How to Buy and Trade Ethereum Safely (2024)

David Azaraf | March 19, 2023
7 min read
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Ethereum, a trailblazer in blockchain technology, emerged as more than just a cryptocurrency; it provided the foundation for decentralized applications (DApps) and smart contracts.  Ethereum brought a new approach to how transactions are executed on the blockchain and created a vibrant ecosystem for innovation. 

With a market cap second only to Bitcoin, Ethereum continues to gather immense interest from investors seeking diverse opportunities. The blockchain’s rapid adoption, the growth of its native coin Ether (ETH), and the surge in DeFi (Decentralized Finance) applications underscore its role as a pivotal asset in the cryptocurrency market. 

Understanding Ethereum and Ether

Ethereum, unlike Bitcoin, transcends its role as a digital currency; it’s a decentralized platform fueling innovation. While Bitcoin focused on peer-to-peer transactions, Ethereum pioneered smart contracts and decentralized applications (DApps), automating and executing agreements without intermediaries.
Ether (ETH) is the native token of Ethereum. Its value is influenced not only by market demand but also by its utility – the more DApps and projects built on Ethereum, the greater its intrinsic worth. Market dynamics, driven by developer activity and the growing adoption of decentralized finance, collectively shape Ethereum’s prominence and trajectory in the ever-evolving cryptocurrency space.

How To Buy Ethereum (ETH) Safely

INX.One is a regulated cryptocurrency exchange that offers diverse methods with which to buy Ethereum (ETH) such as credit cards, bank deposits, and other cryptocurrencies. 

The variety of payment options makes it easy to buy and trade Ethereum on INX.one quickly. For example, you can easily trade your Bitcoin (BTC) or USDT for Ethereum (ETH) on INX.

Selecting a trustworthy cryptocurrency exchange is pivotal for a seamless Ethereum trading experience. INX.One takes multiple measures to safeguard your assets, such as proper segregation of funds and money transmitter licenses in 47 US states. INX’s user-friendly interface also enhances the overall experience, facilitating efficient transactions and analysis. Let’s take a look at how to buy Ethereum (ETH) on INX and store your tokens safely. 

User Guide for Buying ETH on INX

The INX.one Trading Platform allows investors access to multiple cryptocurrencies as well as security tokens. Here is a process guide you can follow to buy Ethereum directly on INX: 

  1. Create an account: This is a simple process that involves submitting basic personal information, getting your login credentials, and agreeing to the platform’s terms and conditions.
  2. Get verified: This involves completing the KYC (Know Your Customer) process by submitting your identification documents. This ensures the safety of your transactions and maintains standard financial regulations. 
  3. Fund your account: After verification, you can proceed to buy Ethereum. You will need to fund your account with either fiat (credit/debit card, bank wire transfer) or cryptocurrencies. Check out our all-in-one guide for funding your INX account.
  4. Buying Ethereum (ETH):  To purchase ETH, navigate to the trading section on INX, select ETH, and enter the amount you wish to purchase. Review and execute your transaction.
INX New Account Sign-Up Page

How to Store Ethereum Safely

Your assets are retained on the blockchain, but only you have access to them. Your private key gives you control of the digital currency and allows you to make transactions. There are two main types of wallets, custodial and noncustodial. 

  1. Custodial Wallets. These are wallets hosted by a third party that stores your keys for you. The ease of use and setup of custodial wallets have made them quite popular. Because they are “hosted” directly on the exchange where you purchased your Ethereum, these wallets can also be referred to as “exchange wallets.” 
  1. Non-Custodial “Hot” Wallets. Noncustodial wallets are wallets in which you directly hold access to your private keys. These wallets mainly fall into hot and cold wallets. Hot wallets are connected to the internet and can be accessed at any time. E.g. Metamask, Trust wallet, etc.
  1. Cold Wallets: Cold wallets are not connected to the internet and must be accessed using a device that is connected to the internet. This makes them more secure than hot wallets. E.g. Trezor, Ledger, etc.

Always remember to keep a secure backup of your wallet’s private keys or seed phrase in a safe location. Never share your private keys or wallet credentials to avoid getting hacked or falling prey to crypto scams.

A Look at Ethereum’s Price Action 

In August 2014, ETH was launched through an initial coin offering (ICO). 50 million ETHs were sold for $0.31 per coin, raising over $16 million for the project. Ethereum’s cryptocurrency has an unbounded supply, meaning there is no limit to how much ETH can enter circulation.

ETH has grown steadily over several years, reaching an all-time high (ATH) of $4,810 in September 2021. With ETH currently trading at $2,392, it has grown by 20% in December 2023 and 105% Year-to-Date. However, it is still about 110% from its ATH which presents a viable buying opportunity for interested investors.

Source: Coinmarketcap

Is Now the Time to Buy Ethereum?

Fundamentally, Ethereum has shown great resilience in the face of a severe crypto winter. This has contributed to the positive sentiment for this asset. From a technical standpoint, we have seen a solid support base established, followed by steady demand which has resulted in the bullish bias we have seen at the end of the year.

It is essential to have a predetermined strategy with definite and realistic goals. Investing in ETH, like any other cryptocurrency should be after thorough research and a clear understanding of the token’s market dynamics. Also consider your risk tolerance and investment goals because cryptocurrencies, including Ethereum, are known for their volatility. 

FAQs about Ethereum (ETH)

How do I buy Ethereum for the first time?

You can buy ETH tokens on cryptocurrency exchanges like INX. You will need to create an account with INX and complete the necessary KYC process. The next step is to fund your account through any of the available payment methods and proceed to the trading screen in order to buy Ethereum.

Can I trade Ethereum on any cryptocurrency exchange?

Ethereum is widely traded and available on numerous cryptocurrency exchanges. Choose a reputable exchange based on factors like security, regulation, fees, and user interface.

What is the best wallet for storing Ethereum securely?

Consider hardware wallets like Ledger or Trezor for optimal security. Software wallets such as MyEtherWallet (MEW) and MetaMask are also popular choices, providing a balance between security and accessibility.

What are smart contracts and how do they relate to Ethereum?

Smart contracts are self-executing contracts with the terms written in code. Ethereum pioneered smart contracts, allowing decentralized applications to run on its blockchain, automating and enforcing agreements without intermediaries.

Can I buy a fraction of an Ethereum token?

Yes, Ethereum is divisible, and you can buy and own fractions of a single Ethereum token. This divisibility allows for flexibility in investment amounts.

Is investing in Ethereum crypto risky?

Like all cryptocurrencies, investing in Ethereum (ETH) carries inherent risks, including market volatility, technological and regulatory developments, and broader economic factors. Therefore, investors need to conduct thorough research, consider their risk tolerance, and potentially seek advice from financial professionals before investing.

David Azaraf March 19, 2023

Crypto enthusiast, help businesses plug into the token economy

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