How to Buy ETH – Best Places for Buying Ethereum
Ether is the native cryptocurrency supported on the Ethereum blockchain. You have quite a few options from where you can buy Ether. This is because it is one of the most popular cryptocurrencies.
On this page you will find out all the options available to you. Additionally we will go through a step by step process on how you can buy Ether. For those that would like to know.
Apart from the options listed here you could also opt to buy Ether directly from someone you know. You would need to come to an agreement on the price with the other person. However it may not be that easy to find someone that has or even wants to sell their Ether.
The easiest way to get started to buy Ether is by using an exchange.
Best exchanges to buy Ether
The best part of using an exchange is that the interface is simple to understand. When you are at the stage to buy Ether they provide an area for you to enter how much you want to buy.
You enter the amount of ETH you want and it will calculate how much it would cost. Alternatively you can enter the amount of fiat you want to spend. The platform will calculate how much ETH you will get. Learn more about the denomination of Ethereum units.
How to Buy Ether From an Exchange
If you need more guidance on how to buy Ether from an exchange you check out one of our guides. We have a general guide on how to buy cryptocurrency. This guide goes through the process on how to buy most cryptocurrencies. That also includes Ethereum.
You will find a break down with steps on how to do the whole process. It is a full walk through with no stone left unturned. Moreover it includes tips and explanations for particular steps and also supporting images to clarify.
One thing to note is that the only exchange that is slightly different is Coinmama. You will need to do an additional step towards the end of the process. This is because Coinmama do not hold crypto funds. As a result they deposit your crypto into an address you provide outside the exchange as soon as you buy.
This means you have to set up a wallet address beforehand. There are many wallets you can use. However we always recommend you use a hardware wallet like what is recommended in the guide.
This is because a lot of exchanges are hacked and you do not want to your crypto stolen. So as soon as you buy Ether you should shift it over to the hardware wallet.
In fact for this same reason we also recommend hardware wallets for other exchanges. Hardware wallets are the most secure way of storing your cryptocurrency. They have no recorded breaches and are tried and tested over years.
You can find instructions on how to set up a hardware wallet and use them on the individual pages. Whether that is the Ledger or Trezor.
Other Options Where to Buy Ether
Ethereum is the second most popular cryptocurrency after Bitcoin. As a result it enjoys wide ranging support across different platforms. Here are another 5 different ways of buying Ether.
Exchanges are a great way to buy Ether because they make the process easy. Although they can be more expensive than trading platforms. If you would like to save on exchange fees you can use a trading platform instead. These platforms have been built with professional traders in mind and come highly recommended.
The only drawback is that they are a little bit more complex to use and not so suitable for beginners. Trading platforms also have many more cryptocurrencies for you to choose from. So should you wish to buy other cryptos you will have more of a choice.
Another option you could use to buy Ether is to sign up for a crypto backed credit or debit card. These cards are supported by Visa and Mastercard.
There are a few benefits of using cryptocurrency cards. Firstly you can exchange your fiat currency to Ether and vice versa instantly like you would with any exchange.
Secondly you will have a way of spending your Ether easily should you need to. This also includes spending your crypto in shops that do not support cryptocurrency. This provides great flexibility and has been a great way to facilitate adoption into crypto.
There are two ways in which the transaction would work when you go to make a payment. One way is that the card application will require you to exchange crypto to fiat before you make a purchase. This can be easily done using the application on your phone.
Alternatively the application will do it automatically for you without you needing to do anything. Different card companies use different methods so you can check what you should expect beforehand.
Buy Ether From a Crypto ATM
Another option is for you to buy Ether from a cryptocurrency ATM. There are a growing number of crypto ATMs around the world. Most certainly in the US and naturally in El Salvador where Bitcoin is legal tender. However there are not as many crypto ATMs that sell Ether.
As a result the nearest crypto ATM to you might be some way away. There is a way to easily check where the closest ATM is to you. You can find out online using the site – CoinATMRadar.
CoinATMRadar is fantastic because it has up to date information. You can select whether you want to buy Ether from an ATM, teller or other. It will show you all the locations once it loads your selection.
However another drawback is that cryptocurrency ATMs can be expensive. It would depend on which brand of ATM you use. Unfortunately a lot of crypto ATM companies do not disclose their fees. By time this will surely change, but at the moment it is what it is.
As a result some crypto ATMs charge very high fees. Fees can go up as much as 25% which is pretty hefty. Especially if you can consider you can spend most of that on crypto instead. Thankfully most charge around 8.4%.
If you manage to find yourself a CoinFlip ATM that would be fantastic. This is because they charge a 6.99% fee plus a network fees. Usually the network fee is around $1.
However even the 6.99% fee is higher than what you would pay using an exchange. Exchanges are usually around 2-7% depending on the payment method you use. Additionally another drawback is that you cannot buy Ether in large amounts using a crypto ATM.
Buy Ether ETNs
Similarly to Bitcoin, Ethereum also caught the eye of financiers. They noticed that there is a strong case for Ethereum. The rational is outlined in ‘Why Buy Ether’ further down.
As a result they have created Ethereum financial products to provide clients some alternative options for investing. At this point technology like cryptocurrency is as alternative as it gets.
Bitcoin has plenty of ETF (Exchange Trader Fund) products built around it. However Ethereum does not have ETFs, but ETN’s. An ETN is an Exchange Traded Note. ETFs and ETNs have their differences, but you can buy them exactly in the same way.
Eventually a financial institution will create an ETF for Ethereum. It is just a matter of time. In the meantime there are ETNs and there are quite a few Ethereum ETNs available.
You can buy ETNs through a financial broker. Here are some Ethereum ETNs:
|ETN Name||Fees p.a.|
|Iconic Physical Ethereum ETP||0.95%|
|VanEck Vectors Ethereum ETN||1%|
|CoinShares Physical Ethereum||1.25%|
You might like this method of owning Ethereum financial products. However you need to know their drawbacks.
Firstly these financial products are set up by experienced financial managers. As a result they take a percentage yearly commission fee for their efforts. These fees are quoted in the table above.
Fees are charged every year regardless whether the fund generated money or even lost money. The percentage commission is low, but it does add up over time.
Secondly ETNs are more like bonds. This means it is important that you check the credit rating of the underwriter. Otherwise you can lose money.
From a personal viewpoint credit agencies are not the most reliable institutions. For example the credit agency Moody’s gave a AAA rating to risky mortgage securities before the 2008 financial crisis.
Buy Ethereum with PayPal
You can also buy Ether with PayPal. However you cannot remove it from PayPal which is problematic for a direct way of owning Ethereum. Exchanges, trading platforms, ATMs and cards allow you to move your crypto to other platforms.
With PayPal you can only sell Ether back to PayPal. Additionally it also means you do not own the crypto outright. PayPal is a third party intermediary that does not allow you access to use your Ether any way you want.
Save on fees
As mentioned you can use trading platforms instead of exchanges to save on fees. However you can also save depending on the type of payment method you choose to use.
Exchanges and trading platforms support different types of payment methods to buy Ether. Of course they will usually support the basics like credit or debit cards and bank transfers. Some exchanges have many more options than that, it would depend on the exchange that you choose.
More instant payment methods, for example credit cards will usually incur a higher fee. This is because of the convenience of doing the transfer or payment there an then.
However if you use bank transfer and some other payment methods you will be able to save on fees. Bank transfers in particular do take time to process. This would depend on which country your bank is located. For some countries it may take up to 3-5 days for each transfer. Other countries take time to do the initial transfer and successive bank transfers are almost instant.
Should I Buy Ethereum?
However, Ethereum is not like Bitcoin or the other cryptos based upon it, such as Litecoin. You can read more here about the differences between Ethereum and Litecoin.
Developers working on the Ethereum network have developed it so it can be scaled. Ethereum is developed in such a way that it can support other cryptocurrencies, platforms or services.
You can have a look at the full list of applications built on Ethereum or for the space here.
The list includes services for:
- Asset management
- Stable coins
Naturally you will need to pay using Ether on the Ethereum network. So you will need to buy Ether beforehand. You can use Ether for a multitude of services. For example: building and running your own applications, creating smart contracts for payments or buying things supported on the network.
One thing you can buy are NFT’s which are all the rage lately. You can learn what are NFT’s or how to buy NFT’s by clicking on the links.
The cryptocurrency space is literally building a parallel system alongside the current financial system. It could well supersede the current system. Sceptical? Maybe you need to see some data.
Positive news coming out from the data
As you can see from the list of applications the crypto ecosystem is building what is known as decentralised finance. Decentralised finance or DeFi for short has had immense growth over a very short period of time. If you would like to understand what DeFi is you can have a look at what is DeFi here.
The only way investors can get into the space is to buy Ether and locking it into DeFi. Since the inception of DeFi the amount of investment into the space has ballooned. From August 2017 it started at $4 and as of the 7th July 2021 there is $55 Billion invested in the space.
Source DeFi Pulse
Additionally Digital wallet adoption in the US is happening twice as fast as social media when it started.
Charts sourced from Ark Invest
The positive news is not just tied to the US. Many other countries have seen greater adoption of cryptocurrency.
Sourced from Statista
All this is positive news for the crypto space in general and most certainly Ether. There are a lot of financial experts that have said where they think the price of Ether will go. Valuations included $9,000, $10,000 and also very large triple digit percentage gains for this market cycle. You can have a look at what the experts think on this price predictions page.
Additionally Ether has been giving back higher percentage gains than Bitcoin in 2021. Ether was up 434% when it was valued at $4,000 which was 4 times higher in percentage growth than Bitcoin.
Sourced from Yahoo Finance
If you are looking for similar projects to Ethereum then you might want to check out some other cryptocurrencies. Solana is one such example. It supports smart contracts including NFT’s with much lower fees.
In fact a lot of people have switched to Solana because of this. Find out whether Solana is a good investment and where and how to buy Solana here.
Another interesting crypto is Cardano, which was co-created by one of Ethereum’s original co-founders, Charles Hoskinson. Check out our guide to learn more and how you can buy Cardano.
To sum up Ether is a great cryptocurrency that will provide great value to society in future. Especially when you consider the DeFi space and what contributions are being made on that front.
It may lag in price to some other cryptocurrencies out there. However it has a lot of things in its favour and the future looks positive. For a lot of people if you buy Ether you are making an investment to reap rewards in the future.
The growth the space has experienced has been phenomenal and will continue to develop further. It makes a strong case on why Ether is a great buy.
Frequently Asked Questions
Can I buy less than 1 Ethereum?
Where do I buy Ethereum?
2. Trading platforms
3. Cryptocurrency debit cards
4. Cryptocurrency ATMs
5. Ethereum ETNs