Despite buying of Ethereum should not be difficult even for novices, it’s worthy to advance your knowledge on this issue to keep your funds safe. This step-by-step guide will help you with doing so.

Ethereum (ETH), the digital token created in 2015, comes as the second most valuable cryptocurrency after Bitcoin (BTC). Its founder, Vitalik Buterin, came up with the idea of creating his own token after being a part of Bitcoin community.

The main difference between the two most popular digital currencies is the blockchain technology: while Bitcoin as itself is nothing more than a digital token and only used as a form of payment, Ethereum is taken one step further and proposes a ledger technology on which smart contracts can be built.

As follows, investors’ interest in ETH is warmed up by the opportunities of building decentralized applications on the top of Ethereum blockchain. And, as a reality, many of the world’s largest public companies already made their investment footprint in that field.

The examples can be found in any business area: banking (UBS, Citigroup, BNP Paribas), in software and IT (Google, Microsoft, Siemens), retail and supply chain (Amazon), consumer electronics (Intel, HTC, Samsung) and many more. And that is not the end – as predicted by software company Cision, the market of blockchain technology will reach the mark of $20B by 2024.

Individual investors are also attracted by Ethereum but in a different way: it is rather considered as a worthwhile alternative to its notorious sibling, Bitcoin. While both tokens maintain a high volatility index, ETH is still priced significantly lower than BTC (almost a 5-time difference!).

As a result, with the same amount being invested in both cryptocurrencies, investment in Ethereum will result in a less substantial loss than that of BTC. What is more, Ethereum offers almost 15% higher return on investment (ROI) than Bitcoin does.

Difference Between Ethereum and Ethereum Classic

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One important aspect to be explored before investing is the distinction between original Ethereum its close alternative, Ethereum Classic (ETC). Coming into existence the same year of 2015, the second version appeared as a result of “hard fork” – the split of the original blockchain network into two.

That means, up to this day there are two distinctive platforms existing – Ethereum Classic (original chain, named “classic” therefore) and another that appeared in the aftermath of the fork – Ethereum. However similar they may sound, it is important to differentiate the two. Though ETH and ETC share the same fundamental features, Ethereum is based on the brand new version of blockchain and runs on a newer protocol. That makes ETH more attractive for miners and the community as a whole.

However, what else has to be mentioned is: Ethereum Classic has always been a lucre for speculators, while ETH had long-term orientation from the very start. ETH platform is constantly developing, and there is a chance that a few more forks will occur in the future. Besides, the difference in market cap says for itself: Ethereum stands on the market with more than $23 billion while ETC is only valued at $680 million (as for the July 2019).

Ethereum Buying Process

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Sometimes, the wallets are developed in cooperation with exchanges, so that makes the whole process of trade substantially easier. As an example, with Kraken and Coinbase you simply need to register once, and later on, you will be able to complete the trade straight from your wallet. Plus, Cypto.com offers a wallet to which you can order a Visa card free of charge. Then, later on, you may consider using your store crypto for daily purchases and subscription payments, as the platform encourages its users with generous benefits.

One more unconventional solution is to acquire ETH through Ethereum ATM. This way is considered to be ideal for the ones intending to buy Ether in small amounts. Ethereum ATMs have more benefits over exchanges in this case since the users will not have to undergo the procedure of KYC and full identification process. However, one thing is still required prior to the start – take care of setting up your Ethereum wallet. Once that is done, you can start identifying the facilities near you with the help of CoinATMRadar.

Ethereum definitely stores the potential for investment. If it achieves its main target – becoming the global network behind payments and transactions with no third party behind – then, most certainly, the bright future of Ether is not over the hills and far away.