Ethereum (ETH) has been one of the largest and most popular cryptocurrencies for years. With Ethereum being on its way towards launching ETH 2.0—a massive new upgrade that will be a major game-changer for the project, Ethereum even threatens to overtake Bitcoin.
Ethereum is likely to see significant price improvement, which is why many are looking for ways to buy Ethereum in Austria, as well as in pretty much every other country in the world. If you are looking to learn how to buy Ethereum in Austria, this guide will help you out.
When it comes to profiting from crypto, you really have only two options—you can either invest or you can trade. The difference between the two is that investors invest for long-term, often months, or even years. Traders, on the other hand, trade in a much shorter period, depending on the price movement.
Investing is best done on exchanges, where you can purchase ETH coins and then transfer them to your private wallet, where they will be safe from hackers and your exchange alike. However, traders usually use brokers.
Brokers are services that offer CFDs and other derivative products, so you wouldn’t actually buy cryptos, but rather trade contracts that use cryptos as underlying assets. The advantage here is that you don’t have to worry about storing coins. Another, bigger advantage is that you can profit even if the prices start falling, as CFDs allow you to bet on the price performance of a coin, and not depend on the actual value of the asset in your possession.
We have created a list of the best platforms to buy Ethereum in Austria in 2021, so check them out and see which one you like the most.
While we have already provided a brief explanation on how to buy ETH in Austria, we understand that the crypto industry has seen the arrival of plenty of new traders during the recent crypto bull run. So, if you are among them, and you need a bit more details on what trading/investing involves and why it should be done a certain way, here are some more detailed steps on how to buy ETH.
The first thing to do is to choose a platform where you will do your trading or investing. As explained previously, the type of platform you will choose will directly depend on what you wish to achieve. In other words, if you wish to trade Ethereum and earn smaller profits quickly, you can use cryptocurrency brokers. Brokers might be a better option if your strength lies in price predictions, rather than in quick reaction to the price changes.
Cryptocurrency exchanges also allow you to engage in HODLing—buying coins for the purpose of holding on to them for longer periods regardless of what happens to the price. Just remember to always use regulated platforms, as they are much more secure, and your funds are more likely to be insured.
The second step is registration. Essentially, you need to create an account in order to use the platform. This is simple enough to do, and on most platforms, you don’t even have to bother with creating your account from scratch. You can simply log in with your social media account, such as your gmail account.
After the account creation, however, you will have to verify your identity, which means going through a KYC procedure. This is not complicated, as it simply involves providing a bit more details about yourself, such as your real name, address, photo, as well as one or two official documents/bills to confirm your address and prove that you are who you claim to be.
This is necessary by law in most countries, so don’t be alarmed if the exchange or broker requests such information—this is now a norm, just like in traditional finance, and your data will be safe with the platform.
After KYC is done, you should be able to go to the deposit page and select a payment method for funding your account. As mentioned, this will be your initial deposit that you will use for investing and trading. Hopefully, you have chosen an exchange that supports your preferred payment method. Now, all you need to do is connect it to the platform, and decide how much money to transfer. Payment methods differ from platform to platform, but credit/debit cards and bank transfers are typically always supported.
Finally, with your account created and your money deposited, you should be ready to buy some ETH. As we explained before, exchanges are the best option for investments, while brokers are typically a more superior choice if you wish to trade. However, one thing to note is that there are some brokers that offer the ability to buy coins directly, such as eToro.
Likewise, there are a few exchanges that also offer derivatives, such as futures and options. Binance is one example of such a platform, so if you wish to primarily trade, but also get a taste of investing, brokers like eToro are a good option. If you wish the opposite, you can consider using Binance.
Finally, we have a few optional steps to consider, such as opening complementary positions to hedge your main investment if you go for derivatives trading. You should also consider getting a crypto wallet to store your coins away from the exchange, and be the sole person who can access them and manage them. Lastly, note that Ethereum is soon about to switch to Proof of Stake, with the launch of Ethereum 2.0, and has started offering the ability to stake—so you may lock up your coins and earn passive income, which is a much safer way to earn money without risking it in trades.
There are many payment options available in Austria and some of these are listed below.
Buy Ethereum with Cash — Ethereum can be bought with cash on crypto ATMs, if you can find them relatively close to you in Austria.
Buy Etheerum with a Credit Card — A credit card is one of the fastest ways to buy it, although it is also one of the most expensive ones.
Buy Ethereum with Bank Transfer — Bank Transfers are a popular way to deposit money and buy ETH as they are cheap, but they are also slower than other means of payment.
Buy Ethereum with PayPal — Ethereum can be bought with PayPal, either on PayPal’s own platform, or you can use it for purchases through P2P exchanges. But, since PayPal currently only offers crypto services to the US users, you might have to wait a bit longer for the opportunity to buy Ethereum on its own platform in Austria.
Buy Ethereum with Bitcoin — Lastly, you can also get ETH in exchange for BTC, as the two are paired against one another on virtually any exchange.
Ethereum is the second-largest cryptocurrency, which it has been for years now. With the arrival of Ethereum 2.0, many speculate that Ethereum’s price will go up so strongly that it might surpass even the BTC price. Ethereum is the project that gave birth to smart contracts, dApps, DeFi, NFTs, and many other products, simply by encouraging the use of blockchain as a development platform, and not just a distributed ledger.
It is the biggest development platform in the crypto/blockchain industry, and its only flaws are slow speed and inability to scale, which led to high transaction fees. The project is already working on reducing the fees, and once ETH 2.0 launches, it will be much faster, more competent and likely one of the strongest forces in the crypto sector.
Yes. Buying and owning cryptocurrency is perfectly legal in Austria, as it is in pretty much all European countries. The authorities are still worried about their people falling victim to scammers, or about bad actors using crypto for money laundering, terrorism financing and other illicit purposes. But despite all that, the authorities in Austria are still crypto-tolerant, and they even planned to use Ethereum’s public chain to issue $1.35 billion in government bonds, back in 2018. Find out more about the tax regulations for cryptocurrency in Austria.
Ethereum can always be used for trading and investing in Austria. However, since there are no laws that would make crypto legal tender, it cannot be used for much else. You might be able to use it for payments if you have a crypto debit card, as the merchants will still receive their preferred currency, even if you pay with crypto. But, paying with crypto directly is not currently an option. There is also the option to buy Ethereum at crypto ATMs in Austria. Cities such as Villach, Klagenfurt, and Wolfsberg have several locations where crypto ATMs are available.