How to Invest in Ethereum

Ethereum is currently the second most popular crypto (by market cap) and arguably the most popular crypto in terms of use and value settled. When I wrote this post, there was over 1.42 million transactions in the last 24 hours!

Ethereum isn't just a currency. It's a platform to build decentralised apps. Have you heard of NFT's – well most of them are powered by Ethereum. Heard of Defi? Well the majority of Defi apps are also powered by Ethereum.

If you're looking to invest in Ethereum, here is my complete guide:

Why Invest in Ethereum?

Ethereum has experienced a major rise in value over the last 12 months. It's also seen a massive increase in usage. While that usage has led to some scaling issues and high transaction fees, I view that as a great sign. If people are willing to pay high fees to use Ethereum, it proves its a valuable asset. Ethereum has a very active developer community and many of these scaling issues will be resolved in upcoming releases.

What I'm most excited about though is Ethereum's switch to Proof of Stake. Currently Ethereum processes transactions using “Proof of Work” in a similar but slightly different way to Bitcoin. In an upcoming hard fork, Ethereum will move to Proof of Stake. This will means Ethereum will require far less computing resources and in turn be much more carbon friendly.

You can find out more about how Ethereum works here.

The Best Place to Invest in Ethereum in Australia

My top choice for buying and investing in Ethereum in Australia is Coinspot. It's a trusted exchange that is based here in Australia and has a good reputation. Plus, it is also one of the cheapest ways to buy Ethereum (if you make use of the markets feature).

Buying Ethereum on Coinspot

Here is how to buy Ethereum on Coinspot:

  1. Create a CoinSpot Account here
  2. Verify your identity (this process is fairly quick).
  3. Deposit AUD (You can deposit on Coinspot using a bank transfer (PayID), Poli, Bpay, or even Cash.
  4. Buy Ethereum!

There are two ways to buy Ethereum on Coinspot. You can make an instant purchase. This is the easiest way and great for beginners. However you are charged a 1% fee. The second way is through the “Markets” feature. If you place an order through the markets page, the fee is only 0.1%. This is the cheapest fee in Australia making Coinspot the cheapest way to buy Ethereum.

Here is how to invest in Ethereum through the markets page:

First click the “Markets” link when logged into Coinspot and then click “view ETH/AUD Market”

Enter the amount of Ethereum you want to buy and what price you're willing to pay.

This will post an order to the exchange. When a seller places a matching order your order will get filled.

Get $10 Free Bitcoin on Coinspot

When you sign up to Coinspot using a referral code and make a deposit you'll get $10 free in Bitcoin.

On the signup page enter the referral code: HWHPXV or signup using this link.

P.S – this is only available to new users. If you've already got a coinspot account then unfortunately this won't work.

Other Places to Invest in Ethereum

  • eToro – Invest in Ethereum alongside more traditional assets like Stocks. No fees on crypto buys, just be aware of the spread.
  • Coinbase – One of the worlds more popular crypto exchanges. You can only use a credit card to buy crypto on Coinbase in Australia. You also can't sell crypto in Australia. I would avoid.
  • Binance – A popular crypto exchange. I have concerns over not knowing who is behind Binance. It has an opaque ownership structure and has run into regulatory issues.
  • Swyftx – A good alternative to Coinspot in Australia. Fees are higher than Coinspot's market fees.

Is it too late to invest in Ethereum

The majority of the world isn't using Defi (decentralised finance) and the majority of the worlds capital is still settled using traditional banking systems. I believe there is a huge upside in using Defi. Ethereum is currently the number 1 platform for Defi so as more of the world discovers this amazing technology Ethereum is well positioned.

Remember many people thought Bitcoin was too expensive when it was $400. Imagine how rich they would have been if they had bought in then!

I don't know how valuable 1 Ethereum will be in the future. It could be worth more or less. But I still believe we are in the early days of Crypto.

Ethereum vs Bitcoin: Which is better

Ethereum and Bitcoin are two very different cryptos. Personally I think both will be just as important as one another. Bitcoin potentially will be very useful store of value. And Ethereum could be the future of finance through the many Defi applications that built on the platform.

I come from a software dev background. Because Ethereum is more of a platform, it gets me the most excited. And that's why I invest in Ethereum. But I also invest in Bitcoin (through Raiz).

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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