In 2021, Ethereum hit all-time new highs, and now it is looking to transition to a Proof of Stake consensus, an eco-friendly model. Ethereum is a blockchain platform that has revolutionized the cryptocurrency industry. The platform features ETH’s digital currency, which you can purchase via several media. Buying or investing in Ethereum is relatively straightforward, and here is how it is explained in detail.
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Several crypto exchanges, such as Swyftx, CoinSpot, Binance, etc., can be used to buy Ethereum. To buy Ethereum Australia, crypto exchanges like Coinspot or Swyftx are an excellent option. Investors should make sure they choose a reputed crypto exchange. The Australian government charges a zero per cent tax on cryptocurrency.
Ethereum is used to host decentralized applications known as dApps. It is the cryptocurrency of the Ethereum blockchain. Decentralized applications are used for various purposes, most importantly executing intelligent peer-to-peer contracts.
Vitalik Buterin launched Ethereum in 2015. In this short period, it has garnered a lot of positive attention and has a bright outlook, touted to overthrow Bitcoin by some investors. Ethereum stands as the second biggest cryptocurrency by market capitalization, trailing only Bitcoin (BTC). Nearly one per cent of the entire Australian population used cryptocurrency for making some consumer payment in 2019.
Online reviews, security levels, trading fees, and user-friendliness of the application and platform are some primary factors determining a crypto exchange’s choice. Unfortunately, in the market today, there are a few prominent, well-reputed players and many dubious ones looking to scam. In addition, cryptocurrencies and crypto exchanges are decentralized, and they are not under the control of any government or central authority. As a result, this authority may be challenging to determine who is in charge or what regulations apply to various operations. About 4.6 million people in Australia use cryptocurrency.
- After choosing a secure exchange, register an account on the platform. Simple details like name, email address, gender, etc., are required.
- Complete KYC verification. KYC or Know Your Customer Verification is mandatory to buy Ethereum in Australia, after which a user is allowed to deposit fiat currency and acquire cryptocurrency. Government-issued identifications, Driving Licenses, or Passports can be used to verify identity. This is crucial because any gains or losses on your digital assets are also subject to Capital Gains Tax.
- Enable Two Factor Authentication(2FA) and deposit funds into your account. Two-factor authentication adds an extra security layer. After setting it up, a user must enter a time-sensitive code when logging into the account or withdrawing funds. The idea is that if someone can access your password, the hacker will not be able to enter your portfolio as the code will only be accessible on a device available to you (i.e., your mobile phone). After following these steps, a user can deposit funds into their account.
- Finally, the deposited funds can be used to buy Ethereum.
There are two types of storage- cold and hot. Cold storage means holding cryptocurrency offline. These are highly secure wallets. There is a risk of losing the wallet, so it is usually recommended to store them in a safety deposit box. Storage wallets are wallets that are linked to the internet. These are highly convenient as they allow you to trade quickly and easily. However, these wallets can be hacked.
Though trade of Ethereum is a market leader, it faces a lot of competition from Solana, and Polkadot, among others. It’s crucial to analyze these competitors before investing in Ethereum. Also, one needs to be aware that the adoption rate of Ethereum is relatively higher, which is a good indicator of its value. Ethereum 2.0, Proof of Stake, will change how ETH transactions are verified. As a result, the exchanges are expected to be much cheaper and quicker.