Cryptocurrencies have grown from complete obscurity, a little over a decade ago, to now being regarded as the future of money and a true digital store of value. No asset class has outperformed cryptocurrencies in the short period they have existed, and this has caught the attention of all types of investors. Bitcoin was the first ever cryptocurrency, but despite having the ‘first mover advantage’, it is Ethereum that has since shown the most promise as the true digital currency of the present and future as well as custodian of the underlying blockchain technology.
SHOULD I BUY ETHEREUM?
Table of Contents
The crypto market is very lucrative overall, but here is why Ethereum is the cream of the pie:
Is it Safe to Buy Ethereum?
Not Just a Cryptocurrency
Just like Bitcoin, Ethereum is also a cryptocurrency that can act as a means of exchange as well as a digital store of value. But it goes further than that. Beyond a peer-to-peer form of electronic cash, Ethereum also acts as an open-source blockchain platform upon which decentralised applications (dApps) are built. Actually, most crypto tokens and coins have since been built on the Ethereum platform, and many more will follow.
Only launched in 2015, Ethereum represents the second-generation cryptocurrencies and has grown to be the second most popular coin, just behind Bitcoin. But in terms of usage, it takes top spot, with twice as many addresses than Bitcoin. This is not surprising, considering a couple of other cryptos run on the Ethereum platform.
Is It the Right time to Buy Ethereum Today?
An all-time high above $1,400 in January 2018 is indicative of the potential Ethereum has to rise. With the current valuation, almost 80% lower than the all-time high, there is never a better time to buy Ethereum.
Ethereum is powered by the underlying blockchain technology, but its technology is geared towards facilitation of smart contracts. Smart contracts allow digital facilitations of credible transactions without involving third parties. This is an immense use case that the Ethereum platform enables, and on-going adoption will only make the underlying cryptocurrency only more attractive.
Is Ethereum Safe and Legal?
Ethereum exists as a decentralised form of money, unlike the dominant and traditional centralised fiat, whose production and circulation is heavily controlled by Central Banks, backed by governments. Like other cryptocurrencies, Ethereum has grappled with the issue of regulation in many different jurisdictions. But the coin resides in the grey legal area. It is apolitical, borderless and peer-to-peer; essentially it cannot be controlled by any government, and is backed by blockchain, a revolutionary technology that is neither evil nor illegal. Governments and regulatory agencies across the globe do not exactly understand or define their stand on cryptocurrencies, with most of them simply ‘warning’ their citizens that any dealing with cryptocurrencies is purely at their own risk.
In advanced countries, where the technology is prevalent, governments have attempted to regulate cryptocurrencies, such as Ethereum, to prevent financial ills, such as money laundering. Still, this means that it is illegal activity that is being regulated, not that Ethereum or any other cryptocurrency is an illegal form of transaction. All in all, Ethereum remains a legal form of money, which you can buy, sell, send, receive, or even store.
But is it safe? Like any form of money, safety depends on a lot of factors, such as storage or even the handling company. As a form of digital money, Ethereum is mainly susceptible to hacking activities, and there have been a couple of such attempts during the short history of cryptocurrencies. This is a challenge Ethereum buyers can avoid by dealing with companies whose reputation and security is top notch. Ethereum buyers also have various online and offline storage options and can use various ways to improve the security of their coins.
But for investors who wish to avoid all these worries, Ethereum CFDs (contracts for difference) also exist that allow anyone to trade the coin without having to store it on any crypto wallet or even to remember any private keys for access.
ENTERPRISE ETHEREUM ALLIANCE
The Enterprise Ethereum Alliance (EAA) was launched in February 2017 to connect major companies interested in leveraging the benefits of the blockchain and smart contract technology that underpins the Ethereum platform. Among the founding companies were big financial and technology names such as Microsoft, Intel and JP Morgan. The vision of the alliance was to leverage existing standards of the Ethereum platform and to define the open source utility. The alliance also sought to communicate the enterprise requirements of blockchain as well as to advance alongside the improvements of the public Ethereum.
Having an alliance of about 200 Fortune 500 companies is a big deal for both the Ethereum platform and its underlying cryptocurrency. Enterprises need practical use cases for blockchain projects, and the alliance ensures this is possible by making big companies proactive in the process. As well, with the entire technology still relatively at its infancy, there are still security issues that need to be ironed out to fast-track adoption of the technology. Admittedly, with big companies involved, this will be much easier and faster. There is also the issue of regulation; a thorn in the crypto garden. Smart contracts have far reaching implications across multiple industries, and governments may find it a challenge or may even delay setting up a regulatory framework. Big companies have massive influence in regulation because they serve a wide consumer ecosystem, and this will help the Ethereum project align its developments accordingly so as to avoid any potential regulatory mishaps in the future.
All in all, the EEA more or less ensures that Ethereum will not on only maintain its status as a top blockchain project but will also continue to lead the way for continuous innovation and improvement of the technology as well as smart contracts.
As mentioned, Ethereum is now the most used cryptocurrency and platform for launching multiple other blockchain projects. As well, with having multiple practical use cases, Ethereum has managed to grow multiple communities of users, developers, and even fanatics or enthusiasts. These communities serve as a place for building, preserving and sharing knowledge as well as ideas of using and innovating upon the Ethereum platform.
Ethereum is Fast and Secure
Ethereum processes transaction is less than 12 seconds, which makes it more flexible than other cryptocurrencies. The is facilitated by the use of the Turing-complete language that ensures any code or script can run on it, and consequently, any computer is able to use its algorithm. Major innovations are also bound to happen on the Ethereum platform that will make it even faster. The platform is set to transition to PoS (proof of stake) where transactions will be validated by users staking wealth rather than miners expending energy. Sharding, which will be a complex scaling procedure for Ethereum, is expected to be implemented by 2022, and it will make the platform even 100 times faster than it is at present.
Cryptocurrencies utilise advanced encryption technology to ensure transactions are immutable, and thus secure. Ethereum is also one of the most secure blockchain projects and its smart contracts solve the issue of security when making digital peer-to-peer deals.
Where to Buy Ethereum?
Ethereum can be bought through an exchange or a CFD brokerage firm. The process of buying Ethereum through an exchange is a little complicated and involves acquiring a crypto wallet (hardware or software). When you buy Ethereum at an exchange, you will actually possess the coins and will need your private keys so as to access them any time you wish. It is important to point out crypto hacking headlines have always involved exchanges, so it is important to perform due diligence and research on how to best secure your coins.
The Best Place to Buy Ethereum
The best and actually, the cheapest way to buy Ethereum, is using CFD brokers. You will be able to exchange the coins for fiat, without the hassle of storing or worrying about their security. Cryptocurrencies are inherently volatile assets and Ethereum CFDs will help take full advantage of the price fluctuations, no matter the direction of the price movement of the digital currency.
We have researched the best brokers who offer Ethereum CFDs as well as other cryptocurrencies and tabulated only the best ones below. These brokers are reputable, trustworthy and offer the best environment to speculate on the price changes of Ethereum.
Pros and Cons of Buying Ethereum CFDs
After understanding the basics of Ethereum (the platform and cryptocurrency) as well as the regulatory aspects, it is important to understand the advantages and disadvantages of buying the coin.
Pros of Buying Ethereum
- Liquidity – We have already mentioned that Ethereum is the most used cryptocurrency in the world. This essentially means that Ethereum has high liquidity and at any given time, there are sufficient buyers and sellers of the coin. High liquidity also means that buying Ethereum is cheap, with low spreads at reputable brokers.
- Volatility – Ethereum is a volatile coin and its involvement with multiple big companies means that its price movement can be influenced by a multiplicity of factors. In the CFD market, high volatility implies numerous lucrative trading opportunities, and Ethereum delivers this round the clock.
- Accessibility – Ethereum is one of the most popular and major cryptocurrencies in the world, making it highly accessible on virtually all brokers that offer crypto CFDs. The brokers are also easily accessible, and you can start trading without the unnecessary hassles of creating a wallet and storing your coins securely.
- Security – There is absolutely no security risk when buying cryptocurrencies, such as Ethereum, with reputable CFD brokers. You will be speculating on the coin’s price movement and not actually owning the cryptocurrency. This means that you do not have worry about the safety of your asset. CFD brokers are also subject to stringent regulatory measures, which prioritise the safety of investors.
Cons of Buying Ethereum
- Instability – Price instability is an inherent feature of cryptocurrencies, with sudden huge spikes in any direction largely the norm. Prices are sensitive to many factors, such as regulation, adoption or simply risk sentiment among investors. For regular Ethereum buyers, this presents a huge risk proposition, but Ethereum CFD investors can actually view this as an advantage because they can make money in both rising and falling markets.
- Regulatory Risk – While Ethereum is not illegal, it still resides in the legal grey area in some jurisdictions. A few countries have also placed a blanket ban on cryptocurrencies, and this can affect buyers in such nations. Still, a ban is an extreme scenario in most countries, but even headlines of governments considering legalising or regulating Ethereum and other cryptocurrencies trigger huge price movements on the coin. This is a risk that is hard to take into account for any investors, but again, when trading CFDs, it presents another source of profit opportunity.
Is There a Difference Between Buying or Trading Ethereum?
Ethereum is one of the best and most promising cryptocurrencies at present. But what is the difference between buying and trading the coin, and which is the most ideal for you?
Consider the following factors when you wish to take advantage of the lucrative opportunities offered by Ethereum:
When you buy Ethereum on an exchange, you actually own the digital coins and will be required to store them in a wallet (online or offline). You will need your private keys to access them any time you wish to.On the other hand, when you trade Ethereum with a CFD broker, you do not own the coin. You only seek to make money out of the coin’s price changes.
Nearly every major crypto exchange has experienced some form of cyber-attack, which places all the cryptocurrencies held there by the company or by investors at risk. Individual Ethereum holders also risk losing their coins if they forget their private keys or misplace their hardware crypto wallets.When trading CFD, security is a complete non-issue. CFD brokerage firms are the most regulated financial institutions globally and only provide the platform for speculation. No coin is at risk simply because no coin is owned when you are trading Ethereum CFDs.
You will eventually need to cash out your profits when you decide to invest in Ethereum. On most exchanges, cashing out the value of your Ethereum involves a complex process of first exchanging the coin to Bitcoin, and then finally to fiat. As well, in an exchange, you may experience some liquidity issues if you are looking to sell huge amounts of Ethereum, because you actually need a real buyer, which may be a challenge during bear markets.There is no hassle when cashing out your profits using a CFD broker. Your money will reflect on your trading balance and you can withdraw it using multiple safe and convenient payment methods.
Rising and Falling Markets
When you buy Ethereum at an exchange, the expectation is that the coin will increase in value. Ethereum has great fundamentals as we have discussed above, but like any other asset, it is bound to experience cycles of price boom and bust. When the price falls, Ethereum owners will take value losses.
When you trade Ethereum CFDs, you will have no such worries because you are speculating on the price changes of the coin. You will buy Ethereum when prices are rising and sell it when prices are falling. When trading Ethereum CFDs, you can profit whether markets are rising or falling.
Cryptocurrencies are a new asset class, and so are crypto exchange platforms. A crypto exchange is designed to facilitate the buying and selling of Ethereum and its platform has basic features to help you in this regard. The idea is that investors will buy Ethereum and other cryptocurrencies for long term returns.
On the other hand, cryptocurrencies are just another asset class available at CFD brokers.
Leverage allows for the buying and selling of financial assets with margin capital. Leverage enables investors to open a large trade position using minimal capital, which implies that profits are amplified. Leverage is a distinct feature for CFD brokerage firms, with some companies offering levels of up 1000:1. Most investors have been attracted to CFD brokerage firms because of leverage and other handy features. Crypto exchanges have taken the cue to maintain investors, but their minimal leverage offerings of barely 10:1 pale in comparison to those offered by CFD brokerage firms.
How Do I Buy Ethereum Anonymously?
How to Buy Ethereum Anonymously Online?
Much of the appeal of cryptocurrencies has been its decentralised peer-to-peer nature, but also its pseudonymous nature. Ethereum, like other cryptocurrencies, is stored in wallets, which together with transactions, are never tied to personal identities. This was the way it was intended, but we cannot say there is true anonymity. Regulatory concerns have always surrounded this aspect, with virtually all exchanges now required to collect relevant comprehensive customer identification details before allowing them to buy or sell cryptocurrencies.
How to Buy Ethereum Without ID?
This is similar to what CFD brokerage firms require from their customers so as to comply with various KYC (know your customer) and anti-money laundering guidelines of regulatory agencies. It is however important to note that regulated brokers are mandated to ensure that confidential client details are protected using the highest security standards and are never compromised or misused at any given time.
Which Payment Methods Can You Use to Deposit?
When it comes to signing up with a CFD broker, it is vital to select a broker that offers a secure trading platform including safe options to both deposit and withdraw funds.
Payment Methods Online
Most CFD brokers will offer a wide choice of online payment methods. This will include popular credit cards, debit cards as well as bank transfer. Some brokers also offer eWallet payment options including Skrill, Neteller and many others. Before signing up with a broker, take the time to check that they offer your preferred payment option.
Does it Matter Where I Live to Buy Ethereum?
Every country has its own laws and regulations when it comes to the buying and selling of cryptocurrencies. Detailed information regarding the legalities can be found online so take the time to check what the laws and regulations are that are related to your country of residence and ensure that you are investing within the regulations set out by the financial bodies in your country.
Which Places Accept Ethereum Payments?
Today, paying and transacting with cryptocurrencies has become more popular and so more and more stores are allowing their clients to pay using cryptocurrencies, including Ethereum. A simple search online will give you more information on which places accept Ethereum payments.
Places That Accept Ethereum Near Me
In my local area, there are many shops that accept Ethereum as a form of payment, even the pizza place. Ask your community representatives if they are able to provide more information regarding the places that accept Ethereum in your area.
5 Best Ways to Buy Ethereum
As a major cryptocurrency, Ethereum offers lucrative trading opportunities round the clock. As discussed above, Ethereum CFDs represent the best way to take advantage of the price movements of this amazing crypto coin. Most brokers now offer Ethereum CFDs, but to make the most of the opportunities the coin offers it is important to select a good company.
Here are the 5 top considerations you should consider:
This should be the very first consideration. Regulated brokers adhere to stringent guidelines imposed upon them by regulatory bodies that will guarantee the safety of your funds as well as a fair and transparent trading environment.
Trading Platform –
Ethereum is a volatile asset and to trade it efficiently, you will require a broker with an advanced trading platform that will stream live and transparent prices. As well, a good broker will also ensure you have the flexibility and convenience of trading on a mobile platform.
Payment Efficiency –
A good broker will ensure you have a wide range of safe, secure and convenient payment methods. The broker should also have a smooth withdrawal system that will not keep you waiting when it is time to enjoy your profits.
A top-notch broker will have a wide range of cryptocurrencies available for trading, alongside other asset classes such as Forex pairs, Stocks, Indices and Commodities.
Trading Resources and Customer Support –
A good broker will have numerous handy resources to aid in performing technical and fundamental analyses of Ethereum prices as well as other assets. A customer support team that is friendly, professional and responsive is also necessary to give you the best environment for your trading activities.
We have done thorough research on major cryptocurrency brokerage firms and selected only the best for you to trade Ethereum and other assets. All the parameters outlined above have been considered in selecting the brokers we recommend below.
Frequently Asked Questions
How to Buy Ethereum UK?
There are numerous crypto exchanges in the UK that allow the conversion of fiat to cryptocurrency. There are also peer-to-peer crypto trading sites that allow the buying and selling of major cryptocurrencies, such as Ethereum, using UK local payment methods.
Additionally, there are numerous reputable online CFD brokerage firms that enable investors to buy or sell Ethereum as well as other cryptocurrencies without owning the underlying asset.
How to Buy Ethereum CFDs?
To buy Ethereum CFDs, you simply need to sign up with a reputable and reliable CFD broker who will give you direct access to trade CFDs on their trading platform.
How to Sell Ethereum?
Selling Ethereum CFDs is simple and straightforward. On CFD brokers, Stop Loss and Take Profit orders will automatically close your positions. But you can manually close any trade by simply clicking ‘close’ on the Ethereum position.
How to Buy Ethereum Instantly?
Sign up with any of the above recommended CFD brokers and you can instantly buy Ethereum after completing your registration process. The registration process on all the above brokers is quick and easy; you can get it done within 3 minutes.
How to Buy Ethereum?
As discussed above, there are numerous ways to buy Ethereum. You can either purchase this digital currency directly through an exchange and then store it in your online or offline wallet. The other option is to buy Ethereum contracts for difference with a broker and here you are merely speculating on the direction that the price of Ethereum will move.
How to Buy Ethereum with a Credit Card
Credit cards are a convenient payment method for most investors globally. All the above recommended brokers accept credit cards as a form of payment, alongside other safe and convenient methods, such as eWallets and local bank transfer.