Nearly a quarter of Americans between the ages of 18 and 60 have zero retirement savings set aside for their future. Is cryptocurrency the answer to the world’s financial woes? Millennials and middle-aged baby boomers are jumping on the bandwagon searching for answers. But where can I purchase cryptocurrency like Ehtereum?
We’re here to help break down everything you need to know about how to purchase this rising new currency, step by step.
What is Ethereum?
Ethereum (ETH) is a decentralized currency platform of which cryptocurrency known as ‘Ether’ can be bought and sold. Ether is a token that can be purchased using Ethereum’s community-built blockchain technology. Programmer Vitalik Buterin is the creator of Ethereum and a major contributor to the coin’s success.
With the use of blockchain technology, Ethereum has created a marketplace ecosystem with options far greater than just making payments. Not only does the blockchain secure all of the data for both the buyer and the seller, but it also allows you to send currency almost instantly to purchase things like apps, games, and other financial services that the Ethereum network provides.
How does Ethereum work?
Through the use of blockchain technology, Ethereum network helps connect individuals peer to peer without any centralized banking interference. A blockchain is a collective of information stored into groups known as “blocks”. Once these blocks have filled up with information, they link together to create a more secure group of data known as a “blockchain”.
Pros of Ethereum
Peer To Peer commerce guarantee
One of the biggest pros of Ethereum is the peer-to-peer commerce guarantee. With Ethereum’s built-in blockchain security, coins can only be exchanged if the agreement is granted by the coin holder.
Staking your assets
With exchanges such as Coinbase, you will be able to stake your Ethereum assets and watch them grow with interest. Staking your assets is equivalent to a savings account with interest– with provisional guidelines.
By staking Ethereum crypto, your contribution will help developers create stronger security for the blockchain on the Ethereum network. Exchanges like Coinbase are currently paying consumers 5% APR for staking assets with the highly anticipated ETH2 Project.
Cons of Ethereum
Good things always come with a price tag, and crypto gas fees can be a little costly at times. Whenever Ethereum is bought, sold, or traded, a fee paid in ETH of +1.39% is charged to the consumer for each transaction. This fee is known as a “gas fee” paid for by the consumer to account for the computational energy necessary to complete the transaction.
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With any investment, there’s always a level of risk. Investing in cryptocurrency is no different. If you don’t have the financial means to invest in high-priced coins such as Ethereum, consider getting a side hustle or doing odd jobs to help grow your crypto portfolio.
Steps for buying Ethereum
Selecting the platform to buy, sell and trade your crypto with is very important. If you want the most returns on your investments, make sure you’re choosing your exchanges wisely. Depending on which platform you choose, you can earn interest rates as high as 5% APR on select crypto holdings. Ethereum can be purchased on exchanges such as Coinbase, Crypto.com, and Voyager.
Now, let’s walk you through how to buy Ethereum on Coinbase. Let’s get started!
Step 1: Qualifying Criteria
- Must be 18 years of age or older with proof of a government-issued ID (Passports are not accepted for this platform)
- Must be connected to the internet via smartphone or computer.
- Valid phone number connected to your smartphone to receive SMS text messages for the account verification process.
Step 2: Account Set-up
Ethereum can be purchased on many popular web platforms and apps. It is recommended that you sign up for any platform on a secure connection. If you are looking for an easy way to buy Ethereum, join waiting list for MoneyLion Crypto!
Step 3: Personal Information
Most cryptocurrency accounts will need some personal information in order to verify your account. You may be asked some of the following to set up a crypto account.
- For the security of your account, you will need to provide a picture of your government-issued ID as well as your name, date of birth, and current address.
- You’ll likely need to answer a series of questions in regards to your current occupation, employer, last 4 of your social security number.
Step 4: Payment Method
- For larger Investments, consider payment methods such as linking your bank account (ACH) and or Wire Transfer.
- For smaller investments, consider payment methods such as linking your debit card, Apple Pay, or Paypal.
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Begin your crypto investing journey now!
It’s never too late to start investing in cryptocurrency. Ethereum is just another shining example that decentralized banking is alive and well. Knowing the pros and cons of every crypto is important to understand before choosing how much money you are planning to invest. Let us help you with unexpected expenses and secure your financial future with our new safety net feature! Simply set up a direct deposit and use our all-in-one banking solutions like Credit Builder Loans, Instacash and Round-Up!