Ethereum is an open software platform based on blockchain technology, enabling developers to build and deploy a decentralized application. Ethereum is a distributed public blockchain network with the blockchain, focusing on running the programming code of any decentralized application. Let’s take a look at how to go about buying and selling ethereum
Buying Ethereum From An Exchange
Purchasing Ethereum can be done quickly at any of the Ethereum exchanges, and once Ether has been acquired for fiat currency (USD, EUR, GBP), the funds can be stored on the exchange itself or in your secure wallet.
For small purchases of Ethereum, users may wish to store their crypto on the exchange, for not only safety but the ease of use. However, for more significant transactions and purchases, it is recommended that the funds be moved into a secure wallet.
Some example exchanges are:
First, to purchase an exchange you must register. Register at your chosen exchange by submitting a minimal personal detail; identity checks are often included later in the process when a deposit or withdrawal is completed.
Second, complete KYC/identity checks as said before, when it comes to withdrawals or depositing your funds. Before/after depositing, or before withdrawal, exchanges must carry out “Know Your Customer” (KYC) and Anti-Money Laundering (AML) checks. These can range from proof of address to proof of valid I.D.
Third, choosing a deposit method, which varies by exchange type and they will offer their banking methods. Mostly there is a mix of bank wire transfers, SEPA, credit/debit card or PayPal payments. Each exchange will typically charge a fee for each deposit method; fee details are usually found in the footer of the exchange’s website.
Fourth, make a deposit in US dollars, Euros, or whatever currency you so choose. Times for arrival take from as little as 24 hours to several days to arrive in your exchange account. Deposit times will vary from exchange to exchange and the deposit method chosen as well.
Fifth, buy Ether with your deposited funds. Once your fiat currency has arrived in your exchange account, you can use this money to purchase Ether. Beginner friendly platforms such as Coinbase have made this process very user-friendly. However, not all exchanges are created equally so you may have to use their tutorial to figure out how to buy Ether.
The same process exists for selling Ethereum as it does buy, but for each exchange, it is a slightly different process.
Coinbase is the most straightforward platform to sell Ethereum on; they have web and mobile interfaces that you can use to sell. After creating a Coinbase account and giving them your bank information, you need to send your Ethereum from its current wallet to your Coinbase wallet. Navigate to the “Accounts” tab and tap the “Receive” button for your Ethereum wallet. After sending your Ethereum to your Coinbase wallet, click on the “Buy/Sell” tab. Then, select the “Sell” option and make sure your currency is set to Ethereum. From there, you can set how much Ethereum you would like to sell and confirm your transaction. Coinbase has fees of course and charges 1.49% when selling into a U.S. bank account or USD Coinbase wallet, while sales to a PayPal account are hit with a 3.99% fee.
For Gemini, the platform is slightly more complicated than Coinbase and is only on the web. After you create a profile and attach a bank account, you need to navigate to the ETH deposit section of the platform via the “TRANSFER FUNDS” tab at the top of the screen. There, you are given a public address that you can transfer your funds to. With Ethereum in your account, click on the ETH → USD option under the “SELL” tab. You can sell your Ethereum just as you would trade any other cryptocurrency by placing an order or taking a law off the books.
Gemini has fees as well, but Gemini uses a fee schedule to determine the charges when you trade Ethereum. This number is determined by your 30-day trading volume and whether or not you are a maker or a taker and so the fees range from -0.1% to 0.25%. After you have traded your Ethereum for USD, you can then withdraw it to your bank account with no additional fees.
Kraken uses the same steps like the ones above; you once again need to create an account and connect to your bank. You additionally need to get Tier 1 verification by entering your full name, date of birth, country of residence, and phone number.
You can move your Ethereum to Kraken by navigating to the “Funding” tab, and from there, just choose “Ether” and generate a new address to send your currency to. You can either place an order or fill one that’s already been put when selling. Just like Gemini, the Kraken fees are also calculated by your 30-day trading volume and maker/taker status. These charges are typically between 0.00% and 0.26%.