Introduction to Guide
As a leading player in the crypto industry, Ethereum has enjoyed a lot of popularity in recent months. This has made the demand for this cryptocurrency to increase just as much. Unlike before, buying Ethereum is quite easy and straightforward of late. Advancements in the cryptocurrency technology have made it possible for you to use cash, debit, credit, PayPal and several other methods to purchase cryptocurrency tokens.
However, you must be systematic about the procedure. There are several steps that you ought to follow to ensure that the transaction is a success. In this article, the process has been broken down into more straightforward steps.
What You Need To Know About Cash Transactions
Unlike other exchange protocols, the peer to peer exchange system required for a cash transaction doesn’t require the exchange to hold the crypto. The transfer is done directly from one user to the other. The trade is, therefore, not susceptible to theft or hack.
The transacting parties also have the option of conducting the trade anonymously. This means that none of them is required to provide personal information. Also, no lengthy verification process will be undertaken, thus, making it a quick trade.
The fact that communications over the platform are encrypted makes it impossible for any third party to access the shared information. However, due to the limited use of personal information, using the peer to peer crypto exchange protocol requires a very high level of trust between the transacting parties. The security applications used by exchanges are not adequate to protect you from user fraud.
Get an Appropriate Wallet
Cryptocurrency exchanges are quite prone to the activities pf hackers and other fraudsters. Therefore, it is safer to have a wallet ready where you will store your Ethereum after buying it. Check out the several available options and choose the one you find most suitable. The options include the Ledger Nano S, Ledger Blue and others.
Find a Suitable Exchange
There are several ideal exchanges that you can use. CoinMama, Binance, CoinBase and LocalEthereum.com can offer secure and anonymous peer to peer exchange using cash. LocalEthereum.com offers 0.25% fee and 0.75% fee for the sellers and buyers respectively. As an extra security level, an exchange will hold the funds from the buyer in a separate account and only releases it when both parties have lived up to the terms and conditions of the trade.
Register with the Exchange
You will need an email address, username and password to create a trading account with the exchange. As the final stage of the registration, you will be asked to comply with the exchange’s terms and conditions. It is always good practice to read these guidelines before complying.
After agreeing with the terms, you will be implored to check your email for registration verification. A link will be sent to your email for you to click, verify the email and complete the account registration.
The two-factor authentication procedure is mandatory before any exchange is done on the platform. The process is done to safeguard your account from fraudsters. You can either use the google authenticator or use the authentication email option, which is the default security protocol.
- Method of Payment
While using an exchange such as LocalEthereum.com, you cannot make a direct fiat deposit. You have to use other payment methods such as cash, bank or wire transfer among others to complete the transaction.
Choose cash or in-person as your payment method from the drop-down bar and then proceed to select your location. The exchange will bring present you with a list of all Ethereum sellers in the chosen area, and you can choose according to your digression.
Coming to Agreement
Once you choose the buy button, the platform will provide you with the reputation of the selected seller. This is done to help you establish whether they can be trusted for not. If you are satisfied with his or her status, then you can proceed to click on the ‘Open Trade’ prompt. A dialogue provision will be opened so that you can discuss the trade further with the seller.
Make the Purchase
Before making payment, ensure that this seller has put the Ether in question in an Escrow account. Escrow protects your interests by ensuring that the seller cannot retrieve the Ether until the deal is either completed or canceled.