ETH using PayPal and trading it on cryptocurrency exchanges like Binance.
Don’t expect such transactions to occur in the blink of your eye, as buying digital currency using PayPal isn’t easy, and you may end up paying fees as high as 15% on each transaction.
But, if you’re looking for a secure solution to keep your digital currency safe, PayPal is an excellent option because the platform provides all levels of security.
Are You Late in making an Ethereum investment?
Ethereum is still burgeoning and growing at a fast pace, and its future looks bright.
Even though the future is bright, never let your guards down because ETH is susceptible to hackers and cybercriminals who can wipe out your account on encountering a single security lapse.
So, regardless of the platform you choose to buy an ETH, make sure it’s safe and offers security features that are hard to breach. From using two-factor authentication to using hardware wallets to store many ETHs, take every step carefully. Otherwise, funds from your account will start disappearing even before you realize it.
Choosing the right way to buy Ethereum boils down to your comfort, experience, and what you want to accomplish from your ETH purchase. It’s always good to use a combination of these six methods: perhaps using one platform for long-term trading and another for a convenient trading experience.
If you’re starting with cryptocurrency or ETH, consider using brokerage firms of cryptocurrency exchanges. Why?
You don’t want your first experience to be bad, do you?
Slowly move on the decentralized and P2P platforms.
Which of these six secure solutions are you planning to use to make your next Ethereum purchase?
Share your thoughts with us!
About the Author:
Priya Jain is a professional copywriter with 8 years of experience. She has an MBA and engineering degree. When she is not writing, you will find her teaching math, spending her day running behind her toddler, and trying new recipes. You can follow her on LinkedIn and Twitter.