Education

A Beginners Guide to Buying Ethereum

10 minutes

The second largest cryptocurrency by market capitalisation as of November 2021, Ethereum has made a name for itself through its intelligent implementation of smart contracts, its game-changing technology, and its unique Gas system.

Unique amongst cryptocurrencies in offering a clear community driven vision combined with a strong market presence, Ethereum has quickly won over both cryptocurrency enthusiasts and mainstream investors alike.

Step one: Understand what you’re buying

What is Ethereum?

While people may use it as a short-hand, Ethereum is actually the underlying blockchain technology that makes the smart contract network possible.Ether is the name of the cryptocurrency generated by the Ethereum network – and the coin utilised for transactions on the network.

As a token, Ether shares many common features with other cryptocurrencies – it is ungoverned by any regulatory authority such as a central bank and has a floating value that responds to market demand and can be freely traded on a variety of digital exchanges. In contrast to Bitcoin famously having a 21 million coin hard cap, there is no supply limit on Ether, meaning that – barring any technological changes – there will always be fresh supply as long as mining goes on.

Step two: Get a wallet

The next step as with any cryptocurrency is to get a compatible wallet. You’ll need somewhere to store your coin after it has been purchased.. As one of the most popular coins, a vast number of hardware and software wallets support Ether, offering you a variety of choices in how and where you store your coin.

These solutions can become quite complex, offering a multitude of features and options that more casual investors may simply not need. With CoinSpot, you get a free multicoin wallet upon signing up which is a popular way of storing your Ethereum easily. Fully certified by Blockchain Australia against the Australian Digital Currency Industry Code of Conduct, CoinSpot uses state-of-the-art encryption technology and security best practices to keep your coins safe.

Step three: Buy Ethereum

The last step is to buy your ETH and CoinSpot has made it an extremely safe and simple process. The below screenshots show you how to buy through the mobile app.

First navigate to the "Coins" tab or "Buy/Sell" page, where you will see Ethereum listed:

Once you have selected Ethereum you will have the option to buy:

Enter the amount of AUD worth of Ethereum you wish to buy and select "Buy" to confirm:

Review the transaction details to ensure that everything is correct, then select "Confirm".

That's it! You’ve just bought Ethereum.

Ready to buy but don’t have an account yet? Sign up for free & start trading Ethereum today.

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