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Ethereum is a blockchain whose principal use is smart contracts. A smart contract is a piece of code that lives on the blockchain, the innovation behind the decentralized money (DeFi) industry. Smart contracts are important in the insurance industry, as well as in healthcare, real estate, and the gaming industry. Ethereum also hosts its own cryptocurrency, called Ether. Although Ether has a lot of competitors, all of whom want a piece of the pie, it ranks second only to Bitcoin in terms of market capitalization.
How Can Someone Purchase Ether?
Cryptocurrency platforms offer popular ways to purchase and sell cryptocurrencies. Using one of these platforms, you can invest government-issued money such as US dollars into cryptocurrencies. Usually you can do so for reasonable fees. Many of these platforms also offer a wide selection of tradable coins. The chief disadvantage of trading cryptocurrencies is that these trades are not fully regulated by most of the world’s governments.
Most cryptocurrency platforms also offer versatile applications that make it simple to execute quick trades such as purchasing Ether. You can pay for an Ether purchase by using your credit or debit card, a bank transfer, or with applications such as Venmo and PayPal.
What Are the Fees That Come with an Ether Purchase?
Different cryptocurrency platforms charge different fees. Unfortunately, there isn’t a great deal of consistency in how those charges are determined.
So when you’re choosing a platform for your cryptocurrency trades, look for a platform that is known for its reliability and stability. Also, look to see if their fees seem reasonable to you.
Where Are the Best Places to Purchase Ether?
The Margex platform is a good place to start your search for a good cryptocurrency trading platform. Especially if you’re looking to purchase Ether, Margex can be a reliable choice.
The first time you purchase Ether you might feel a little intimidated or overwhelmed. This is natural, as there are so many choices when it comes to cryptocurrencies and cryptocurrency trading platforms. However, it’s simply a matter of finding the right platform for your style of trading, then choosing the cryptocurrency coin you want to start your tradin with.
What Fees Will You Need To Pay?
Overall, are three kinds of fees to watch for:
- Platform fees
- Trade fees
- Withdrawal fees
Below are brief explanations of each type of fee:
1. Platform Fees
A platform’s fees could change depending on whether you need to make your deposits by cash, by credit or check card, by bank transfer, or some other way. Some platforms let you invest at no charge when you use a bank transfer. Charges for credit card installments are generally 3% to 5%. But if you transfer cryptocurrency resources from another platform, you could have the option to invest with a new platform for free.
2. Trade Fees
Trade fees can eat into your profits without your noticing. For example, a platform might even charge you a set monthly fee for trading with them. However, some platforms offer discount rates, so be sure to look for those. However, be wary, as platforms that offer low fees might also give poor customer service.
3. Withdrawal Fees
Withdrawal fees can differ widely from one platform to another and from cryptocurrency to cryptocurrency. However, a few platforms give a certain number of free withdrawals every month.
Most platforms list their fees separately for each cryptocurrency. These can range from a small percentage of a cent to $100 or more. Therefore, it’s occasionally worth trading your holdings for a less expensive cryptocurrency before you make a withdrawal.
Suffice it to say that fees are seldom standard across all the different cryptocurrency trading platforms. For instance, you might find a cryptocurrency platform that allows you to trade Ether and also offers free trades. However, you might also discover that they charge you a truckload of cash when you want to withdraw your assets.
How Secure Is the Platform You’re Choosing for Your Ether Purchase?
The Margex platform keeps your resources more secure than some other platforms do.
Cryptocurrency speculation is an interesting world. Unfortunately, one of its more “interesting” features is its propensity to attract some of society’s darker elements. Furthermore, as it’s quite a new industry, it has taken some time—and some high-profile hacks—for major cryptocurrency platforms to implement the security measures common to banks and other financial establishments.
Therefore, if a cryptocurrency platform isn’t forthcoming about its security standards, view this as a red flag. Sometimes you might find a platform is rather secretive about its security measures, ostensibly for the sake of said security itself. Nonetheless, such a lack of information can be misleading. There’s a lot of information a cryptocurrency trading platform can reveal without jeopardizing its security structure.
Are There Any Sign-Up Rewards?
Different platforms offer different sign-up rewards for new investors. You might see a platform that gives you a small bonus when you start an account, for example. You might see another that offers a reward when you make a certain number of trades with Ether or another digital coin, or if you invest a certain amount of cash.
While these offers are enticing, don’t allow them to make your decisions for you.
Does the Platform Have All the Features You Want?
If you’re purchasing Ether for the first time, you’ll want an easy-to-use platform that has plenty of how-to articles and tutorials. Also, assuming you favor mobile apps so you can execute trades on your smartphone, search for a platform with a decent mobile application.
Other helpful elements include:
- The capacity to set up automatic month-to-month trades or investments
- Great customer service
- A reliable crypto wallet
Does the Ethereum Platform Use the Proof-of-Stake Method or Proof-of Work?
Ethereum is undergoing a major transformation to a different framework to make it more adaptable, more economical, and more secure. One major reason for the overhaul is to change the manner in which Ether is derived. These changes are moving the Ethereum platform from proof-of-work mining to the proof-of-stake method. This makes the platform more energy-efficient.
Under the proof-of-stake method, individuals can stake their Ether tokens to earn rewards. Currently, you can choose to support the progress to the new network if you’re willing to tie up your Ether tokens for an extended period. If you think of yourself as a long-term investor, this is an excellent method for earning good profits from your Ether speculation.
One more method for earning profits on your cryptocurrency investments is to take out a loan using your cryptocurrency investments as collateral. Basically, a cryptocurrency platform will make you a loan based your Ether coins and advance you the money. While this might represent a financial risk you’re not willing to take, this could be good information should you ever find yourself in financial straits. At least you’ll know you have your cryptocurrency assets to fall back on. Therefore, search for platforms that offer loans against your crypto assets.
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Does the Platform Offer a Wide Selection of Cryptocurrencies?
To purchase Ether or bitcoin (BTC), as well as some other digital coins, you don’t need to purchase an entire token. Instead, you can purchase only a percentage of the coin, if that is what your budget will allow.
Be that as it may, assuming you see purchasing Ether as your first step in a more extended cryptocurrency trading adventure, you might want to choose a platform that offers a wide selection of other cryptocurrency coins.
It’s worth understanding the platform’s policy on adding new coins to your portfolio as well. For example, does it force you to sift through mountains of policies to figure out how to make a trade? Or does it make it easy for you to trade cryptocurrencies as you please?
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The Bottom Line
Don’t be afraid to try out several different cryptocurrency platforms and put them to the test. However, don’t invest your hard-earned cash on Ether or any other cryptocurrency unless you’re comfortable with the way the platform operates.
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