It’s easy to buy Bitcoin online, but what if you want to buy Ethereum or another coin?
Yesterday we took a look at the step-by-step process of how to buy Bitcoin online with Coinmama. But cryptocurrency is so much more than just Bitcoin. In fact, if you look at the cryptocurrency rankings, you’ll find more than 4000 coins. (Cryptocurrencies other than Bitcoin are known as Altcoins or sometimes just “alts,” both terms are short for “alternative coins.”)
So why buy Ethereum (or Litecoin, Cardano, or Tezos) when you can buy Bitcoin? In this article, we’ll look at the benefits of altcoins, the altcoins Coinmama carries, and how to buy cryptocurrency such as Ethereum or other altcoins.
You may have heard of Bitcoin maximalism, the idea that you should only invest in or buy Bitcoin. Bitcoin maximalists make convincing arguments, saying that investing in any other coin will decrease the value and network security of Bitcoin. Those are valid points, but there are good reasons to buy Ethereum and other altcoins as well:
Look at the project
While Bitcoin is purely a currency, many cryptocurrencies serve to back a project. In fact, if you look back at 2017, when many new altcoins _ were born, you’ll see that many _ are linked to Initial Coin Offerings (ICOs)—fundraising efforts to back certain blockchain projects. Altcoins linked to ICOs often ran on the Ethereum network and were usually referred to as “tokens.”
While the majority of the projects that popped up during the ICO craze either failed or were, unfortunately, scams (and as a result, the coins associated with them are now worthless), a few legitimate players survived. Ethereum, for example, was one of the first ICOs, and the Ethereum coin (ETH) served to support the development of the Ethereum project _.
When you buy Ethereum, you are essentially investing not only in the coin itself, but also in the success of all other projects running on Ethereum, including the thousands of tokens and decentralized applications which run on its network.
Ethereum is not alone; many other altcoins that exist today, such as Cardano, act as the infrastructure for other blockchain projects, making them more like a B2B (Business-to-Business) company than a currency. In other words, if you see a coin linked to a tangible project you believe in, think of investing in it not as buying cryptocurrency, but as investing in any other company you might put your money behind.
Get more coins for your fiat
It’s true that Bitcoin enjoys the lion’s share of the market, giving it both the most credence, and sometimes the steepest price increases. But if you look at the price charts of the top altcoins, you’ll see that their patterns are not too dissimilar from Bitcoin’s, this is because the rest of the market tends to follow Bitcoin. However, there are often cases where altcoins can outperform Bitcoin. As Bitcoin has a much larger market cap than altcoins, it takes a correspondingly large amount of money for Bitcoin to make big percentage gains. In other words, less money is required to shift the percentage price of altcoins, meaning a single large investor or a group of smaller investors can more easily run up the price of an altcoin.
Take Bitcoin and Ethereum for example. If you were to buy Bitcoin at the beginning of January, 2017, for 1,000 USD, you would have been able to buy 1 Bitcoin, now worth about 31,250 USD. If at the same time you were to buy Ethereum for the same amount, when the Ethereum price was 8 USD, you would have bought approximately 125 coins, now worth about 166,000 USD. True the Bitcoin price is much higher than the price of Ethereum at the moment (31,250 USD vs 1300 USD), but when you multiply each by the number of coins you could have bought for the same price, Ethereum would have been the better purchase on January 1, 2017.
Of course it’s impossible to predict the markets, to guess which altcoins will succeed and which will fail, and to know how much the Bitcoin price or Ethereum price will rise or fall. And as we mentioned above, many of the ICOs that launched in 2017 or 2018 ended up failing or were scams. Not only that, but the volatility of altcoins tends to be much greater than that of Bitcoin (which is already a very volatile asset). But altcoins as a whole are all less expensive than Bitcoin, and you get many, many more of them for the same price.
Altcoins need to increase by much less in fiat value terms in order to realize percentage profits, and in some cases you can also invest far less to get a sizeable portion of the total supply. Still, as with anything, you should do your research before investing, understand the technology behind the project, and ideally believe that it can succeed.
Ethereum, Litecoin, and more at Coinmama
So if you do want to buy cryptocurrency, how do you do so? Coinmama makes it easy to buy Ethereum and other top altcoins. As of this writing, Coinmama carries the following altcoins:
Ethereum (ETH): Ethereum began as an open source blockchain platform for smart contracts—in other words, it was a technology not a coin. The coin itself came about as the funding source in a crowdsale, one of the first ICOs.
Litecoin (LTC): Litecoin, like Bitcoin, is a currency first, and it was one of the first spin-offs of BTC. Like its predecessor, Bitcoin, Litecoin can be used for peer-to-peer payments or for online purchases and considers itself an internet currency.
Cardano (ADA): The project behind Cardano is a technological platform capable of running financial applications. Its mission is to bring greater financial inclusion by creating access to all to its platform.
Bitcoin Cash (BCH): Bitcoin Cash is the result of a hard fork, or split, in Bitcoin. As Bitcoin became more popular, the hard fork allowed for an increase in Bitcoin’s block size. This happened in 2017, and anyone who held Bitcoin at the time, received an equal number of Bitcoin Cash.
Ethereum Classic (ETC): Technically, Ethereum Classic is the original Ethereum. Also the result of a hard fork, Ethereum Classic took on the new name, giving the split off coin the old name.
How to buy cryptocurrency at Coinmama
You can buy Ethereum and other cryptocurrencies online at Coinmama using the steps below:
Add your personal information to get verified for purchase
Choose the coin you’d like to buy and the amount
Enter your wallet address
Submit your payment details
Receive your coins!
You can find step-by-step instructions on how to create a Coinmama account, get verified for purchase, and select and buy coins here.
When you buy cryptocurrency, the important thing to remember is that different cryptocurrency wallets support different coins, and it’s imperative that you enter a valid wallet address when placing your order. At Coinmama, we want you to have full financial empowerment, so we let you use the third-party wallet of your choice. Before you buy or download a wallet, make sure you properly research the wallet and make sure it supports the coin you want to buy. Your Bitcoin wallet may not support Ethereum, and your Ethereum wallet may not support Cardano. Learn more about creating a wallet and keeping your assets safe here. Additionally, even if you have a multi-currency wallet which holds all of your assets, each coin will have its own unique address. You can usually find your cryptocurrency wallet address by clicking “receive coins” or something similar from within your wallet; if you’re unsure of your wallet address, check with your provider.
Altcoins or Bitcoins?
At the end of the day, the decision to buy Bitcoin or to buy Ethereum or other altcoins is yours. At Coinmama, we carry the top altcoins so that if you want to diversify your portfolio, you can do so easily. However, investing in anything, be it Bitcoin, Ethereum, or other cryptocurrencies, carries a risk, and only you can decide if that risk is worth it. If and when you do decide to buy, Coinmama is happy to welcome you into our 2.6 million-strong global community.