How to Invest in Ethereum?

Ethereum is commonly known as an alternative currency to Bitcoin. Ethereum has become popular in the last few years because unlike Bitcoin and its rival Litecoin, this cryptocurrency has been accepted by many companies and startups as a medium for transactions. It has managed to become the third-largest cryptocurrency holding good market capital. But it is not just a cryptocurrency like Bitcoin.

What is Ethereum?

Ethereum is an open-source platform that has been built on the blockchain technology of Bitcoin. It is a software that allows the creation and operation of decentralized digital applications or “dapps.” What made this cryptocurrency so popular is that along with having a decentralized token, Ether, it allows users to make agreements and conduct transactions peer-to-peer without a middleman. You get a platform to buy, sell and trade Ethereum as well as other goods and services. You don’t need interference from any third party for bank transfer of money, or say, you can skip hiring a lawyer for drawing up the sales contract. Startups launch fundraising sites for their projects on the blockchain of Ethereum so that they don’t have to waste time going through crowdfunding internet sites. Even the possibility of censorship is removed as the blockchain does not allow any tampering.

Also Read : Poloniex Exchange Review

How to buy Ether in India?

The easiest and most trusted way to buy Ether in India is through an exchange platform.

1. Register to a Digital Wallet

A digital wallet is a place where you keep your Ether safely after buying and before selling. You have to do deep research on digital wallet providers, looking up their reviews, as safety should be the first priority.

2. Open an Account

After choosing an exchange platform, you need to register yourself to use their services. They will ask you to select the type of account you want to open, whether it’s for an individual or corporate. Select your country and tick the box containing the terms and conditions. You have successfully registered yourself for crypto trading.

3. Complete your KYC

Under Indian law, KYC and AML have been made mandatory to make transactions in cryptocurrencies. Be assured that your data will be saved in an encrypted form and will only be stored in Indian data centers. The KYC will be completed in a different URL, which you will be redirected to after the previous step. They will ask for your recent selfie, photos of your PAN card, and the mobile number that you have linked with your Aadhar card.

4. Complete the Google 2 step verification

For this, you might need an Authenticator app. To access the app, you need to set an additional 6 digit one-time password, along with providing the email and password linked to your account, every time you log in. If you choose to sign up with Facebook or LinkedIn, you get the option to enable 2FA with your social media settings.

5. Provide your Bank Details

Enter the correct bank name, account number, and IFSC code to trade in Ether. You are now ready to buy the cryptocurrency.

If you want to sell Ethereum in India, the best way again is to do it through a crypto exchange. You need to pay a transaction fee for that. Always stay updated with the current exchange rates. One way to sell Ethereum is by converting it to Bitcoin first and then selling it in exchange for fiat currency.

How to trade Ethereum in India?

After becoming the second most talked about cryptocurrency, next to Bitcoin, the public has shown an increasing interest in owning Ether. There are two ways to do that, either mining or trading. Mining is an expensive option as it requires initial investments, giving low returns. Trading is the best way to earn long-term profits. Crypto exchanges allow you to store as well as trade cryptocurrencies.

Coming to the question of whether Ethereum is legal in India or not. There has been no law prohibiting people from buying, selling, or trading in India. Ethereum has revolutionized the way people carry out transactions and make agreements. With the help of Smart Contracts, the security has improved, costs have been diminished and we have entered a decentralized world.