How to Buy Ethereum (ETH)

Ethereum is a peer-to-peer network and distributed operating software that allows developers to build and deploy decentralized applications (dApps) and cryptoassets. The network was conceptualized by Vitalik Buterin as a way to expand the functionality of blockchain technology.

The Ethereum network established several token standards, including ERC20, ERC721 and ERC1155. Token standards developed by Ethereum allow crypto assets deployed on the platform to remain compatible with existing decentralized exchanges (DEXs). They also helped give rise to non-fungible tokens (NFTs). Ensuring composable smart contracts through developmental standards has made Ethereum an important platform for decentralized finance (DeFi).

Ether (ETH) is the native token of the Ethereum blockchain and is used to make peer-to-peer payments, pay transaction fees incurred on the network and  earn rewards for securing the protocol via staking.Want to dive deeper? Read Kraken’s What Is Ethereum? (ETH) to learn more.

Developers use Ethereum’s native programming language called Solidity to create smart contracts (agreements that execute automatically when specific conditions are met) and deploy them on the Ethereum blockchain. The protocol compiles code via its Ethereum Virtual Machine (EVM), which is incorporated into every Ethereum node.
As a result of the technology inherent to the network, ETH has become one of the most popular digital currencies in the crypto market. 

ETH can be used on a number of crypto platforms to purchase a diverse range of goods and services. For example, the majority of NFTs are priced in ETH and the token is often used for crypto trading on both centralized and decentralized exchanges (DEXs). It can also be staked on Ethereum and across other DeFi-based platforms to generate interest payments.

All of these use cases have made ETH the second most popular digital asset in the crypto space after Bitcoin.

Ethereum expands on the blockchain technology pioneered by the Bitcoin network by introducing smart contracts. While Bitcoin remains a popular peer-to-peer digital cash system, Ethereum allows for the creation of more advanced decentralized applications on its platform.

The Ethereum network has been used to develop a number of DeFi platforms that introduce new opportunities for trade in the cryptocurrency space, including derivatives products like options and futures. BTC and ETH are commonly held in crypto portfolios and both are regarded as stores of value.

Want to learn more about the differences between Bitcoin and Ethereum? Check out Kraken’s Learn Center article Ethereum vs. Bitcoin.

ETH is the second largest cryptocurrency by market cap with a circulating supply of more than 122 million tokens. Ethereum’s market capitalization can be calculated by multiplying its circulating supply with the token’s current market price.

You can check ETH’s current market price on Kraken’s Ethereum price page.

The Ethereum network is secured through a proof-of-stake (PoS) consensus algorithm. PoS is a modification of proof-of-work (PoW) and was developed as a means to solve the original consensus mechanism’s perceived dependency on energy consumption. Ethereum transitioned from PoW to PoS in an upgrade known as “The Merge.” 

With more than a decade of experience, Kraken has established itself as a pillar of the cryptocurrency industry. While we have grown to now offer over 185 cryptocurrencies, we remain one of the best places to buy ETH.

You can buy Ethereum on Kraken with as little as $10 since each ETH is divisible into smaller units. While you do not need to execute larger orders, Kraken’s advanced price discovery and execution technology helps offer some of the best rates of any cryptocurrency exchange.
 

Your verification level determines what you can do with your Kraken account. This can be located by signing into your account, selecting your name in the upper right and then selecting Get Verified. You will then see highlighted your current (pending or verified) level.
 

Dollar cost averaging is a popular strategy that allows you to invest in an asset at regular time intervals using fiat currencies (cash) and other payment methods like a bank transfer, regardless of its price. This sort of strategy is designed to help build wealth over time while minimizing the impact of unpredictable price changes.

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Disclaimer
Information provided in this “Learn” section is for general educational purposes only and is not intended to constitute investment or other advice on financial products. Such information is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any particular digital asset or to use any particular investment strategy. Kraken makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any such information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.