If you’re looking to add Ethereum to your investment portfolio – you can do so in under five minutes with a regulated online broker. It’s just a case of registering an account and paying for your Ethereum investment with a debit/credit card or bank transfer.

In this guide, we explain in simple terms how to buy Ethereum via a detailed step-by-step walkthrough that will appeal to beginners.

Within a matter of seconds, your account balance will be debited and the ETH tokens added to your portfolio.

Take note, if you’re looking to buy Ethereum, and other web 3.0 crypto coins, for the first time, you will find a more comprehensive step-by-step walkthrough of the investment process further down in this guide.

Where to Buy Ethereum 

When learning how to buy Ethereum, the initial point of consideration that you need to make is which cryptocurrency platform to complete your purchase.

Bearing in mind that Ethereum is the second-largest digital asset in terms of market capitalization, it makes sense that virtually all of the 200+ exchanges listed on CoinMarketCap support this token. Whether you want to invest in Ethereum and hold or use it to buy the best NFTs, we’ve got you covered.

To help clear the mist for you, below we discuss where to buy Ethereum right now from the best exchanges in this space.

1. eToro – Overall Best Place to Buy Ethereum for 2022

After reviewing more than 50+ exchanges and brokers, we concluded that eToro is the overall best provider on the table. In a nutshell, the eToro platform is suitable for both first-timers and seasoned pros alike – not least because you will have access to a regulated and low-cost trading environment. Regarding the former, eToro holds licenses with a variety of tier-one bodies – including the SEC, FCA, CySEC, and ASIC.

And the latter, eToro operates on a spread-only basis – meaning that fixed commissions are not in place. Another cost-effective aspect of the eToro platform is that all USD deposits and withdrawals are fee-free. This even includes debit and credit card payments, which, in the cryptocurrency exchange industry, ordinarily average a transaction fee of between 3-5%. On top of debit/credit cards, you can also buy Ethereum via a bank wire, ACH, or an e-wallet like PayPal.

Once you have completed your Ethereum investment – which requires a minimum capital outlay of just $10 at eToro, the tokens will be added to your web wallet. You can leave the tokens there safely without needing to make a withdrawal. This means that when the time comes around to sell your Ethereum tokens back to cold-hard cash – this can be achieved at the click of a button. eToro is also our number one pick in terms of diversification.

Not only does the broker allow you to buy Bitcoin and 40+ alternative cryptocurrencies – including but not limited to Polkadot, Binance Coin, the Graph, XRP, and Shiba Inu – but thousands of other markets. This includes stocks listed in the US and more than a dozen international exchanges, as well as ETFs, gold, energies, indices, and currencies. Finally, it’s also worth checking out the copy trading tool at eToro. This allows you to select a popular eToro trader and then automatically copy their investments moving forward.

For example, with such tight spreads you can buy the Graph coin with a minimum spread of just 2.9%. eToro is also a popular choice amongst crypto enthusiasts for its offering of a useful crypto credit card. For more information you can read our best crypto credit cards guide today.

 

 

Cryptoassets are a highly volatile unregulated investment product. 

2. Crypto.com – Buy Ethereum With a Visa or MasterCard at 2.99%

The next exchange to consider when thinking about where to buy Ethereum is Crypto.com. This platform is more than just an exchange, insofar that it offers a wide range of other crypto-related products and services. For instance, Crypto.com offers an NFT marketplace where you can buy NFTs with Ethereum, the ability to earn interest on your cryptocurrency investments, and even a debit card that is issued by Visa.

In terms of how to buy Ethereum here, the fastest option at Crypto.com is to use your Visa or MasterCard. In doing so, your transaction will be processed instantly. With that said, you do need to consider that Crypto.com charges a flat transaction fee of 2.99% when using this payment type. If you’re a new customer, however, this fee is waivered for the first 30 days after you have registered an account.

In a similar nature to eToro, Crypto.com was designed with beginners in mind. Across both its main website and iOS/Android mobile app, the user interface is clean and burden-free. Furthermore, you can easily open an account, and the KYC verification process can be completed in less than two minutes. We also like the fact that Crypto.com supports crypto lending and over 250+ cryptocurrencies on its platform – with new tokens being added on a frequent basis.

 

 

Cryptoassets are a highly volatile unregulated investment product. 

3. Binance – Top Platform for Experienced Traders to Buy Ethereum 

While both eToro and Crypto.com are suitable for newbies, Binance is arguably the best platform to buy Ethereum if you know your way around a cryptocurrency exchange. At Binance, you can elect to trade via the advanced platform, which gives you access to a variety of tools that seasoned investors will appreciate. This includes everything from advanced orders and customized charts to technical indicators and drawing tools.

In terms of how to buy Ethereum at Binance, you might decide to pay for your tokens instantly with a debit/credit card. You will first need to go through a quick KYC process should you wish to deposit funds with US dollars. Moreover, when using a debit or credit card on this platform, you will be charged a rather expensive 4.5%, plus a standard buy charge of 0.5%. In contrast, Binance supports fee-free ACH and bank wire deposits, albeit, you will need to wait for the funds to clear before you can buy ETH.

Another way to buy Ethereum at Binance is to deposit funds via cryptocurrency. Not only will this fast-track the process in terms of KYC verification, but you won’t pay any deposit fees. Moreover, Binance supports a significant number of trading pairs that are denominated in Ethereum – so you can easily pay for your purchase with the likes of USDT, Bitcoin, or BNB. And, if opting for a crypto-to-Ethereum swap, you will be charged an industry-leading commission of just 0.10% per slide.   

Additionally, Binance supports a wide range of cryptocurrencies which means you can buy Celo and other trending altcoins with some of the most competitive transaction fees out there.

 

 

Cryptoassets are a highly volatile unregulated investment product. 

4. Coinbase – Popular Way to Buy Ethereum for First-Time Investors

Coinbase offers the perfect combination of user-friendliness and security. Regarding the former, Coinbase is often the preferred choice for people that wish to buy Ethereum for the very first time, not least because the platform was built with newbies in mind. No previous cryptocurrency trading experience is needed to use Coinbase – and verified accounts take less than 10 minutes to open.

When it comes to security, Coinbase is regulated in the US and publicly listed on the NASDAQ exchange. The platform keeps at least 98% of client funds in cold storage and all registered users must go through a KYC process. Two-factor authentication is also mandatory on each account login attempt. Although Coinbase is great for beginners and safety, the main drawback with this crypto exchange is that it is super expensive in terms of both deposits and commissions.

For example, standard commissions of 1.49% will be charged when you buy and sell Ethereum here. And, if you want to use the Instant Buy feature at Coinbase – which supports debit/credit cards and Paypal, then you will pay even more at 3.99%. You also need to factor in the spread as well as withdrawal fees – which vary depending on the payment method. Finally, if you want to buy Ethereum alongside other digital tokens – Coinbase supports more than 50+ markets.   

 

 

Cryptoassets are a highly volatile unregulated investment product. 

What is Ethereum?

As a leading Metaverse coin, Ethereum is both a blockchain protocol and a cryptocurrency token that was first launched in 2015. The Ethereum network – like all cryptocurrencies, allows users to send and receive digital funds without needing to go through a third party. Transactions take just 16 seconds to process – which permits a speedy and efficient ecosystem.

Unlike first-generation blockchains such as Bitcoin and Litecoin, Ethereum is able to execute smart contract agreements. In simple terms, smart contracts allow people to enter into an agreement in a trustless manner. The terms of the agreement – such as a rental contract or an insurance policy, are entered into the smart contract via transparent code that cannot be amended or manipulated.

Only when the terms of the smart contract have been met will it be executed. When it comes to the project’s native cryptocurrency token, Ethereum is the second-largest digital asset in terms of market capitalization. Moreover, even bigger things are expected of Ethereum, with the project soon to migrate from a proof-of-work consensus mechanism over to the more scalable and cost-effective proof-of-stake.

Is Ethereum a Good Investment?

Ethereum has generated huge returns since it was launched in 2015 and as noted above – is the most valuable digital asset only behind Bitcoin.

But, whether this makes Ethereum a good long-term investment remains to be seen until you do your own due diligence.

The most attractive aspects to look at before you buy Ethereum for your portfolio are discussed below.

Performance Since Launch 

Before Ethereum was officially launched in 2015, the project held an initial coin offering (ICO). This is somewhat similar to a traditional initial public offering (IPO), insofar as it allowed Ethereum to raise funds from investors to help fund the project.

• In total, Ethereum’s ICO raised in excess of $17 million.
• When the token was first launched on public exchanges in 2015, the token was trading at around $0.75.
• Fast forward to 2022 and the digital currency has since hit all-time highs of nearly $5,000.
• This means that in just seven years of trading activity, Ethereum has generated gains of over 650,000%.

In other words, had you invested just $500 into Ethereum during its ICO, and sold when it peaks at nearly $5,000 – you would be looking at a total return of approximately $3.2 million.

Smart Contract Leader

Since Ethereum pioneered the smart contract concept in 2015, several other players have entered this marketplace. However, even though the technology itself is somewhat inferior to its competitors – at least in terms of scalability and fees, Ethereum is still the de-facto smart contract blockchain.

After all, other than a few days in early 2018, Ethereum has remained the second most valuable cryptocurrency project in terms of market capitalization since it was launched. Moreover, Ethereum is a trusted cryptocurrency with a public management team that is led by Vitalik Buterin – which gives it credibility other some of its anonymous competitors.

Ethereum 2.0

We mentioned in the section above that the performance of Ethereum is inferior to other smart contract blockchains in this space.

• For instance, Ethereum is only able to handle up to 15 transactions per second – which is far too low to be considered as an alternative to global financial and data services.
• Furthermore, irrespective of how many tokens are being transferred, Ethereum fees averaged $4 per transaction – which makes it incompatible for micro-payments.

The good news, however, is that the blockchain’s upgrade to Ethereum 2.0 is expected to come to fruition in 2022.

This is tipped to increase the project’s scalability capacity to over 100,000 per second – which far outpaces the likes of Visa, MasterCard, or Paypal.

And, in terms of fees, Ethereum 2.0 is expected to bring the average transaction cost down to near-zero.

Buy the Dip

When discussing the price performance of Ethereum in an earlier section, we noted that the digital currency recently hit all-time highs of nearly $5,000 per token.

However – and in line with the broader cryptocurrency markets, the value of Ethereum has since cooled off. For instance, moving into 2022, Ethereum was trading at just over $3,700.

Compared to its prior peak, this represents a reduction of approximately 25%. Therefore as such, this means that you can enter the market at a 25% discount for as long as these pricing levels remain in place.

And, should Ethereum eventually get back to $5,000 per token – this would represent an upside of 35%.

Staking Rewards and Interest Accounts 

Another perk that you will have access to when you buy Ethereum today is that you can earn income on your investment. This can be achieved through two key avenues.

First, you can elect to stake your Ethereum tokens through a crypto staking platform – which will result in the funds being locked away at a third-party platform for a specific number of days. During which, you will be paid a rate of interest.

Second, a number of online exchanges – such as Crypto.com and Binance, allow you to deposit your Ethereum tokens into a crypto savings account in return for weekly interest payments. At the former, you can earn up to 8.5% per year.

In addition to staking Ethereum, some investors prefer to mine ETH as it offers greater profitability then holding other popular coins including BTC – even during the current crypto market crash.

Ethereum Price

The price of Ethereum will rise and fall on a second-by-second basis like any other asset. Your overarching goal is to therefore buy Ethereum and sell the tokens at a later date for a higher price.

For instance, if you buy Ethereum when the token is priced at $3,500 and cash out when it is worth $7,000 – that’s a profit of 100%.

The specific price of Ethereum will vary slightly across each exchange, albeit, the difference is minute. In terms of how  Ethereum price is calculated, this simply depends on market forces.

That is to say, if there are more buyers in the market, then Ethereum will rise in value – and vice versa.

Ethereum Price Prediction 

Many so-called trading expects in the public domain will attempt to predict the future price of Ethereum in the short term via technical analysis.

Although such methods work very well in traditional markets such as stocks and forex, cryptocurrencies like Ethereum are a completely different kettle of fish.

 

 

Cryptoassets are a highly volatile unregulated investment product. 

Crucially, this is because cryptocurrencies are speculative, so technical data does little to predict which way the price of Ethereum will go. As such, Ethereum price predictions are worth avoiding.

Instead, it’s best to view Ethereum as a long-term investment. So, instead of looking for Ethereum price predictions, look at more solid factors such as the blockchain’s migration to proof-of-stake and any new partnerships it enters into.

Also focus more on the ETH to BTC ratio – some speculate that an event known as The Flippening will take place where ETH flips BTC in market cap, by 2023.

Ways of Buying Ethereum 

If you want to buy Ethereum today but you’re not too sure which payment type to use – consider the methods outlined below.

Buy Ethereum With Credit Card or Debit Card

The best way to buy Ethereum is with a credit or debit card.

Here’s how to complete the process in five minutes without paying any deposit fees:

• Open an account with eToro
• Select debit/credit card from the list of supported deposit methods
• Deposit at least $10 on a fee-free basis

Take note, eToro is one of the only cryptocurrency platforms that will allow you to buy Ethereum with a credit or debit card without paying any fees. Coinbase, for example, charges 3.99% while at Binance, you will pay 4.5%.

Buy Ethereum With PayPal

Alternatively, consider buying Ethereum with PayPal. You can use PayPal to deposit funds at popular exchange Coinbase – but again, you will pay 3.99% of the transaction amount. If the purchase is less than $200, then the fee is increased even further.

Or, you elect to buy Ethereum with PayPal at eToro without paying any fees at all.

Choosing an Ethereum Wallet

Once you have learned how to buy Ethereum and where to complete your purchase – the final thing to consider is storage. After all, ETH tokens are stored in crypto wallets.

There is plenty of choice in this regard, as the best Ethereum wallets can come via a mobile app, desktop software, or a hardware device. Each Ethereum wallet will offer a certain blend of security and convenience, so choose wisely.

 

 

Cryptoassets are a highly volatile unregulated investment product. 

If you’re not sure which option is best for you, beginners might appreciate the user-friendly nature of the eToro Money Crypto Wallet. This Ethereum wallet can be downloaded via a mobile app and it allows you to safely store your tokens for free.

Moreover, the wallet is licensed by the Gibraltar Financial Services Commission. And, in choosing the eToro Money Crypto Wallet, not only will you be able to store your tokens – but you sell them back to US dollars at any given time.

When to Buy Ethereum

Since the project was launched in 2015, Ethereum has generated some highly significant gains. However, during this period, digital currency has gone through plenty of downward pricing swings.

• For example, in mid-2021, Ethereum went from $4,100 to $2,800 in the space of a couple of weeks – representing a decline of 30%.
• Then, the fortunes of Ethereum reversed, with the token going on to hit all-time highs of nearly $5,000 just two months later.
• As such, knowing when to buy Ethereum is not an easy task.

This is why you should avoid trying to accurately time the market and instead just dollar-cost average your investments. For instance, you might consider buying $50 worth of Ethereum at the end of each week.

How to Buy Ethereum – Tutorial

This guide has so far covered the following core topics:

• Where to buy Ethereum
• Why Ethereum represents a good investment
• The best way to buy Ethereum online
• And how to safely store your Ethereum tokens

To conclude, we can now walk you through the simple process of how to buy Ethereum through an SEC-regulated broker.

For this tutorial, we’ll explain what you need to do to open an account with eToro, deposit some funds with USD, and finally – buy Ethereum from just $10.

Step 1: Open an eToro Crypto Account 

The first step involves opening an eToro account. This can be achieved in minutes by simply filling in the registration form. Some basic personal information will be required, alongside a username and password of your choosing.

Before your account is opened by eToro, you will need to confirm your email address and cell phone number.    

Step 2: Upload ID

The SEC – alongside the other financial bodies that regulate eToro, requires the broker to verify the identity of new customers.

To complete the KYC process near-instantly – upload a copy of your:

• Passport, driver’s license, or any other accepted form of government-issued ID
• Bank statement, utility bill, tax letter, or any other acceptable proof of address document

Step 3: Deposit Funds

Next, it’s time to add some cash to your eToro account so that you can buy Ethereum. You will be funding your account in US dollars and as such – no fees will apply.

Now, if you want to buy Ethereum instantly, it’s best to use a debit or credit card. E-wallet payments through Paypal are also usually credited to your account straight away.

On the other hand, using ACH, a domestic wire, or any other traditional banking method can delay the deposit process by a few days. All supported payment methods carry a minimum deposit requirement of $10.

Step 4: Search for Ethereum

If you have funds in your eToro account, you can now search for Ethereum.

To move onto the final part of the investment process, click on the ‘Trade’ button located next to Ethereum from the search bar.

Step 5: Buy Ethereum 

Next, enter your stake into the ‘Amount’ box. The minimum required is $10. Click on the “Open Trade’ button.

 

 

Cryptoassets are a highly volatile unregulated investment product. 

And that’s it – you have just learned how to buy Ethereum at eToro. Your newly purchased ETH tokens can be found in your portfolio.

How to Sell Ethereum

At some point in the future – should you wish to spend your Ethereum tokens, you can complete the process via your eToro account.

Just head over to your portfolio and place a sell order. eToro will swap your tokens for cash at the next best available market rate in a matter of seconds. You can then request a withdrawal or invest in other cryptocurrencies.

Conclusion

The purpose of this guide on how to buy Ethereum was to explain the investment process in simple terms with a regulated and low-cost broker.

In addition to reviewing the best platforms in the market, we’ve also discussed the many factors to consider before you invest in Ethereum – such as its token price trajectory and migration to proof-of-stake.

If you have conducted your own research and you’re ready to buy Ethereum now – it takes just five minutes to purchase the tokens at eToro when using a debit/credit card or supported e-wallet.

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