Ethereum is not only the world’s second-largest cryptocurrency in terms of market cap but also the most popular platform for creating decentralized applications (DApps). Therefore, it is not surprising that investors and ordinary users are starting to wonder how to buy Ethereum.
The Ethereum platform uses its native token, Ether or ETH, to fuel its network. If you want to purchase ETH instantly, the first step is to create an online wallet to store your ETH balance. A common way to buy Ether and other cryptocurrencies is through centralized crypto exchanges.
How to buy Ethereum with a credit card
If you buy Eth through a centralized exchange (CEX), you do not need to create or have a digital wallet as the crypto exchange provides one for you where all your crypto holdings are stored in one location. On a centralized crypto exchange, you can buy different cryptocurrencies using a credit card. CEX manages users’ wallets and stores their private keys. Therefore, if you lose your account’s password, CEX can help restore access to your wallet.
Recommended reading: the best-centralized crypto exchanges.
In the case of choosing a decentralized crypto exchange (DEX), users need to create a wallet on their own first. On DEX, you cannot buy crypto directly with a car, but you can exchange fiat currencies for ETH in the crypto wallet, and then you can connect your wallet to a DEX of your choice to buy Ethereum. DEX does not store users’ passwords or private keys. Therefore, if you lose your wallet seed phrase or private key, you will lose access to it forever.
Recommended reading: the difference between CEX and DeX.
Steps to buying ETH on CEX
Once you register an account and verify your identity on a CEX such as Binance and Coinbase, among others, you can buy ETH with a credit card (VISA/MasterCard). Users can start buying and selling many crypto assets there safely. To complete a transaction, you will need to type your wallet address, pay the fees and price of ETH. Since this is a blockchain-based transaction, it may take some time to process. You can also buy ETH with a debit card or bank transfer which are usually available options on CEXs.
You can also buy ETH through other centralized entities such as an online payment provider such as Paypal.
To buy Eth from a decentralized entity such as an exchange or wallet, you need first to download a crypto wallet to store digital assets. The Ethereum Wallet is used for one currency, ETH, and can be downloaded from the official Ethereum.org website.
There are also multi-crypto wallets such as ZamWallet by Zam.io, which allows users to store, buy or sell over 200 types of alternative tokens and coins. Some crypto wallets are centralized and custodial, and in this case, you need to register and go through the verification process.
Other digital wallets are decentralized and noncustodial and therefore do not require users to verify their identity. Wallets are available for download on desktops and mobile phones from the app store, given that mobile wallets are safer than desktops. For more information, read the types of crypto wallets.
After installing the wallet on your device, you can buy ETH with a debit or credit card. You will receive a wallet address where you can deposit your ETH, as well as public and private keys. With noncustodial wallets, you get to control your wallets and keep your private keys. Never lose the backup seed phrase given upon the creation of a new wallet. If you lose access to your wallet then you can access it through this phrase.