Are you wondering how to buy Ethereum? You’re not the only one. Ethereum is the second-largest cryptocurrency in the world and Bitcoin’s main rival. Ethereum is also known as the king of smart contracts and the biggest open-source blockchain. So it’s totally normal that you may want to add this asset to your portfolio and we’ll tell you the different ways how to buy Ethereum in this article.
What Is Ethereum?
Ethereum was released in 2015 with the intention to become the biggest platform for decentralized applications, or dApps (spoiler alert: it totally did!). Besides dApps, users can create and exchange NFTs on the platform and also create new cryptocurrencies, using the ERC-20 token standard. Ether or ETH is the native currency of Ethereum. The crypto is in the second spot by market capitalization in a market with almost 20,000 cryptocurrencies, so it’s clear Ethereum has proven its potential both as a platform and a cryptocurrency. If you decide to invest in Ethereum, it’s not too late, take advantage of its price and follow one of the methods how to buy Ethereum we’ll tackle now.
What to Consider Before Choosing How to Buy Ethereum?
Before deciding how to buy Ethereum, you need to consider a few factors that may influence your decision.
- Ethereum’s current price: The ideal scenario would be to buy Ethereum when its price is lower to be able to maximize your gains. Follow the market trends carefully and pick the right time to buy Ethereum.
- The overall market sentiment: When buying any digital asset, including Ethereum, it’s advisable to follow the market news and trends. The Bitcoin price can take the whole market in either direction so keep track of that as well.
- How long does it take to buy Ethereum: When choosing how to buy Ethereum, take into consideration how long will it take. If you want to take advantage of a certain Ethereum price, then you want to choose the fastest way to buy it.
Now that you know what you should look for when buying ETH, let’s see what the most popular ways how to buy Ethereum are.
How to Buy Ethereum on a Trading Platform
One of the most popular ways how to buy Ethereum, or any other cryptocurrency, is on a platform for crypto trading. You can use the platform’s site or app, if provided, and the process is pretty much similar. Here are the types of crypto trading platforms and the specifics how to buy Ethereum on them.
How to Buy Ethereum on a Broker
Brokers are online platforms that offer a variety of assets, including stocks, bonds, ETF, forex trading, and cryptocurrencies. Since Ethereum is so popular, it’s most likely that if a broker allows cryptocurrency trading, then Ethereum will be available. On brokerage platforms you can buy Ethereum with fiat money, usually, they offer a few different options of currencies to use. Some of the most popular brokers include eToro, Pionex, and Robinhood.
The process of how to buy Ethereum on a broker is quite simple:
- Create an account with the broker of your choice
- Confirm your identity – most platforms usually ask for an ID or some kind of legal document for verification, along with your bank account details
- Search for Ethereum, Ether, or ETH on the platform
- Deposit the currency of your choice
- Buy Ethereum
How to Buy Ethereum on a Crypto Exchange
Cryptocurrency exchanges, unlike brokers, offer only digital assets for trading. There are two types of crypto exchanges – centralized and decentralized. The first type is regulated, a third party will conduct your transaction, and the second allows users to trade cryptocurrency without any regulations. The other difference is that on centralized exchanges your can buy Ethereum with fiat currencies and on decentralized you can do it with other cryptos too. An example of a decentralized exchange is Uniswap and Binance and Coinbase are some of the most popular centralized exchanges.
Here’s how to buy Ethereum on an exchange:
- Create an account with the exchange you’ve chosen
- Confirm your identity – take in mind only centralized exchanges will ask for your documents, with a decentralized one you skip this step
- Search for Ethereum, Ether, or ETH on the platform
- Choose how to pay – with fiat or crypto, depending on what type of exchange you chose
- Buy Ethereum
After you’ve bought your Ether, you can store it in a built-in wallet, if the crypto trading platform of your choice provides one.
How to Buy Ethereum With PayPal
PayPal is one of the most famous online payment services and also a way to buy Ethereum. There are two ways how to buy Ethereum with PayPal.
- Buying Ethereum directly on PayPal: You can buy Ethereum directly on the service’s app or website. First, you need to have a PayPal account and then choose “Crypto” from the “Finances” dashboard on the app, tap buy and the site will verify your identity and that’s it – you’ve bought Ethereum with PayPal. Keep in mind though, that this option may not be available to all countries.
- Buy Ethereum using PayPal on another platform: You can use PayPal to buy Ethereum on another platform, a broker or an exchange, for example, that accepts the service as a payment option. After registering and verifying your account, pick PayPal as the payment option on the platform you’re using and deposit your funds. There are two things to consider here – you won’t be charged deposit processing fees and the PayPal deposit will be almost immediately reflected in your account. So if you’re looking for a fast way how to buy Ethereum, this may be a good option for you.
How to Buy Ethereum With a Credit or Debit Card
Using a debit or a credit card is one of the easiest ways how to buy Ethereum since it’s very widely accepted. Trading platforms, brokers or exchanges, accept cards and since the deposit is almost immediate and you’re not charged processing fees, it’s also very easy to use. Just select your card type when choosing a payment option on the platform you use, and you’ll be able to buy Ethereum with a card.
How to Buy Ethereum With a Bank Transfer
Bank transfers are also a very common way how to buy Ethereum. Like card payments, trading platforms support bank transfers and don’t charge processing fees. Choose bank transfer when you reach the step to pick payment option and you’re set to go! You have to keep in mind though that if you choose bank transfer as a way of buying ETH, it’ll take longer than other payment options to reflect the transfer in your account.
How to Buy Ethereum With Cash
Using cash is one of the ways how to buy Ethereum. It can be done in two instances – in online decentralized exchanges, since they allow cash payments, and meeting a person and paying in cash for their Ether. Do be very careful when trading cash for cryptocurrencies, though, since your transcation won’t be regulated by a third party and the loss is only on you.
How to Buy Ethereum With a Wallet
A cryptocurrency wallet is a place where you store your crypto after the purchase. There are two categories of wallets – hot storage wallets (online storage) and cold storage (offline). One of the most popular wallets are MetaMask, Trezor, and Exodus.
But besides storing your ETH, a wallet is one of the ways how to buy Ethereum. Some wallets allow you to buy cryptocurrencies through them, using a bank transfer, debit or credit card, or different online payment options. If you want to spare yourself some time and effort, do a quick research on which wallets support ETH and can buy Ethereum through and get one of them so you don’t have to worry about other platforms or services.
How to Buy Ethereum With ATM
Another way how to buy Ethereum is through an Ethereum ATM. The ATMs are similar to fiat ATMs, you use cash for them. First, you need to find an ATM that supports Ethereum. Then, these are the steps how to buy Ethereum using an ATM:
- Acquire a wallet: You need to own a wallet to buy and later store your ETH. When you locate your nearest Ethereum ATM, you need to show the QR code of your wallet to the machine’s camera.
- Insert your money: After scanning the code, you need to insert the amount of cash you intend to buy ETH in.
- Buy Ethereum: Once you complete the first two steps, you’ll have purchased Ethereum which will be sent to your wallet.
How to Buy Ethereum 2.0
If you’re familiar with cryptocurrency or just heard anything about Bitcoin, you probably already know the crypto’s biggest criticism is about the energy it consumes to be created. Since Ethereum was created shortly after Bitcoin, it uses the same method – the proof-of-work. However, its developers want to make Ethereum more sustainable so a few years ago, they started the process of migration to Ethereum 2.0 (now renamed to Ethereum upgrades). The whole process aims to move Ethereum to proof-of-stake mechanism, meaning once it’s completed, you’ll be able to stake Ethereum.
If you’re wondering how to buy Ethereum 2.0 – you can’t yet. The developers first promised 2022 as a deadline, however, it seems like it may take longer for the migration to be completed. But once Ethereum upgrades, you‘ll be able to use the very same methods to buy it as right now.
What Is the Best Way on How to Buy Ethereum in 2022?
Let’s summarize – you can get Ethereum on a trading platform, via a wallet, on an ATM and on PayPal. You can pay for it with debit or credit cards, bank transfer, cash or online payment service. As you can see, there are many ways how to buy Ethereum in 2022 and you can pick one of them that is most convenient for you. Always consider the security of your assets when trading and research if the chosen way of purchasing Ethereum is safe enough.