2021-06-15 08:00:00

Benzinga Shorts: How to Buy Ethereum

With the popularity of cryptocurrencies reaching an all-time high in 2021, many traditional investors are beginning to flock to the space in search of the extreme volatility they scorned for so long.

With the advent of the GameStop and AMC short squeezes, this volatility has been normalized and retail investors are turning to DeFi cryptocurrencies like Ethereum, Uniswap, AAVE and Polygon to get their fix for high percentage returns.

Ethereum is a global computer powered by a decentralized network of individuals. These individuals dedicate their precious computing resources to the network in order to earn the network fees, paid by developers who crave access to a decentralized network.

A decentralized network is powerful because there is no central authority or entity that needs to be trusted. By decentralizing the trust across a network of incentivized participants, the global computer can facilitate a new world of peer-to-peer finance over the internet.

Ethereum enables anonymous loans, market making and exchanges to execute via code, which scales much better than human bankers (and makes less mistakes too). From Vitalik Buterin to Mark Cuban, DeFi on Ethereum has been dubbed the future.

The best part? Ethereum is currently trading around $2,500, well below its May peak of $4384, giving retail investors a second chance before the rest of the bull run continues.

Buying Ethereum is simple. You likely already have a PayPal, Venmo or CashApp which all now support purchasing Ethereum.

It should be noted that if you are truly interested in the DeFi ecosystem, you’ll want to purchase Ethereum from an exchange such as Coinbase or Gemini that offers you the ability to send your Ethereum to your own crypto wallet. Controlling your own wallet is important if you want to lend, borrow or earn interest on your Ethereum. It is also best practice for security purposes.

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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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