What's the easiest way to buy Ether with USD?

Whether you already know a bit about cryptocurrencies or you know nothing about cryptocurrencies, this guide is the place to begin. It’ll give you a good understanding of the different platforms you can use to buy Ether (Ethereum’s currency) and how to decide which is the best and safest option for you.

Crypto is new, ever-changing and far from simple. The good news is: I'm going to make it simple! Before I teach you how to buy Ethereum, though, I will explain how Ethereum works. It is much more than digital money — Ethereum changes the way many businesses work.

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Now Then, Let’s Move On To How Ethereum Uses This Technology…

Following the success of Bitcoin, (the first major use of blockchain technology), (and one that you must have heard of if you lived on Planet Earth in the past year!) Ethereum was launched in 2015. It is known as “Blockchain 2.0”, Ethereum improves the way the blockchain operates with the introduction of smart contracts.

A smart contract is like a promise that can’t be broken: once it is put in place, it cannot be changed. This provides a far more secure way to do business.

So, How Does a Smart Contract Work?

Let’s imagine that your employer is up to date with technology and wants to pay you in Ether. Your employer will create a smart contract that tells the Ethereum blockchain to pay your salary to you in Ether on the 15th of each month. As you can see, smart contracts let you program/automate transactions on the blockchain.

Now, let’s imagine buying a car using a smart contract. If you pay the amount of Ether required for the car (by sending it to the smart contract), then the ownership of the car is sent automatically to you using the blockchain. This transaction is then verified by all the other nodes around the world and added to the blockchain. It is a much safer way to do business.

Well, What’s So Great About a Smart Contract?

It eliminates the need for a third party in many different transaction scenarios! In the examples I have just mentioned, you would normally rely on a third party.

In the employer example, you would rely on a bank to move the salary/money into your account on the day you are due to be paid (your “payday”). By using the smart contract instead, you do not need a bank to process your transaction — the smart contract tells the blockchain to process (send, verify etc.) the transaction on your payday.

The Fuel That Powers It All

So, you know what smart contracts are now. You know that Ethereum is the platform/blockchain that operates them. But what is it that powers it? These “nodes” must be using electricity, right? What pays for that?

Well, this is where I introduce you to Ether (ETH). It is Ethereum’s currency. It is the gas that powers everything. In fact, it is actually called gas when we use it for Ethereum transactions.

The nodes that run Ethereum are paid in Ether for their work. This pays for their electricity costs and also pays them a profit. This process is referred to as mining.

Due to the demand for Ether, it means it is highly liquid. This means it can be easily converted to cash (fiat currencies i.e. USD, EUR, JPY etc.). Also due to its demand, the price of Ether has increased a lot, so millions of people are investing in it.

Why Would I Buy Ethereum?

If you’re wondering, “Should I buy Ethereum?” perhaps you should ask yourself “Why shouldn’t I buy Ethereum?”. It is the second most popular cryptocurrency in the world, and there are good reasons for it.

Our world currently works in a centralized model. Foreign exchange rates, interest rates and taxes are all controlled by a central point (i.e. banks and governments). Ethereum and its smart contracts provide a new model — a decentralized model. It is important for investors and businesses to be a part of this new model as it is considered by many as the future.