With a market capitalisation in July 2022 of over £150 billion, Ethereum (ETH) is the second leading form of cryptocurrency behind Bitcoin (BTC).
In common with other crypto currencies, Ethereum as been adversely affected by the recent ‘crypto winter.’ In the past year, its price as been as high as £3,636 and as low as £733. In July 2022 it has been trading around the £1,200 mark.
Here’s how to get started buying Ether, the official name of the token more commonly called Ethereum because of its association with the Ethereum platform that it powers.
Buying Ethereum
Investing in Ethereum may be easier than you think. Here’s how to get started in just five steps:
1. Determine Your Level Of Risk
There’s no getting around it – buying Ethereum is a gamble. While all investments have some risk associated with them, cryptocurrencies are especially vulnerable to price fluctuations. Just think about the impact a couple of hundred characters can have on crypto pricing: when Tesla boss, Elon Musk, tweeted last year that his company would no longer accept Bitcoin as payment, for instance, the coin’s value tumbled 15%.
Although Ether has had impressive returns in the past, it’s also had some significant crashes, sometimes in astonishingly short amounts of time. Notably, it went from a high of almost £3,000 per coin in May 2021 to less than £1,300 a month later, a drop of more than 50%. That’s some pretty extreme volatility.
That’s why it’s important to consider your risk tolerance along with the diversity and stability of the rest of your investment portfolio before buying Ether. Experts recommend that you never invest more in crypto than you can afford to lose.
2. Choose A Crypto Exchange
Buying Ether is more complicated than just buying shares or collective investment funds through your brokerage account. Cryptocurrencies aren’t traded on major exchanges like those of London or New York, and many…
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