How To Buy Ethereum (ETH) in the UK 2024

There has been a recent spike of interest in the cryptocurrency markets with many financial institutions having greater interest in cryptocurrencies. Most recently, global investment firms such as Greyscale and Blackrock are among the big financial players that have filed for an Ethereum ETF. This rise in interest from global investment funds has increased both institutional and retail demand for Ethereum, which is the second largest cryptocurrency by market cap.

In spite of new legislation and more stringent measures for platforms that allow users to purchase cryptocurrencies, finding a suitable broker can be a challenging task. Therefore, this guide aims to help readers in the UK, who may wish to invest in Ethereum, on choosing the best cryptocurrency exchange.

Our guide will cover the leading crypto exchanges where UK residents can buy Ethereum. Read on to discover the key features of each platform and the fees they offer.

What is Ethereum?

Which cryptocurrency is the best to invest in? Ethereum is similar to Bitcoin in that it is a digital currency. In addition, several aspects are similar between the two projects. Both cryptocurrency projects, for example, are decentralized – meaning any one person or organization does not own them.

Governments or nations do not back both Bitcoin and Ethereum. The second benefit of both digital currencies is that their transactions are fast, secure, and transparent due to their underlying ‘blockchain’ technology.

However, these are the only similarities that exist between the two. Due to the underlying technology, Ethereum can do more than just facilitate digital transactions.

Ethereum, for instance, offers a technology called ‘smart contracts.’ Two or more parties can agree without trusting each other in its most basic form. More on this later. The Ethereum network can handle more transactions than Bitcoin, and Ethereum transfers are faster than Bitcoin.

The UK is a country where most people buy ETH for speculative purposes. In other words, people invest in this digital currency because they hope they can make money with it, much like Bitcoin. When you sell the coins later for a higher price than what you originally paid, you will be able to do this. So besides being considered a good Bitcoin alternative in 2024, Ethereum has also been regarded as one.

Why Buy Ethereum?

Since there are over 7,000 cryptocurrencies in existence (at the time of writing), it can be difficult to know which one to invest in.

Huge Financial Returns to Date

Ethereum’s value has increased exponentially since its launch in 2015. Its price was just over $3 at launch. Almost two and a half years later, the price of that same cryptocurrency rose to an all-time high of $1,400. The return on investment is over 45,000%. So an initial stake of £500 on Ethereum in 2015 would have grown to over £225,000 by now.

Ethereum has performed very well in 2020, despite the price of the digital currency moving in the opposite direction since then. Since hitting 52-week highs of over $600, Ethereum has risen from $129 at the beginning of the year. The world’s second largest cryptocurrency has risen more than 360% in 2021. According to the source, many experts believe Ethereum to reach a $40,000 valuation by 2030.

Small Market Capitalization

Its market capitalization stands at $62 billion at the time of writing. That is a significant amount in comparison to other London Stock Exchange companies.

There are, however, those who argue that it is a relatively small valuation, given the company’s worldwide reach. Moreover, the Ethereum blockchain can solve a lot of real-world problems.

Smart Contracts

A particularly attractive aspect of Ethereum is that it facilitates smart contract transactions. Of course, that is a rather complex concept, but we’ll explain it in layman’s terms.

In other words, a smart contract is a piece of code that allows two or more people to agree. Smart contracts cannot be altered, amended, or manipulated once deployed. For parties to enter into contracts, there is no need for trust. Furthermore, smart contracts are autonomous, meaning that they do not require any manual intervention.

Ethereum Technology is Better Than Bitcoin

Global payments are often hailed as a benefit of Bitcoin. Compared to traditional transaction methods, the technology is fast, secure, and cheap. Ethereum, however, is even more efficient.

Transparent Leadership

Ethereum and Bitcoin are both decentralized cryptocurrencies – no single person or authority has control over them. Ethereum has a distinct leadership structure in the Ethereum Foundation (along with Ethereum Labs). Vitalik Buterin, the creator of the cryptocurrency, leads this effort. Investors who seek accountability through public representation are likely to find this to be good news. Unfortunately, however, Bitcoin lacks a clear leader.

You can Invest Small Amounts

Ethereum is trading around $600 at the time of writing. When buying Ethereum in the UK, you won’t need to invest anything close to this much. You can, however, invest small amounts through a broker who supports fractional ownership.

As a speculative asset, cryptocurrencies are somewhat inconsequential, but a purchase of just $25 is not insignificant. As a result, you can use a dollar-cost-average strategy. You might invest $25 every month for many years. By investing multiple times, you will be able to average out market volatility.

Ethereum is the foundation for most cryptocurrencies

Most of today’s cryptocurrencies are built on the Ethereum blockchain, which is unknown to many people in the UK. That means they do not have proprietary technology of their own.

Instead, these cryptocurrencies function on the Ethereum blockchain as ‘ERC-20’ tokens. Ethereum makes building a cryptocurrency so easy that many digital currency projects have taken this route. As a result, Ethereum coin demand increases. Ultimately, ERC-20 transactions need fuel – which Ethereum facilitates.

Your Investment is Liquid

Ethereum is an extremely liquid asset class that you can buy in the UK. You can, therefore, convert your Ethereum coins back to pounds and pence whenever you like. There are several reasons for this.

In the first place, Ethereum is a multi-billion pound digital asset traded on hundreds of third-party exchanges. As a result, you will never have a problem finding liquidity – meaning that you will always find a buyer. Selling stocks with an online broker is no different. Second, the trading of cryptocurrencies is done 24 hours a day, 7 days a week, unlike the traditional stock exchange arena.

Therefore, you are not required to wait until Monday morning to cash out your holdings. Instead, you need to click on the ‘Sell’ button when using a broker like Coinbase. Upon doing so, the proceeds of your Ethereum investment will be added to your cash account and can be withdrawn instantly.

How to Buy Ethereum in the UK

Are you ready to buy Ethereum in the UK right now? You can complete the purchase at Coinbase by following these steps.

Step 1: Open an Account

Coinbase users must be verified, so you’ll have to open an account to begin the process. Please provide your contact information and personal information. Additionally, you must create a username and password and verify your mobile number.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

Next one will need to upload an identification copy and proof of address. If you do not intend to purchase more than $2,250 (about £1,800) of Ethereum, you can upload the required documents later. However, before you can withdraw, you will need to complete this step.

 Step 2: Upload ID

Coinbase requires you to prove your identity due to UK regulations. Make sure you upload a copy of your driver’s license or passport. In addition, you must upload a bank statement and a utility bill to verify your address.

Step 3: Deposit Funds

The next step is to deposit funds.  There is a requirement of a minimum deposit of £50 for UK users. The deposit options include debit cards and bank transfer. Transferring funds from your bank account will also work, but it will take a few days for them to arrive.

Step 4: Buy Ethereum UK

Once you have connected a payment method to your account, you can buy ETH by searching for the ticker and selecting ‘buy’. Here, enter the amount that you would like to buy and confirm the transaction. The tokens will then appear in your account portfolio.

From here, you can move your Ether into your Coinbase wallet or send them to a third-party wallet.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

Where To Buy Ethereum in the UK 2024

The first step of how to buy Ethereum in the UK is finding a suitable Ethereum trading platform. In the section below, we take a look at four viable options that you could consider in 2024.

1. Coinbase – User-friendly Ethereum broker with over 35 million customers

Coinbase is a US based cryptocurrency exchange and is one of the first to be listed as a publicly traded company on the NASDAQ. It is one of the most well-known crypto trading platforms in the industry and is a go to platform for users looking to onboard into the world of digital assets.

Coinbase is a very trusted platform with regards to security as it is solely a crypto centric exchange and does not focus on any other asset classes. Recent surveys by Qualtrics and YouGov showed that in the UK twice as many people are aware of Coinbase than any other platform, and 73% of individuals surveyed state that they trust the crypto-native trading platform more than any other exchange.

Due to it being a publicly traded company, Coinbase must be especially cautious about the clients and markets they offer services to, and registering on the platform will require full KYC verification. Coinbase is one brokerage that has been a security first platform and ensures to hold client funds that are held on the platform in secure offline cold storage.

Coinbase allows users in the UK to purchase Ethereum as well as over 200+ crypto assets. Once making a purchase, customers can choose to hold their crypto assets on the platform or withdraw them to external wallets or exchanges. Coinbase also offers a decentralized crypto wallet, the Coinbase Wallet, which is a self-custodian crypto wallet that enables users to securely store their digital assets and can be used to browse the world of web3 by connecting to various dApps.

For customers in the UK, Coinbase provides free instant deposits allowing users to fund their accounts via their bank for free. However, Coinbase does charge slightly higher fees, and when opting to purchase Ethereum using a debit card Coinbase charges a 3.99% fee. Also, when conducting crypto trades, Coinbase charges 1.49% for both buy and sell sides of the trade. This means that users who purchase Ethereum using fiat and then wish to trade or sell it at a later time can expect to be charged over 5%, which is quite a considerable amount.

However, as mentioned albeit the high fees, Coinbase incorporates top-grade security features such as secure cold storage of client funds, two-factor authentication, wallet lock-ups, and multi-signature addresses. Ultimately, Coinbase provides a great service for convenience and security, however, this comes in exchange for the higher price to purchase crypto assets like Ethereum.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

2. OKX –The best platform for Ethereum staking

OKX is ranked among the top 5 leading crypto exchanges by volume and monthly visits. This platform was founded in 2017 and is headquartered in Seychelles. Originally OKX was more popular among Asian markets but over the last couple of years has increased its brand presence across Europe and the UK. It is a primary sponsor of the UK’s McLaren Formula 1 Team and also the main sponsor of Manchester City Football Club.

OKX is a fast, efficient and reliable cryptocurrency exchange platform and comprises a range of tools and features within its OKX ecosystem. The platform offers users the ability to buy, sell and trade Ethereum among a range of other tokens. Due to new legislation in the UK, OKX limited the number of tokens listed for UK traders. Previously the platform offered 250+ tokens, however, now has reduced that to 47 cryptocurrencies.

The trading interface of OKX is quite up to date and offers users the ability to use a variety of charting and indicator tools. Moreover, traders have the option of using the native OKX exchange charts or the integrated TradingView versions. Both offer advanced drawing tools and charting analysis features which makes the platform stand out from others. When selecting Ethereum or other cryptos to trade, users can click on the overview tab to view token statistics such as historical pricing data, market caps and the current circulating and max supply of the given cryptocurrency. When using the OKX mobile application traders are able to subscribe to live token price notifications which assists users to keep up to date on price movement.

How to buy Ethereum on OKX

OKX provides three primary ways to purchase Ethereum and other cryptocurrencies. Users can opt for the Express Buy function to buy Ethereum and 45 other popular cryptocurrencies using their Visa or Mastercard debit account. OKX also has a dedicated P2P trading section where users can directly sell Ethereum, Bitcoin and stablecoins to one and other using OKX as a secure escrow. While there are no trading fees when conducting peer 2 peer transfers, exchange rates and payment methods can vary depending on the seller. The final method is to buy crypto using a third party payment provider. The fiat gateway providers include Banxa, Simplex and MoonPay which accept a multitude of currencies and payment methods. The drawback with using third party payment providers is that fees can be considerably higher and users will end up paying more commissions than with other methods.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

3. Binance – Highest volume exchange with access to over 350+ cryptocurrencies

Binance is one of the biggest cryptocurrency exchanges in the world. The platform was founded in 2017 by Changpeng Zhao, a notable figure in the blockchain industry who goes by the alias CZ. Binance regularly facilitates around $10-15 billion worth of cryptocurrency trading volume per day giving users access to over 350+ cryptocurrencies and 1000+ crypto trading pairs.

Binance is a crypto only trading platform and is more geared towards experienced traders. The platform provides an intuitive trading interface with advanced charting and analysis features. A stand out trading feature of Binance is not only that it offers a wide range of crypto tokens, but that it has a substantial amount of crypto to crypto trading pairs. The platform offers users to trade various cryptos with Bitcoin, Ethereum and USDT as the primary trading pair.

Since October 2023, Binance stopped accepting new UK customers, therefore, only traders who had previously fully verified their accounts with KYC will be able to use the platform’s services. Buying crypto from Binance is not that easy as some UK banks block payments to the platform. The primary way to purchase Ethereum is to use the third party fiat on-ramp providers that are partnered with Binance. The platform also offers a peer-to-peer marketplace where users of Binance can directly sell crypto to one and other with Binance acting as the escrow. The P2P market is quite a straightforward way to purchase Ethereum directly from a seller, however, some only have a limited amount of coins to sell. Payment methods supported on the P2P marketplace vary depending on the sellers requirement with the most common forms being Wise, bank transfer, Faster Payments Service or Zen Pay.

Asides from the ability to purchase crypto, Binance offers the most advanced trading platform for cryptocurrency traders. Binance is an industry leader with regard to the range of assets which the platform supports. The platform also provides an extensive trading interface with a range of charting indicators and analytics features.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

4. Coinjar – The best Ethereum platform for long-term investors

Coinjar is the most popular cryptocurrency platform worldwide. It is Australia’s largest digital currency broker despite entering the market recently. One can use Coinjar to buy and sell Bitcoins, among other things.

In addition, it offers a 24-hour digital Bitcoin exchange where users can trade cryptocurrencies. Coinjar is a Bitcoin wallet for mobile devices and a platform for buying cryptocurrencies. The app is available for both iOS and Android users.

We found Coinjar’s wallet to be one of the easiest to use so far. Every aspect of the application is designed and optimized for your operating system. After the application is installed, you will receive a unique wallet address when your Bitcoins have been sent.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

What Is The Cheapest Way To Buy Ethereum?

When buying Ethereum in the UK, it is important to consider fees that may be involved. In some cases, the fees that are charged for purchasing Ethereum can significantly increase the price of buying the token which can make it difficult to generate returns on your investment. Therefore, it is a good idea to shop around for the cheapest way to buy ETH.

The cheapest way to buy Ethereum in 2024 is through a decentralized exchange. These platforms are typically free to use so the only fee that you will need to pay is the Ethereum network fee. The network fee will change throughout the day depending on demand with higher fees applicable during busy times.

Decentralized exchanges are widely considered to be the cheapest and quickest platforms to purchase crypto. However, these platforms come with other risks and may not be ideal for less-experienced crypto investors.

How to Buy Ethereum Safely

UK investors are concerned about safety as one of the biggest reasons not investing in cryptocurrencies like Ethereum. A large number of people are victims of scams in the cryptocurrency scene. The attacks have taken many forms, such as cryptocurrency exchange hacks and malware attacks. The following simple guidelines will allow you to buy Ethereum safely.

Buying Ethereum in the UK is best done through a broker regulated by the Financial Conduct Authority (FCA). Unfortunately, the body does not issue licenses to Tom, Dick, and Harry regarding cryptocurrency brokerage services. When you buy Ethereum in the UK using an FCA broker, you will have the following safety nets:

• A broker will ask for personal information when you open an account. You need to upload a copy of your driver’s license or passport to verify this information. As a result, crime is kept at bay since no one can buy or sell Ethereum without identification.
• Your investment funds must be kept segregated by the FCA broker in question. That means that it cannot use your money to operate on a day-to-day basis.
• Buying Ethereum on the platform should come with a clear indication of the risks involved. Crypto assets are high risk.

Besides staying with FCA-regulated brokers, you will be able to buy Ethereum using a debit card – an everyday payment method.

What Are The Risks of Buying Ethereum?

Even though Ethereum has increased its value by thousands of percentage points since its launch in 2015, you should understand the risks involved. Consider both the pros and cons of investing in this digital currency since you will be investing your own money. That includes:

You can Lose Money

Investing in Ethereum can result in a financial loss – that goes without saying. Demand and supply determine the value of Ethereum. The price of Ethereum will naturally decrease if there are more sellers than buyers in the marketplace.

Consider, for example, that you bought Ethereum in early 2018 – when it reached its all-time high of $1,400. By April, Ethereum was only worth $380. That’s a 72% drop in a very short time frame.

The price per coin for Ethereum would have been $263 if you had bought it in July 2019. Instead, just five months after it became available, the same cryptocurrency had fallen to $128, representing a loss of more than 50%.

As a result, if you had invested at $128, your investment would have grown 300% by late 2020 – based on late 2020 prices. As with all highly volatile digital assets, Ethereum moves rapidly up and down. So be aware that there is a possibility that you may receive a lower return than what you invested.

There are Hundreds of Unregulated Platforms Selling Ethereum

According to market capitalization and trading volume, Ethereum is the second-largest cryptocurrency. Thus, it should come as no surprise that hundreds of cryptocurrency exchanges offer access to this digital coin. Unfortunately, however, these platforms are neither authorized nor regulated by the FCA in most cases.

Their operations are unregulated since they won’t hold a license at all. The risk of using an unlicensed exchange is a huge problem for newbie investors in the UK. Your Money is entrusted to a provider that is not regulated by a reputable body. Therefore, we strongly advise you to buy Ethereum in the UK only through a broker that the FCA regulates. As a result, you will obtain all of the protections we discussed earlier.

You Might be 100% Responsible for Your Ethereum Coins

The traditional way to buy Ethereum is as follows:

• You open an account with a broker or exchange
• Funds are deposited
• Buying Ethereum
• Ethereum coins are withdrawn to a private wallet

Many cryptocurrency investors prefer the above method to store their coins in a secure digital wallet. There are desktop software, mobile apps, and even hardware wallets available. Once the coins are in your wallet, only you can access them. That does come with a slight caveat, however. Keeping your digital wallet safe and out of the wrong hands is your responsibility.

You might compromise your wallet if your home computer is remotely hacked or if you lose your mobile phone. In that case, the hacker would almost certainly steal your Ethereum coins. Therefore, you cannot receive your funds back.

Cryptoassets are highly volatile. Please make sure that you can afford to lose your investment.

Conclusion

In this article we discussed the world’s second largest cryptocurrency. We touched on the important aspects that will help you better understand what Ethereum represents and whether or not it is a suitable option for you. Many expect this currency to catch up with Bitcoin, so we recommend you take a closer look.

The process of buying Ethereum online in the UK is convenient, and cost-effective, as we explained throughout this guide. You can buy the token through Coinbase and a selection of other established brokers that each offer various features and tools.

FAQs