Buying Ethereum starts with choosing the right broker or exchange. Below you will find a list of the best crypto brokers and exchanges, along with their features and fees. The broker’s fees can even be viewed by changing the investment amount and cryptocurrency!
This guide explains how to buy Ethereum UK. Our guide walks you through the step-by-step investment process and explores the future of this popular digital currency.
In This Guide
eToro offers both CFDs and online trading through a regulated platform. There are more than 13 million users on the platform in the UK alone. If you’re a first-time Ethereum buyer, eToro is a good choice because it’s very easy to use.
Registration takes less than 10 minutes, fund your account, and invest. eToro hosts a broad range of assets, including various investment classes.
Ethereum, for example, is one of 16 cryptocurrencies supported. The coins can be traded for numerous fiat currencies. In addition to buying shares on 17 different exchanges, you can invest in companies from the UK, US, Germany, Sweden, and more. The ETF selection at eToro is also excellent.
eToro is also popular for its commission-free offer, making it incredibly user-friendly. In other words, you won’t need to shell out Money on brokerage fees to buy Ethereum in the UK. Furthermore, there are no fees associated with keeping your account open, so you can hold onto your Ethereum investment for as long as you like.
Consider an eToro CopyPortfolio if you’re interested in a longer-term investment strategy. These are passively managed portfolios. Many strategies are available, including cryptocurrency assets.
The FCA, ASIC, and CySEC are licensing agencies for eToro’s safety. Also, it is a member of the FSCS protection scheme; however, cryptocurrencies like Ethereum are not covered by this scheme. It covers stocks, ETFs, and CFDs.
You can still open an account with eToro by making a minimum $50 deposit. PayPal and Skrill are both e-wallets you can use to do this instantly. With a deposit of $25, you can invest the rest in other assets while investing the $25 into Ethereum.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
We briefly mentioned Binance earlier as one of the biggest cryptocurrency exchanges in the world. Over $15 billion worth of cryptocurrencies exchanged hands at the platform 24 hours before writing this guide.
Traders who wish to buy and sell crypto assets on a short-term basis should know that Binance is more suited to experienced traders. You can choose from hundreds of pairs on the platform and get low commissions and tons of tools.
The platform, for instance, charges only 0.10% commission on entry-level trades. However, a 2% transaction fee will be charged if you buy Ethereum with a credit or debit card. As a result, Binance is not as attractive as it used to be. In contrast, Coinbase is a lot less expensive.
However, you can withdraw Ethereum from Binance to a private wallet once you purchase it. For convenience, you can also keep it in your web wallet. The Binance SAFU offering, which provides a reserve pot in case of a future hack, is a good idea. The Money for this comes from commissions Binance collects on trading.
Your Money Is At Risk.
You might want to consider Coinbase if you are not interested in other asset classes like stocks and simply want to use a cryptocurrency platform. Over 35 million users rely on this platform, making it the most popular cryptocurrency broker in the space.
For people entering the cryptocurrency space for the first time, Coinbase offers a simple way to do so. That is because opening an account only takes a few minutes, and funds can be deposited easily with a UK debit/credit card or a bank transfer.
Additionally, you’ll have a wide selection of cryptocurrencies to choose from, such as Ethereum, Bitcoin, Litecoin, XRP, Bitcoin Cash, and more. Following the purchase of Ethereum, you have a couple of storage options. Coinbase is a good option for storing funds.
The platform, after all, employed top-grade security features – such as cold storage (98%), two-factor authentication, wallet lock-ups, and multi-signature addresses. Coinbase also employs a large team of experienced employees, including a fully-fledged risk management department.
The Financial Conduct Authority also authorizes Coinbase, perhaps the most important fact. However, using a debit card is an option to buy Ethereum in the UK, choosing Coinbase is not a great option. That is because a 3.99% fee will be charged. In other words, a £500 purchase will cost £19.95.
You must factor in the Ethereum trading commission even though UK bank transfers are free. You pay this to buy Ethereum and to sell it again. It stands at 1.49% per slide. So ultimately, Coinbase is a great service for convenience and security, but it comes at a price.
Jesse Powell founded Kraken in 2011 in San Francisco, United States, as one of the first cryptocurrency exchanges available in the country. Earlier this year, Kraken launched a trading platform to trade Bitcoins and Litecoins against the USD and EUR. With Huobi, Binance, Coinbase, and Bithumb, Kraken is now one of the top five cryptocurrency exchanges.
The Kraken exchange was one of the first cryptocurrency exchanges listed on the Bloomberg terminal in 2014, along with Coinbase. Aside from receiving regulatory approval from FinCEN and FINTRAC in the United States and the Financial Conduct Authority, the company has also been authorized by the Financial Conduct Authority in the United Kingdom. Furthermore, it is regulated as a Digital Currency Exchange by AUSTRAC in Australia and the FSA in Japan.
In addition to operating in 176 countries, Kraken supports 56 cryptocurrencies and is available in 48 states in the US.
Coinjar is the most popular cryptocurrency platform worldwide. It is Australia’s largest digital currency broker despite entering the market recently. Coinjar can be used 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.
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 2022, Ethereum has also been regarded as one.
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.
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 company has grown by 360% in less than a year.
Its market capitalization stands at $62 billion at the time of writing. That is a significant amount compared with 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.
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 no manual intervention is required.
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.
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.
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. On eToro, for instance, you can buy Ethereum for just $25. Two reasons make this a good deal.
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.
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.
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 an FCA broker like eToro. Upon doing so, the proceeds of your Ethereum investment will be added to your cash account and can be withdrawn instantly.
Typically, Ethereum is priced in US dollars, like most cryptocurrencies. However, there is no difference between this and major commodities such as oil, natural gas, gold, and silver, each traded in USD. In addition, some platforms offer Ethereum pairs in British pounds.
Despite that, Ethereum’s price will fluctuate every second – much like stocks. That is because market forces determine their value via supply and demand. For example, the price of Ethereum is $556 at the time of writing. That’s about $415. Despite this, the price of Ethereum was about £580 a day earlier – or £433.
As noted above, buying Ethereum in the UK does not require you to buy the whole digital coin. Alternatively, you can purchase ‘fractions’ of a coin. For example, when using eToro, the price starts at $25 – about $19.
The UK’s majority of investors believe that the best way to buy Ethereum is with a debit card or credit card. Bank transfers are also popular options. In any case, you can buy Ethereum with Paypal if you wish.
Very few brokers support e-wallets, so you have to shop around. However, you can buy Ethereum through eToro with Paypal, Skrill, and Neteller – because it is a huge advocate of e-wallets. You will still be able to purchase Ethereum commission-free, and the minimum investment is just $25.
eToro keeps the Ethereum coins after the purchase is made with Paypal. So when you sell your Ethereum investment, you will be able to withdraw your cash balance to PayPal. In the end, all that’s left is for you to withdraw your PayPal balance back to your UK bank account, which is usually instant.
When you exchange Bitcoin for Ethereum, you are performing a cryptocurrency exchange. Hundreds of third-party exchanges offer crypto-to-crypto trading on this pair, the most traded pair in the industry. In addition, the platform offers low pricing, which has made Binance popular among UK investors.
Throughout most exchanges, the process remains the same, but the following example shows how to buy Ethereum at Binance with Bitcoin:
After completing the above transaction, you can choose whether to leave your Ethereum coins at Binance or withdraw them from your Ethereum private wallet.
UK investors are concerned about safety as one of the biggest reasons not investing in cryptocurrencies like Ethereum.
A large number of people are being scammed 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:
Besides staying with FCA-regulated brokers, you will be able to buy Ethereum using a debit card – an everyday payment method.
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.
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.
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.
The traditional way to buy Ethereum is as follows:
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.
Your wallet may be compromised 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.
eToro is an FCA-regulated broker, so we recommend you consider this. That is because eToro does not allow you to withdraw your coins, which means it is fully responsible for their safekeeping. A novice cryptocurrency investor cannot implement these high-level security controls.
If you’re buying Ethereum in the UK, you’re probably doing so to make money. To accomplish this, you will need to sell the coins at a higher price than you originally paid. The process is similar to buying shares.
Depending on how you bought Ethereum, you can sell it in various ways.
Through eToro, you can easily sell your investment.
If you choose to receive your cashback through a debit card, e-wallet, or bank account, it will be credited to your account.
However, if you were to withdraw Ethereum from a cryptocurrency exchange and then store it in a private mobile, hardware wallet, or desktop- the process would be a bit more complex.
As a result, you will need to transfer the coins to a broker (like Coinbase), convert the Ethereum back into fiat money, and withdraw the funds from your bank account.
The Ethereum platform also gained momentum in 2021, and it is important to note how its price value shot up when the ETH 2.0 upgrade was announced. In addition, this upgrade project is expected to continue in 2022, which is one of the major factors that analysts claim will drive the price of ETH up to $6,000 by the end of 2022.
Mark Cuban recently said he views Ethereum as having more potential for growth than Bitcoin. “I like Eth/L2s more, and there is no point arguing the Trilemma, halving or inflation,” he said.
Having covered the ins and outs of how this digital currency works, we now want to discuss where you can buy Bitcoin.
Are you ready to buy Ethereum in the UK right now with a debit card or e-wallet? You can complete the commission-free purchase at FCA broker eToro by following these steps!
eToro 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.
An identification copy and proof of address will need to be uploaded next. 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.
eToro 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.
The next step is to deposit funds. A minimum deposit of $50 is required. The instant deposit options include debit cards, PayPal, Skrill, and Neteller. Transferring funds from your bank account will also work, but it will take a few days for them to arrive.
All cryptocurrency trading sites require you to submit a buy order. It’s as simple as entering your stake in the ‘Amount’ box. Please provide an amount of at least $25 in USD.
Click on the ‘Open Trade’ button to complete your commission-free Ethereum purchase. You will then receive the Ethereum coins as part of your portfolio. Then, cash out your coins at any time, commission-free, at the click of a button.
The process of buying Ethereum online in the UK is simple, convenient, and cost-effective, as we explained throughout this guide.
It is true when you use a broker regulated by the FCA, like eToro. Furthermore, you can instantly deposit funds with a debit card or e-wallet, ensuring that you purchase Ethereum through a licensed Ethereum platform.
Ether, or ETH, or simply Ethereum, is a native cryptocurrency created by Ethereum, powered by blockchain technology. ETH's value can be attributed to the distributed nature of blockchain technology, which makes the Ethereum platform safe.
To introduce Ethereum in 2013, Vitalik Buterin published a white paper credited with having conceived the original concept of Ethereum. Buterin and Lubin, co-founders of ConsenSys, created the Ethereum platform in 2015. In addition to enabling the secure trading of virtual currency, Ethereum's founders were also among the first to realize the full potential of blockchain technology.
The current amount is $486 billion
Even though it is a digital asset, it is still necessary to find a secure way to store Ethereum. In general, digital wallets store the private keys that allow you to access and spend your digital currencies. You can also access your private keys from some online Ethereum marketplaces.
It is possible to buy Ethereum online in the UK on hundreds of platforms. However, many of these platforms are not regulated. Therefore, you should stick with FCA-licensed brokers such as eToro. With this method, you can buy Ethereum in less than 10 minutes while also being safe, convenient, and commission-free.
Ethereum can be purchased for as little as $25.
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