Cryptocurrency is no longer news to anyone. Investors, businesses, and even governments are now coming to terms with its existence, and it has gained more acceptance in the last 4 years than it has since the first crypto coin was created. To be an investor in the crypto space, there are certain things that you must know and continue to know to make the best investment decision.
That is why research is always critical when it comes to investing in cryptocurrency. Today, one of the major crypto coins in the crypto space is Ethereum. It is second to BITCOIN in terms of value and is also popular because its technology supports a lot of dApps that offer smart contracts in the crypto space. It is more than just a digital currency.
This is what gives it its value. This article will discuss all you need to know about buying Ethereum in Canada.
How does it work?
Ethereum works on the blockchain network like every other cryptocurrency. The way blockchain is set up, a distributed public ledger makes it possible for a user of the Ethereum network to hold an identical copy of the ledger, which allows them to view all past transactions. All the distributed ledger holders manage the Ethereum network.
Ethereum can be used to buy other cryptocurrencies and can be purchased as a store of value. Ether is the name for the digital currency in which you can invest and trade other cryptocurrencies, while Ethereum is the name of the blockchain network on which Ether is held and exchanged.
Besides being a currency, Ethereum is also used to build other decentralized applications used for DeFi transactions and smart contracts. This is one edge Ethereum has over BITCOIN. The Ethereum network can also perform computation as part of the mining process.
Why should I buy Ethereum?
If not for any reason, you should buy Ethereum because it is the second most valuable crypto coin in the crypto space. It is also second in terms of market capitalization behind BITCOIN. Another reason you should consider buying Ethereum is that aside from being a digital currency, it also has other use cases that make it more valuable and give it an intrinsic value.
The much-talked-about Ethereum 2.0 version is said to be a much-improved protocol that will further increase the currency value of Ethereum. Therefore, investing in Ethereum now would not be such a bad idea. The use case of Ethereum, which is being used by distributed apps, also increases the demand for Ether and drives its value upward in the market.
Pros of Ethereum
Wide Range of Use Cases –
One key advantage Ethereum has over other cryptocurrencies is that aside from being a digital currency, the Ethereum network can also be used to process different types of financial transactions and smart contracts. It can also be used to store data for their party applications. These are some of the things that drive up the value of Ethereum.
Large Community –
Ethereum has proven to be a helpful technology in the crypto space and has championed the evolution of the crypto space from being just a digital currency to a network on which other dApps can function. This has enabled it to enjoy a large following, regarded as the largest ecosystem in the blockchain and cryptocurrency space.
Innovative Technology –
Ethereum developers are constantly looking for ways to improve the network and new applications that can run on the network. Because of its popularity, it is always the go-to network for new decentralized applications.
DeFi Feature –
This feature on the Ethereum network allows users to make transactions without third-party intermediaries like lawyers and banks needed for financial transactions.
Most developers find it challenging to learn how to develop apps on the Ethereum network, especially those migrating from centralized processing to decentralized networks.
Increasing Transaction Cost –
The popularity of Ethereum is on the rise, which translates into higher transaction costs. Ethereum gas fee is over $23, which is on the high side. Miners find it lucrative, but this fee can be too costly if you are using the network.
Lack of Limited Supply –
There is no limit on the supply of Ethereum. Although there is an annual limit of 18 million Ether per year, the lack of an overall limited supply may lead to Ethereum not appreciating at some point. This is one advantage BITCOIN has over Ethereum.
Where can I buy Ethereum in Canada?
Buying Ethereum in Canada is the same as buying Ethereum anywhere globally. The same factors are considered before deciding on where to buy Ethereum. Therefore, you can buy Ethereum from 3 places in Canada.
Crypto exchange platforms
There are thousands of crypto exchange platforms you can buy Ethereum from in Canada. Before choosing from the lot, one thing to consider is if the platform is supported in Canada. Some platforms are not supported in some regions. Therefore, you need to research the platform before choosing it.
A very trusted and reliable platform that you can buy Ethereum from in Canada is Coinberry. There are some perks you will enjoy while using the platform, including a 0% transaction fee. To use the platform, you have to create an account and go through a KYC procedure, after which you can begin to trade on the platform.
Peer to Peer exchanges
These are platforms that allow you to choose from a list of sellers to buy Ethereum. It is a marketplace that puts you in direct contact with a crypto investor trading under the terms that satisfy both parties. In addition, you can use different payment methods like PayPal, bank transfers, debit cards, and credit cards to pay for the Ethereum you buy on the peer-to-peer exchange.
Ethereum ATMs operate similarly to that fiat currencies. You will need to scan the QR code of your crypto wallet using the ATM camera and insert the cash equivalent of the Ethereum you want to buy or the value of another cryptocurrency you wish to exchange for Ethereum on the ATM. The transfer of the Ethereum may take a few hours to complete.