Buy Ethereum (ETH) with Bank Transfer
When it comes to the world cryptocurrency, Ethereum is the biggest coin in the market after Bitcoin. It has gained second place with a fantastic market capitalisation of $232 billion. Ethereum, released six years after Bitcoin, has become the most active coin in the ecosystem. Many established and fast-rising projects are built on the Ethereum blockchain. Don’t be surprised to discover that your favourite Defi, DEX, or NFT projects collect Ethereum as gas or minting fees. Aside from that, long-term holders of Ethereum have made huge returns on their money. Say you made a $500 investment in Ethereum in 2015. It would be worth roughly $1million right now.
For those who need ethereum for their next market activity, all you need is to purchase and hold the coin. Curious to know a simplified way to buy ethereum? It’s been in front of us all this time – through a direct bank transfer. Even though many crypto enthusiasts buy ethereum, many are yet to discover that they can purchase Ethereum using bank transfers. This article aims to share detailed information that will help crypto enthusiasts buy Ethereum quickly with bank transfers.
How To Buy Ethereum Via Bank Transfers?
Purchasing Ethereum is simple. Before you start accruing the most in-demand coin(Ethereum), there are quick steps to take.
Understand And Determine Your Risk Appetite
A saying goes, “past performance is no guarantee of future performance”. Even though Ethereum investors have received significant returns over time, it does not guarantee the future. All assets come with a certain level of risk. Cryptocurrency comes with high risk due to market volatility, which affects the price. One moment, Bitcoin is at $60k+, the next, it is falling drastically to $40k.
Due to price fluctuations, the purchase of Ethereum could be considered a risky investment.
Nonetheless, the higher the risk, the higher the returns. As a result, a risk assessment is crucial before you make an investment decision. You also need to study yourself before getting started. Are you a conservative or aggressive investor? After determining your risk level, it is best to analyse the stability of Ethereum and see if it tallies with your previous investment choices. It is also essential to invest as much as you can lose.
Pick A Suitable Exchange
For those who haven’t bought crypto assets before but have invested in stocks and other assets, a crypto exchange is quite different from major stock exchanges or buying from brokers. But on these stock exchanges, you can buy Ethereum with fiat ( USD, GBP, CAD, etc.). If you have another crypto token or coin, some exchanges allow you to swap it directly for Ethereum. If you haven’t used any crypto exchange, this article provides intuitive ideas on finding a good one.
Fund Your Account And Buy Ethereum
The only way you can buy ethereum is to fund the account on your exchange. Remember, you can buy Ethereum with Fiat or other cryptocurrencies. Your chosen exchange will provide you different payment options for you to fund with fiat. Exchanges allow you to deposit cash with any of these; SWIFT bank transfers, wire transfers, Paypal, debit or credit card, Peer-to-peer, etc. To buy Ethereum, select ETH token in your preferred exchange buy field. Then input your desired amount of Ethereum or investment amount. Say ethereum is priced at $4000, and you funded your account with $200 via bank transfers, you’ll be able to buy 0.05 ETH.
How To Choose An Ethereum Exchange?
Looking to buy Ethereum? There are many options open to buyers from different parts of the world. The best way to buy Ethereum—or any other cryptocurrency—is through an exchange. So, before purchasing Ethereum, you have to select an exchange. Even though your options are vast, you risk choosing a not-too-good crypto exchange. Like trading a coin, it is vital to do due diligence when selecting an exchange.
Here are some considerations you will want to keep in mind: the security protocol, amount of supported countries, fees, payment and withdrawal methods, customer service, and such. If you want to buy Ethereum with direct bank transfers, then look out for exchanges with bank transfer payment options.
Top Exchanges To Purchase Ethereum With Bank Transfer
We’ll list the top 3 Crypto exchanges that allow you to buy Ethereum with Bank transfers.
Coinbase is one of the widely used centralized exchanges. It is users’ top choice due to the high number of supported countries, the broad range of listed coins, and diverse payment options—bank transfers inclusive. Whether in Asia, Europe, or Africa, you can purchase Ethereum with a bank transfer, connected bank account, Paypal, Credit or Debit Card, etc. As a plus, it is also considered users’ top choice as it allows high transfer limits and high funds security. In fact, cash up to $250,000 is insured by the FDIC(US users).
On the flip side, using Coinbase comes with high fees. Users get charged a minimum fee of 1.49% on wire transfers, and as high as 3.99% on debit card transactions. That said, those who want cheaper fees can opt for Coinbase Pro.
For those who seek an all-in-one exchange, eToro is a great option. Not only can you buy Ethereum—and other cryptocurrencies—you can also trade fiat, stocks, and commodities. The platform is also available to users from different countries. Etoro made our list because users can choose from various payment options. You can pay with wire transfers, Paypal, Skrill, Credit and Debit Cards, etc.
However, you need to note that you can only purchase a minimum of $200 worth of Ethereum on eToro. You would also be charged 1.90% fees on any ETH trades(not applicable to other crypto tokens). Lastly, this exchange charges $5 on every withdrawal.
Gemini is renowned as the world first recognised Ether exchange. It also has significant competitive advantages over other exchanges. Gemini secures all users’ funds with the FDIC and provides one of best customer support services on the internet. Aside from these, it offers 30 free withdrawals to its users, diverse payment options, and fair enough deposit and trade fees.
How To Store Ethereum
After buying Ethereum, what next? The next thing on your mind would be storage. You can transfer to your desired platform if you intend to trade or use it for gas or mint fees. If otherwise, it is best you store your Ethereum in a secure wallet. Even though many of these crypto exchanges come with their wallet, experts advice moving to a third-party wallet. There are two major types of wallets, the hot wallet and the cold wallet.
With a hot wallet, your crypto is more accessible. It is always connected to the internet. Many crypto investors—beginners and experts alike—use this type of wallet as it requires only a smartphone or computer. Its major pros and cons are tied to easy internet accessibility. However, many users still fear scams, hacks, and breaches on their crypto assets because of the rising cybersecurity threat on the world wide web.
Cold wallets are a better alternative that tackles the disadvantage of the Hot Wallet. You can store Ethereum offline without fear of losing funds. It is safer because it is disconnected from the internet. This type of wallet is suitable for those holding a large amount of Ethereum for an extended period. If otherwise, transferring or trading Ethereum can be stressful, as you would need to connect to the internet manually. Lest I forget, Cold wallets are significantly more costly than hot wallets, free.
As you’ve seen, buying Ethereum with bank transfers is not difficult. You just need to pick a crypto exchange, create an account, select your desired amount, and then make a purchase. You could go through this guide once again if you missed any detail