When you come across the crypto world, understanding ‘What is Ethereum’ becomes a real curiosity. And somewhere it’s connected to NFTs and the Metaverse. Ethereum is a blockchain-based platform that empowers decentralized applications (dapps). It is the second-largest cryptocurrency after Bitcoin. There is a strong correlation between increased acceptance of cryptocurrency and direct contact between users. One of the leading names in blockchain technology is Ethereum (ETH), which is the technology behind innovations like non-fungible tokens (NFTs). With its network, financial products are being created that reduce or even eliminate the need for banks and brokers.
What is Ethereum?
On the heels of Bitcoin, the programmer Vitalik Buterin created Ethereum in 2015. Ethereum is an open-source software platform for running smart contracts. Using blockchain technology enables the development of decentralized Digital Applications (DApps). The Ethereum Virtual Machine (EVM) is a decentralized virtual machine that runs scripts over a global network of public nodes. You can create decentralized applications and smart contracts with no downtime. Ethereum makes it possible for developers to build and deploy distributed applications of the future.
Where can I buy Ethereum to invest in NFTs?
Choose a Cryptocurrency Exchange
The only way to purchase cryptocurrency is through a cryptocurrency trading platform since you cannot purchase it from a bank or online brokerage. Several cryptocurrency exchanges are available, from simple tools for beginners to sophisticated dashboards for advanced traders.
Ethereum is the most common currency to buy NFTs. Ethereum can be purchased at a crypto brokerage or exchange such as Coinbase (COIN), Robinhood (HOOD), Gemini, Binance.US, or Kraken.
Before you purchase cryptocurrencies, you should consider the fees. Coinbase, for example, charges $0.99 for trades of less than $10. As trade volume increases, this fee will increase.
Fund Your Account
Creating an account with a crypto exchange will probably require some personal information and identification verification. Once you’ve connected your bank account or debit card to your account, you can fund your account. You may encounter different fees depending on how you fund your account.
If you fund your account, you haven’t yet bought any Ethereum, and like with any investment account; you shouldn’t leave your uninvested funds untouched. To invest, you will need to purchase Ethereum.
Place an Order for Ethereum
Upon funding your U.S. dollar account, you will have the option to purchase Ethereum. Put in the amount of USD you would like to exchange for Ethereum. Depending on the price of Ethereum and how much you wish to buy, you will likely purchase shares of a single Ethereum coin. Whenever you purchase an ether coin, the amount will be displayed as a percentage of the total.
Store Your Ethereum
You can leave your investment in an exchange account if you have a small amount of crypto. If you want to store your funds more securely, a digital wallet can provide more security. Digital wallets come in many different forms, all offering varying levels of security. Wallets for crypto storage of NFTs include MetaMask, Alpha Wallet, Cybavo, and several others.
To Buy NFTs with ETH
Now that you’ve found out ‘what is Ethereum’, its use case of it becomes so obvious. You may not intend to trade your currency, however, would love to invest in NFTs and the Metaverse. And these are primarily associated with Ethereum transactions.
Search for NFTs
You should select an NFT that you think has an upside value potential. An NFT can be an artwork, music, a video, or even a piece of content in a video game.
Choose Your Marketplace
You can buy and sell NFTs through the marketplace. Once you have found the market where your NFT will be sold, you need to sign up and connect your crypto wallet. Many crypto storage wallets for NFTs, including MetaMask, Alpha Wallet, Cybavo, etc. These wallets allow you to store your crypto and the NFTs that you purchase from the market. There are different requirements for each marketplace. Many popular marketplaces include OpenSea, Rarible, SuperRare, Larva, and Foundation.
Be sure to have enough ETH.
No matter how cheap or free the NFT may be, you’ll still have to pay fees to complete the transaction. On OpenSea, most digital collectibles are stored on the Ethereum blockchain, and transactions like NFT sales are charged a “gas” fee. The gas price fluctuates based on network traffic. Ensure you have extra ETH to cover fees when choosing an NFT.
Once you have enough ETH in your crypto wallet and your wallet is connected to the NFT marketplace. Now you can place your order directly. Once you have purchased NFT, you can access it through your crypto wallet until you decide to sell.
Conclusion On ‘What Is Ethereum’ and Investing Them In NFTs:
With its many uses, Ethereum has a much larger learning curve than Bitcoin, the second-largest cryptocurrency by volume. A decentralized smart contract platform, Ethereum is similar to Bitcoin in that it was designed as a currency and store of value. The code runs on the Ethereum blockchain and is verified by peers. Rather than rely on centralized platforms, applications are developed transparent, secure, and censorship-resistant. Many crypto enthusiasts are investing in it and buying NFTs with it, which is why ETH is growing rapidly.