How to Buy Ethereum (ETH)
One of the most ambitious cryptocurrencies to date, Ethereum was launched in 2014 to decentralize products and services in a broader array of use cases beyond money.
Often advertised as a “world computer,” Ethereum is rather a software that enables new kinds of programs to be run on its global network of computers, programs that, like Bitcoin transactions, cannot be censored or shut down due to the distributed nature of its design.
This is why hundreds of new cryptocurrencies have been so far released on top of Ethereum, some of which you can buy on Kraken including Augur, Basic Attention Token and more.
For those of you who are new to the world of cryptocurrency, we’ve put together this handy guide to teach you how to buy ether, Ethereum’s cryptocurrency, quickly, easily and securely.
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Why buy Ether?
Today, the Ethereum blockchain is used to power applications that do everything from automate financial services (such as lending and borrowing) to enable blockchain versions of traditional currencies (like USD-C and Paxos Standard).
As these crypto assets run on Ethereum, they need to buy and spend ether to use Ethereum’s computing network, creating demand for the asset. This has given rise to the idea that ether is akin to a digital oil, a finite resource that must be used to generate economic activity.
You should consider buying ETH if you want to:
- Create or operate decentralized applications
- Diversify your long-term investment strategy
- Play Ethereum-based games or use Ethereum-based applications
- Execute smart contracts on the Ethereum blockchain
Where to buy Ethereum
There are a number of ways to buy ether. For example, you can purchase it directly from another individual in person or over the web. You can also try to locate a crypto ATM near you. However, many find that it is easiest to purchase it through an exchange, like Kraken.
Aside from offering a simple interface and the lowest fees in the industry, Kraken is constantly rated one of the most secure and trusted crypto exchanges in the world. This matters because if you lose the private key to your ether it is nearly impossible to recover your losses.
At Kraken, we take security seriously, with state-of-the-art technology and procedures that protect client funds. We do not compromise when it comes to security, and neither should you.
How much ether can I buy?
Don’t have a lot of spending power? Don’t worry, you don’t need to purchase a whole ether.
Like most cryptocurrencies, ETH is divisible, with every 1 ETH containing 1 quintillion wei, the smallest unit of currency being named after e-money pioneer Wei Dei. This means you can easily purchase fractions of an ether on Kraken’s exchange.
Larger orders, of course, are also possible, too. It wouldn’t be out of the ordinary for larger traders to purchase or trade 100 ETH or more on Kraken.
How to buy ETH on Kraken
- Sign up for a Kraken account
Enter your email address, select a username and set a strong password on your account.
- Verify your account
By adding your name, date of birth, country and phone number to your account, you can buy ether with other cryptocurrencies like Bitcoin or Tether. In order to use fiat currency (i.e. USD or EUR) however, you’ll need to provide additional supporting documents verifying your identity. Read about our verification levels here.
- Deposit fiat or cryptocurrency
You can fund your account in a number of ways. How you do so will depend upon your location and preferences.
- Purchase Ethereum!
Once your account is funded with fiat, you’re ready to purchase your first Ether. At this point, you’ll also have access to our advanced charting tools, 24-hour global client support and the ability to utilize margin trading.
24/7/365 Customer Support
Trading is really pretty simple! If you have any questions about buying Ethereum, let us know. Our support staff is online all day, every day, ready to help.
You can reach us anytime on LiveChat or by email.
Where to keep your ether
Now that you’ve bought ether, you’ll need somewhere to put it. Kraken is secure, but it’s always safest to store your crypto in a wallet. A wallet is a software or hardware device that stores the public and private keys required to make crypto transactions.
There are many types of wallets available. Mobile and web-based wallets make frequent transactions easy. Hardware and paper wallets are best suited for secure, long-term storage. When you’re choosing a crypto wallet, think of what you plan to do with your tokens. A wallet that best suits your needs is always the right choice.
Kraken is not a wallet service
It is important to note that Kraken is an exchange service and not a wallet service. So while we allow our clients to hold funds with us while they’re being used to make trades, you may want to consider separating your holdings into multiple wallets.