Published on August 8, 2022
How to Buy and Transfer ETH
How to safely purchase and transfer Ethereum and cryptocurrencies to your Web3 wallet for buying NFTs and using dApps.
9 min read
When talking about cryptocurrencies, a few key tokens always come up — one of them is Ethereum. The Ethereum blockchain token is usually called Ethereum, Ether, or ETH. ETH sits right behind bitcoin as the world's second-most popular cryptocurrency, with a market cap of over 200 billion dollars.
The main reason for Ethereum's popularity is its utility and the sheer number of projects being built on the blockchain — such as NFTs, DeFi protocols, blockchain-based games, and dApps, just to name a few. In addition, Ethereum's familiarity and usefulness make it one of the most suggested coins for beginners to stick by while investing in crypto.
This article will explain how you can safely buy ETH or any cryptocurrency. We'll also guide you through the process of securely transferring ETH to a crypto/Web3 wallet.
Why Buy ETH or Any Cryptocurrency?
The first reason for anyone to buy ETH is to use its various applications. For example, you might want to mint an NFT, build a dApp, or use it to transfer money instantly. Whatever your reason is, buying ETH is necessary for you to leverage any applications or complete any transaction on the Ethereum blockchain.
This is not financial advice! Investing in cryptocurrencies is very risky, and there is always the chance that you will lose everything!
The second reason might be to view it as an investment. Although Ethereum is a volatile asset, it is backed by big hedge funds and many fortune 500 companies. Some people even think that ETH is a better option for investment than bitcoin as it is not limited to transferring money.
Ethereum can be a quality investment, but make sure not to put all your money in a volatile asset like ETH. For example, the value of one ETH was around $5000 in November 2021, but now it is only about $1500. So, you can see the amount of difference it shows in not less than a year.
You can buy any cryptocurrency for similar reasons and according to your personal needs. Each cryptocurrency has its own risk and applications, so research thoroughly before investing.
Now that you know the risks of buying ETH, let's review the different ways you can purchase ETH.
Different Ways to Buy ETH
There are numerous different ways to buy ETH, but these are the three suggested by ethereum.org (the official Ethereum foundation website):
These platforms let you buy cryptocurrencies using traditional fiat currencies. You can also usually swap one cryptocurrency for another, like bitcoin to ETH. Because they are custodial, centralized exchanges have custody over your ETH until you send it to your wallet. Some examples of centralized exchanges include Coinbase and Binance.
These exchanges let you swap your tokens or fiat to get ETH from a peer-to-peer method. They connect buyers to sellers and use a smart contract to safeguard funds during the transaction. DEXs don't have any custody over your ETH, but tend to be less beginner friendly. Some examples of decentralized exchanges include UniSwap and SushiSwap.
Some wallets allow you to buy and transfer crypto to your wallet directly through payment methods like credit cards, debit cards, and bank transfers. To learn more, take a peek at the best Web3 wallets.
Ethereum ATM - These are ATMs located at various physical locations to buy crypto. You just need a crypto wallet and cash to buy crypto from such ATMs.
The problem with decentralized exchanges is that most of them need you to have some level of crypto in your wallet prior to exchanging it for ETH. In the case of Ethereum ATMs, you might face a lack of availability of such ATMs in your area. As a result, we will stick with centralized exchanges in this article because they are the easiest way for beginners to buy ETH.
As you learn how to buy ETH, you will be able to buy most other cryptocurrencies similarly.
Find the Right Crypto Exchange
To buy ETH, you have to choose a suitable crypto exchange. You can go to the Ethereum website and visit the "Get ETH" section to know the exchanges and wallets available in your country. The most popular crypto exchanges are Binance and Coinbase.
There are some other factors you have to keep in mind while choosing a crypto exchange:
The fees for each crypto exchange vary, so make sure to compare them as well before opening an account.
Now that you have chosen a suitable crypto exchange, it's time to open an account and start trading. To open a crypto exchange account, you must fill in some personal details and verify your identity to get started. These details must follow Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Once you complete the verification, you are ready to buy ETH. The first step you'll need to take before buying ETH, is funding your account.
Add Money to Your Account
You can fund your account with several payment methods, but as mentioned before, it depends on the crypto exchange.
One important thing to note is that funding your account from a debit card or bank transfer is easier than funding it from credit cards. There are two major reasons behind why:
Still, if you want to buy ETH from a credit card, make sure the crypto exchange you choose allows credit cards as a method to fund your account.
Place an Order for ETH
Once your account is funded, you can start trading your fiat currency for Ethereum. First, you have to find the buy options on the chosen crypto exchange. After that, select the amount you want to buy or the amount of fiat you want to spend to buy ETH. Most exchanges show the conversion rate along the trading option, so you won't face any problems.
If you face any problems due to the interface or you want to double-check the price of 1 ETH, you can go to the "Get ETH" section on the Ethereum Website. It shows you the price of 1 ETH at that moment. If you don't want to buy a whole ETH, you can buy fractions of it so that you don't have to spend much money.
Now that you have learned how to buy ETH on a centralized exchange, you can use the same steps to buy many other cryptocurrencies.
Buying ETH With Paypal
If you want to buy ETH through your PayPal account, it can get a bit tricky as most crypto exchanges don't offer it as an option. But there is one platform, eToro, that allows you to buy ETH with PayPal.
The method to buy ETH on eToro is similar to the one mentioned above. Make an account, fund it using your PayPal account, and then you are ready to exchange your fiat for ETH.
You can buy, send and even hold your cryptocurrencies on eToro. It can also be used to buy other cryptocurrencies with the same method.
Transferring ETH to your crypto wallet
When you buy ETH on any crypto exchange, your ETH will be stored in the wallet created by the exchange account. Some people prefer to keep their crypto in their exchange account, but if you want complete control over your assets, it's always wise to transfer your ETH or cryptocurrency to an external wallet. You can store your crypto in either a Hot or Cold wallet.
The two most accepted hot wallets are Coinbase and MetaMask, and it's easy to make an account on both of them; just follow the linked guides. When creating a crypto wallet, you must keep your seed phrase safe. NFT and crypto security, in general, are hugely important, as no one can help you access your account if you lose your seed phrase or help you get your assets back if they are stolen.
Hot wallets are great for small amounts of crypto. Because these wallets are connected to the internet, there is still a chance of an attack.
You can opt for Cold wallets to store large sums of crypto for additional safety. These external devices are not connected to the internet and cost around $50 to $200. While cold wallets may be less convenient to access your ETH or crypto quickly, they are the safest option for storing digital goods.
Now that you have some ETH in your wallet, you're ready to buy some NFTs or start interacting with dApps on the blockchain. There are many types of NFTs and many NFT marketplaces, so take some time to get comfortable with all your options. And of course, if you're looking for the best way to spot NFT projects early, icy.tools will be your best friend!
Hit the gas!
What makes Ethereum fantastic? It can be used to purchase NFTs, build dApps, and swap for other cryptocurrencies. As cryptocurrencies become a daily part of the internet economy, it is important to know the basics of buying and transferring Ethereum. With that in mind, cryptocurrencies are volatile assets, so always do your own research while buying ETH!
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