Ethereum (ETH) is an established cryptocurrency project that supports decentralized applications (dApps). It enables developers to build projects via smart contracts, whether that’s an exchange, game, or metaverse.
This makes Ethereum a popular cryptocurrency for long-term investors. Read on as we explain how to buy Ethereum in the UK. We also explore different investing options, which platforms are worth considering, and what best practices to follow.
How to Buy Ethereum in the UK: Quick Guide
Here’s a quick walkthrough on how to buy Ethereum in the UK:
- Choose a trusted cryptocurrency platform such as eToro: Ethereum is the second-largest cryptocurrency by market capitalization, so it’s listed on most exchanges. We like eToro for its FCA regulation, low trading minimums, and user-friendly interface.
- Create an account: Now, visit the eToro website and register an account. eToro requires personal information and contact details, plus a national insurance number.
- Deposit funds: Choose the preferred payment method and make a deposit. Options include debit/credit cards, bank transfers, PayPal, and other popular e-wallets.
- Decide how much to invest: Consider your investment strategy and risk tolerance. This will help you decide how much to invest in Ethereum. Remember, like all cryptocurrencies, Ethereum is a volatile asset.
- Buy Ethereum: Search for ‘Ethereum’ and click ‘Trade.’ Type the investment size in the ‘Amount’ box and click ‘Buy’ to confirm. You’ve just bought Ethereum.
- Store Ethereum in a wallet: You can leave the ETH coins in the eToro account until you’re ready to cash out. Alternatively, you can withdraw Ethereum to a private wallet.
A more comprehensive investment guide can be found further down, where we cover each step in more detail.
Best Place to Buy Ethereum UK
Choosing the right place to buy Ethereum is crucial. Each method comes with pros and cons, especially regarding fees, regulations, and privacy.
Read on to discover where to buy Ethereum in 2024.
Cryptocurrency Exchanges
The easiest and most common way to buy Ethereum is on a cryptocurrency exchange. Hundreds of exchanges exist, and most list Ethereum, considering it’s the second-largest cryptocurrency.
The investment process is straightforward:
- You open an account with the chosen exchange, deposit funds (e.g., with a debit card), and proceed to buy Ethereum.
- The purchased coins are then added to the exchange account.
- Exchanges enable investors to withdraw their coins to a private wallet.
- Or keep the coins there until the investor is ready to sell.
Let’s explore the best UK cryptocurrency exchanges to buy Ethereum:
eToro – An FCA-Regulated Cryptocurrency Platform Aimed at Beginners
The first exchange to consider is eToro, an FCA-regulated trading platform offering a safe investment experience. eToro is a great option for beginners. It has a simple account opening process, and investors can instantly deposit funds using a debit/credit card or e-wallet. Then, it’s just a case of searching for Ethereum, entering the investment size, and confirming.
The process takes less than five minutes from start to finish. eToro also offers other popular cryptocurrencies. This includes Bitcoin, BNB, XRP, Dogecoin, Cardano, and Solana. The minimum investment requirement is $10 (about £8) per trade, making diversification simple and affordable. eToro also offers other asset classes, such as shares, ETFs, and commodities. eToro is also popular for its smart portfolios.
These are pre-built and managed investment baskets that contain multiple cryptocurrencies. Smart portfolios are automatically rebalanced depending on market conditions. eToro also offers copy trading. This means you can copy a successful cryptocurrency trader. However, the main drawback is that eToro charges a 1% fee when investing in cryptocurrencies. Cheaper options exist, but they likely don’t have that all-important FCA approval.
Pros
Cons
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. 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 2 mins to learn more
MEXC – A Great Option for Building a Diversified Portfolio (2,800+ Markets)
MEXC is one of the best options for UK investors who want to build a diversified cryptocurrency portfolio. In addition to Ethereum, MEXC lists more than 2,800 other cryptocurrencies. This includes some of the best altcoins, like Solana, Pepe, Shiba Inu, Cardano, and Polygon. Ethereum investing couldn’t be easier, considering MEXC accepts debit/credit cards.
It also accepts PayPal and Google/Apple Pay. The payment will be processed instantly, and the minimum purchase is just £22. GBP fees depend on the payment provider. Once the account is funded, MEXC users benefit from industry-leading trading commissions. Traders pay 0% when placing limit orders or 0.02% on market orders.
The latter is ideal for beginners who simply want to buy cryptocurrencies at the current market price. MEXC also offers fast withdrawals, so you can immediately transfer the purchased Ethereum to a private wallet. However, UK investors should know that MEXC isn’t regulated by the FCA. What’s more, some of its products, including perpetual futures, aren’t available to UK clients.
Pros
Cons
No KYC Exchanges
The next option to consider is no KYC (Know Your Customer) exchanges. These are cryptocurrency exchanges, typically located offshore, that enable users to trade anonymously. The sign-up process simply requires an email address or mobile number.
This option could be attractive to UK clients who want to trade Ethereum with leverage. This means users can trade with far more than they have in the exchange account. However, no KYC exchanges are often unregulated, so consider the added risks.
Let’s explore the best no KYC exchanges for Ethereum trading:
Margex – Minimum Purchase Requirement of Just £4 When Buying Ethereum
Margex is a reputable no KYC exchange supporting dozens of cryptocurrencies, including Ethereum. It offers two ways to enter the market. Beginners can instantly purchase Ethereum with a debit/credit card. The minimum purchase is just £4, and fees are built into the quoted exchange rate. For example, a £10 purchase currently gets 0.0050251 ETH.
Those ETH coins can be withdrawn from Margex into a private wallet. They can also be converted into other cryptocurrencies fee-free. This includes Bitcoin, Tether, Solana, and Litecoin, and TRON. The second way to access Ethereum on Margex is by trading perpetual futures. These track the ETH price in real time and offer leverage of up to 100x.
For instance, suppose you deposit £100. 100x leverage would increase that £100 balance to £10,000. However, leverage isn’t suitable for beginners, so proceed with caution. A more fitting option on MEXC is its copy trading tool. Newbies can replicate an experienced trader like-for-like, providing a passive way to invest in cryptocurrencies.
Pros
Cons
BloFin – Buy Ethereum Instantly With Visa or MasterCard
BloFin is another reputable no KYC exchange, so you can get started without providing personal information or verification documents. It offers one of the fastest ways to buy Ethereum; UK clients can instantly invest with Visa or MasterCard. The minimum purchase depends on the payment provider, but it’s often around £8. This ensures budget-conscious investors are catered for.
BloFin’s instant buy feature also supports Bitcoin and Tether. Hundreds of other cryptocurrencies are available on BloFin’s spot trading exchange. This includes some of the best meme coins, such as dogwifhat, Dogecoin, and Shiba Inu. BloFin’s exchange charges just 0.1% in trading commissions. That’s just £0.10 for every £100 traded.
Although lower commissions are available when trading larger amounts, this requires at least 1 million USDT worth of volume. Nevertheless, BloFin also offers perpetual futures, with leverage of up to 150x when trading Ethereum. It also offers competitive APYs of 4% on Ethereum savings accounts. However, this requires a holding period of 360 days. Shorter terms are available but with lower APYs.
Pros
Cons
Ethereum Wallets
Wallets enable users to store Ethereum safely. They come in various forms, such as mobile apps, desktop software, and even hardware devices. Some wallets also enable users to buy and sell cryptocurrencies.
This offers a convenient investing experience, especially for long-term holders. After all, you won’t need to transfer ETH coins to and from exchanges.
Let’s explore the best cryptocurrency wallets for buying Ethereum:
eToro Money Wallet – All-in-One Solution for Buying and Storing Ethereum
eToro offers a dedicated mobile app called the Money Wallet. It’s free to download and available on Google Play and the App Store. The eToro Money Wallet enables users to deposit GBP via debit/credit card or bank transfer. The user can then buy Ethereum without leaving the app.
Additionally, eToro Money Wallet also supports other cryptocurrencies. This includes everything from Litecoin and Bitcoin to Decentraland and EOS. The purchased coins are immediately added to the wallet’s balance, resulting in a seamless and fast investing experience.
eToro Money Wallet offers custodial storage, so you can’t directly access its private keys. Instead, eToro is responsible for keeping the funds safe. This does, however, mean that wallet transfers require approval. Nonetheless, the eToro Money Wallet also enables users to sell Ethereum for GBP. The proceeds can then be withdrawn.
Pros
Cons
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. 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 2 mins to learn more
Exodus – Store Ethereum in a Non-Custodial Wallet for True Ownership
Exodus is the best option if you want to buy and store Ethereum away from centralized platforms (like exchanges/brokers). To start with, Exodus is a non-custodial wallet, so only the user can access the private keys. In simple terms, this means you own the ETH coins 100%; not even Exodus can block or freeze transactions. Moreover, Exodus is secured by a backup passphrase.
So, if you forget the password or the device is lost or stolen, you can still recover the ETH coins. Exodus is available as a mobile app, desktop software, and browser extension. It’s free to download and is trusted by millions of users. Exodus also enables users to buy Ethereum with a debit/credit card. This service is handled by a third party.
Nonetheless, the purchased ETH coins will be added to your Exodus wallet immediately. Exodus also offers instant swaps on thousands of cryptocurrencies. For instance, you could swap ETH for XRP without leaving the wallet interface. Exodus is compatible with over 50 blockchains, so it’s also a good option for diversified portfolios.
Pros
Cons
Full Tutorial on How to Buy Ethereum in the UK
Ready to buy Ethereum in the UK? Read on for a detailed tutorial on how to invest safely. The process is explained in a beginner-friendly way, and it takes less than five minutes from start to finish.
Step 1: Choose an Ethereum Exchange
UK investors have hundreds of Ethereum exchanges to choose from. It’s important to use a regulated exchange offering a user-friendly experience.
We’re using eToro for this walkthrough; it’s authorized and licensed by the FCA. eToro also offers a simple interface, making it perfect for beginners.
Step 2: Open an eToro Account
Visit the eToro website and open an account. This is similar to registering with an online stockbroker. You’ll need to provide personal information, including a national insurance number.
An email address and mobile number must also be entered and verified. eToro is a regulated platform, so it also has KYC requirements. Upload a passport or driver’s license, plus a proof of address (e.g. utility bill or bank statement).
Step 3: Deposit Money
You can now deposit money into the eToro account. The minimum deposit is $100 (about £76).
Payment options include debit/credit cards, issued by Visa, MasterCard, Visa Electron, or Maestro. eToro also accepts e-wallet deposits, including Skrill, PayPal, and Neteller.
UK bank transfers are also accepted but the minimum deposit requirement increases to $500 (about £380). Select the preferred payment method, enter the deposit amount, and confirm.
Step 4: Search for Ethereum
Locate the search bar and enter ‘Ethereum.’
Click the ‘Trade’ button. This will show the Ethereum investment box.
Step 5: Decide How Much Ethereum to Buy
Risk management is crucial when investing in cryptocurrencies. Think carefully about how much Ethereum to buy. You don’t need to use the entire account balance. Instead, consider dollar-cost averaging your investments. This means buying small amounts frequently.
eToro has a minimum trade requirement of $10 (about £8), so it’s ideal for dollar-cost averaging on a budget. For example, suppose you met the $100 minimum deposit. You could make 10 Ethereum investments at $10 each. This averages the cost basis and ensures you don’t invest at the peak.
Step 6: Buy Ethereum
Now complete the Ethereum investment box that’s displayed on the screen. eToro requires the amount in US dollars.
In our example, we’re investing $50 (about £38). This gets us 0.02 ETH. The equivalent ETH amount updates automatically when entering the investment size.
Check everything is correct, and click ‘Buy’ when you’re ready to invest.
Note: eToro also supports limit orders. This enables you to buy Ethereum at your preferred price. For example, suppose Ethereum is currently trading at $2,485. You want to buy Ethereum when it declines to $2,400. The limit order will only be executed if Ethereum hits this price.
Step 7: Choose Ethereum Storage Method
The ETH coins can now be found in your eToro account. You can leave them there if you’re comfortable with custodial storage, meaning eToro is responsible for keeping the coins safe.
eToro is backed by institutional-grade security and is heavily regulated, so it’s a secure option for beginners. Plus, eToro offers two-factor authentication for extra safety.
However, if you’d prefer storing the ETH coins in a non-custodial wallet, you can request a withdrawal. Provide eToro with the wallet address and wait for the coins to arrive.
What Is Ethereum? An Overview
Ethereum is a cryptocurrency and blockchain project that launched in 2015. It enables developers to build decentralized ecosystems via ‘smart contracts.’ These are transparent and trustless agreements that can’t be amended or manipulated. Thousands of projects operate on the Ethereum from a variety of niches. This includes decentralized exchanges like SushiSwap and Uniswap.
Not to mention NFT marketplaces, games, metaverses, loan platforms, stablecoins, and domain registrations. The possibilities are endless, which is why Ethereum remains the go-to smart contract hub for developers.
Ethereum’s native cryptocurrency is called Ether, more commonly referred to as ETH. Crucially, ETH is the payment currency when projects execute smart contracts. This means ETH has a real use case, unlike many cryptocurrencies.
- Take Uniswap as an example.
- This popular crypto exchange offers decentralized swaps.
- Suppose someone swaps ETH for USDT.
- This will generate a smart contract request, and thus, fees must be paid in ETH.
- This is the case for every buy and sell order on Uniswap.
ETH is the second largest cryptocurrency in terms of market capitalization. It’s also one of the best-performing. It’s currently valued at over $295 billion (about £225 billion). This means Ethereum is more valuable than any FTSE company, including AstraZeneca, Shell, HSBC, Unilever, and BP.
What are ERC-20 Tokens?
You’ll often hear about ERC-20 tokens when investing in Ethereum. These are cryptocurrencies that operate on the Ethereum blockchain.
Some of the most valuable ERC-20 tokens are Tether, Shiba Inu, USD Coin, the Sandbox, and Decentraland. All ERC-20 transactions require ETH, ensuring long-term demand.
Key Considerations Before Investing in Ethereum
Ensure the following considerations are made before buying Ethereum in the UK:
- Price Movements: Ethereum trades 24/7 on cryptocurrency exchanges. Its price rises and falls every second based on demand, supply, and broader sentiment. Investors should expect a lot more volatility than UK shares.
- Fractional Investments: Ethereum currently trades forever $2,400 (about £1,800). Like all cryptocurrencies, Ethereum can be fractionized into smaller units. This means you don’t need to buy a full Ethereum coin. eToro, for example, supports investments from just $10 (about £8).
- Blockchain Fees: Sending ETH from one wallet to another requires blockchain fees, known as ‘gas.’ This is also paid in ETH. Gas fees rise and fall based on network demand.
- Investment Risks: Ethereum is a risky investment. Never assume that investment returns are guaranteed. While unlikely, the Ethereum price could theoretically drop to zero. Never invest more than you can afford to lose.
- Market Cycles: Ethereum has gone through multiple cycles since launching in 2015. This covers bullish cycles, where prices increase for extended periods. Conversely, bearish cycles see price declines. Both cycles often last for at least 12 months, so be prepared. This is similar to the traditional share markets.
- Exchange Selection: We can’t stress enough how important it is to choose a suitable Ethereum exchange. It’s best to stick with FCA-regulated platforms with an established reputation. Consider reading reviews on TrustPilot and similar websites to make an informed decision.
Investment Upside and Risks When Buying Ethereum in the UK
Investing in Ethereum offers an attractive upside potential – especially in the long term. However, this investment space is also risky.
Let’s take a closer look at the investment thesis:
Ethereum’s Investment Potential
Ethereum is one of the best-performing assets of all time. Consider that in 2014, Ethereum held an initial coin offering (ICO). This was a fundraising campaign that enabled early investors to buy Ethereum before it launched on exchanges. The ICO price was set at just $0.31.
Ethereum’s all-time high price is $4,891.70, which was hit in November 2021. This means when compared to the ICO price, Ethereum has produced growth of over 1.5 million percent. This means a £10 investment in Ethereum in 2014 would have been worth over £15 million at its peak.
Ethereum has also outperformed the UK share market by significant amounts. For example, the FTSE 100 index has increased by just 14% in the past five years. Ethereum has increased by over 1,200% during the same period.
The good news is that Ethereum currently trades at almost 50% below its all-time high. This means you can buy Ethereum at a substantial discount.
Ethereum’s Investment Risks
The investment risks are high when buying Ethereum, especially in terms of volatility. As mentioned, Ethereum currently trades 50% below its peak valuation. This means those investing near all-time high prices are currently at a loss.
What’s more, Ethereum has declined by greater amounts during extended bear cycles. For example, Ethereum dropped to lows of almost $1,000 in mid-2022. That’s a decline of about 80% from its all-time high.
That said, Ethereum has since hit 52-week highs of $4,092. As such, those buying the dip at around $1,000 have seen growth of over 300%. Another risk to consider is competition in the smart contract sector.
Solana, for example, is consistently increasing network activity. Solana smart contracts are faster and more scalable than Ethereum, not to mention substantially cheaper. Ethereum could continue losing market share if it doesn’t resolve these deficiencies. This will invariably impact the Ethereum price.
Pros of Investing in Ethereum
Cons of Investing in Ethereum
Safety Tips When Investing in Ethereum
Consider the following safety tips when exploring how to invest in Ethereum in the UK:
- FCA-Regulated Exchanges: The best practice is to buy Ethereum from a cryptocurrency exchange that’s approved by the FCA. Examples include eToro, Gemini, and BitStamp. These exchanges are safe, transparent, and secure.
- Use a VPN: It’s also worth using a VPN when investing in Ethereum. This will secure your internet connection from remote hacking attempts.
- Don’t Use a Credit Card: Many Ethereum exchanges accept credit cards, but using them isn’t wise. You’ll need to pay interest if the statement balance isn’t cleared in full, meaning higher investment costs. You might also run into debt issues, especially if the Ethereum price declines.
- Use a Non-Custodial Wallet: It’s best to store Ethereum in a non-custodial wallet. No third parties, such as exchanges, can access the wallet. No authorization is needed when sending and receiving funds. You can withdraw Ethereum to a non-custodial wallet as soon as you’ve completed the purchase.
- Never Share Wallet Details: Non-custodial wallets are secured by private keys, which are unique passwords. Sharing the private keys will enable access to the wallet remotely, meaning the ETH coins can be stolen. Never share your private keys with anyone, and ensure they’re stored somewhere safe and offline.
Conclusion
In summary, you’ve learned how to buy Ethereum in the UK and what considerations to make to avoid costly mistakes. This includes sticking with regulated and reputable exchanges that trade with ETH.
eToro is a popular option with UK investors; it holds an FCA license and accepts convenient payment methods like Visa, MasterCard, and PayPal. eToro also supports other cryptocurrencies, including Bitcoin and Solana.
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. 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 2 mins to learn more
FAQs
Is it legal to buy Ethereum in the UK?
How much should you Buy Ethereum as a beginner?
Who created Ethereum?
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Is it better to put money in Bitcoin or Ethereum?
References
- Welcome to Ethereum (Ethereum.org)
- What are Smart Contracts on Blockchain? (IBM)
- Registered and Formerly Registered Cryptoasset Firms (FCA)
- Ethereum Price Data (CoinMarketCap)
- ‘Ethereum Killer’ Solana Falls Prey to Binance-FTX Deal Turmoil (Bloomberg)