As of May 2022, ether (ETH), a Ethereum blockchain token, is the second-most valuable cryptocurrency with a market value of around $246 billion. It falls behind Bitcoin’s roughly $571 billion but leads Tether’s third-place market cap of about $75 billion.
After a peak in December 2017, cryptocurrency assets saw a sharp decline in value over the next two years. However, the market has since recovered and is now worth much more than it was at its previous peak. Despite recent pullbacks throughout 2022, there is still a great deal of interest in this space as innovation continues to drive the market forward. ETH’s value was trading around $2,000 in May 2022, down from November 2021 highs approaching $5,000.
The popularity of digital currencies like Bitcoin stems from their ability to be used as a payment method via the Ethereum Network. Simply stated, the entire potential of the Ethereum Network is powered by ETH. Many investors see ETH as more promising than Bitcoin because
Before you can even think about making a trade, you first need to find the best trading platform that will work for you. Some of the top platforms for cryptocurrencies include Coinbase, Kraken, Bitstamp, Gemini, Binance and Bitfinex. All of these exchanges offer Ethereum.
When looking for a cryptocurrency trading platform, there are several things you’ll want to take into account – one of the most important being whether it is a fiat exchange or C2C. Fiat exchanges allow you to trade cryptocurrencies using regular currency, while on a C2C platform you can only trade crypto with other crypto. Ethereum investors have it easy in this department as ETH is one of the two largest cryptos and can be traded easily on fiat exchanges.
The C2C exchanges may be more appealing to investors who want to trade a lot of currencies or have the flexibility to convert others into Ethereum easily. A lot of traders also maintain accounts with both traditional currency exchanges and C2C exchanges.
Keep in mind that cryptocurrencies are extremely ill-regulated, with rapid development. This may create a fantastic market opportunity, but it can also raise the danger of fraud, so you’ll want to be sure you’re comfortable with the trading platform’s reputation before investing your money. When looking for an exchange, there are a few things to think about:
Where are they based? Do they have a license? Is the website secure? What is the level of security for your money? Who are the executive in charge of the company? By trading volume, Binance is currently the most successful exchange in the world. Coinbase Exchange is number one in America.
The account opening process is much like any other type of account you would open with a broker. You will be required to submit your name, address, social security number, and other forms of identification. Once you have found a site that you are comfortable with, the process shouldn’t take very long.
The account opening procedure is frequently completed once the account has been verified. Most exchanges will need you to validate your account in one form or another. This is when you’ll most likely need to submit documents to confirm your identity and ensure that your account meets regulatory standards. Depending on the exchange, verification might take anything from an hour to a few days or even more than a day.
Following that, you’ll need to put funds into your account. After verification of your payment information, this can often be accomplished very quickly for fiat currency platforms. Simply add money through your bank account or debit card on file. Cryptocurrency exchanges do not generally impose large minimum deposits, so you may invest as little as $5 or more than $1,000 at a time. Most exchanges charge transaction fees; therefore, it’s advantageous to trade big amounts at once.
In certain cases, depositing currency into C2C exchanges might be somewhat more difficult. These firms want you to transmit money from one place to another using a code. Many C2C platforms accept Ethereum as a deposit currency, which may be good for having lots of it. The time it takes for code transfers to complete is usually around an hour or longer.
You will be able to start purchasing Ethereum and other cryptocurrencies via the exchange after you’ve created a verified account and deposited funds into it. Each exchange has its own user interface, but be ready to verify transactions and allow for processing time, which can also be influenced by the total amount of transactions requested.
Generally, after you buy ETH on an exchange, you then have the option to withdraw it into your bank account or a personal wallet. The process is quicker with fiat exchanges–you simply sell and send the benefits to your bank–whereas C2C platforms require that you first code-transfer your ETH to a fiat exchange and then sell in order to cash out.