Best Cryptocurrency Exchange

Best Places to Buy Ethereum for 2022

Best Places to Buy Ethereum for 2022
Written by publisher team

What to look for when buying Ethereum

Buying Ethereum for the first time can be a bit daunting. But there are so many excellent products out there, it’s just a matter of finding the right platform for you.

Here are some basic questions to help you find the best place to buy Ethereum.

1. What fees do you have to pay?

In general, there are three types of fees that you should pay attention to:

  • Deposit fee
  • Trading fee
  • Fee withdrawal

We will detail it in more detail below. Just be aware that fees are rarely standard across different trading platforms. For example, you may find a cryptocurrency exchange that offers free trading but charges you a lot of money to withdraw your funds.

Don’t be afraid to open two accounts and give it a try. But don’t deposit any money until you are comfortable with the fee structure.

2. How will the platform secure your assets?

Investing in cryptocurrency is an exciting world, but unfortunately it has attracted its fair share of bad actors. Because it’s an entirely new industry, it has taken some time – and some notable hacks – for major cryptocurrency exchanges to implement the levels of security you find in banks and other financial institutions.

If a cryptocurrency exchange or broker is not transparent about their security systems, this should be a big red flag. You will sometimes read that the company does not want to disclose these details for security reasons, but this is misleading. There is a lot of information that a trading platform can disclose without compromising their systems.

3. Are there any registration bonuses?

Various platforms offer registration bonuses to new investors. You may find a platform that gives you a small bonus when you start, or a platform that offers a bonus when you make a certain amount of trades or deposit a certain amount of money. While these are tempting, don’t let them drive your decision-making. Tie-breaking might be great, but there’s no point in signing up for the wrong exchange just because you want the reward.

4. Is it available in my country or state?

Some cryptocurrency exchanges cannot operate in the United States, and only a handful of them are licensed to operate in every state. For example, New York has some of the strictest cryptocurrency trading regulations and will actively seek to break the rules. As such, it’s a good idea to check that the exchange you want to use is allowed to operate where you live.

5. Does it have all the features you need?

If you are buying Ethereum for the first time, you will need an easy-to-use platform with plenty of educational resources. If you prefer mobile apps over web browsers, find an exchange with a good app.

Other useful features include:

  • Possibility to set up automatic monthly transfers
  • good customer service
  • External wallet

We’ll talk about wallets in more detail shortly. If you are an active Ethereum trader, you may also like to get advanced features like select orders and good charting tools.

6. Can I participate or earn interest on my Ethereum?

Ethereum is currently in the process of a major upgrade to a new system to make it more scalable, more sustainable and more secure. One part of the upgrade is to change the way transactions are verified. Without going into technical details, it will transition from a power-intensive Proof of Work model to what is called a Proof of Stake system.

This means that people can share their ETH tokens to earn rewards – and you can actually support moving to the new network if you’re willing to link your ETH tokens. As a long-term investor, this is a great way to earn passive income from your Ethereum investment.

Another way to earn interest on your crypto assets is to participate in a lend and earn program. Essentially, the platform will loan your Ethereum and pay you some interest on the loan. Both staking and Crypto Lend-Earn products carry risks, but if you want to earn passive income from your ETH, look for platforms that have these functions.

7. Does it have a wide range of cryptocurrencies?

If you just want to buy Ethereum or Bitcoin (BTC), you don’t need to exchange with a lot of tokens. However, if you see buying Ethereum as a first step in a longer journey of crypto trading, a long list of altcoins is a bonus. It’s worth understanding the exchange’s policy regarding adding new coins as well – is it trying to filter out potential scams or is it looking to list as many coins as possible?

Check out our cryptocurrency exchange reviews for more options.

What is Ethereum?

Ethereum was the first cryptocurrency to offer smart contracts. A smart contract is a small piece of code that lives on the blockchain, which is the technology behind the decentralized finance (DeFi) industry. A large percentage of decentralized applications are built on the Ethereum ecosystem, although Ethereum now has a lot of competitors who want to grab a slice of the market share.

Where can you buy Ethereum?

You can buy Ethereum from almost any cryptocurrency platform. You can even buy Ethereum from some Bitcoin ATMs in the US, let’s take a look at the differences between apps, exchanges, and brokers.

  • Cryptocurrency brokers: Many traditional stock brokers offer a limited selection of cryptocurrencies along with their other products. This is a great option for people who want to add Ethereum to their investment portfolio without opening a new crypto exchange account. Be aware that most crypto brokers do not offer external wallets where you can withdraw and deposit crypto assets.
  • Cryptocurrency exchange: This is the most popular way to buy and sell cryptocurrencies, and a lot of exchanges offer plenty of ways to deposit fiat currencies (such as US dollars), reasonable fees, and a large list of tradable coins. On the downside, these exchanges may not meet the same level of regulations as stock brokers.
  • Cryptocurrency applications: Most cryptocurrency brokers and exchanges also have mobile apps to facilitate trading on the go. You can also buy Ethereum using payment apps like Venmo and Paypal.

What are the fees for buying Ethereum?

Different cryptocurrency platforms charge different fees, and unfortunately there is not much consistency in how these fees are calculated. With that in mind, watch out for the following.

1. Deposit fee

Fees vary depending on whether you want to deposit funds via credit or debit card, bank transfer, or any other method. A number of platforms allow you to deposit money for free if you use bank transfer. The fee for credit card payments is usually 3% to 5%. If you have existing crypto assets on another platform, you will usually be able to deposit them for free.

2. Trading fees

Trading fees can eat up your profits and come in several forms. A specific fee or percentage of the trade may be charged. Many exchanges offer reduced fees if you pay with the original currency of this exchange. Sometimes the fees are included in the price you offer, which is the least transparent – it may sound as if there are no trading fees, but you will get less Ethereum for your dollars.

3. Withdrawal fee

The final fee to watch out for is the withdrawal fee. These vary from platform to platform and from crypto to crypto. Some exchanges offer a certain number of free withdrawals each month. Most platforms list their fees for each cryptocurrency and they can vary from a fraction of a cent to $100 or more. Sometimes it is worth converting your assets to cheaper crypto before you make a withdrawal.

Where is it safe to buy Ethereum?

It is safe to buy Ethereum from most major cryptocurrency exchanges. However, there are several potential risks that you should be aware of when buying Ethereum. These include:

  • Cryptocurrency application, exchange or brokerage itself: Most of the assets are held by top-tier cryptocurrency exchanges in so-called “cold storage”. This means that it is offline and difficult to hack. Unlike the money in your bank account, your crypto assets are not protected by FDIC insurance, so it’s great that the platform has its own third-party insurance. Also look out for independent security audits and participate in bug bounty programs.
  • Your computer/phone security systems: Having an account with the most secure encryption platform in the world will not help you if you have malware on your computer or use the same password for multiple accounts. Make sure your antivirus protection is up to date and two-factor authentication is enabled on your crypto accounts.
  • Risks Involved in Investing in Cryptocurrencies: Ethereum is one of the largest cryptocurrencies in the market, which makes it a safer bet than smaller coins. However, investors need to be prepared for the volatility that is an integral part of these high-risk investments. Moreover, there is a small chance that Ethereum will fail completely or the bottom will fall from the industry. That’s why it’s important to only invest money that you can afford to lose and make sure that your crypto investment makes up only a small percentage of your total portfolio.
  • Where do you store your crypto assets: Many long-term cryptocurrency investors use an external wallet – often a hardware wallet that is kept offline – to store their assets. This may not be the right choice for novice investors, but it is worth considering as the value of your cryptocurrency portfolio grows. A crypto wallet gives you complete control over your coins.

Buying and trading Ethereum safely has never been easier. There are many great brokers, exchanges, and apps in the market to suit the needs of all types of investors. Once you explore the options and choose the platform, it is just a matter of depositing funds and transferring them to ETH.

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