Buy Ethereum (ETH) - how to invest in Ethereum in New Zealand

How to buy Ethereum (ETH)?

Nowadays, not only every trader knows about cryptocurrency, but also anyone. In 2017, the situation in the cryptocurrency market changed dramatically. Digital coins collapsed from their historic highs, as the tops were achieved mostly amidst the hype.

We can now say that the cryptocurrency market has become much more mature, if not mature. On the one hand, there is already accumulated data for technical analysis of cryptocurrencies, which makes it possible to understand how to sell and buy Ethereum. On the other hand, blockchain is becoming more pervasive, and serious experts are less and less likely to say that cryptocurrencies are the new bubble.

Invest in Ethereum in New Zealand
Invest in Ethereum in New Zealand

To understand what prospects await the second most capitalised cryptocurrency and how to make money from ETH, let's understand what Ethereum is.

Ethereum is a large open-source software platform. It was developed by a young Canadian programmer, Vitalik Buterin, in 2015, and was later used to create a cryptocurrency called Ethereum, or ether. The cryptocurrency is now the second most capitalized currency after bitcoin.

Ethereum differs from Bitcoin in that it is based on smart contracts, which make the platform more functional.

The number of features that are embedded in the platform is now quite extensive. The original idea was for Ethereum to become a huge global computer with a large number of nodes. It is because of its functionality that Ethereum is a platform that many experts are predicting a successful future.

Accordingly, many experienced exchange players do not mind investing in Ethereum or profiting from changes in its value. You can also do that, even without experience, on a brokerage platform.

Growth Factors

Ethereum is now a more sought-after coin among big investors than bitcoin, according to financial analysts at one cryptocurrency exchange. According to them, there are several reasons for this:

  • The boom in NFT, DeFi and GameFi is boosting demand for ETH, as the bulk of the projects are launched on the Ethereum blockchain;
  • Ethereum acts as a hedge asset for investors who invest in tokens for various projects;
  • Trading volumes on Ethereum are smaller than on bitcoin, which means higher volatility, higher risk, and hence higher earning potential;
  • The crypto market as a whole is growing. Bitcoin traditionally "drags" other coins with it;
  • The development of the project, successful hardforces and the gradual transition to the PoS algorithm also form a positive attitude of investors to the coin.

Experts also point out that the fundamental reasons for Ethereum's growth, in their view, are just beginning to take effect.

Features of the Ethereum cryptocurrency

ETH is a cryptocurrency. It is a rare digital money that can be used online in a similar way to Bitcoin. If you're new to cryptocurrency, here's how ETH differs from traditional money.

  • It really is yours. ETH allows you to become your own bank. You can control your own funds using your wallet /wallet/ as proof of ownership - no need for third parties.
  • Secured by cryptography. Internet money may be new, but it is protected by verified cryptography. This protects your wallet, your ETH and your transactions.
  • Flexible amounts are available. ETH is divided up to 18 decimal places, so you don't need to buy 1 whole ETH. You can buy multiple fractions at once, up to 0.000000000000000000000001 ETH, if you wish.
  • Open to all comers. You only need an Internet connection and a wallet to accept ETH. You do not need access to a bank account to accept payments.
  • No centralized administration. ETH is decentralized and global. There is no single company or bank that can decide to print more ETH or change the terms of its use.

How to invest in Ethereum (ETH)?

It is now clear what cryptocurrency Ethereum is - it is the second most capitalised cryptocurrency in the world. Its rapid growth and smart management have attracted the attention of many investors and traders.

The decision to buy ETH today means acquiring a valuable asset that can generate good returns in the future.

Methods to make money with Ethereum

There are several ways to make money from this currency. Investments and trading.

Investing involves long-term ownership of an asset. You can buy it and put it into your cryptocurrency wallet. You can then either resell the asset when it increases in value, or you can use it as a means of payment, which is just as profitable when the price increases.

The purchase is usually made through an exchanger or a special exchange. One of the popular exchanges in this area is Binance. Its main advantages are huge amount of cryptocurrencies for trading (100+), largest trading volumes for most of them, generous affiliate program (up to 40% of commission), opportunity to earn extra income via stacking and lending your cryptocurrencies.

This way, you will own Ethereum yourself.

Trading involves making fast profits on changes in the value of an asset or quickly re-selling it at a better price.  You can also use an exchange for this, or if you want to make it easier and less costly, a broker. They will not offer you to buy the asset itself, but to make money on the CFD contract. This means that you can make money on the price difference. Because the asset is volatile, the transactions can be very profitable.

Ethereum Trading Platform (ETH)
Ethereum Trading Platform (ETH)

CFD does not involve buying the asset itself and creating an additional wallet to hold it. All transactions take place in the broker's terminal and the profit is reflected in your account on the platform.

There are fundamental differences between how to trade Ethereum and how to trade CFDs in the crypto market. Trading cryptocurrencies requires them to be held in a wallet, whereas with CFD trading the position is held in your trading account, which is regulated by the financial authority. You have more flexibility when trading with CFDs because you are not tied to an asset; you simply buy or sell the underlying contract. In addition, CFDs are a more established and regulated financial product.

What is a cryptocurrency broker?

Cryptocurrency brokers are intermediaries who help owners of digital assets to conduct transactions by charging a small commission. Not all crypto investors have enough knowledge and practical experience to trade on exchanges, so the services of brokerage companies are in demand.

How to start investing in Ethereum (ETH)?
How to start investing in Ethereum (ETH)?

There are a lot of platforms and services that provide such services. So how do you choose a cryptocurrency broker for your needs? You need to make an informed choice based on the following points:

  • The availability of a wide range of financial instruments for trading.
  • Support of popular cryptocurrencies from the list of Top 20 cryptocurrencies by capitalization ranking.
  • Ability to use leverage if necessary.
  • Low commissions.

Trading strategies

Cryptocurrency trades 24/7 and is in constant motion. It is a trending instrument where short-term consolidations are present. Therefore, trend-following strategies will work well.

The global trend tends upwards when rising volatility generates stronger corrections.

How to safely invest in Ethereum online?

How safe is it to invest in Ethereum in New Zealand? How you invest and the specifics of your deposit will decide how safe it is. Choosing a broker who is trustworthy and proven over the years is the first and foremost deciding factor.

Trading with a broker can be not only more efficient but also more secure, because brokerage companies are often licensed (regulated). Brokers also have the added advantage of an extensive arsenal of financial instruments (hedging, leverage, CFDs).

How to start investing in Ethereum (ETH)?

If you want to buy Ethereum in New Zealand, the initial step to take is to find an online broker to put your money into a company account and use it as payment for the transaction.  This account is ideal for investors who are new to investing, as it allows them to gain experience and earn money today.

Once you have decided on a broker it is time to sign up and get familiar with their platform, it should be suitable for you.

Registration of the platform
Registration of the platform

Registering requires a few simple steps. It's like registering on any other website:

  • Enter your name and email and wait for an email.
  • Then complete your registration by clicking on the link.

Registration complete!

Now you can go through the platform and get acquainted with the available functions:

  • Download the free and functional app for your device, which will allow you to trade anywhere.
  • Take advantage of the minimum deposit that your broker will offer you, which is usually around $10.
  • Analyze your desired asset using the most popular charts and indicators in the system.
  • The platform is always up-to-date with real-time numbers and quotes.
  • And much more, register now, you will not regret it!
Deposit replenishment
Deposit replenishment

How to open a demo account?

If you are at a loss when you first open a trading terminal, don't be scared. You can always start with a free demo account! You do not pay any commissions or fees. You just get a chance to learn about trading and understand your skills and abilities using virtual money. Take it!

Don't wait too long. If you feel up to it, go for a real account, maybe with a small deposit. But you will already be able to earn money for your actions, not just spend time on the platform for free.

How to set up a live account?

You will need an Internet connection, and you will need money. You will most likely be asked for additional information by your broker, for user verification and security purposes, when you fund your account.

How to open a demo or a real account
How to open a demo or a real account

The platform is fully fraud-proof and may ask users for details to ensure that everything is as transparent as possible. This is a normal procedure. Just fill in the fields that are required.

Once you have filled in all the details, choose a convenient method for depositing to your account. Usually users choose a card, then you need to enter its details into the system as with a normal online shop purchase.

Done! You are now a full member of the platform! And you can make your first trades. Good Luck!

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