How to Buy Ethereum: 5 Best Ways to Buy ETH (2024)

Paul Sazan
| Editor:
January 8, 2024
10 min read

Understanding Ethereum

Before delving into how to buy Ethereum, it's essential to understand what Ethereum is and its unique features that differentiate it from other cryptocurrencies.

What is Ethereum?

Ethereum is a decentralized, open-source blockchain platform introduced in 2015. It's the second-largest cryptocurrency by market capitalization, following Bitcoin. Ethereum's native cryptocurrency is called Ether (ETH), which is used to execute transactions and operate smart contracts on the Ethereum platform.

Ethereum diverges from Bitcoin in its functionality. While Bitcoin was designed primarily as a digital currency, Ethereum serves as a foundation for users to build and deploy smart contracts. These are self-executing contracts where the terms of the agreement are written directly into lines of code, eliminating the need for a third-party intermediary.

Ethereum's Unique Features

Ethereum's unique feature lies in its smart contract functionality. This feature enables the creation of decentralized applications (dApps), which operate on the Ethereum blockchain. These dApps can interact with each other, paving the way for a whole ecosystem of decentralized services on the Ethereum platform.

Ethereum's smart contract functionality has spurred innovation and expanded the reach of blockchain technology into various sectors, including finance, supply chain, and entertainment. This feature is a significant reason why Ethereum has garnered widespread interest and has become a popular choice for blockchain developers and investors.

Understanding these features is crucial for those planning to buy Ethereum, as it gives insight into Ethereum's potential for future development and growth. As Ethereum continues to evolve, with updates like Ethereum 2.0, it's essential to keep abreast of these changes to make informed investment decisions.

For those interested in other cryptocurrencies, you can read more about how to stake other crypto like Cardano in our guide on how to stake Cardano or learn more about the XRP Wallet and USDT Wallet.

Investing in Ethereum

When it comes to investing in the world of cryptocurrencies, Ethereum stands out as one of the most promising options. This section aims to shed light on the reasons to buy Ethereum and the risks and rewards associated with this investment.

Why Buy Ethereum?

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Ethereum is the second-largest cryptocurrency by market capitalization, trailing only behind Bitcoin. However, its prominence is not solely due to its market position. Ethereum offers unique features that set it apart from other cryptocurrencies.

One of the main features of Ethereum is its smart contract functionality. Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They allow for the creation of decentralized applications (dApps), which operate on the Ethereum platform. This functionality has opened up a world of possibilities in various sectors including finance, real estate, and gaming, to name a few.

The native cryptocurrency of Ethereum is Ether (ETH). It's used to facilitate transactions and execute smart contracts on the Ethereum platform. This utility makes Ether an integral part of the Ethereum ecosystem and contributes to its value as an investment.

Risks and Rewards

Like any investment, buying Ethereum comes with its share of risks and rewards. It's important to be aware of these before diving into Ethereum investment.

On the reward side, Ethereum's innovative technology and wide range of applications present a significant growth opportunity. As more industries adopt blockchain technology and dApps, the demand for Ether could potentially increase, which could lead to an appreciation in its value.

However, the volatile nature of the cryptocurrency market also means that Ethereum's price can fluctuate drastically in a short period. This volatility can lead to potential losses if not managed properly.

Additionally, the regulatory environment for cryptocurrencies is still evolving. Changes in regulations could impact the value and utility of Ethereum, adding an element of risk to the investment.

As with any investment, it's important to do your own research and consider your financial goals and risk tolerance before deciding to buy Ethereum. To understand the potential price trajectory of Ethereum, you might find our Ethereum rainbow chart useful.

Ultimately, the decision to invest in Ethereum should be based on a careful consideration of its potential risks and rewards. Always remember that while the potential for high returns exists, so too does the risk of loss.

Steps to Buy Ethereum

For those who are new to the world of cryptocurrency and wish to invest in Ethereum, there are a few key steps to follow. These include creating an account, going through the verification process, and depositing funds.

Creating an Account

Purchasing Ethereum starts with setting up an account on a cryptocurrency exchange. These platforms act as intermediaries, allowing users to buy and sell Ethereum using traditional or digital currencies.

For instance, MoonPay is a popular platform that allows users to buy Ethereum instantly using a variety of payment methods. The platform is user-friendly and supports transactions in more than 150 countries using the local currency of the user's bank account.

To create an account, users simply need to sign up using their email address and create a password. Some platforms may also require additional information such as a phone number for security purposes.

Verification Process

Once the account has been created, the next step is the verification process. This is a crucial aspect of buying Ethereum, as it helps prevent identity theft and fraud.

During verification, users are usually required to provide some form of identification. This could be a passport, driver's license, or any other government-issued ID. In addition, users may also need to provide a recent utility bill or bank statement as proof of address.

The verification process can vary between platforms, but it typically involves uploading the required documents and waiting for approval. Once the account is verified, users are free to start buying Ethereum.

Depositing Funds

After the account is verified, the next step is to deposit funds. Users can deposit as little as $50 and up to $20,000 daily to buy Ethereum.

Depositing funds into the account can usually be done through various methods. MoonPay, for instance, allows users to deposit funds through a credit or debit card, bank transfer, Apple Pay, Google Pay, and more.

Once the funds have been deposited, users can then proceed to buy Ethereum. It's important to note that prices can fluctuate rapidly due to market conditions, so it's essential to monitor prices closely.

Buying Ethereum on Different Platforms

The standard steps when buying Ethereum include the following (we will use Binance as an example): 

  1. Create an account: Sign up for an account on your chosen exchange. This will typically involve providing some basic information and setting up a username and password.
  2. Complete the verification process: Most exchanges require you to verify your identity to comply with regulations. This process can vary, but it usually involves uploading a form of identification.
  3. Look for an option to Buy Crypto. This is what it looks like on Binance:
  1. Now you can choose to buy crypto with different fiat currencies. Enter the fiat amount you want to spend, and the system will automatically display the amount of crypto you can get. Then, choose ‘Card’ as the payment method and click ‘Buy’.
  1. If you haven’t purchased crypto with a card before, click ‘Add New Card’ and enter your card details. Click ‘Confirm’.
  1. Check the payment details and transaction fees carefully before tapping ‘Confirm’. Please note that after the specified time, the price and the amount of crypto you can get will be recalculated automatically.
  1. Secure your Ethereum: After purchasing, it's important to transfer your ETH to a secure digital wallet that you control, rather than leaving it on the exchange.

When you decide to invest in Ethereum, one of the first steps is to choose the right platform for your needs. There are several digital platforms where you can buy Ethereum. 

Here, we will discuss buying Ethereum on Atomic Wallet, Kraken, Coinbase, MoonPay, and BitPay.

Buying Ethereum on Atomic Wallet

Atomic Wallet is a secure place to manage Ethereum and other cryptocurrencies. One of its key features is the ability to buy Ethereum (ETH) with a credit card instantly. Simply create an account, deposit funds using a credit card, and you can purchase Ethereum with just a few clicks. For more information on how Atomic Wallet works, check out our guide on how to buy crypto in Atomic Wallet

Buying Ethereum on Kraken

Kraken is another popular platform for Ethereum purchasers. Kraken offers a variety of features, including advanced trading options for experienced investors. To buy Ethereum on Kraken, create an account, go through the verification process, deposit funds, and then you can start trading. Kraken also provides helpful resources and guides for beginners, making it a suitable choice for those new to cryptocurrency.

Buying Ethereum on Coinbase

Coinbase is renowned for its user-friendly interface, making it an excellent choice for beginners. To buy Ethereum on Coinbase, you'll need to create an account, verify your identity, and deposit funds. Once these steps are completed, you can buy Ethereum directly. Coinbase also offers a mobile app, so you can manage your investments on the go.

Buying Ethereum on MoonPay

MoonPay offers a fast and easy way to buy and sell Ethereum. Users can purchase ETH for as little as $30. MoonPay allows users to buy Ethereum instantly with a credit or debit card, bank transfer, Apple Pay, Google Pay, and more. It makes it possible for users from more than 150 countries to purchase Ethereum using the local currency of their bank account. This feature makes MoonPay a convenient platform for international users.

Buying Ethereum on BitPay

BitPay is a crypto payment service that also allows users to buy and sell Ethereum. To purchase Ethereum on BitPay, you need to create an account, deposit funds, and then you can buy Ethereum. BitPay offers a unique feature: the ability to convert your Ethereum into gift cards, which can be used at various retailers.

By exploring these different platforms, you can choose the one that best fits your needs. Remember, no matter where you decide to buy Ethereum, it's essential to store your investment securely.

Storing Ethereum Safely

After you've decided to buy Ethereum, the next step is to ensure the safe storage of your investment. This is a crucial aspect of cryptocurrency management that should not be overlooked.

Importance of Secure Storage

Ethereum, like all cryptocurrencies, is built on blockchain technology. This provides a transparent and secure decentralized network. However, the security of your individual Ethereum holdings depends largely on how you choose to store them.

The stakes are high when it comes to storing cryptocurrencies. Unlike traditional banking systems, there is no centralized authority to help recover lost or stolen assets. If you lose access to your Ethereum wallet or become a victim of a hack, you could potentially lose all of your investment. Hence, securing your Ethereum investment is key to effective cryptocurrency management.

Options for Ethereum Storage

There are several options available for storing Ethereum. Here are a few of them:

Atomic Wallet: Atomic Wallet is a popular choice for Ethereum storage. It is a free and secure place to manage Ethereum, as well as other cryptocurrencies. Users can download an app and have self-custody of their Ethereum. This means the user has full control over the private keys and therefore, their Ethereum.

Hardware Wallets: For those who prefer an extra layer of security, hardware wallets can be a good option. These are physical devices that store your Ethereum offline, making them immune to online hacking attempts. However, they can be a bit more complex to use and may not be the best choice for beginners.

Online Wallets: Online wallets are another option for storing Ethereum. These wallets are accessible from any device with an internet connection, providing convenience and ease of use. However, they are also susceptible to online threats, so it's essential to use a reliable and trusted service.

In summary: 

  • Atomic Wallet is a secure and user-friendly option for Ethereum storage. Offers full control over private keys.
  • Online Wallets are accessible from any device with an internet connection. Convenient, but susceptible to online threats.
  • Hardware Wallets are physical devices that store Ethereum offline. Offers high security but can be complex for beginners.

In conclusion, the choice of storage depends on your individual needs and comfort level. It's always recommended to do thorough research before choosing the right storage for your Ethereum. And remember, whether you're storing Ethereum or any other cryptocurrency, the security of your investment should always be a priority.

Selling Ethereum

While the focus of this guide has been on how to buy Ethereum, it's equally important to understand when and how to sell this popular cryptocurrency. Selling Ethereum involves thoughtful consideration of market trends and a clear understanding of the selling process.

When to Sell Ethereum

Deciding when to sell Ethereum is a decision that should be based on your personal investment goals, risk tolerance, and understanding of the cryptocurrency market. Some investors choose to sell when the price of Ethereum reaches a certain target, while others may decide to sell their holdings to mitigate losses during a market downturn.

One useful tool for gauging price trends in the Ethereum market is the Ethereum Rainbow Chart. This chart provides a color-coded representation of Ethereum's price history, helping investors identify potential buying and selling opportunities.

It's also worth noting that Ethereum's utility goes beyond its potential for capital appreciation. As the foundation for thousands of decentralized applications (dApps), owning Ethereum provides exposure to a vast ecosystem of blockchain-based services. This could influence your decision on when to sell Ethereum.

Process of Selling Ethereum

Once you've decided to sell your Ethereum, the process is quite straightforward:

  1. Log into your cryptocurrency exchange or wallet account.
  2. Navigate to the 'Sell' or 'Trade' section of the platform.
  3. Select Ethereum (ETH) from the list of available cryptocurrencies.
  4. Enter the amount of Ethereum you wish to sell.
  5. Review the transaction details, including any fees or exchange rates.
  6. Confirm the transaction.

It's important to remember that the exact process may vary slightly depending on the platform you're using. For instance, MoonPay allows users to easily sell Ethereum and cash out directly into fiat currency and their bank account.

Before you sell, ensure that your Ethereum is stored in a secure and accessible place. Self-custody options, such as a downloadable app, can provide a safe place to store your Ethereum before a sale.

Whether you're a seasoned investor or a beginner in the world of cryptocurrency, understanding the process and timing of selling Ethereum is a crucial part of your investment journey. By keeping an eye on market trends and staying informed about developments in the Ethereum ecosystem, you can make informed decisions that align with your investment goals. Remember, investing in cryptocurrency carries risk, but also the potential for significant rewards.

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