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Bitcoin is the G.O.A.T when it comes to the crypto space, which is closely followed by Ethereum as the second-largest crypto in the world. Bitcoin was created as an alternative decentralized digital currency, and following a similar idea, Ethereum took a step bigger and expanded its capabilities to more than just being a digital currency. Ethereum is a whole ecosystem that has a digital currency and is a blockchain that allows users to run smart contracts and host any kind of Decentralized Applications (DApps).
With its recent upgrade to Ethereum 2.0, Ethereum has increased its potential as a digital currency and has proven to be a beneficial investment choice by investors and traders. In this article, let’s look deeper at this unique crypto and see how to buy Ethereum in India.
But before we move forward to a comprehensive overview of Ethereum, here’s a quick difference between the top cryptos of the world.
Differences between Ethereum and Bitcoin
Ethereum and Bitcoin have a lot of differences. While both cryptos use blockchain technology to verify and publicize transactions, Ethereum serves as a software platform, while Bitcoin functions primarily as a digital currency.
The objectives of Ethereum and Bitcoin are also different. Ethereum aims to leverage blockchain technology to liberate users from centralized systems that impose strict regulations and pose significant security risks.
In contrast, Bitcoin uses blockchain technology to introduce a global currency and payment system that enables direct connections between consumers and suppliers. This reduces transaction fees and eliminates the need for intermediaries like banks.
Bitcoin achieves its purpose by fully decentralizing the crypto, relying on a vast network of millions of miners to solve intricate cryptographic puzzles and validate transactions instead of depending on a central authority like a bank. However, this decentralized and validation process makes Bitcoin slower in confirming transactions compared to Ethereum.
Due to a limited number of computers or nodes validating activity on each platform, Ethereum has a rapid average block mining time of 12 seconds. In contrast, Bitcoin’s average block mining time is a sluggish 10 minutes.
Let’s start our journey to know Ethereum better.
What is Ethereum?
Ethereum is an open-source, decentralized blockchain platform that allows the creation and execution of smart contracts. It was proposed by Vitalik Buterin in late 2013 and launched in 2015. It also serves as a platform for developers to build Decentralized Applications (DApps) and deploy smart contracts, which are self-executing contracts with predefined rules and conditions.
Ether (ETH) is the native crypto of the Ethereum network, which is used to reward participants for computational efforts in executing smart contracts and as a means of value transfer within the Ethereum ecosystem.
What contributes to the Ethereum ecosystem?
Ethereum works through a decentralized network of computers, known as nodes, that collectively maintain a blockchain. Here’s a list of utilities that contribute to the Ethereum ecosystem:
- Blockchain: Ethereum employs a blockchain where each block contains a batch of transactions linked to the previous block, forming a chain of blocks.
- Nodes: The Ethereum network consists of thousands of nodes that are responsible for validating transactions, executing smart contracts, and securing the network.
- Consensus Mechanism: Ethereum currently uses the Proof-of-Stake (PoS) consensus mechanism. In PoS, validators are chosen to create new blocks and validate transactions based on the number of cryptocurrency tokens they hold and are willing to “stake” as collateral.
- Smart Contracts: Ethereum introduced the concept of smart contracts, which are self-executing agreements with predefined rules and conditions encoded in code and stored on the Ethereum blockchain. They can interact with each other, store and manipulate data, and trigger further actions.
- Gas: To execute transactions and smart contracts on the Ethereum network, users should pay a fee called “gas.” It prevents abuse and spam by requiring users to pay for their network usage.
- Decentralized Applications (DApps): Ethereum enables the development and deployment of DApps on its platform that utilize smart contracts to provide various functionalities, such as Decentralized finance (DeFi), digital identity, gaming, and more.
- Ethereum Virtual Machine (EVM): The Ethereum Virtual Machine is a runtime environment that helps execute smart contracts on the Ethereum network. It provides a sandboxed environment for code execution, ensuring security and consistency across different nodes.
Top 5 Reasons Why You Should Invest in Ethereum in 2024
#1 Inflation and recession concerns: With increasing inflation rates and a potential economic downturn, investors are seeking alternatives to the struggling financial market. Cryptos like ETH are a top choice for investors looking to diversify their portfolios.
#2 The Merge: Ethereum’s successful implementation of “The Merge” in the past signifies its progress and adaptability. The blockchain is now more efficient and cost-effective, enhancing its appeal.
#3 Projected growth: As the second-largest blockchain globally, Ethereum is experiencing rapid expansion. Many projects are choosing Ethereum as their platform, making it a potential investment choice.
#4 Crypto market rebound: The crypto market has shown signs of recovery, with several projects reporting positive results in the end of 2023. This overall positive trend in the market is expected to attract more Ethereum-centric investors.
#5 Diversification opportunities: Ethereum’s ability to host various crypto projects is a significant advantage. It is not limited to a digital currency alone but also accommodates NFT art and dApp developers.
4 Things to Check Before Choosing a Crypto Exchange in India for Ethereum
You must do thorough research when using a crypto exchange to invest or for crypto trading in India. You must research the legitimacy of the platform and the credibility of the team behind it before deciding on an exchange to invest in Bitcoin in India.
You should also ensure the platform provides the following before investing in Ethereum:
- The exchange’s website/app has a simple user interface and is easy to use.
- The exchange supports Ethereum trading pairs.
- The exchange employs state-of-the-art security measures and does not compromise when it comes to regularly upgrading it. Try to avoid exchanges that do not have a KYC protocol in place.
- The exchange offers reasonable trading fees to buy crypto in India.
Now, let’s see how you can buy Ethereum in India from the most trusted exchanges in India in 2024.
Buying Ethereum in India in 5 Easy Steps
Below are a few simple steps you can follow and buy the ETH token in India with WazirX, India’s most trusted and widely used crypto exchange.
The best way to buy ETH tokens is using P2P trade. To get answers to all your queries related to the P2P trade, click here!
Bonus point: INR Deposits are also LIVE on the WazirX platform. Now, you can buy ETH tokens using INR.
Step 1 – Sign-Up on the WazirX platform
To begin buying and selling ETH Crypto, you are required to create an account on the WazirX platform by signing up. Also, you can directly Log-in if you have an account already on the platform.
For your reference, here’s how you can open an account on WazirX.
Step 2 – Set up your account security by verifying your email address.
This step is about verifying your email address. After you sign up on the WazirX platform, you’ll get a verification link on your registered email. By clicking on that link, you’ll get two options to ensure the security of your account – the authenticator app and mobile SMS.
Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.
Step 3 – Complete the KYC process.
After choosing your country, you can proceed with completing the KYC process. Click here for a detailed overview.
Note: You must complete your KYC to be able to trade P2P or withdraw funds on the WazirX app.
Step 4 – Add funds to your WazirX account using P2P.
After integrating your bank account into your WazirX account, you can buy USDT through P2P to the WazirX wallet. The USDT will act as funds to help you buy your favorite Cryptos.
Step 5 – Finally, buy ETH on WazirX.
You can now easily purchase ETH tokens using P2P trade on the platform. Check the ETH to INR rate from here and ETH to USDT here.
After logging in to your WazirX account, you can choose USDT from the “Exchange” tab. You can also check all the price charts, order book data, and an order input form on the right side of the screen.
Click “Buy” after entering the amount and checking the total USDT amount to be paid.
Your order will be placed according to the price you have input. A seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.
It might take a few minutes for the order to be completed, but as soon as it is executed, you will receive the ETH Coins you purchased in your WazirX wallet.
Happy Trading!
Further Reading:
How to Buy Cryptocurrencies in India?
How to Buy Bitcoin in India in 2021
Can you buy shares in Bitcoin?
What is Dogecoin? How to buy Dogecoin in India?
5 Things to Keep in Mind While Buying or Selling Ethereum
Frequently Asked Questions
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
