What Options Are There To Invest In Ethereum?

Ether (ETH) is the native token for the Ethereum economy and blockchain. It’s the second-biggest cryptocurrency based on market cap, after Bitcoin. Although they make up the same product, Ethereum and Ether are two different things. Ethereum is the blockchain network, while Ether is the network’s native currency. When you are investing in Ether, you’re not investing in the Ethereum network itself, but rather buying Ether, the digital currency.

What is Ethereum?

Ethereum is a global platform that allows for the access, building, and use of decentralized software apps online. Decentralized simply means that anybody, anywhere, can use or build a site or app on Ethereum, without any concern about any interference from third parties like banks or governments. This means that Ethereum is similar to an operating system, rather than simply being another digital coin.

Ether or ETH is the Ethereum system’s native coin. It is the main currency that is used for making transactions on Ethereum. Because of this, you need to own some Ether if you wish to use the ecosystem for any reason. And, a tiny amount of Ether will be destroyed any time that a transaction is made, which over time will lead to a reduction in supply and increase in demand, making Ether more valuable as time goes on.

If you are interested in getting started with investing in ETH, then here are some of the top ways to do it.

Use a Cryptocurrency Exchange

You can use a cryptocurrency exchange to find out more about the Ethereum current price and invest in this cryptocurrency using either a fiat currency or another digital coin such as Bitcoin or Litecoin. Cryptocurrency exchanges are the most popular option when it comes to investing in ETH as they are easy to use, most have apps that you can download to your smartphone, and you can buy and sell ETH at any time using payment methods that you are familiar with such as credit card or bank transfer. Essentially, a cryptocurrency exchange will combine all the features of a trading platform and a crypto-bank, allowing you to easily buy, sell and trade a range of coins along with accessing a range of crypto-financial services like borrowing, lending and payments.

Brokerage Apps

If you are mainly looking for convenience when it comes to investing in ETH, then a brokerage application is usually the simplest and most hassle-free way to do it, and will only take a few minutes. Brokerage apps offer some of the simplest ways to buy ETH. They work in much the same way as using a cryptocurrency exchange, but they will generally offer a smaller range of features, and have a main focus on simply purchasing or selling the cryptocurrency. Bear in mind that with some brokerage apps, there will be no option for you to transfer your ETH to a crypto wallet or another exchange – you will only be able to use it inside the Ethereum network and blockchain. If your main aim is to simply buy ETH and keep hold of it for using on the Ethereum network, then this option might be right for you.

Buy ETH Peer-to-Peer

If you are looking for an option for buying ETH with greater privacy in comparison to using a crypto exchange or a broker app, then a peer-to-peer platform might be the best way for you to make an investment in ETH. These platforms allow you to buy ETH directly from individuals without the need for a broker or an exchange. However, bear in mind that this can be a riskier option as there is no middleman who will be able to intervene in the case of a disagreement or fraud. However, if your privacy and remaining anonymous is one of the most important things to you when it comes to investing in ETH, then a peer-to-peer platform might be an ideal choice for your needs.

Lend and Earn Yield on Ether

Lending allows you to grow your investment in ETH passively by earning yield that is paid regularly. When you own ETH, you can earn from it through a range of different methods including staking, lending, and DeFi. Lending, or a crypto saving account, is one of the easiest methods, and you can often do this on a cryptocurrency exchange. When you deposit your Ether cryptocurrency, you can earn a yearly percentage yield which is also paid in ETH. You will earn these returns by lending the ETH to others with peer-to-peer cryptocurrency lending. Lenders pay interest on the loan which is paid to you. To take out a loan, the borrower will be required to make a deposit first. This is used as security to ensure that your funds are protected in the event of a default.

Invest in an Ether ETF

If you have purchased stocks before, then you may be familiar with this method, which you can use to invest in ETH. Exchange-traded funds or ETFs are a more traditional way to invest in this cryptocurrency, without the need to use a crypto exchange as they are available through more traditional investment and brokerage platforms. There are several benefits to using an ETF for investing in ETH, including that you can purchase them through traditional trading platforms, assets are managed by the ETF manager, and ETFs and brokerages are subject to federal regulations, unlike the majority of cryptocurrency exchanges, which are still mostly unregulated. However, before you dive into this method, it’s worth being aware of some of the complications of cryptocurrency ETFs. The exact fees and compositions can vary, meaning that there are no two identical ETFs. There are options to either purchase ETFs that hold action Ether coins, or an ETF that holds stocks of companies that are related to the Ethereum network.

ETH is based on the Ethereum network and is the closest rival to Bitcoin in the cryptocurrency market. If you are considering investing in ETH, then there are lots of different options to choose from depending on what you want to do with the investment.