How to buy and sell Ethereum: a step-by-step guide
Cryptocurrency is a progressive financial instrument, which, if skillfully used, can bring good profits. We propose to consider the order of mandatory actions of an investor who has decided to first invest in ETH on the AAX exchange, and then to fix the profit (i.e., sell the token) or to use it for other purposes.
Read the suggested instructions carefully and you will learn how to buy, hold, and sell Ethereum, as well as what task is solved by such an investment.
What is Ethereum (ETH)?
Launching much later than the top dog, Bitcoin, Ethereum joined the cryptocurrency market in 2015. While Bitcoin offers peer-to-peer digital currency, Ethereum offers smart-contract applications (a user can set specific conditions to trigger a transaction). Ethereum has a wide range of use cases that are attractive to consumers looking to do more than financial transactions.
Read the Ethereum whitepaper.
Step 1: Create a free account on the AAX website or app
Without an account, you can't perform any actions on the crypto exchange. Therefore, first, click "Sign up" on any page of the site. Then choose the type of login - Email address, phone number, and Google account address:
A similar panel appears when you first run the AAX app downloaded and installed on your mobile gadget.
Consider registering through your mobile number.
Set a password, agree with the terms of service noted, and press "Sign up." Now you can log in to your account by password and log in to explore the site or application "from the inside" and make your purchases and sales.
If you need to make financial transactions of considerable volume (more than $2k), you need to be verified. So click "Verify" among the options of the personal account button, and on the page that opens, click "Complete KYC Verification":
It remains to prepare the requested documents, click "Verify" and follow the KYC procedure.
Step 2: Choose how you want to buy Ethereum cryptocurrency
AAX offers several different ways in which you can purchase Ethereum for an exchange account. They differ in the type of currency used to pay for the purchase (fiat or/and crypto) and the sources from which it can be obtained. Let's take a look at a few options - the rest are very similar and so simple.
Example 1: Buy ETH with a credit card
One of the advantages of the AAX crypto exchange is the possibility to buy Ethereum for rubles without commission with a bank card - you are about to learn how to do it from the "Wallet".
Important: You can make such a purchase only from an account verified to the 2nd level.
First, the table on the tab "Funding Account" is set to "Cash" mode:
Then it contains the "USD" line, where you click on "Deposit". A form will open in which you first select the payment gateway and then click "Next".
It remains to enter the recharge amount, specify a credit/debit card as the source of recharge and activate the transaction.
Example 2: Buy Ethereum via bank transfer
In this case, consider working through the "Convert" option of the "Buy Crypto" menu:
It leads to the form, the work which was discussed in the previous section.
Important! You can only exchange dollars to ETH in this way from your account wallet's financial account, the method of crediting it by bank transfer was discussed in the previous section (you only need to select the "Bank Transfer" payment method in the payment gateway).
Example 3: How to buy Ethereum using other cryptocurrencies
Important! Only USDT, USDC, and BTC are allowed to pay for Ethereum on AAX.
They must first be credited to the balance of the AAX financial account, from the cryptocurrency wallet which is done by clicking on "Deposit" in the line of the corresponding cryptocurrency (for example, USDT). A panel will appear with the terms of transfer from the cryptocurrency wallet and the information you need to use for this:
The rest of the steps are done through the "Transfer" option in the cryptocurrency wallet.
When USDT, USDC, or BTC are deposited to the AAX Wallet financial account, the Spot Market terminal opens through the "Trade" menu. There, the cursor is hovered over the ticker of the current pair and in the panel that appears:
- Select the quoted cryptocurrency (used for payment) - in the example USDT;
- Enter "eth" in the "Search" field;
- Click on the desired pair (in the example, ETH/USDT).
After switching the terminal on the "Place Order" tab:
- Select "Buy" mode;
- Set execution "Market";
- Set the "Market" type of "Prices”;
- Specify the "Amount" or "Total";
- Press "Buy ETH".
It remains to confirm the transaction with the trade password, after which the exchange of crypto to Ethereum will take place instantly.
Step 3: How to Sell Ethereum
First, you can do this via the "Exchange" link of the "Buy Crypto" menu. The form that opens switches to "Crypto->Cash" mode, and then it is filled out as described in "Buy Ethereum via bank transfer":
In this case, the fiat goes to the balance of the AAX funding account, from where it is withdrawn via the "Withdraw" option.
Second, you can also get fiat for ETH through the payment gateways offered through the "Quick Buy and Sell" link - the form found there switches to "Sell" mode.
Then the currencies are defined in the "Sell" and "Receive" fields and the amount of one of them is specified - the second will be calculated at the current rate. But there may not always be liquidity for a particular direction - then a notification "No quotation yet" will be displayed, as in the picture above. Therefore, we recommend opening a dollar or euro bank account and withdraw to it - there are almost always offers in the U.S. and EU currency:
If you click "Sell ETH", then a list of liquidity providers, which can perform the exchange you want - the appropriate one is selected by clicking on "Sell".
Now it remains to follow the instructions of the selected payment gateway.
Third, you can sell ETH for another digital currency. This method is described in the section "Buy Ethereum with other cryptocurrencies" - the only difference is to switch the "Place Order" panel to "Sell" mode. Payment tokens go to the wallet balance of the exchange account (financial account).
Step 4: What can you do with ETH
Buying and selling are not the only operations that can be performed with cryptocurrencies on the AAX exchange. For example, they can be transferred to other wallets and accounts, as well as exchanged for other financial assets - digital and fiat. Let's understand when this might be necessary.
Example 1: Donate Ethereum
Philanthropy allows one to take part in solving social problems that a person cares about. In this way, he or she takes some of the responsibility for the events happening in the world. And using cryptocurrency for donation is very convenient - transfers are made quickly and easily, and there is no need to pay tax on the donated amount, which is necessarily withheld when cashing out Ethereum.
You need to find out the details of the cryptocurrency wallet that accepts donations, and make a withdrawal to it from the wallet's financial account.
Here's what information you need to enter to withdraw Ethereum:
Example 2: Send Ethereum to your friend
In this case, use the "Withdraw" wallet financial account option as described in the previous section. But the reasons for making such a withdrawal are completely different - usually, friends are sent Ethereum as:
a gift for a holiday, anniversary date, the birth of a child, or other memorable events;
congratulations for achievements, such as in sports, school, or work;
a payback of debt, and not necessarily in ETH.
The reasons for sending cryptocurrency can be very diverse, and the advantage of such a transfer is the low transaction fee.
Example 3: Exchange ETH
For this purpose, the options in the "Buy" and "Trade" menus are used as described in the sections "Buy Ethereum with other cryptocurrencies" and "Buy Ethereum with a bank transfer". The peculiarity of the AAX exchange is the admissibility of exchanging ETH for only 3 digital currencies - USDC, USDT, and BTC. Therefore, when you need to convert Ethereum, for example, to LTC, then, for example, change the first ETH to USDC, and then USDC to LTC.
What makes Ethereum valuable?
Ethereum blockchain supports the DeFi ecosystem and actively deploys NFT, game universes, meta universes, and Web 3.0 technologies. This provides mutual benefit to both users and the blockchain in the form of a liquid marketplace. Contracts are already being drawn up on its basis, real estate registries are being officially formed, ICOs are being conducted, and other products are being created.
The following developments are promising for the Ethereum blockchain:
the transition to the PoS consensus model (happened on September '22);
zoning of its resources.
These measures will make transactions faster and scaling easier. At the same time, both translation and scaling will be cheaper. Therefore, the value of ETH will most likely only grow in the future.
Another important property of this cryptocurrency is its huge market capitalization. In this parameter, ETH is second only to Bitcoin. Etherium also competes with BTC in terms of scarcity, durability, and protection against counterfeiting.
How to buy Ethereum on AAX?
Most often this cryptocurrency is bought and sold by investors and traders for the purpose of making money. The AAX exchange allows earning such trades through a web terminal, the interface of which is similar to other trading platforms. It allows you to open a position not only in the spot market but also with the use of leverage. Thanks to margin trading, traders have the opportunity to implement high-risk trading strategies.
For other reasons to buy Ethereum on AAX, read "Store or use your Ethereum on AAX".
How do I know the price of ETH now?
Ethereum quotes against other cryptocurrencies are available in the spot market trading terminal - read "Buy Ethereum using other cryptocurrencies" to find out how to enable it.
And the price of ETH in fiat is shown on the "Exchange" options page of the "Buy" menu - how to work with it read "How to sell Ethereum" section.
Safe Trading with AAX
First of all, precautions must be taken by the user - his passwords must be complex and authentication is enabled. For our part, we have done our best to protect our customers - we have used a tried and tested trade management system. It is completely identical to the one used on the London Stock Exchange and therefore it is absolutely safe to use.
Store or use your Ethereum on AAX
Every account on our crypto exchange gets a multi-currency wallet that supports many digital and fiat currencies. You can top it up and store them on it for an unlimited amount of time - it's free of charge. At the same time, stored finances are absolutely safe and always available for withdrawal.
But you can also make money on the storage of Ethereum. The AAX exchange offers two tools for this from the menu "Finance":
saving - involves borrowing coins to create exchange liquidity:
stacking - providing coins for the operation of the blockchain:
The specialists of AAX are constantly working on the development of the site, adding new features, and improving existing services. Using this guide on how to buy ETH on AAX, you will understand the basic techniques of how to work, and once you have mastered them, you will have no difficulty in understanding the more complex methods of dealing with cryptocurrency. Everyone can and should learn how to work with digital currencies in order to use them profitably and profitably, for example, to make money or achieve other goals.
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