Ethereum (ETH) is the second-largest cryptocurrency by market capitalization and the main competitor for Bitcoin’s leader place. The price of the asset is more affordable than the Bitcoin price and Ethereum’s platform provides many additional benefits to developers and cryptocurrency lovers. That’s why the broad interest in investing in this asset is understandable. In this article, we’ve gathered the most popular ways how to buy Ethereum. After reading about it, you will be able to learn what to look for when you decide to buy this asset and decide which way of buying Ethereum fits your own needs best.
What Are Ethereum and ETH?
Ethereum is an open blockchain, released in 2015. Ethereum’s main goal was to become the biggest platform for decentralized applications (dApps) since Ethereum already achieved it, it continues to expand and grow. Commonly referred to as “the king of smart contracts”, the Ethereum blockchain can be used to create fungible and non-fungible tokens on it, using the ERC-20 token standard. Ethereum has its own cryptocurrency called Ether or ETH, which has been second by market capitalization for a number of years now. The platform and its cryptocurrency have established themselves in the decentralized world. However, it’s not too late to invest in Ethereum today. That’s why we will present the most common and easy ways how to buy Ethereum for you, to help simplify the process for you, once you’ve decided to buy this cryptocurrency.
What Should You Know Before Choosing How to Buy Ethereum?
There are a couple of things you should learn and consider before choosing one of the ways how to buy Ethereum. These factors may influence the Ethereum price as well as your chosen way of purchasing.
- The price of ETH at the moment: When you’re deciding how to buy Ethereum, you should first look at the current price of the asset. No matter what cryptocurrency you’re buying, the best-case scenario would be for you to buy it when the price is lower and later potentially get better returns when the asset’s value increases. This also applies to Ethereum. That’s why following Ether’s price movements some time in advance would be beneficial to your buying.
- The state of the cryptocurrency market: Related to the previous factor, you should always follow how the broad market is performing when deciding when and how to buy Ethereum. Several factors can move the market, like the Bitcoin price, fear and greed, or different world events. Consider how the whole crypto market is behaving and pick the right time to buy your Ether.
- How long does it take to buy Ethereum: When you’re deciding how to buy Ethereum, think about what else beside the purchase you’re aiming to do. If you want to take advantage of a specific ETH price, then you’d want to buy Ethereum very quickly. Research how long the way you’ve chosen to buy the crypto takes, and pick the fastest option.
When you consider the listed factors, it’s time to choose how to buy Ethereum. Here we will list different ways how to purchase this cryptocurrency, suitable for people with different needs.
How to Buy Ethereum on a Trading Platform
Using a trading platform is one of the most popular and easy ways how to buy Ethereum today. Platforms for crypto trading provide the opportunity to purchase cryptocurrencies online, using a website or mobile app. There are two types of platforms where you can buy Ethereum, based on the assets they provide – brokerages and crypto exchanges. We’ll briefly cover how to buy Ethereum on each of them.
How to Buy Ethereum Using an Online Broker
Online brokers are trading platforms that provide not only cryptocurrencies but also other assets like stocks or bonds for trading. As we’ve established, Ethereum is the second most popular cryptocurrency. This means that if a broker provides cryptocurrencies as a trading asset, Ethereum is most likely to be featured too. Some popular brokers that provide cryptocurrency are eToro, Interactive Brokers, and Robinhood. On such platforms, you can use fiat currencies to buy Ether and they usually provide different payment options.
Here’s a step-by-step on how to buy Ethereum on a brokerage platform:
- Register and create an account on the broker platform you’ve chosen
- Confirm your identity – you need to provide a legal document as a proof of your identity to be able to use your account
- Search for Ethereum, ETH, or Ether on the broker’s site or app
- Deposit the sum in the currency of your choice
- Buy Ethereum
How to Buy Ethereum on a Cryptocurrency Exchange
Unlike online brokers which provide a variety of assets for trading, cryptocurrency exchanges are created especially for buying and selling digital currencies. Based on how they’re regulated, crypto exchanges can be separated into centralized (CEXs) and decentralized exchanges (DEXs). Centralized exchanges use the help of a third party to conduct the transactions and conduct strict security checks on users and the assets they list for trading. Decentralized exchanges don’t rely on a middleman, there the cryptocurrency transactions are between two people only and you can find a big number of new and unpopular assets for trading. Examples of centralized exchanges are Crypto.com and Binance and the most popular decentralized one is Uniswap. Another key difference between CEXs and DEXs is that the first allows you to pay in fiat money while at the second you can use crypto as a payment method.
Here’s how to buy Ethereum on a cryptocurrency exchange:
- Register and create an account on the exchange you’ve chosen
- Confirm your identity – this step is skipped with decentralized exchanges since only centralized will ask you to provide identification documents for verification
- Search for Ethereum, ETH, or Ether on the exchange’s site or app
- Choose what currency to use – fiat or crypto, depending on what exchange you decided to go with
- Buy Ethereum
After your purchase is complete, you can store your ETH tokens in a built-in wallet, if one is provided by the trading platform you’ve used.
How to Buy Ethereum With PayPal
The American company PayPal is one of the most famous online payment systems worldwide. This is also one of the ways how to buy Ethereum. You can use PayPal in two instances to purchase the cryptocurrency, here’s when:
- How to buy Ethereum on PayPal: If you’re an UK or US resident, you can take advantage of PayPal’s site and app new feature – purchasing cryptocurrencies directly on their platform. You first need to register and create an account on PayPal. Then select “Crypto” from the “Finances” menu, select buy, the site will verify your indentity and you’ll have bought Ethereum directly with PayPal. This new feature is yet to be released in other locations.
- How to buy Ethereum with PayPal on other platforms: You can buy Ethereum with PayPal as a payment method on online trading platforms, brokers or exchanges, that accept it. After creating an account on the platform of your choice, select PayPal as payment method and deposit your funds. Using PayPal to pay for Ethereum would be immediately reflected in your account and you won’t be charged processing fees for your deposit.
How to Buy Ethereum With a Bank Transfer
One of the ways how to buy Ethereum is by using a bank transfer. Trading platforms accept bank transfers as a payment option and don’t charge fees for processing the deposit. To use a bank transfer to buy Ether, you must simply select it as a payment option when purchasing the asset on a crypto trading platform and your purchase will be complete. You should consider that bank transfers take longer time than other payment methods to be reflected into your account.
How to Buy Ethereum With a Credit or Debit Card
One of the most widely accepted ways how to buy Ethereum is using a credit or a debit card. Card payments are accepted as payment methods in most online trading platforms for cryptocurrency. After registering on the platform, select your card type as payment method and you’ll be able to buy Ether using your card. The deposit will be almost immediately reflected in your account and you won’t be charged processing fees.
How to Buy Ethereum With Cash
By cash is one of the ways how to buy Ethereum. You can use cash to purchase your ETH tokens in two ways – on a decentralized exchange, because this type of exchanges allow cash payments, and by paying in cash in person to a seller. If you select this way of buying Ethereum, you must remember to be very careful since the transactions won’t be monitored by another party and if you lose your crypto assets, nobody will be able to help you.
How to Buy Ethereum With a Wallet
Cryptocurrency wallets are online or offline storage spaces for your purchased digital assets. The hot storage wallets store your private keys online and with the cold storage ones are stored offline, on devices similar to USB flashdrives. Some of the more popular wallets now are Ledger, MetaMask, and Trezor.
You can also use a wallet as a way how to buy Ethereum. Some wallets provide the option to purchase cryptocurrency through them and pay using a card, bank transfer or online pyment services. Using a wallet to buy ETH would save your up time and provide you both a place to buy and a place to store your tokens, all in one.
How to Buy Ethereum With ATM
Specialized ATMs for cryptocurrencies exist and they are one of the ways how to buy Ethereum. You need to own a crypto wallet and the amount of your deposit in cash before you go and find the closest ATM that provides ETH. Then the steps are as it follows:
- Scan your wallet’s QR code on the ATM camera
- Insert the amount of cash you intent to use for your Ethereum purchase
- Buy Ethereum – after selecting to buy your tokens, they’ll be sent to the same wallet you used to begin the process
How to Buy Ethereum 2.0
The process previously referred as Ethereum 2.0, now renamed “Ethereum upgrades”, is going to turn Ethereum from a proof-of-work to a proof-of-stake cryptocurrency. Ethereum’s developers took this step to improve ETH’s sustainability, using newer technologies.
The answer to “How to buy Ethereum 2.0?” is – you can’t do it yet. The migration process isn’t completed. 2022 was the initial deadline for the project, however, since then the site has updated that it may take longer. However, when Ethereum upgrades, you’ll be able to buy it just the same way, as we have listed for its current version.
How to Decide How to Buy Ethereum in 2022?
In this article, we’ve listed the most common ways how to buy Ethereum. You can do it on a platform for crypto trading, using a wallet, at a crypto ATM, and on PayPal’s site. You can pay for your purchase in cash, by bank deposit, using a card, or with an online payment service. Based on the options we’ve listed, you’ll be able to get a general idea what are the ways to buy Ethereum now and consider, which one is the best for you. We can’t advise you how to decide but want to remind you to always research everything related to your crypto investments and your money very thoroughly.