If you want to invest in Ethereum, you can do so quickly and easily with a regulated online broker. Once you have registered for an account, you can pay for your Ethereum investment using a debit/credit card or bank transfer.
This guide will show you, in simple terms, how to buy Ethereum step by step. It is geared towards beginners but will be easy to follow for anyone.
Where to Buy Ethereum
Which cryptocurrency platform you use to buy Ethereum is the first thing you need to consider.
Since Ethereum has the second largest market capitalization, it is not surprising that the majority of the 200+ exchanges listed on CoinMarketCap support this token. We have everything you need whether you want to invest in Ethereum or use it to buy the best NFTs.
We discus the best exchanges to buy Ethereum from to help clear the mist for you.
1. eToro – Overall Best Place to Buy Ethereum for 2022
We concluded that eToro is the best provider after reviewing more than 50+ exchanges and brokers. The eToro platform is good for both beginners and experienced investors because it is regulated and has low trading costs. EToro is regulated by tier-one bodies including the SEC, FCA, CySEC, and ASIC.
eToro operates on a spread-only basis, which means that there are no fixed commissions. The eToro platform is cost-effective because it doesn’t charge any fees for USD deposits and withdrawals. This includes debit and credit card payments, which, in the cryptocurrency exchange industry, ordinarily average a transaction fee of between 3-5%. In addition to debit/credit cards, you can also purchase Ethereum using a bank wire transfer, ACH, or an e-wallet such as PayPal.
When you have invested at least $10 in Ethereum through eToro, the tokens will be added to your web wallet. You don’t have to withdraw the tokens to leave them there safely. This means that when you want to sell your Ethereum tokens for cash, you can do it with the click of a button. eToro is also the best choice for diversification.
The broker not only allows you to buy Bitcoin and 40+ alternative cryptocurrencies, but also allows you to trade thousands of other markets. The app covers stocks from the US and more than a dozen international exchanges, including ETFs, gold, energies, indices, and currencies. The copy trading tool at eToro is also worth checking out. This function enables you to choose a successful eToro trader and mirror their future investments.
coin with a minimum spread of just 2.9%. For example, you can buy the Graph coin with a tight spread of just 2.9%. Another popular choice for crypto enthusiasts is eToro because it offers a crypto credit card. To find out more, read our guide to the best crypto credit cards available today.
2. Crypto.com – Buy Ethereum With a Visa or MasterCard at 2.99%
An option to think about when looking to purchase Ethereum is Crypto.com. This platform doesn’t just exchange cryptocurrencies, it also offers a variety of other products and services related to cryptocurrencies. For example, Crypto.com provides an NFT marketplace where you can purchase NFTs with Ethereum, the ability to earn interest on your cryptocurrency investments, and even a debit card issued by Visa.
The fastest option to buy Ethereum at Crypto.com is to use your Visa or MasterCard. In doing so, your transaction will be processed instantly. Although Crypto.com charges a flat transaction fee of 2.99% for this payment type, you should still consider using it. If you open a new account, you won’t have to pay the fee for the first 30 days.
3. Binance – Top Platform for Experienced Traders to Buy Ethereum
If you are familiar with cryptocurrency exchanges, Binance is the best option to buy Ethereum. However, both eToro and Crypto.com are also suitable for newbies. On Binance, you can choose to trade using the advanced platform. This provides you access to various tools that investors with more experience will find useful. This encompasses a gamut of features, such as orders in anticipation, personalized charts, technical markers, and drawing tools.
If you’re looking to buy Ethereum at Binance, you have the option to pay for your tokens with a debit/credit card. You need to go through a quick KYC process to deposit funds with US dollars. In addition to the standard 0.5% buy charge, you will be charged an additional 4.5% when using a debit or credit card on this platform. In contrast to Coinbase, Binance supports fee-free ACH and bank wire deposits. However, you will need to wait for the funds to clear before you can buy ETH.
Binance offers another way to buy Ethereum by allowing users to deposit funds via cryptocurrency. This will not only speed up the KYC verification process, but you will also not have to pay any deposit fees. When using Binance, you can easily pay for your purchase with a number of different tokens that are all denominated in Ethereum. This includes tokens such as USDT, Bitcoin, or BNB. An industry-leading commission of just 0.10% per slide will be charged if you choose to swap crypto for Ethereum.
Binance also supports a lot of cryptocurrencies, so you can buy Celo and other popular altcoins with low transaction fees.
4. Coinbase – Popular Way to Buy Ethereum for First-Time Investors
Coinbase offers the perfect combination of user-friendliness and security. Coinbase is a popular choice for people who want to buy Ethereum for the first time, because the platform was designed with beginners in mind. It takes less than 10 minutes to open a verified account on Coinbase, even if you don’t have any previous cryptocurrency trading experience.
Coinbase is subject to US regulation and is traded on the NASDAQ exchange. The platform stores at least 98% of client funds in a secure location and all registered users must go through a process to verify their identity. You must use two-factor authentication every time you try to log in to your account. One of the main drawbacks for Coinbase is that it is expensive for both deposits and commissions.
What is Ethereum?
Ethereum is both a blockchain protocol and a cryptocurrency token that was first launched in 2015. As a leading Metaverse coin, it is interactive and programmable, allowing developers to create decentralized applications on the Ethereum blockchain. The Ethereum network allows users to send and receive digital funds without needing to go through a third party. The transaction processing time of 16 seconds allows for a quick and efficient ecosystem.
Ethereum’s ability to execute smart contract agreements sets it apart from less sophisticated first-generation blockchains like Bitcoin and Litecoin. This means that the contract can be enforced without the need for a third party to mediate or act as a middleman. The terms of the agreement are entered into the smart contract through transparent code that cannot be changed or manipulated.
The smart contract will only be executed when the terms have been met. Ethereum is only surpassed by Bitcoin, which is the largest cryptocurrency by market capitalization. When it comes to the project’s native cryptocurrency token, Ethereum is second only to Bitcoin in terms of market capitalization. In addition, even more is expected from Ethereum, with the project soon to change from a proof-of-work consensus mechanism to the more scalable and affordable proof-of-stake.
Is Ethereum a Good Investment?
Since being launched in 2015, Ethereum has seen significant returns and is now the second most valuable digital asset, only behind Bitcoin.
This text is saying that it is not known if Ethereum is a good investment until you research it yourself.
The most attractive aspects of Ethereum to look at before you buy it for your portfolio are discussed below.
Performance Since Launch
Before Ethereum was officially launched in 2015, the project held an initial coin offering (ICO). An ICO is similar to an IPO in that it allows a company to raise funds from investors.
- In total, Ethereum’s ICO raised in excess of $17 million.
- When the token was first launched on public exchanges in 2015, the token was trading at around $0.75.
- Fast forward to 2022 and the digital currency has since hit all-time highs of nearly $5,000.
- This means that in just seven years of trading activity, Ethereum has generated gains of over 650,000%.
If you had invested 500 dollars into Ethereum during its ICO and sold when it peaked at nearly 5000 dollars, you would have made 3.2 million dollars.
Smart Contract Leader
Since Ethereum pioneered the smart contract concept in 2015, several other companies have created similar platforms. Although Ethereum’s technology is not as good as its competitors in terms of scalability and fees, it is still the most popular smart contract blockchain.
Ethereum has remained the second most valuable cryptocurrency project in terms of market capitalization since it was launched, with only a few days in early 2018 when it was not. Ethereum is a more trusted cryptocurrency because it has a public management team that is led by Vitalik Buterin.
Ethereum 2.0
Other smart contract blockchains outperform Ethereum in terms of performance.
- For instance, Ethereum is only able to handle up to 15 transactions per second – which is far too low to be considered as an alternative to global financial and data services.
- Furthermore, irrespective of how many tokens are being transferred, Ethereum fees averaged $4 per transaction – which makes it incompatible for micro-payments.
The good news is that the upgrade to Ethereum 2.0 is expected to be completed in 2022.
This is predicted to increase the project’s ability to handle more than 100,000 per second – which is much higher than Visa, MasterCard, or Paypal.
Ethereum 2.0 is expected to significantly reduce transaction costs.
Buy the Dip
Ethereum’s price performance recently hit an all-time high of nearly $5,000 per token.
The Ethereum value has decreased since it began, following the trend of other cryptocurrencies. For example, if you look at Ethereum’s price in 2022, it was just over $3,700.
Compare the best cryptocurrency exchanges for trading bitcoin and other assets
Coinbase
What makes Coinbase unique is that it offers more than 100 cryptocurrencies, including popular options like bitcoin, ethereum, litecoin, dogecoin, and ripple. This exchange also provides different investment opportunities for single and professional investors. The account features of Coinbase include rewards for staking, iOS and Android mobile apps, and an option to Earn cryptocurrency by watching educational videos.
In addition to its regular trading platform, Coinbase also offers a more advanced platform for experienced traders as well as a platform designed specifically for institutional investors and high net worth individuals. Advanced features like secure trading bots, charting tools, and real-time order books are only available to Coinbase Pro users.
In addition to the Prime cryptocurrency trading platform, institutional clients can make use of commerce services, cold storage (offline storage for crypto assets), and an Asset Hub that allows issuers to list and grow their products on the platform.
Additionally, Coinbase has also recently established its NFT trading platform in beta form. It’s offering no transaction fees for creators and collectors who use the platform for a limited time. Coinbase’s NFT platform is very competitive when it comes to pricing, as many NFT platforms charge 2.5% per transaction.
Read our Coinbase review to learn more.
If you regularly use margin accounts to trade, you should not use Coinbase. The exchange does not allow you to borrow money to trade crypto assets nor does it offer futures.
Abra
Abra is a cryptocurrency exchange that allows users to buy, sell, and hold cryptocurrencies in one app. It is available in over 150 countries and allows users to trade in 25 different fiat currencies. The exchange offers a variety of features and a broad selection of cryptocurrencies.
This platform offers trading for 80 cryptocurrencies, interest accounts that offer up to 10% on eligible assets, crypto-backed loans, over-the-counter (OTC) trading, and multiple educational guides for beginners. OTC services also offer institutional clients access to accounts that earn interest, loans, and support from a dedicated account manager.
The exchange also offers interest-free loans.
Abra is available on iOS and Android phones.
Read our Abra review for more info.
When using a credit card for transactions, it is important to be aware of the fees that may be associated with Visa and Mastercard use. These fees can add up, so it is important to be aware of them when making purchase decisions.
Kraken
Kraken distinguishes itself by offering 100+ cryptocurrencies and a variety of options for both retail investors and institutional investors. Kraken offers more global support than Binance.US. The exchange currently supports traders in nearly 200 countries.
Kraken also offers margin trading and futures trading. You can trade crypto assets with a margin account and borrow up to five times your account balance. You can trade futures contracts for bitcoin, ethereum, litecoin, bitcoin cash, and ripple. A futures contract allows you to buy or sell an asset at a set price on an upcoming date.
The exchange also offers its own futures trading platforms. Institutional clients are able to take advantage of expert insights, as well as one-on-one consultations and account management support.
Kraken offers staking rewards to all clients, as well as iOS and Android mobile app access and educational resources.
If you’re a US trader looking to use Kraken’s futures mobile platform, you won’t be able to do so at this time. Only clients who are part of an institution or have a high net worth are able to use the exchange’s consultation and account management services.
CEX.IO
Based in London, CEX.IO is a global crypto exchange that is available to traders in more than 99% of countries worldwide, including 48 US states. The exchange provides access to bitcoin and over 100 other digital assets.
Everyone who uses CEX.IO can take advantage of instant buys (for credit and debit card purchases), the mobile app, staking rewards, and loans that are backed by cryptocurrency. More advanced traders might prefer CEX.IO’s spot trading and margin trading features. Its aggregator and payment management services can be used by institutions and businesses.
It’s also important to point out CEX.IO’s fee schedule. The exchange has a fee schedule for makers and takers that is based on your 30-day trading volume. On CEX.IO, maker orders cannot be executed immediately, but taker orders can be. This is because maker orders require another order to match with them, while taker orders do not.
Its maker fees are 0.00-0.15%, and its taker fees are 0.01-0.25%. You can also use CEX.IO on mobile devices that use the iOS or Android operating systems.
At CEX.IO, you should be aware that transactions made with debit or credit cards can be expensive. For Visa and Mastercard deposits, you’ll have to pay a 2.99% fee (it only requires 1.49% for GBP deposits with UK-issued cards). As a US resident, if you use a Visa card to withdraw money, you will be charged a service fee of up to 3% plus an additional $1.20. You may also be charged a commission of up to $3.80. The service charge for Mastercard users is up to 1.8%, plus an additional $1.20. There’s also a commission up to 1.2% plus $3.80.
Ways of Buying Ethereum
If you want to buy Ethereum today but you’re not too sure which payment type to use – consider the methods outlined below.
Buy Ethereum With Credit Card or Debit Card
The most convenient way to purchase Ethereum is by using a credit or debit card.
Here’s how to complete the process in five minutes without paying any deposit fees:
- Open an account with eToro
- Select debit/credit card from the list of supported deposit methods
- Deposit at least $10 on a fee-free basis
eToro is one of the only cryptocurrency platforms that will allow you to buy Ethereum without paying any fees. For example, Coinbase charges 3.99% while Binance charges 4.5%.
Buy Ethereum With PayPal
Alternatively, consider buying Ethereum with PayPal. If you use PayPal to deposit funds into your Coinbase account, you will be charged a fee of 3.99% of the transaction amount. The fee is increased even further if the purchase is less than $200.
You can buy Ethereum with PayPal without paying any fees at all on eToro.
Choosing an Ethereum Wallet
Once you have learned how to buy Ethereum and where to complete your purchase, the final thing you need to consider is storage. After all, ETH tokens are stored in crypto wallets.
There are many options to choose from when choosing the best Ethereum wallet, such as a mobile app, desktop software, or a hardware device. Choose your Ethereum wallet carefully, considering the security and convenience features it offers.
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