Informational

How To Buy Ethereum

Caroline Bowler

The best way to buy Ethereum in Australia

If you’ve been considering investing in Ethereum, it’s easy to get started with BTC Markets. As one of the most popular cryptocurrencies to emerge in recent years, it’s attracted considerable investor interest. As with any cryptocurrency, it’s not suitable for all investors — a certain degree of volatility is inherent in the market, and it’s crucial to have a high tolerance for risk. We would suggest utilising it as part of a balanced investment portfolio. However, if you think that this fits your profile, then we can explain how to buy Ethereum online and walk you through the steps to starting your trading journey.

But before we get to our step-by-step guide, there are a few things you need to know about how to buy Ethereum. First and foremost, you’ll need to find a cryptocurrency exchange for buying Ethereum. These outlets vary from the traditional stock exchange or broking system — they’re decentralised, and some are solely focused on one type of cryptocurrency. However, here at BTC Markets, we offer an extensive range of cryptocurrency options for investors, including Ethereum, Bitcoin, Litecoin, Ripple and more.

Once you’ve settled on your preferred exchange, you’ll need a cryptocurrency wallet. If you’ve previously purchased other types of cryptocurrency, you likely already have one. However, cryptocurrency wallets are not mutually compatible with one another per se — they’re accessed via different protocols. So if you already have a Bitcoin wallet, for example, you can’t store Ethereum in it.

The good news is that many modern wallet services do allow you to segment your wallet, enabling you to access your different wallets from one point. So your main consideration should be whether you want to opt for a “hot wallet” or “cold wallet” when you’re looking at how to buy Ethereum safely.

Hot wallets

A hot wallet is essentially a web-based form of cryptocurrency storage, in either browser-based or app form. It’s usually connected with your preferred exchange platform, allowing you to easily buy, sell and trade from a central location. However, it’s this convenience and continuous connection to the internet which can also make it vulnerable to being hacked or stolen. Accordingly, many investors choose to utilise a cold wallet as well.

Cold wallets

Cold wallets are external hard drives (often in a USB-sized form) that keep your cryptocurrency stored offline. It’s the most secure way to store your cryptocurrency — would-be internet thieves can’t access it when it’s stored offline. Many investors utilise a combination of hot and cold wallets to ensure that the bulk of their funds are safely stored while also being able to utilise their Ethereum as required.

The primary downside is that if you lose your cold wallet storage device, your funds are gone forever — it’s like cash. So make sure you store your passwords somewhere safe to avoid future dilemmas!

How to buy Ethereum in Australia

Wondering how to get Ethereum in Australia? Well, you’re in the right place. You can sign up for a BTC Markets account today — we’re Australia’s largest and most trusted cryptocurrency exchange. With over 325,000 users and more than $19 billion traded, you can be sure that you’re getting your crypto journey off to a great start.

1. Create an account

To get started buying or trading, visit btcmarkets.net and click ‘Create account’. Input your email address correctly, and make sure you choose a password you haven’t used for any other logins. Shortly afterwards, you’ll receive an email that asks you to confirm your registration via a verification link — this will expire after 24 hours, so make sure that you click it as soon as possible.

2. Change your market to Ethereum

Once your account is verified, you’ll be able to interact with the main interface. Here, you can use the “Change Market” function to select the type of cryptocurrency you want to purchase. To start Ethereum trading, select “Ethereum” — you’ll also be able to see the fluctuations in price over the prior 24 hours.

3. Select a payment option

The next step is to choose how you’d like to pay when you’re buying Ethereum. On the Limits tab, select “Deposit AUD”. This is done via Osko or BPay, so you’ll need to fill out some details to ensure security first — this will include verifying your identity, setting up two-factor authentication and API key creation.

4. Place an order online

Once your payment method has been confirmed, you can head back to the Limit tab. Now you can buy Ether, selecting between Volume (i.e. amount) of Ethereum or Price (i.e. how much of your chosen currency you’re willing to spend). It’s not necessary to buy complete units of Ethereum — they are subdivided into units of “Gwei” and “Wei” — so when you opt for Price purchasing, you’ll receive the relevant amount of full or partial units in return.

5. Monitoring the market

Congratulations — you’re officially an Ethereum investor! Now you can monitor the market, buy, sell and trade to maximise your investment. Best of luck!

Buying Ethereum with BTC Markets

Here at BTC Markets, we offer an extensive range of features to prospective investors and those who are looking to discover how to invest in Ethereum in Australia. Our services include buying and selling, OTC trading, self-managed super funds, staking, an easy-to-use platform and best-in-class cybersecurity. We’re also passionate about investor education, so make sure that you check out our FAQs and selection of blogs.

FAQs

How is Ethereum different from Bitcoin?

Though you’ll often find cryptocurrency advocates talking about Bitcoin and Ethereum somewhat interchangeably, they’re actually quite different. Bitcoin, in short, was designed to be a decentralised currency that could be used all over the world. An online ledger — known as the Blockchain — acts as a living and evolving document of all of the Bitcoin transactions that have ever taken place. However, given some of its technological limitations, it hasn’t really caught on as a currency that’s used day-to-day.

Though Ethereum also utilises Blockchain technology to keep track of the ways it’s used for buying, selling, and trading, its Blockchain is much broader in scope. In addition to currency, it can be used for hosting any manner of items — the ones that have gathered the most outside interest are decentralised programs or apps known as “dApps”. dApps run the gamut from assisting with financial transactions through to being fully-fledged video games — just like regular apps. To find out more, you can also check out the Ethereum whitepaper.

Is it legal to conduct Ethereum trading in Australia?

Yes. Though Australia’s cryptocurrency legislation is continuously evolving, it is currently legal. Given Ethereum’s high profile and positive public awareness, it seems unlikely that this will change, though the specific regulation around it will likely shift in the coming years. It’s also important to be compliant with all of the relevant tax laws around profits made from crypto trading. We would advise you to speak to your accountant about any relevant implications or obligations when buying Ethereum.

Is hot or cold storage better for my wallet?

Both have their own distinct strengths and weaknesses. Hot wallets provide near-instantaneous and constant access to your funds, but the “always online” nature of this storage means that there is a greater risk of being exposed to cyberattacks. This can potentially wipe out your investment and leave you without recourse.

Conversely, cold storage keeps you safe from cybercrime — but it’s reliant on you keeping a physical device safe too. Many people invest in a safe specifically to store their cold wallet, just to minimise the risk!

How do I buy Ethereum?

You can purchase Ethereum right here with BTC Markets today! There’s no more need to wonder, “How can I buy Ethereum?” — just sign up for an account today, deposit your funds and start trading.


Find out the latest crypto news

This Week in Crypto: 25th January 2023

This Week in Crypto: 25th January 2023

Read more - This Week in Crypto: 25th January 2023
TwitterFacebookLinkedInTelegramInstagram