Digital assets or cryptocurrencies are new investment options. However, it is the technology behind it that promise to cause a tectonic shift in all registry-based sectors. A paradigm shift is on the offing and Ethereum as a smart contracting platform is spearheading this assault, and rightly so. From our last guide, we learnt that Ethereum is a decentralized machine made up of distributed nodes spread across the globe from where applications can run exactly as programmed without a chance of fraud. This is a feat that is only possible in cryptocurrencies—one of the most common application, and the only avenue from which the original sin of the internet can be corrected.
Apart from the stealth and superior features availed by Ethereum, as a go-to, public and pioneering arena, investors are keen, tracking the native currency called Ether (ETH). Endorsed by the US main regulator, the Securities and Exchange Commission (SEC), enthusiasts and general market participants providing liquidity in any Ethereum Exchange are confident in their investment. Ethereum (ETH) is a utility token, an on-demand digital asset that powers the underlying platform from where start-ups can launch their projects without the need of starting from scratch. Because of market forces, ETH as the second most liquid asset as Ethereum price charts reveal, are coveted thanks to supply-demand dynamics and many are scouring, doing their research, searching for valid, regulated exchanges to buy Ethereum.
However, before we dig deeper and understand factors that could trigger a dump or fuel demand for Ethereum, it is good practice to highlight properties of desirable exchanges. Cryptocurrencies exchanges are available in many forms. There are centralized exchanges, which are popular, with deep order books like BitFinex, CoinBase or Binance. Some of these exchanges are regulated meaning they comply with jurisdictional laws despite the decentralized nature of Ethereum and crypto in general. Some of them include Gemini or BitFlyer. Binance is wishy-washy and doesn’t adhere to any country’s laws, operating from Malta, a Mediterranean country dubbed the Blockchain hub. Most of these unregulated exchanges are crypto exchanges meaning Ethereum exchanges happen with other digital assets without fiat conversion.
Regulation on the other hand, specifically for on-ramps allowing deposit and withdrawal of fiat demand compliance, and that means oversight if not reports on a regular basis but are nonetheless safe. Meanwhile, gaining traction are decentralized exchanges. A promising one on this end is Binance DEX operating off the Binance Chain which analysts say will shape user views about the safety, privacy and speed of decentralized platforms. Although desirable from a theoretical point of view, DEXs are slow with low liquidity meaning spreads are high and worse, are susceptible to algorithmic trading exploitation.
All the same, to buy Ethereum or ETH means comparing what these exchanges have to offer. Some are secure meaning if you want to trade, there must be an up-to-date Ethereum price chart with low latency sourced from trusted broadcasters. Even so, because of KYC and AML rules enforced by regulators, for sign up, all centralized exchanges demand personal information like addresses and utility receipts. At the same time, your assets must be secure after buying Ethereum and easing navigation should be an intuitive user interface as well as the ability to toggle Ethereum price charts between expert and novice modes.
To cap up, before buying Ethereum, selecting a trusted Ethereum exchange is top priority. Settle for an exchange that is free from hacks with a simple interface allowing for fast and easy navigation. Besides, check for fees and deposit/withdrawal options availed. For certainty, it is always good practice to check terms and conditions more so if the said exchange operate from fringe, tax-haven locations away from stringent locations as Japan, South Korea and the US where exchanges must comply with existing law forcing recompense in case of loss.