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3 Ways to Buy 1 of the Best Cryptocurrencies in the Industry

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Written by Daniel Da Costa at The Motley Fool Canada

Over the last few years, cryptocurrencies have become a lot more mainstream. Although, just a few years ago, they were viewed as highly speculative investments, today, the best cryptocurrencies to buy in the industry solve tonnes of real-world problems, which is why so many institutions and corporations are looking to gain exposure.

And although there are plenty of high-growth and high-potential cryptocurrencies to choose from, there is no doubt that one of the very best cryptocurrencies in the industry is Ethereum (CRYPTO:ETH).

Ethereum is already the second most valuable cryptocurrency by market cap. This is in large part due to how popular its blockchain is. Because users can run smart contracts on Ethereum, tonnes of new projects, such as NFTs, are being built all the time.

Furthermore, because it was the first blockchain to do this, and because several other blockchains are compatible with Ethereum, the number of decentralized applications on Ethereum continue to make it one of the best blockchains to use.

So, if you’re looking to buy Ethereum, one of the best cryptocurrencies in the industry, here are three of the best choices you have.

Buy actual Ether

The first way to gain exposure to Ethereum would be to buy its native token, Ether, yourself. In order to do this, you’ll either need to make an account on a crypto onboarding app (these are platforms that let users trade their fiat for a few of the most popular cryptocurrencies). Then once you own the Ethereum in the app, you can create a wallet and send it there to ensure you have full control of the Ether.

The other way to buy one of the best cryptocurrencies in the industry is to make an account on an exchange. Exchanges are a lot like onboarding apps, but they typically allow you to do more in addition to offering more choice in the cryptocurrencies you want to buy.

Again, though, until you send that cryptocurrency from your account on the exchange to an actual wallet that you control, it’s not technically in your possession. It’s also worth it to keep gas prices in mind when you decide to transfer to minimize the fees you’re paying for the transaction.

Buying Ether itself can be difficult and complicated for beginners, which is why there is still another to gain exposure to the best cryptocurrency in the industry. However, if you do decide to buy Ether, there are a tonne of advantages, and you can begin to explore other exciting projects, such as DeFi and NFTs.

An Ether ETF is a great way to buy one of the best cryptocurrencies in the industry

If you don’t want to buy actual Ether just yet, given that it can still be slightly complicated, another option that essentially gives you direct exposure is to buy an ETF that holds Ether for you, such as the CI Galaxy Ethereum ETF (TSX:ETHX.B).

Investing in the ETF will allow investors to earn the same rewards, as if they owned the Ether themselves. However, you can also buy it in a registered account, which could allow you to save tonnes on taxes.

In addition, it’s a far cheaper and straightforward way of gaining Ethereum. And since the fund does all the hard work for you, plus it stores Ethereum offline where it can’t be hacked, it’s one of the best ways to gain exposure to the high-potential cryptocurrency.

That’s why the third way to gain exposure to Ethereum is to buy an Ethereum ETF that’s made for passive income seekers. As the cryptocurrency industry continues to become more popular, companies are looking for ways to take advantage.

This has resulted in tonnes of new funds being launched. Most recently, an ETF that holds Ether and employs a covered-call strategy to generate passive income for investors just launched.

So, as it becomes more popular, and its net asset value grows, allowing the fund can become more liquid, this will be an excellent way to consider gaining exposure to Ethereum over the long haul.

Many investors agree that Ethereum is one of the best assets to buy in the cryptocurrency space. So, while these high-growth assets still trade cheap, I’d look to gain exposure today.

The post 3 Ways to Buy 1 of the Best Cryptocurrencies in the Industry appeared first on The Motley Fool Canada.

Buy Alert: The Shopify of Cryptocurrency

We recommended Shopify before everyone knew about it… and now it’s up roughly 5,000% and while making some investors a fortune in the process.

Now, The Motley Fool is issuing a buy alert on another controversial investment with mouth-watering potential: cryptocurrency. But not just any cryptocurrency… one specific coin that we think could rise above the rest.

This is the first cryptocurrency The Motley Fool has ever recommended, so you probably don’t want to miss out.

Click here to get all the details!

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Fool contributor Daniel Da Costa owns Ethereum. The Motley Fool owns and recommends Ethereum.

2022

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