How to Buy Ethereum(ETH) in India in 2024?

Key Takeaways 

• On April 12, 2023, Ethereum is anticipated to receive Shanghai. It is a significant update that will allow for the removal of staked ETH.  
• The Ethereum network upgrade is also anticipated to draw more stakers, which may eventually boost the purchase of ETH. 

 An open source, Ethereum is a blockchain-based distributed computing platform and operating system that is characterized by smart contract functionality. It has brought much innovation to the crypto industry by paving a path for decentralized finance (DeFi) and decentralized apps (DApps). The Ethereum platform provides a crypto token called “Ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed. 

Ethereum was initially proposed in 2013 by Vitalik Buterin, a crypto researcher and programmer. 

After bitcoin, Ether (ETH), the primary crypto of the Ethereum network, is the most widely used digital token. The second-largest crypto by market capitalization, Ether, is a logical subject for comparison with bitcoin. 

Key Differences Between BTC and ETH 

• Bitcoin and Ethereum are decentralized distributed ledger systems and are referred to as Virtual Digital Asset, after the Union Budget 2022.
• Bitcoin functions with a proof-of-work (PoW) consensus mechanism, while Ethereum is a proof-of-stake (PoS) consensus mechanism.  
• Bitcoin is a store of value and a digital currency, while Ethereum is a platform for decentralized applications (dApps) and smart contracts. 
• Bitcoin has a fixed supply of 21 million coins, while Ether has no fixed supply, allowing more coins to be issued over time.  
• Bitcoin’s maximum block size is 1 MB, while Ethereum’s is unlimited.  

Now that we have taken a look at the fundamental differences of BTC and ETH, let us discuss more on Ethereum, how to buy Ethereum in India in 2024, and walk through a how to buy Ethereum guide!

Read More: How to Buy Bitcoin in India?

What is Ethereum? 

A decentralized platform, Ethereum is a platform that runs smart contracts. Its applications run the way they are programmed, without the possible issues of downtime, censorship, fraud or third-party interference. The apps run on a custom-built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.  

The innovative function enables developers to create markets, store registries of debts or promises, move funds by instructions given long in the past (imagine a will or a futures contract) and more, without a middleman or counterparty risk.  

Should you Invest in Ethereum in India? 

ETH is one of the largest and most popular cryptos, and its core technology, the Ethereum Virtual Machine, is considered to be one of the most important technological advancements in the blockchain space. As with any form of investment on the volatile market, Ethereum is associated with its set of risks. It is imperative to conduct a thorough research before getting into investing in the crypto asset. However, one option that many seasoned investors abide by is maintaining a diversified portfolio and following a disciplined plan to maximize on the returns when buying ETH. 

Steps to buy Ethereum in India 

Choosing a crypto platform to start with the steps involved in how to buy Ethereum in India in 2024, makes the process easier. However, there are a few more steps that one has to follow. They are: 

Step1: Understanding How Ethereum Works (DYOR)  

The crypto space being a volatile market, similar to the financial markets, the prices fluctuate periodically. So, before starting a new transaction or purchasing Ethereum, it is crucial to conduct one’s own research by paying closer attention to market trends and price fluctuations. Additionally, it is important to stay initiated on external influences that might affect the asset’s worth over the long term.

Ethereum Use Cases & Risks

• Ethereum enables contracts to be executed and enforced without the need for third-party mediation. It also enables developers to create decentralized applications that can be used to create online marketplaces and gaming platforms. 
• Ethereum has most importantly powered developers in creating digital tokens that can be used to quickly crowdfund projects. 
• Ethereum is still an emerging technology, and the security of its blockchain is still in the development phase. Its blockchain can currently only process a limited number of transactions per second, a problem that is being worked upon by the developers with the series of updates ahead for the network; starting with the Ethereum Merge and the Shanghai Upgrade.

The Ethereum Shanghai upgrade is expected to be a major upgrade to the Ethereum blockchain. As per the recent announcement made by Ethereum’s core developers, the upgrade is expected to go live on April 12, 2023. It is designed to improve scalability and increase the security of the Ethereum network. As part of the upgrade, several new features such as sharding, proof of stake, and a new virtual machine are expected. These elements will make it easier to develop smart contracts.  

Additional Read: Ethereum Price Prediction 2025

Step 2: Choose a Safe Crypto Exchange 

A safe crypto exchange has strong security measures in place and a proven track record of handling customer funds securely. One can buy Ethereum in India with CoinDCX app. Simply create an account, complete the KYC, transfer INR funds to the account and start your journey!  

Step 3: Add INR Funds to your Crypto Exchange Account 

It is essential to transfer funds to the account before purchasing Ethereum through a crypto exchange.  

Step 4: Buy Ethereum in India 

Traders can buy Ethereum with the INR at any given point or they can opt for crypto SIP offered by CoinDCX, where one can buy ETH through a recurring investment at a regular interval. 

It functions as a conventional investment plan where a fixed amount is deducted from the wallet and periodically directed towards investment. If the sum of ₹ 100 each week is selected, the same sum will automatically be deducted towards the purchase of ETH.   

Step 5: How to Store Ethereum 

There are two ways one can store their Ethereum holdings. They are:

Hot Wallet: A hot wallet can be viewed from a computer or smartphone and is linked to the internet. They are practical and typically offered at no extra cost by crypto exchanges, though one can also use their own if they prefer to keep their crypto off the exchange. Hot wallets are more vulnerable to security threats as they are still linked to the internet. 

Cold Wallet: Cold wallets are external, totally unconnected gadgets. They typically cost between INR 1500 and INR 39,000 depending on the type selected, though there are more expensive variants available. One must manually connect cold wallets to the internet each time one want to access their crypto. This is a safer option and is a good choice for traders with a larger volume of ETH or crypto assets.  

Additional Read: Here’s Everything You Can Anticipate From Ethereum

How to Sell Ethereum?

Whenever one wishes to sell their Ethereum, all they have to do is follow a similar process to when they are buying the asset.

• Open the crypto exchange app
• Go to their portfolio
• Choose ETH and put the share they want to sell
• Choose sell to sell off the token.

Important Note: Closely evaluate the payable taxes to ensure that you derive the highest value from your final sale. For instance: <fees and structure CoinDCX + include 1% crypto TDS> and if profit is made with the transaction, a 30% tax will be levied at the end of the financial year on the total profit earned.

Should you Invest in Ethereum?  

Ethereum is a secure and reliable blockchain network that provides a platform for developers to create and deploy decentralized applications. It is one of the most popular and widely used blockchain networks and is expected to continue to grow over time. Importantly, the large and active community of developers and users provides support and resources for enthusiastic traders. The set of upgrades set in place for the network in its roadmap is aiming to better set the issues it had been facing since it was launched. The current scenario seems to be influenced by the workings around the upgrades; as per analysts.

The current Shanghai upgrade is set to come up with the solution for the staked ETH that has been locked since in the Beacon chain. With that inflow in the market, the network is expected to see some price movement. However, conducting one’s own research before investing is imperative! If the risk appetite is known, the investment journey can be deciphered in a much responsible manner. 

Furthermore, it is important to evaluate the financial situation and the risks associated with the investment. Ethereum prices can be volatile, and the value of the investment may fluctuate. Always conduct a thorough research before diving into investing in the crypto asset.

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