The crypto sector has continued to gain prominence in the financial market after gaining mainstream attention. This is in no small way, thanks to the activities of the tokens inside the sector. Being the token with the highest value, Bitcoin has continued to lead other tokens since its creation in 2009. Although there has been a barrage of tokens that have entered the market after then, none of these tokens has been able to reach Bitcoin’s height. However, one coin that has established its place as the second token in the sector is Ethereum. Ethereum has been able to attract a lot of users with its network undergoing massive growth in the industry. In this article, we will be looking into Ethereum with a guide to purchasing the token on Binance.
What is Ethereum?
Ethereum is a blockchain whose design was made to be open-sourced. Traders use its native currency, Ether, to carry out transactions on the blockchain. Also, the name, Ethereum, doubles as that of its native currency and that of its platform. To simplify this, Ethereum (Ether) is the digital asset that traders invest in to make profits, while Ethereum is the blockchain on which it is carried out. The platform came into existence in 2015 after Vitalik Buterin created it. It is accessible for the public and acts as a ledger that stores public information. Asides from that, Ethereum allows developers to build their apps on its blockchain. Presently, Ethereum has become one of the biggest blockchains for the decentralized finance market in the crypto sector. The native token has been able to cement its place in the second position right behind Bitcoin in terms of market capitalization.
Ethereum Price Movements – Q1 2022
Ethereum has grown a lot in popularity since it burst into the crypto market in 2018. Last year, the digital asset saw a massive climb to establish different all-time highs. The highlight of its movement was creating its present all-time high of $4,800 In November 2021. Over the months, the price of the token moved across $1,000 and upward before settling at the all time high. Even though it is not presently trading at the all-time high, it is well placed above $2,500 at the time of writing.
Presently, Ethereum is trading at $2,612, with a loss of 2.14% in the last 24 hours. It has a market cap of $314,786,410,097 and a trading volume of $7,786,327,611 in the last 24 hours. Like other assets in the financial market, Ethereum is subject to massive market movements. The volatility in the sector has seen assets lose as high as 50% while gaining that too in a short time. However, Ethereum has only been able to gather its value based on the usefulness of its token and its network. It is also not tied to any external currency, and price moves are based on different factors.
How To Purchase Ethereum On Binance
Ethereum has a track record for bringing in profits in the crypto market. This is judged by its massive price rise over last year. Although it has not gone back to the highs of previous years, it is still doing considerably well. This is a major reason why it is one of the most sought-after tokens in the crypto sector. Ethereum is a very popular asset in the market. This is not hidden, judging by its #2 position according to the market cap on many coin aggregator websites. With this, traders can get this token on various crypto exchanges across the market.
Traders can get Ethereum on exchanges such as Coinbase, FTX, Kraken, and Bitfinex. For the sake of this guide, we will be purchasing Ethereum on Binance. Binance is one of the oldest crypto exchanges in the crypto market. The crypto exchange was founded in 2017 by Changpeng Zhao. Binance offers more than 1,000 different coin pairings. Asides from its centralized exchange, it operates a decentralized finance platform called Binance Smart Chain. Below are guidelines on acquiring Ethereum on Binance for trading:
Register Your Account
This step requires deep attention to detail as it is the first in the next few steps. In this step, you will need to enter all your personal information. Before then, you will need to confirm the location where you are accessing the website from. This is to enable the platform to provide you with tailored services to your taste and region. You will then need to fill in your first name, last name, address, phone number, and password. Remember that you must cross-check all the letters and numbers you type. This is to make sure that you make no mistake in this step.
Verify Your Account
In this step, you will need to verify all the details you have provided. This means that you will need to submit a form of identification to verify your names. You will also need to submit a document that has your address to confirm the country you are located in. The last verification is the phone number and email verification. This will allow them to verify you are the owner of the email and phone number by sending 6-digit verification codes to them.
Deposit funds
After all, is done verifying your account, the next step will require you to deposit funds into your account. It is with that fund that you will purchase Ethereum. Remember that you will need to include funds used to offset transaction fees. Binance has a wide list of ways where you can deposit your account. However, some method of deposits depends on the trader’s location. As a trader, you are open to using cash transfer, credit card, wire transfer, and peer-to-peer methods, among others.
Buy Your Ethereum
After depositing funds into your account and waiting for it to reflect, you can now move on to purchase your Ethereum. To purchase Ethereum on Binance, you will need to open an order stating the price at which you want to buy your Ethereum. Once the price moves into the amount, the purchase order for Ethereum will be go live. After this, you can access your Ethereum on the in-app wallet on the platform.
Store Your Ethereum
Purchasing your Ethereum means that you can do so many things with the digital asset. You can decide to trade it or keep it for a longer period till it increases in price. You can even choose to use it for payments. However, knowing how to safekeep one’s assets is important. Although wallets on crypto exchanges like Binance provide a lot of ease for trade, they are not ideal for storing your assets. This is why you should use offline wallets like Ledger, Trevor, or KeepKey wallets. These wallets are not usually offline, so hackers cannot easily attack them, unlike some online wallets.
Conclusion
Although Ethereum has not been doing well in the market, it is still one of the most sought-after. This is because of its track record of the massive price increase. One of the triggers for that has been its massive adoption by traders in the sector. Asides from that, Ethereum serves as the main currency for exchange on its blockchain, where many decentralized apps are abundant. Ethereum not only has a DeFi sector, but it also provides support to some NFT marketplaces. However, it is paramount to research and diversify one’s portfolio when purchasing tokens.
