How to buy Ethereum in Canada

ETH or Ether is the cryptocurrency that runs the many Ethereum.org projects. So, unlike Bitcoin, the Ethereum price in Canada is determined by the overall success of the Ethereum project. This does not make ETH a stablecoin, but it does mean that, unlike many cryptocurrencies, its valuation is not purely speculative.

Ethereum’s native token, Ether (ETH), is often referred to as cryptocurrency “silver” because it is constantly one of the most highly valued cryptocurrencies on exchanges. It is silver because it is second only to Bitcoin, the cryptocurrency equivalent to “gold.”

So, unlike Bitcoin, the Ethereum price in Canada is determined by the overall success of the Ethereum project. This does not make ETH a stablecoin, but it does mean that, unlike many cryptocurrencies, its valuation is not purely speculative.

Whether you are new to investing in cryptocurrency or have been in the game for a while, Ethereum is an excellent digital asset to explore investing in.

What is Ether

ETH (Ether) is the native token that runs Ethereum’s blockchain. ETH is often referred to as “the gas,” this is because buying ETH funds Ethereum’s blockchain operations. ETH works a lot like an IPO. Due to the success of Ethereum, however, it is held and traded just like Bitcoin and other cryptocurrencies.

ETH is also used as a currency to purchase other items with. An increasing number of merchants accept ETH for remuneration. Transactions using ETH can be made peer-to-peer or on the merchant website.

Valuation of ETH

Because ETH is used to run thousands of projects on the Ethereum blockchain, its valuation is different from other cryptocurrencies. Ethereum.org has many of its own projects. Much of Ethereum’s value is derived from the fact that it is home to these various blockchain projects.

Cryptocurrency Exchanges

ETH is sold on almost every cryptocurrency exchange out there. Which exchange you use will depend on several personal factors. Important factors to consider when buying ETH are:

Geographical Location: Depending on your location, you may want to use an exchange that accepts your fiat currency to purchase ETH. If you are in Canada you can use CoinSmart or Bitbuy, for instance. Both exchanges accept CAD and you can even use Interac e-transfers from Canadian bank accounts.
Methods of Payment: Exchanges accept a variety of MOPs, including credit or debit cards, wire transfers, Bitcoin or other cryptocurrencies. This will vary greatly from one exchange to the next. Be sure to find an exchange that offers the best option for you.
Commission and Transaction Fees: Fees will also vary greatly. Fees often depend on what kind of client an exchange is appealing to. Some exchanges will have better packages for clients moving high-volume. At the same time, other exchanges will be more equipped to serve a wider variety of customers.

Decentralized v. Centralized Exchanges

Most popular exchanges are centralized (or managed) these days. That means that they are platforms that act as a middleman and facilitate buying and selling cryptocurrencies. Managed exchanges are often more user and beginner-friendly. They typically have more services for customers and general support.

Decentralized exchanges most often act as a platform for traders to meet and then facilitate their own peer-to-peer trades. Unmanaged exchanges often offer escrow services as well, which is important for security and successful trades.

Choosing a method to buy Ethereum is also up to the user. There is no method that is necessarily better than the other. The reason to choose one or the other is based on personal needs and savvy. If you are newer to buying Ethereum, then you may want a bit more guidance. And as you become more comfortable, you may find decentralized exchanges more hospitable.

But, much of your choice of exactly how you will purchase Ethereum is based on a confluence of personal reasons. This means that researching exchanges is an absolute must.

Published at Wed, 10 Mar 2021 13:15:00 +0000