How to Buy Ethereum (ETH) in 2024

If you're interested in investing in cryptocurrencies, you may be considering purchasing Ethereum (ETH), the second-largest cryptocurrency by market capitalization.

Ethereum's decentralized network and unique programming language make it a popular choice for developers and investors alike. However, if you're new to the world of cryptocurrencies, buying Ethereum may seem like a daunting task.

In this article, we'll guide you through the process of how to buy Ethereum in the UK, whether you're a beginner or an experienced investor.

A list of the Top Ethereum Exchanges for October 2024:

1. eToro
2. Binance
3. ProfitFarmers

What Is Ethereum?

Although we’ve termed it a cryptocurrency, that’s not technically the case with Ethereum.

Ethereum is actually a decentralized blockchain network. It runs on its own programming language, Solidity, which is used by developers worldwide to create smart contracts and decentralized applications (commonly known as dapps).

The cryptocurrency of the Ethereum network is called Ether (ETH). This is the currency users must pay to develop, run and access dapps. You may see Ether referred to as the gas that fuels the Ethereum network.

That said, Ethereum is often used in reference to both the blockchain network and the cryptocurrency.

It sounds complex, but we can simplify it by comparing Ethereum to Bitcoin.

The latter is what is generally seen as the default cryptocurrency. It was invented to disrupt the finance industry through the provision of a secure, virtual currency not governed by any central authority.

By contrast, Ethereum was initially created not to compete with Bitcoin, but to use blockchain technology for a different purpose – namely to remove the middleman from certain service provisions.

For example, when a business takes payments, it's traditionally done through a payment processing company.

With apps built through the Ethereum network, the business can run an intelligent solution protected from fraud, without any third party involvement. Transactions are executed quicker, and with lower associated costs.

Since Ether is used to fund these solutions, innovations in and increased adoption of dapps are what drive the cryptocurrency’s value.

How to Buy Ethereum in the UK (ETH) in 2024

1. Weigh Up Your Investment Options

There are a couple of options for trading and buying Ethereum, and the right one for you will depend on your level of experience.

If you’re a complete beginner, it’s advisable you play it safe and buy Ethereum in the UK from a reputable crypto to fiat exchange, as this allows you to easily cash out on your investment.

Of course, if you are a novice, it’s also advisable to take a cryptocurrency trading course before you proceed.

For those who do have some market experience, you might consider a crypto to crypto exchange, which will allow you to build a multiple currency portfolio, and/or convert other investments into Ethereum.

2. Decide What You Can Afford to Invest

When you’re comparing cryptocurrency exchanges, you’ll find that each has its own minimum amount you can buy in Ethereum.

One of the benefits of trading in Ethereum is that these minimum purchase requirements are often low, but obviously your choice of exchange will be determined by how much you can safely afford.

The golden rule is to never invest anything you’re not prepared to lose. You should also consider how long you’re prepared to hold your investment, since you may have to keep your Ethereum for some time to return a decent profit.

3. Choose an Exchange

This step requires complete due diligence. Unfortunately, scam exchanges are not uncommon, and if you’re new to trading it can be easy to fall victim to them when buying Ethereum.

You want to make sure your funds and personal information are secure, so do your research.

Look at where the exchange is located, and how long it's been in operation. Read its safety and security policies in full, and look around online for as much information from other users as you can find.

You’ll also want to determine if it's suitable for your level of experience – for example, how user friendly is its interface, and what educational support does it offer?

4. Take Note of Fees

Before making a final decision on the exchange you want to buy Ethereum from, look closely at its fees, as these can vary significantly.

Transaction fees on trades apply whether you’re buying or selling (where you’ll be referred to as the taker or the maker), but you’ll also need to account for associated costs like deposit, withdrawal and conversion fees.

All of these will impact your profit margin, so make sure you’re aware of whatever applies to your account before signing up.

5. Verify Your Account

Once you’ve settled on an exchange, and before you can buy Ethereum in the UK, you’ll need to provide some basic personal details to open your account, like your full name, address, age and social security number.

You’ll then go through a verification process. This procedure varies, but typically you’ll be required to provide stated forms of identification, which will be checked off before your account goes live.

The verification process may take a couple of days, though some exchanges complete it in a matter of hours.

6. Deposit Funds

Once your account is verified, you’re ready to invest. You’ll need to deposit funds before you can buy Ethereum by connecting a bank account or debit card to your account.

Remember here that you should never deposit more than you can afford, but also keep in mind transaction fees.

These mean you’ll pay more if you dabble in multiple, smaller transactions, so it’s usually best to invest more at once. It’s all about finding the right balance.

Once you’ve decided on a safe amount, convert it to purchase your Ether.

When you’re ready to withdraw, you can sell your Ethereum and have any profits directed to your bank account if using a fiat exchange.

In most cases, you’ll also have the option to withdraw to a digital wallet hosted by your exchange.

As you grow in confidence, you may want to set up your own wallet outside of this. This gives you added security, and the ability to transfer Ethereum between users without any third party involvement.

Buy Ethereum in the UK With an Ethereum ATM

An Ethereum ATM, also known as an ETH ATM, is a type of cryptocurrency ATM that enables users to sell or buy Ethereum (ETH) using cash or a debit/credit card.

These ATMs look like traditional ATMs, but they are designed specifically for buying and selling cryptocurrencies, including Ethereum.

Ethereum ATMs can be found in various locations, such as shopping malls, convenience stores and airports.

Some popular locations for Ethereum ATMs include major cities like New York, Los Angeles, Toronto, London, and Hong Kong.

In the United States, popular operators of Ethereum ATMs include CoinFlip, which has over 1,800 ATMs across the country, and BitAccess, which has over 100 ATMs in various states.

In Europe, popular operators include Bity and Bitcoin Suisse.

It's worth noting that Ethereum ATMs are still relatively new and may not be available in all areas.

Buying Ethereum in the UK with an Ethereum ATM, also known as an ETH ATM, is becoming an increasingly popular option for cryptocurrency traders.

To use an Ethereum ATM, you will need to have a digital wallet with an Ethereum address.

To purchase Ethereum using an ETH ATM, you will need to follow a few simple steps:

• First, locate an ETH ATM in your area and confirm that it allows for the purchase of Ethereum.
• Next, follow the prompts on the screen and enter the amount you wish to purchase.
• Once you have made the payment, the ETH will be transferred to your wallet.

Using an Ethereum ATM can be a quick and convenient way to buy Ethereum. However, fees for using an ATM can be higher than using other methods, so it's important to consider the costs before making a purchase.

Why Buy Ethereum in the UK?

The Ethereum network is growing and it seems, at present, there are endless possibilities for platform use.

When you buy Ethereum, you’re essentially taking a gamble that that platform use will continue to expand.

As a result, demand for Ether will increase, its availability will decrease, and the cryptocurrency you hold will be of greater value than your initial investment.

Of course, cryptocurrencies are known for their volatility, so it’s not a safe bet, but volatility also provides opportunity, and Ethereum is currently experiencing substantial growth.

Since the start of 2021 alone, it’s jumped 273% in value. When you compare this to the 86% increase in the value of Bitcoin in the same time frame, it’s clear why the latter is becoming increasingly popular.

This all comes back to the network. Applications held on the Ethereum blockchain are used by a growing number of Fortune 500 companies.

They’re also growing in popularity with financial institutions – a rare occurrence in the world of cryptocurrency.

In addition, non-fungible tokens (NFTs) are on the rise. These are digital collectables, like artwork, held on the Ethereum blockchain.

All of this combined is what is driving the value of Ether.

Description of the Best Ethereum Exchanges for October 2024

To help you get started, here’s a quick look at five of the most popular exchanges dealing in Ethereum:

eToro is recognized as a reputable platform for buying Ethereum in the UK, one of the leading cryptocurrencies.

With its user-friendly interface and a host of features, eToro offers a convenient way to trade and buy Ethereum in the UK.

eToro provides various trading pairs involving Ethereum, allowing you to exchange Ethereum for other cryptocurrencies or traditional fiat currencies.

The platform offers real-time price charts and historical data for Ethereum, aiding you in making informed trading decisions.

eToro's social trading features can be beneficial for Ethereum traders. You can observe the trading activities of experienced users, gain insights into their strategies, and even replicate their trades if you choose to do so.

When considering Ethereum trading on eToro or any platform, it's vital to conduct your due diligence, stay updated on market trends and manage your risk effectively.

Ethereum, like all cryptocurrencies, can experience significant price fluctuations, so it's crucial to be cautious and only invest what you can afford to lose.

To find out more, read our eToro review.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

With nearly 1.5 million transactions per second, Binance is one of the best places to buy crypto in the world.

Although its primary exchange is crypto-to-crypto, it has recently enabled fiat deposits and withdrawals (supporting bank account and credit card deposits).

Binance offers more than 500 cryptocurrency pairs, making it one of the biggest cryptocurrency exchanges globally. You can expect the usual currency pairs of Bitcoin and the like, as well as small and even micro-cap tokens.

As another attractive feature, the trading fees are very low (standard fees at 0.1%), which can be brought down further when you hold Binance Coin.

If you’re philanthropic, you’ll be interested to know that Binance is also famous for helping those less fortunate through its Binance Charity Foundation.

ProfitFarmers is a relatively new platform that offers trading signals and tools to assist cryptocurrency traders, including those who are selling and buying Ethereum in the UK.

They are partnered with Binance.com exchange to buy/sell cryptocurrencies that are paired in BTC, USDT and BUSD and offer an affiliate program to anyone who wants to promote their product.

It's worth noting that while trading signals can be a useful tool, they should not be solely relied upon for trading decisions. The cryptocurrency market is highly volatile, and no signal service can guarantee profits. Always exercise critical thinking and consider multiple factors before making a trading decision.

Sign up now to use its platform for free and upgrade to its $21 trial offer for 21 days to access all features!

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What Can You Do With Your Ethereum?

In addition to using Ethereum as a form of investment, there are several other things you can do with your Ethereum.

One option is to use Ethereum to pay for goods and services. While this is not yet a widely accepted form of payment, there are some retailers and merchants who accept Ethereum as payment.

Additionally, there are decentralized marketplaces and platforms, such as OpenSea and SuperRare, where users can buy and sell unique digital items using Ethereum.

Another use for Ethereum is to participate in decentralized finance (DeFi) protocols.

DeFi refers to a set of financial applications built on top of blockchain technology that aim to provide decentralized alternatives to traditional financial products and services.

Some popular DeFi protocols that run on the Ethereum network include:

• Uniswap
• Aave
• Compound

You can also use Ethereum to participate in initial coin offerings (ICOs) and other token sales.

Many new blockchain projects and startups use ICOs as a way to raise funds, and investors can use Ethereum to purchase these new tokens.

Finally, Ethereum can be used to develop and launch your own decentralized applications (dApps) on the Ethereum network.

By using Ethereum's smart contract functionality, developers can create dApps that run without the need for centralized intermediaries, providing greater transparency and security.

Frequently Asked Questions

Final Thoughts

The Ethereum network is currently disrupting the cryptocurrency market, and though not originally intended as such, Ether is now a strong competitor to Bitcoin.

It offers a little more diversity, and once you’ve gained experience with the cryptocurrency itself, you may look to trade in assets like NFTs.

Current demand certainly indicates future potential, but, as with any investment, you need to plan for uncertainty and mitigate any potential risk before you buy Ethereum.

WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.