Learning how to buy Ethereum may seem daunting at first, but it can be done easily on many exchanges. Many popular exchanges and wallets support Ethereum and all other ERC-20 tokens due to its rise in popularity over the years. Ethereum has been traded since 2016 and has now established itself as one of the largest and most popular cryptocurrencies available.
Choosing an exchange
The first thing you will need to do is choose an exchange where you will buy your Ethereum from. This is a task that may take time as choosing the best exchange for your needs is an important decision. All exchanges have different features and will suit different people depending on your level of experience. Check out our ‘Where to buy Ethereum’ article to find a list of the best exchanges to use for buying Ethereum.
It is also important to know whether to choose a decentralised or centralised exchange. In general, centralised exchanges are used more often by investors and beginners because of their familiarity and convenience. Centralised exchanges are also able to aggregate many orders at once and can offer better exchange rates to users.
However, decentralised exchanges are still popular due to the fact they align more closely with the vision of Bitcoin and other digital assets. They are able to eliminate any middlemen and give users more control and a greater sense of security over their cryptocurrencies.
Centralised exchanges include: Binance, Coinbase, Gemini, Kraken, Kucoin, and Bitfinex.
Decentralised exchanges include: IDEX, Waves Dex, OpenLedger Dex, CryptoBridge Dex, OasisDex, and Radar Relax.
Buying Ethereum on Coinbase
For the purpose of this article, we will go through some of the simple steps needed to buy Ethereum on the beginner-friendly, centralised exchange Coinbase. Coinbase is available in over 32 different countries and is the cheapest in terms of transaction fees and exchange rates. It is also extremely easy to use, making it perfect for beginners and first-time buyers.
In just three simple steps, you can own Ethereum in a matter of minutes on Coinbase. The first thing you will need to do is create an account. This process is fast, secure, and designed to keep all your personal information safe and secure.
After you have set up an account, you will need to verify your identity through Coinbase’s KYC (Know Your Customer) process. This is to prevent any identity theft or fraud. To complete this process, you will need a photo ID to prove it’s really you.
The final step is to simply buy your Ethereum. You will need as little as £25 to buy Ethereum, and this can be done with either a debit card or bank account.
Choosing a wallet
After you have bought your Ethereum on your chosen exchange, it is very important to set up a wallet to store your crypto. It is recommended that your assets are kept on a wallet as opposed to an exchange due to the high security risks exchanges often face.
There are different types of wallets including hardware, desktop, mobile, and paper. However, hardware wallets are often referred to as the safest due to them being offline, meaning they are less likely to be hacked. One popular hardware wallet that supports Ethereum is the Trezor wallet. It was the first ever hardware wallet developed for Bitcoin and now has features to support ETH.
So now you know how to buy Ethereum and where to store it, you are ready to start investing in this popular cryptocurrency. As always, we recommend you do lots of research to ensure buying Ethereum is the right decision for you. Check out some of our handy guides that can tell you everything you need to know about investing in cryptocurrencies.