Buy Ethereum: is it worth? How to buy Ethereum
Published: April 12, 2021 by Andrew
How to Buy Ethereum is a question that many are asking, especially since this cryptocurrency went from $ 8 at the beginning of 2017 to over $ 1000 at the end of the same year. In this guide we will examine how to buy Ethereum and if it is worth doing it.
How do you buy Ethereum?
- Register on a regulated CFD Broker, preferable to exchanges.
- Practice on a Demo account to familiarize yourself with the platform.
- Make the minimum deposit and start investing seriously.
Here are three simple steps that allow you to buy Ethereum safely and without extra costs.
This method is the simplest and cheapest way to invest in cryptocurrencies and online brokers like eToro offer high security standards, so they are preferable to exchanges and in the rest of the guide we will explain the reasons.
Here is the table of the best platforms available in Europe to buy Ethereum and other cryptocurrencies, safely and without paying commissions:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
What is Ethereum?
To understand what Ethereum (ETH) is, you need to become familiar with some terms that are part of the universe of Cryptocurrencies, such as blockchain and Smart Contracts.
Ethereum was launched in 2015 as a decentralized platform based on blockchain, to create and execute Smart Contracts and Dapps, ie distributed applications with the advantage of not having “downtime”, the possibility of fraud or manipulation and interference by third parties.
In addition to the platform, Ethereum is also a programming language that runs on blockchain and obviously a token with a market value.
What is Ethereum blockchain?
A blockchain is a shared ledger managed by many computers called nodes. These nodes work to verify the information that is written into the registry.
Each node has a copy of this “register” which therefore cannot be modified or altered by a single node, this is what decentralization means.
Ethereum has improved the blockchain compared to that of Bitcoin, introducing smart contracts (Smart Contracts) and a remarkable speed of execution of transactions.
These Smart Contracts are contracts that cannot be broken, let’s take an example to understand how they work.
For example, if a customer wanted to pay for a car with Ethereum (ETH), once the money was sent to the manufacturer, a Smart Contracts would automatically register the car in the customer’s name without the possibility of manipulation or scam.
This type of contract makes transactions safer, which is why they are spreading.
Read also: Buy Ethereum Classic
Ethereum powers the blockchain
The Ether (ETH) or the actual tokens, feed the blockchain and the whole Ethereum system.
The nodes that confirm the transactions are paid with Ethereum which in practice allows the operation of the whole system, this process is called mining.
The price of Ethereum (ETH), due to the demands and use of the platform, fluctuates a lot and this is one of the advantages that make it so interesting for speculators.
But is it ultimately worth buying Ethereum? We see it in the next paragraph.
Is it worth to buy Ethereum?
First of all we must say that Ethereum is the second cryptocurrency in the world by market capitalization but its value depends a lot on how much its ecosystem will be used in the future.
Compared to its predecessor Bitcoin, which can take up to 10 minutes for a transaction, Ethereum is very fast, we are talking about a few seconds and Smart Contracts are really efficient but it is not easy to establish the value of this cryptocurrency.
The use of these smart contracts and the Ehereum platform is growing and with this spread it is likely that the price of the cryptocurrency will increase over time.
For this reason, buying Ethereum can be one of the most profitable forms of investment ever, its value could increase exponentially and this is why many investors are betting on ETH.
Above we can see the historical trend of Ethereum, now that we have seen the advantages of this ecosystem, let’s try to understand how to buy Ethereum safely, possibly without paying commissions.
Buy Ethereum: Real-time quote
Let’s take a quick look at the current price of Ethereum, with the ability to monitor recent performance and see what the trend is.
How to Buy Ethereum
To buy Ethereum (ETH) there are two methods and we will examine both of them, listing their strengths and weaknesses to find the most convenient and safe one.
The first method involves the use of cryptocurrency exchanges, exchange sites that allow you to convert cryptocurrencies with each other and with traditional currency by payingcommissions.
Here are the Pros and Cons of the Exchanges used to buy Ethereum.
- You can actually hold cryptocurrencies and use them to pay for products and services with Ethereum (although very rare).
- There are fees to be paid for each transaction
- Exchanges are not regulated and do not have to follow any regulation to protect the deposited funds.
- You only make money if Ethereum (or any other cryptocurrency) increases in value
- There are serious security problems due to the frequent cyber attacks they suffer.
Buy Ethereum with the best Platforms
The alternative to exchanges are trading platforms or CFD brokers that allow you to buy (and sell) Ethereum and other cryptocurrencies in a safe, fast and cheap way.
Here are the Pros and Cons of CFD Brokers that allow you to buy Ethereum.
- These are regulated and safe intermediaries
- You can invest both up and down and earn even in the event of a price collapse (if you make the right forecast)
- There are no commissions
- There is no risk of cryptocurrency theft.
- Cryptocurrencies are not owned “physically” and therefore cannot be used to buy products and services with Ethereum.
Now it is very clear what is the best way to buy Ethereum, at this point, once we have chosen the Broker to invest, we must:
- Buy Ethereum CFD to profit from price growth
- Sell the Ethereum CFD to profit from the price drop
Once the desired level is reached, we close the operation and we can withdraw the net profit, without commissions.
eToro: Intuitive platform and automated trading
eToro is the most used CFD Broker in the world and its reliability and security have convinced over 7 million users.
The CONSOB license is one of the authorizations that this Broker has and below we can see the platform with the Ethereum CFD in evidence:
To buy Ethereum you have to click on “Trade”, decide whether to buy or sell the cryptocurrency and how much to bet in the single operation.
But in addition to the intuitive platform we have just seen, eToro has become so popular for an automatic investment system that it has patented: Copy Trading, a feature that allows you to copy the operations of the best traders in the world (on eToro).
To use Copy Trading just follow these steps:
- Register on eToro
- Choose the traders to copy (among the best available) and filter (if you want) those who invest in cryptocurrencies
- The software will copy all their trades on the market, in a free and fully automated way.
Thus you will get the same returns as the copied traders (based on how much you have invested in them).
Below you can get an idea of the average returns of traders that you can copy on eToro:
Thanks to Copy Trading anyone can make money as an expert trader, because they copy their operations!
To try the platform and Copy Trading without risking anything, you can use the free Demo account, it is identical to the real one but the money is virtual.Click here to sign up for free
ForexTB: Course and Free trading signals
ForexTB is a famous broker for the support and training it provides to its users for free.
The training begins with a trading course that is considered the best on the market. This is an ebook that explains the basics of technical analysis and online trading in a detailed and clear way. It is also free and can be downloaded from the link below:Click here to download the trading course for free
ForexTB is registered with the CySEC which allows this Broker to offer its services throughout Europe with two free trading platforms:
- Metatrader 4 is a platform with numerous tools available, which meets the needs of the most experienced traders.
- The web platform is simple and accessible from any browser, and below we see it with the Ethereum CFD in evidence:
The user support provided by ForexTB reaches its peak with the Free Trading Signals sent to all investors. These are very reliable operational indications, developed by Trading Central, which reach a success rate of 70% and can be activated thanks to the free link below:To get the Trading Signals for free click here
To evaluate the trading platform without risk, there is the Demo account (offered free by ForexTB) which allows you to trade with virtual money.Click here to sign up for free
IQ Option: Minimum deposit and educational tools
IQ Option is a CFD Broker that stands out in the world of trading intermediaries, especially for the minimum deposit it requires from its real users: 10 Euros.
The fact of being able to open a real account with only 10 euros brings even investors with very small capital closer to online trading, offering them a very professional platform.
With IQ Option, you can buy Ethereum with a couple of euros of investment, and evaluate the strategy without taking big risks.
The license governing this broker is the CONSOB license, which guarantees the reliability of this broker.
The indicators on the IQ Option trading platform are easy to use and if you want to learn more about some aspects of trading, there is a training area with educational material that is made available for free.
To start it is not necessary to deposit the 10 Euro, you can still try it first on the Demo account, without risking anything.Click here to sign up on IQ Option
Buy Ethereum: 2020 trend
We know that 2020 was the year of cryptocurrencies. Since the Bitcoin explosion, almost all other cryptocurrencies have achieved noteworthy performances and, of course, the second in class has not been outdone. Let’s take a quick look at what the mid-year forecasts were and see if they’ve been held.
For the future of Ethereum, the main analysts expressed themselves like this:
- Coinswitch believed that 2021 would be an extraordinary year for Ethereum. The price was set to rise to $ 1600 as early as the end of 2020, as Dapps and Smart Contracts were growing very rapidly.
- Trading Beasts, ETH was expected to reach $ 900 by 2020, with an average price of $ 650.
- CoinKir, a crypto forecast site, believed that Ethereum could revisit its all-time high of $ 1,400 by the end of 2020.
- Brian Schuster, the founder of Ark Capital LLC, was quite bullish on the long-term price of ETH. In fact, he saw the coin reach $ 100,000 in five years.
- TieuLong FX, a forex trader, believed that Ethereum could reach $ 1,365 by the end of the year.
- Nigel Green, CEO of the deVere group, believed that Ethereum could close the year at $ 2,500.
The growing use of smart contracts, the increase in demand for cryptocurrencies and the decentralization of cloud computing are dragging the price of this cryptocurrency upwards, as was also anticipated by the 3-month charts that showed a strong bullish trend.
Did Ethereum live up to expectations?
In reality, ETH has maintained its growth path with a rather regular movement, without recording dizzying take-offs as it did for Bitcoin. The third quarter of 2020, however, made investors very happy, who saw the lateral movement that had accompanied the previous months run out and a bullish trend that to date does not seem to be over yet.
The highest peak of 2020 was recorded on December 29, when Ethereum surpassed $ 732. If we think that just a few months earlier the value had dropped to 110, we understand how the performance, even if it did not reach the values hypothesized by analysts, was nevertheless extraordinary.
Buy Ethereum: Forecast 2021
What did not happen by December 31, 2020, took place at the beginning of 2021. As we can see from the graph, Ethereum entered the new year with a force that in a few days led it from 750 to widely exceed the quota 1250 dollars.
If these performances had already made investors and the simple curious of the cryptocurrency market shine their eyes, what happened in February definitively sanctioned ETH’s rush. In less than a week, the price of Ethereum has risen from $ 1300 to nearly $ 1740, for an overall growth of nearly $ 1000 since January 1.
What propelled Ethereum into orbit was the announcement of the landing of its futures on the Chicago Mercantile Exchange. According to analysts at JP Morgan, this step represents the common intention to further regulate the cryptocurrency market, in order to provide investors with an opportunity to diversify from Bitcoin and, at the same time, to protect existing ETH exposures.
Ethereum’s performances were exceptional: in the same period in which Bitcoin registered a + 30%, for ETH the growth rate was 120%.
In this guide we have analyzed what Ethereum (ETH) is and what it is used for, we have also exposed the strengths and weaknesses of the two most used methods to buy Ethereum and why we should choose CFD brokers, which are much safer and cheaper than exchanges.
To buy Ethereum, simply select the online Broker among those we have reviewed, start practicing with the Demo account and then move on to a small real investment by making the minimum deposit required by the broker.
Here are the official links to access the Demo accounts of the best CFD Brokers:
- Access eToro for free by clicking here
- Sign up for free on ForexTB by clicking here
- Access IQ Option for free by clicking here
Ethereum (ETH) is the second largest cryptocurrency in the world by market capitalization, with an ecosystem based on Smart Contracts.
Yes, but it is necessary to evaluate with which platforms to invest to do it safely and without paying commissions.
The best platforms to buy Ethereum (ETH) are CFD brokers like eToro.
The forecasts for Ethereum (ETH) are on the upside even if the targets are very different depending on the analysis. Find out which ones are in our guide.