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NFT Tech

What Is Arbitrum?

Although Ethereum is the most preferred blockchain, it does lack speed and scalability. That is why layer-2 solutions such as Arbitrum have been created.

Arbitrum is a layer-2 scaling solution that is designed to increase speed and scalability, while still retaining the privacy of Ethereum’s mainnet, to enhance Ethereum smart contracts.

There are several layer-2 scaling solutions currently available, but Arbitrum offers some additional features that others do not. In this article, I’m going to walk you through what Arbitrum is and how it works.

What is Arbitrum?

Arbitrum was created to allow developers to execute unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on layer-2 technology, while still maintaining the security that the Ethereum mainnet offers its users.

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This layer-2 solution aims to solve the long transaction times and high gas fees experienced when using the Ethereum blockchain. Arbitrum does this by using a technique called a rollup.

In simple terms, a rollup takes multiple Ethereum transactions and rolls them up into a single piece of data before submitting them all to the main Ethereum blockchain. This saves space, increases transaction speed, and reduces the cost to transact.

The Arbitrum initiative was started by Ed Felten, Steven Goldfeder, and Harry Kalodner. All of whom are blockchain experts on a mission to make cryptocurrency a better experience for the world.

How does Arbitrum work?

Arbitrum is an optimistic rollup. This particular rollup allows smart contracts on Ethereum to scale by sending data and messages between smart contracts on the Arbitrum layer-2 chain.

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Scalability is increased because the transaction processing occurs on layer-2, while all the records of the transactions still appear on the Ethereum mainnet. As a result, the transaction speed and overall efficiency is increased.

The future of Arbitrum

The future of Arbitrum includes other modes as well: the AnyTrust channel and the sidechain.

Individual nodes can participate in the Arbitrum chain, as they do in many other blockchains. Validator nodes monitor the chain’s status and work with full nodes to integrate layer-1 transactions.

Aggregators who transfer transactions to the layer-1 chain are rewarded in ETH, while other network contributors, such as validators, get user transaction fees. 

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This layer-2 solution project adds a challenging stage for block rollup, in which additional validators evaluate the block’s validity and issue a “challenge” if they feel it is incorrect. 

If the block is proved to be incorrect or the challenge is proven to be false, the assets of the validator who lies will be seized. This procedure assures that all validators always play by the rules and accept the penalties if they do not.

The Arbitrum Virtual Machine is the platform’s unique virtual machine (AVM). The AVM is the execution region for Arbitrum smart contracts, and it sits on top of EthBridge, a smart contract collection that interacts with the Arbitrum chain. Smart contracts that are compatible with Ethereum are automatically translated to operate on the AVM.

Benefits of Arbitrum

When compared to other layer-2 solutions, Arbitrum has many benefits, including:

Low cost

Considering Arbitrum is a layer-2 solution, the highly efficient rollup technology cuts costs to a minimum. Even though transaction costs are lower, Arbitrum still provides nice incentives for its validators. 

High EVM compatibility

Arbitrum is EVM-compatible, meaning that developers from the Ethereum blockchain can use any language, such as Solidity and Vyper, to build on Arbitrum. No new language is necessary to learn.

Developer tools

Developers can use tools that already exist on Ethereum, which means there are no plugins that are necessary to download. It’s basically a turn-key solution for Ethereum developers.

Expanding ecosystem

Arbitrum has fostered partnerships with multiple Ethereum DApps and infrastructures, including DODO, Sushiswap, Uniswap, and many more.

As the world of Web3 continues to expand and people desire more optimized technologies, solutions such as Arbitrum will continue to transform the way we view and utilize blockchain technology.

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NFT Tech

Solana vs Ethereum: What’s the Difference?

Trying to find the best blockchain can be difficult considering they all have their own pros and cons. Solana and Ethereum are two of the most well-known blockchains often compared, but how do they actually differ from one another?

Solana and Ethereum differ in terms of the consensus mechanism they utilize. Ethereum follows Proof of Work (PoW) leading to a more decentralized network, but less scalability. Solana follows Proof of History (PoH), which is less secure but more efficient, leading to high-speed and low-cost transactions.

What is Solana?
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Solana is a high-performance decentralized blockchain built with the goal to enable the scalability of user-friendly applications. Solana is thought to have one of the fastest-growing ecosystems in the world, with thousands of projects spanning DeFi, NFTs, Web3, and beyond.

The Solana blockchain is best known for its lightning-fast and inexpensive transactions. Solana’s scalability ensures that all transactions remain under $0.01, and transaction speeds are as quick as 400 milliseconds per block.

Of course, the Solana blockchain isn’t perfect either. In September 2021, the Solana network had gone down three times, with the entire network down for nearly 17 hours at one point as the result of a hack. More recently, a Solana bridge to the Ethereum network was also hacked, and resulted in $320 million of stolen funds.

That being said, Solana has its fair share of benefits when compared to the Ethereum blockchain.

Solana blockchain breakdown
Alex Gomez / ONE37pm

Proof of History (PoH)

The Solana network uses a PoH consensus. Using PoH allows the Solana network to create a historical record that proves an event has occurred at a specific moment in time. PoH uses a cryptographically secure function written so that output cannot be predicted from the input, and must be properly executed to generate the output. 

Better Transaction Speeds

In reality, Solana is taking advantage of Ethereum’s slower network. Solana achieves such efficient transaction speeds by utilizing a centralized network, which comes with a concerning level of risk for its users as mentioned above.

The Solana network uses a Tower Byzantine fault-tolerant (BFT), which removes the need for nodes to communicate with each other in real-time, and the result is improved efficiency. Currently, the Solana network can process approximately 50,000 transactions per second (TPS).

Enhanced Scalability

In addition to quicker transaction speeds, Solana is known for its enhanced scalability. The Solana network is scalable at its core level, meaning it does not require layer-two solutions to increase scalability.

The technology behind the Solana network breaks down data into smaller chunks, making it easy to transfer it across the network. Another technology called Sealevel also helps the processing of transactions across GPUs and SSDs, both of these combined result in an efficient blockchain network.

What is Ethereum?
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Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It’s a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications that many of us use today. 

Although Ethereum lacks the speed and cost-effective transactions when compared to Solana, it makes up for it with its mature decentralization. To compensate for this lack of scaling features at the core of its blockchain, layer-two solutions help provide enhanced scalability and throughput.

Let’s review the features of the Ethereum network and what it offers.

Ethereum blockchain breakdown

Proof of Work (PoW)

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Ethereum utilizes a consensus mechanism called Proof of Work (PoW). This mechanism allows the decentralized Ethereum network to come to a consensus (an agreement) by enabling one party to prove to others that a certain amount of a specific computational effort has been expended. This prevents users from spending ETH they don’t have and ensures that the Ethereum chain is extremely difficult to attack or manipulate.

Smart Contracts

The Ethereum blockchain is largely known for its smart contract capabilities. It can support a variation in programmability, which aids in the creation of different types of smart contracts. Solidity is the base programming language on Ethereum and is used for the coding of these smart contracts.

Scaling

Currently, Ethereum can only process about 13 to 15 transactions per second. Since the Ethereum mainnet lacks scalability, layer-two scaling solutions like Polygon, Validium, and rollups have been implemented. Additionally, once Etherum is upgraded, the creator of Ethereum mentioned that transaction speeds could increase to as much as 100,000 transactions per second, while still maintaining the same level of security.

NFTs

If you use Ethereum then you have likely at least heard of NFTs. Although Ethereum wasn’t the first blockchain to offer NFTs, it has been the most successful overall and is considered to be the go-to blockchain for NFTs.

Solana vs Ethereum
Alex Gomez / ONE37pm

Now that we have learned a bit more about both Solana and Ethereum, we can better compare the two blockchains. We know that Ethereum is the more secure and most decentralized option out of the two, and Solana is the quicker and more cost-effective network. But which is better?

Is Solana or Ethereum better?

When deciding which blockchain is better, Ethereum or Solana, it depends on your personal goals. Do you prefer a blockchain that is more secure but costs more as a result? Or do you only care about speed and cost-effectiveness?

If you want to transact on the most secure blockchain, use Ethereum. The Ethereum blockchain is the more mature network and has been around since 2014, meaning it has had time to be optimized. If you only care about fast transactions and low-cost, use Solana. Solana was created in 2020 and is still trying to figure it all out, but, it offers users a more affordable option.

Is Solana or Ethereum more popular?
Alex Gomez / ONE37pm

This wouldn’t be a proper VS article if we didn’t have a popularity contest between Solana and Ethereum.

Currently, Ethereum has a market cap of $353 billion, whereas Solana has a current market cap of $28 million, meaning that Ethereum is the obvious choice in terms of popularity. Also, the NFT space prefers Ethereum over Solana, as a majority of blue chip NFT projects currently live on the Ethereum blockchain.

At the end of the day, both Solana and Ethereum have their list of pros and cons. So, if you’re having a difficult time deciding which blockchain is best for you, first ask yourself what your goals are. If you still don’t know, then try both.

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NFT Tech

Ethereum vs Ethereum Classic: What is the Difference?

If you’re like me, then you might be wondering what the difference between Ethereum and Ethereum Classic is. In this article, we’ll take a look at both and see what the similarities and differences between the two really are.

The main difference between Ethereum Classic (ETC) and Ethereum (ETH) is that ETC is a speculative digital asset with a fixed supply. Whereas ETH is the more popular and accepted version that is widely traded, with no fixed supply. Both are the result of a hard fork that occurred when Ethereum Classic was hacked in 2016.

Now, let’s get into the main difference between Ethereum and Ethereum Classic.

What is the difference between Ethereum and Ethereum Classic?
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One of the main differences between Ethereum is that it has plans to migrate from proof of work (PoW) to a new system called proof of stake (PoS). Ethereum Classic, however, intends to keep traditional mining on its own blockchain after Ethereum migrates to PoS.

Also, similar to ETH, new ETC is issued to the circulating supply as a reward for miners and has a maximum supply of 210,700,000 coins, whereas ETH has no fixed supply.

Originally, the Ethereum blockchain was created as a single blockchain in 2015, but in June of 2016, the blockchain was hacked resulting in $60 million of stolen crypto. As a result, a hard fork was performed to secure the network, hence how the new Ethereum emerged and created two separate versions.

Now that we know the difference between ETH and ETC, we can discuss how each one is used.

What is Ethereum Classic (ETC)?
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Ethereum Classic is an open-source blockchain that is the result of a blockchain split that occurred from a hack in the original Ethereum network. The split resulted in two separate blockchains, Ethereum Classic and the new Ethereum. Now, ETC is Ethereum Classic’s native currency that is used to power transactions and smart contracts on its network.

Aside from securing the network, the hard fork also resulted in the return of all the stolen funds to the original owners. Since the split, there have been continued upgrades to the Ethereum Classic network. The main aim of Ethereum Classic is described as a focus on immutability, popularly expressed as “code is law.”

What is Ethereum (ETH)?
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According to Ethereum.org, “Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It’s a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.”

Ethereum is a technology that is used for many things including, digital currency, global payments, and applications. It’s also decentralized and open to everyone who has internet. 

Ethereum’s DeFi system is 24/7, meaning that you can send, receive, borrow, earn interest, and send funds anywhere in the world at any time of day. However, Ethereum isn’t just digital currency, it can also represent anything you own in the form of an NFT. 

Also, you can use Ethereum without giving up any of your personal info, all you need is a wallet. Whereas with the internet we know and love today, we have to give up control of our personal data.

Does Ethereum Classic (ETC) follow Ethereum (ETH)?
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Ethereum Classic (ETC) does not follow the same price trajectory as Ethereum (ETH).  Currently, ETC is trading at $26, and ETH is trading at $2,800. One of the main reasons for the price difference is that ETC has a fixed supply, and ETH does not.

Does Ethereum Classic (ETC) have a future?

Currently, the main focus for ETC is to support the concept of code is law. Essentially, code is law simply means that no one has the right to censor the execution of code on the ETC blockchain.

Ethereum Classic still facilitates running smart contracts and offers the benefit of decentralized governance. In other words, the contracts can be enforced without a third party involved, such as a lawyer or another overseeing entity.

At the end of the day, Ethereum continues to reign supreme over Ethereum Classic as the preferred blockchain for buying, selling, and creating NFTs.

That’s not to say that ETC doesn’t have a future, it just means that ETH will likely continue to be the more trusted and popular blockchain of the two.

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NFT Tech

What Are Ethereum Rollups?

Ethereum gas fees can get expensive, so expensive in fact, it can be difficult to even use the blockchain. Sometimes the fees to pay for a transaction are more expensive than the asset you’re creating or purchasing, and that just doesn’t seem right. 

However, what if there was a way to reduce these fees and increase transaction efficiency? Well, now there is using rollups!

A rollup takes multiple Ethereum transactions and rolls them up into a single piece of data before submitting them all to the blockchain. This saves space, increases transaction speed, and reduces the cost to transact.

Before we get into the technicalities, let’s talk about how the Ethereum blockchain works, and the different types of rollups.

What is a rollup?

Ethereum blocks are limited to the amount of data they can hold. For example, let’s say a block can only do 100 transactions. This means that if 100,000 people want to do a transaction at the same time, Ethereum will pick 100 of the highest bidding fees first.

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Since gas fees are based on the current demand on the blockchain at a given moment, these fees can become very expensive. But, since a transaction can simply be a piece of data as well, what if you could include ten transactions in one piece of data.

You would essentially have scaled to 1,000 transactions per block as opposed to 100, simply by using the data portion instead of the transaction portion.

Rollups are layer 2 scaling solutions that perform transaction operations off the main Ethereum blockchain, but still, post the transaction data onto layer 1. Considering the transaction data is on layer 1, rollups are secured by the same layer 1 security measures. In fact, this is the defining feature that rollups offer to users. 

Rollups are useful because they reduce gas fees, increase transaction throughput, and expand participation. One question you may have about rollups is how does Ethereum know that the posted data is valid and wasn’t submitted by someone who is trying to take advantage of the system? 

Ultimately, it depends on the specific rollup implementation, but in general, each rollup deploys a set of smart contracts on Layer 1 that are responsible for processing deposits and withdrawals and verifying proofs. Lets take a look at the two types of rollups currently utilized on the Ethereum blockchain and how they work.

Optimistic Rollups (fraud-proofs)

Optimistic rollups assume transactions are valid by default and only runs computation via a fraud-proof, meaning it only presents evidence that a state transition was incorrect, in the act that someone decides to challenge the transaction.

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Optimistic rollups sit in parallel to the Ethereum Mainnet on layer 2 and don’t perform any computation (mathematical equations) by default. Instead, after the transaction is complete, they submit the new state to the Ethereum Mainnet, essentially notarizing the transaction.

Optimistic rollup transactions are written into the main Ethereum blockchain, further optimizing transactions by reducing the cost of gas.

Advantages of optimistic rollups include:

  • Lower gas fees 
  • Increased throughput
  • Smart contract capability
  • Security (guaranteed by the Ethereum Mainnet)

Disadvantages of optimistic rollups:

  • Long withdrawal time (challenge periods can last for weeks)
    • If a fraudulent transaction is discovered, the rollup will automatically call a fraud-proof and run the transaction’s computation using the available written data, leading to long withdrawal times if the transaction is challenged.

There are several applications of optimistic rollups that you can integrate into your own decentralized apps:

Zero-knowledge rollups (validity-proofs)

Zero-knowledge rollups (ZK rollups) bundle thousands of transactions off of the main Ethereum chain and create a cryptographic proof which is known simply as validity proof, aka SNARK (succinct non-interactive argument of knowledge), which is posted to the Ethereum Mainnet.

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The smart contract for a ZK rollup keeps the data of all transfers on layer 2 and the data can only be edited with validity proof. Meaning, ZK rollups only need validity proof, opposed to all the transaction data. This function decreases the cost to transact due to less data being included.

When it comes to ZK rollups, there is minimal hesitation when moving assets from layer 2 to layer 1, considering the validity proof has already been approved by the ZK rollup and has already authorized the transaction.

Advantages of ZK rollups include:

  • Near-instant transfers 
  • Not vulnerable to the attacks that optimistic rollups may be affected by
  • Still secure and decentralized

Disadvantages of ZK rollups:

  • Validity proofs are extreme to compute for smaller applications with less on-chain activity
  • A user can influence transaction ordering
  • Some rollups don’t offer Ethereum Virtual Machine (EVM) support

As well, there are numerous applications of ZK rollups that you can integrate into your own decentralized app:

Overall, rollups are Ethereum’s solution to solve high gas fees, slow transaction times, and increase scalability.

Applications like Immutable X are being used for large-scale NFT projects like Gary Vee’s Book Games and offer consumers a cheaper and more efficient way to collect their favorite NFTs.

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NFT Tech

What is Ethereum Gas?

NFTs have become increasingly popular with each passing day. Understanding how they’re built and function is more important than ever.

OpenSea is one of the most popular NFT marketplaces, which had an increase in users and volume throughout 2021 and is continuing to do so during 2022.

The NFT space is still growing, as most people are not aware of what NFTs are, but the community is disproportionally active. Most NFTs today are created on the Ethereum blockchain, which is known for one very common and frustrating flaw, gas fees.

What are Ethereum Gas Fees?

Ethereum gas fees are the transfer fees needed to complete a transaction on the Ethereum blockchain. Every transaction has a block with data in it. Blocks can only process a limited amount of data within them, so miners have to pick which transactions they process first.

Since Ethereum is a decentralized blockchain, it relies on many servers or computers around the world to provide the necessary level of computing power to complete transactions. The cost isn’t always the same, because it depends on the supply and demand.

Miners are the people who provide the necessary computing power to the Ethereum blockchain. Also, they set the price for gas fees based on how much it costs to provide the service. The more data a contract or transaction has, the higher the gas fee it is going to be because it requires more computing power to execute.

Gas fees exist to increase the security of each transaction. While low gas fees would mean cheaper prices for the user, it would also mean less security, because it would be easier for external actors to manipulate the blockchain.

Gas fees are paid in Ethereum’s native currency, ether (ETH). Gas prices are denoted in gwei. Each gwei is equal to 0.000000001 ETH.

Why do Ethereum gas prices get so high?

Ethereum gas prices depend on the demand. The more people are using apps built on top of Ethereum, the more computation power is needed from miners to execute the contracts.

That is because the more people use it, the more data there is to be handled.  This can be a good sign for Ethereum because it means that there is a lot of interest from people, but it can also become expensive for regular users who want to complete transactions. 

The standard limit for the Ethereum transaction gas fee is 21000 gwei. For more complicated transactions such as smart contracts, the fee is going to be higher.

If you want your transaction to be completed by the miners faster, you can increase the gas. The amount of gas that is not used will be returned to you by the Ethereum network.

If you set it too low, however, there is a risk of your transaction being declined and losing your ETH. Users can also set a maximum limit on the amount of gas fee they are willing to pay for, and can also tip the miners.

How do ETH gas fees compare to BTC gas fees?

Both Ethereum and Bitcoin are built on the blockchain. Since blocks in the blockchain can only hold a specific amount of data, miners choose which block they are going to process based on their incentives and priority. 

Bitcoin fees can also increase due to the congestion on its network. If there is a shortage of miners or increased activity, the fees will go up. This has happened in the past for both Ethereum and Bitcoin. There have been different solutions proposed. 

Bitcoin’s Lightning Network is one example. Lighting Network is a Layer 2 protocol that aims to increase the number of transactions that Bitcoin can handle so that its’ fees will be lower. 

Ethereum gas fees also depend on the volume the network is handling, but since the Ethereum blockchain is built as a platform for multiple use cases, the data that needs to be processed is diverse and large.

Etherum plans on overcoming this problem through ETH 2.0, a major upgrade in the way Ethereum works.

Where can I check Ethereum gas fees?

Since the world of crypto is very dynamic, it is natural that you need to stay updated all the time and look at different data. There are several ways you can check gas fees and compare different data that help you make the best decision on when to complete a transaction.

Some of the ways you can do this are by utilizing various websites and apps extensions such as:

  1. Etherscan – A block explorer that lets you monitor transactions on the blockchain.
  2. Blocknative – Google Chrome extension that estimates gas fees for ETH.
  3. ETH Gas Station – Website that monitors key gas fee data.
How will ETH 2.0 affect gas fees?

The Ethereum community, headed by the Ethereum Foundation, is actively looking for ways to improve the technology, including the gas fees aspect. The way through which this is expected to happen is by upgrading Ethereum to Ethereum 2.0. 

ETH 2.0 means that among other changes, Ethereum will switch from a Proof Of Work model to Proof Of Stake. This means that the responsibility of validating a transaction will go from miners with a lot of computing power to people who have staked at least 32 ETH.

The network will randomly select people who have this amount staked to validate transactions. This will make Ethereum more energy-efficient, as it is predicted that it will use 99% less energy than it does today, but also cause a drop in gas fees, due to a higher number of participants in the validation process.

Ethereum 2.0 is a process that is split into multiple phases and is being implemented gradually, with previous accomplishments such as the “London Upgrade” already in place.

Vitalik Buterin, the creator of Ethereum and head of the Ethereum Foundation, has stated that 2022 is the year when Ethereum switches to a Proof Of Stake model.

Although Ethereum gas prices can be frustrating, and cause a high barrier of entry for many getting started in the NFT space, the future looks hopeful.

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Grind Money

How To Buy Ethereum, A Beginner’s Guide

When the pandemic hit around a year ago and people found themselves at home with nothing to do, one of the first things on people’s minds was investing. After crashing due to the uncertainty of the pandemic, the stock market began booming with the amount of money people were throwing in and stocks like Tesla made it feel like you were printing money. Bull runs galore.

Towards the end of last year, the surge of the price of Bitcoin got a lot of people interesting in investing in it along with other cryptocurrencies. Unfortunately, that process isn’t as simple as putting some money in an app and buying some coins. There are security measures that need to be taken, like owning a wallet, and many coins cannot be purchased with a fiat currency, i.e., your dollar.

That’s where Ethereum comes in.

What is Ethereum?

Ethereum is essentially a platform for decentralised applications. This means that it gives you the opportunity to run your application on servers around the world as opposed to a server from Amazon or Google. In the world of crypto, Ethereum is considered by many to be as good of a buy as Bitcoin, if not even better.

How Is Ethereum Different To Bitcoin?

Ether, or ETH for short, is the currency of the Ethereum network. It’s similar to Bitcoin in many ways, some of those being that they’re both decentralised, digital currencies on a blockchain. However, the differences are key. Bitcoin, a coin created in 2009, was created to be an alternative to fiat (i.e. government issued) money like the dollar, pound sterling or the euro. Ethereum, a token established in 2015, was made to be a platform for any digital contract to be both permanent and decentralised. What Bitcoin attempts to do for money, Ethereum attempts to do for contracts.

Though you’ll hear them mentioned together a lot, Bitcoin and Ethereum aren’t so much in competition with one another as they complement each other.

Choosing a Platform for Trading:

For simplicity’s sake, this article will walk you through how to buy Ethereum using Coinbase. However, there are a few platforms on the market available for buying/trading ETH, so let’s go over a couple of them before we dive into the process. Some of the most respected platforms in the game right now are Coinbase, Binance, Kraken, Gemini and Bisq.

Coinbase’s interface is simple and easy to navigate, making it the most accessible and best choice for beginners in the space. However, it has higher fees than some of the other exchanges due to its convenience.

Binance is a good option for more advanced traders, as it offers lower fees but is a bit less simplistic, so it’s a good option for people looking to buy multiple alt coins, not just ETH. Depending who you ask, some people consider Binance the best overall exchange.

Kraken has really amazing customer service, so it’s a good option if you’ll need some assistance in getting started. They also provide super fast bank withdrawals.

Gemini is one of the only insured wallets available right now, which means that you’ll be covered in the case of a security breach or other unforeseen disaster. You can also earn interest on your crypto. This is a good option for the security-conscious investor.

Bisq is the best decentralized option, so its servers are spread around the world, making it more resistant to security breaches than some of the centralized platforms. However, you can only initiate purchases through wire transfer, not with a credit card, so it’s a little less accessible.

With that in mind, let’s dive into how to buy some ETH!

How To Buy Ethereum
Finance Magnates

If you’d like to take the plunge and purchase some ETH, there are a few ways you can go about doing it. With the instructions we’ll take you through today, we’ll go with the combination of the best, cheapest, and most safe route.

Step 1: Download Brave
Brave

If you want to go ahead and purchase ETH and access your digital wallet on a browser like Safari or Chrome, you’re more than welcome to and aren’t likely to run into any problems. But if you want to take every precaution possible, we recommend downloading Brave, a fast, private, and secure browser.

Step 2: Create an account on an exchange
Coinbase

One of the most daunting steps of purchasing any coin or token is choosing which exchange you do it on. Each one has its own set of vast pros and cons, and that makes making a choice that much harder. As noted above, there are lots of options on the market, like Kraken and Gemini (I personally like ActiveTrader), but for this guide and the purpose of simplicity, we’ll use Coinbase. It’s the most popular option and a great entry point.

Creating an account can seem like a longwinded process. You’ll have to take a picture of some ID, wait for it to get approved, and then wait for your funds to be transferred over from your bank account. This can take anything from a few minutes to a few hours, but it’s worth waiting for.

Step 3: Install a digital wallet
Metamask

Unlike purchasing a share of a company on a brokerage, any coins or tokens you purchase will have to be stored in a wallet, and ETH is no different. There are two kinds, hardware wallets, and digital wallets. The former is a physical wallet that you can keep and the latter, as the name implies, remains online.

We recommend MetaMask because as well as being a secure and reliable option when it comes to digital wallets, it’s also completely free.

The most important thing to emphasize here is that you take your seed phrase seriously, which means store it somewhere safe. A seed phrase is a string of 12 random words that act as your skeleton key for your wallet. If someone has access to your phrase, they have access to your ETH.

Step 4: Purchase ETH and send it to your wallet
Coinbase

Now that everything is set up and in order, it’s time to actually go through and purchase ETH. Don’t stress the amount too much. Even though, at the time of writing, one Ethereum token is roughly $3,287.49 (at the time of writing), you can put in as much or as little money as you like.

Last but not least, after making your purchase, you’ll need to send your ETH to your MetaMask. When you click the MetaMask extension in your browser of choice, you’ll see that underneath where it says Account 1, there are a series of numbers and letters that you have the option of when you hover your cursor over copying to your clipboard. Go ahead and do that and under Send on Coinbase, paste it in the Address section. Once you go through with that, you should see your ETH appear in your wallet in no more than a few minutes.

Step 5: Hold

Congratulations, you just purchased Ethereum. From here you can either hold or use it to purchase an altcoin that you couldn’t buy with USD.