Ethereum is a decentralized blockchain system that has become one of the most popular cryptocurrencies in years.
It is the second-largest cryptocurrency behind Bitcoin, with technical analysis experts suggesting it may overtake Bitcoin due to its wide application and boost from bullish crypto market conditions.
Ethereum works as a platform for the deployment of other cryptocurrencies. It is also used for the execution of decentralized smart contracts.
Unlike the largest cryptocurrency, Bitcoin, Ethereum has a wide range of applications that makes it more practically valuable than Bitcoin. However, as popular as Ethereum is, there are still many questions concerning how to buy Ethereum in the UK.
This is because many people, especially newbies, are confused about choosing the best out of hundreds of cryptocurrency exchanges and coins, where and when is the best time to buy, and even how to buy their favourite coin.
Today, this guide is going to clear everything up and provide simple steps on how to buy Ethereum in the UK.
How to Buy Ethereum in the UK Using Our Preferred Trading Platform: eToro
1. Sign up with eToro
Starting with any crypto exchange is extremely easy. However, you need to create an account with any platform you intend to use. We recommend using eToro, visit eToro here.
If you are using eToro, visit their official website at www.etoro.com and navigate to the JOIN NOW button. Ensure you fill and complete the registration form that appears by inputting your email address and other essential information.
Verify your email address to move on to the next stage.
2. Account Verification
Once you’ve verified your email address, you need to complete the KYC verification to verify your identity information. When needed, complete your profile by providing your full name and home address.
You might also want to keep your National Insurance Number nearby to verify your information.
After updating your profile, upload a valid copy of your driver’s licence or passport as proof of identity. You can proceed by verifying the provided address with a clear picture of a utility bill, e.g. internet bill or bank/credit card statement.
3. Deposit fiat currency
After your KYC verification has been approved, you must deposit fiat currency to buy Ethereum. You can deposit funds by making a fiat deposit via your bank or e-wallet.
4. Navigate to Ethereum and make a purchase
After your deposit has been confirmed, your funds will reflect in your account. To buy Ethereum, navigate to the drop menu bar and go to CRYPTO. Search for Ethereum and select BUY to make your first Ethereum purchase on eToro.
5. Ethereum is now added to your eToro portfolio
After selecting the BUY option, the equivalent value of Ethereum will be added to your portfolio. Simple as that.
Best Ways to Buy Ethereum in the UK
eToro is a large trading platform that features the trading of indices, stocks, cryptocurrencies, commodities and even currency pairs. It had extended its professional service into the crypto space.
|Great for retail investors looking to diversify their portfolio under one roof||Only funds in USD – although there are workarounds to avoid these costs, this is still not the best experience|
|Easy to use app and enjoyable user experience|
|Low costs for actual trading and execution of deals|
|Access to a cryptocurrency wallet|
After funding your account with USD, you should consider the conversion charge spread to GBP. Fortunately, you can bypass this charge by depositing or withdrawing your funds with Wise or Revolut.
In addition to offering a wide variety of cryptocurrencies, eToro also supports CFD (Contract For Difference) trading. Apart from its reputation, it also offers reliability and security.
eToro is one of the most secured exchange platforms, especially when looking for a suitable exchange to buy Ethereum.
Additionally, eToro offers a wide range of standard features at low cost and an excellent rate with no hidden charges.
It is, however, important to consider the painstakingly slow withdrawal processing. Also, the minimum withdrawal for eToro is pegged at $50. That means you won’t be able to cash out your funds unless you reach the minimum withdrawal threshold of $30.
In a nutshell, eToro is an excellent platform for buying, selling, and trading Ethereum for both newbies and retail investors looking to delve into crypto trading. It is also suitable for experienced traders and investors looking for exchanges with more functionality and trading tools.
eToro is also excellent for existing traders who want to diversify their portfolios. Although eToro supports only USD, using Wise or Revolut to bypass such negation gives UK traders more advantages to explore the platform at a low cost.
Nonetheless, eToro is the best crypto exchange to buy Ethereum, considering its lower fee, wide coverage of currencies and availability of a crypto wallet that allows you to store other investments in the same portfolio.
Binance is another good crypto exchange to buy Ethereum. It offers slightly different markets and wider coverage of cryptocurrency listings than eToro.
As the world’s biggest and most prominent cryptocurrency exchange platform, Binance features more than 350 coins and up to 1390 trading pairs.
|Free and fast funding of accounts||Commission charges for trades – whilst cheap there are other platforms|
that don’t charge these
|A huge number of currencies supported – the largest number in the market||Fairly complex user experience – definitely designed for more experienced traders|
|A large range of transaction types supported|
In addition to offering zero account charges, Binance offers a low trading and purchase fee of 0.02% to 0.1%, making them the lowest trading fee platform in the market.
Also, Binance has several fast and easy payment methods in the UK. That is, in addition to being free, bank payments are extremely quicker than usual.
Furthermore, Binance allows users to buy Ethereum with a GBP balance, eliminating fees accruing due to conversion spread while also boasting of their low fees.
This is especially advantageous as many exchange platforms charge an additional fee for exchange rate and conversion spreads.
Although Binance is a great trading platform, it is worth noting that it doesn’t offer any built-in wallet feature. Therefore, users need to look for a reliable wallet service to store their cryptocurrency.
Additionally, Binance can be overwhelming, especially for newbies and even some experienced traders. Therefore, it may not be an ideal place to start for beginners and less-experienced traders.
Nonetheless, low fees and great functionality make Binance an excellent choice to buy, sell and trade Ethereum for experienced traders. However, users with generally less experience may find it difficult to quickly navigate Binance.
Coinbase is another great exchange to buy Ethereum in the UK. It is a crypto exchange giant that has built enormous reputation from serving millions of users worldwide.
|Free faster payments in the UK||Fairly complicated fee structure, which feels like you’re being charged for something new at each step|
|Good selection of currencies supported||Not great for more experienced investors – meaning you may have|
to change platform at some point
|Access to cryptocurrency wallet if needed|
Coinbase features an easy-to-navigate user interface like eToro, making it one of the most used crypto exchanges. Additionally, Coinbase is a regulatory-compliant exchange that is trusted by the regulatory bodies. Therefore, there is absolutely no risk and volatility imposed by regulators when using Coinbase.
Furthermore, Coinbase, like other crypto exchanges, offers more than 130 cryptocurrencies and 402 trading pairs. Another added advantage of using Coinbase is its built-in wallet, a feature that is especially important for beginners and new investors.
However, it is important to take note of Coinbase’s fees. It offers a slightly higher fee, pegged at 0.5% per trade. Coinbase also charges exorbitant fees of $25 for withdrawals and $10 for deposits which is much higher than that of eToro and Binance.
Also, Coinbase has a simple user interface that may be insufficient for advanced and experienced traders. This can cause advanced traders to dump the platform for a more sophisticated one in the future.
Although it is not very useful for experienced traders, Coinbase is an excellent option for beginners. It offers a good number of features for users who are just getting started in the crypto space.
Unlike eToro, Coinbase allows the management of cryptocurrency only. Therefore you will need to manage non-crypto investments outside the platform.
What Is Ethereum?
Ethereum, the second-largest cryptocurrency by market cap, is a decentralised blockchain network with smart contract functionality. Powered by the Ether token, Ethereum supports many other use case technologies. It is also one of the most energy-efficient cryptocurrencies.
Why Buy Ethereum?
Ethereum is a great cryptocurrency for investment because it shares many similarities with BTC. Also, it has some more interesting features that Bitcoin does not have.
One of which is its energy efficiency. Ethereum uses 99.95% less energy than any other cryptocurrency. The energy-efficient nature of Ethereum has led to its massive adoption, with famous names like Elon Musk. If you are interested in a greener cryptocurrency, choosing Ethereum is an excellent option.
Another reason to buy Ethereum is its several important use cases. It powers other applications like DeFi, non-fungible tokens (NFTs) and other important novel applications.
Gaining massive attention and adoption, NFT is a revolutionary way of buying an item while retaining its authenticity on the blockchain network. Nonetheless, Ethereum’s revolutionalising applications will pose an important beneficial impact that Bitcoin cannot offer.
Ethereum Price Analysis and Prediction
Ethereum’s price saw a huge uptrend from March 2020 at £64 per coin. However, it skyrocketed from £400 to £3250 in May 2021.
After it attained its previous ATH, its price fell to £1200. At the time of writing, Ethereum is sitting at £3000 per coin, looking to break its new ATH price of £3500. However, its bearish trend is due to general market conditions and is speculated to recover soon.
Although the crypto market is recovering from a bearish trend, it is uncertain whether the price of Ethereum will rise or fall soon. Meanwhile, Ethereum is speculated to go bullish after Goldman Sachs’s future and option launch on ETH.
However, the People’s Bank of China’s ban on cryptocurrency trading is another highly impactful news that makes the prediction of ETH’s price action more difficult.
Also, according to experts, Ethereum may overtake Bitcoin as the largest cryptocurrency by market cap due to its wide range of essential applications.
However, it may suffer from market forces like regulator bans or impactful organisational news and concerns. These forces can affect the general crypto market, which will also impact the price of Ethereum.
Things to Remember Before Buying Ethereum
Don’t put in more than you can afford to lose – The Crypto market, like other financial markets, is highly volatile. Also, Ethereum prices are merely speculative; therefore, ensure you only trade with amounts you can afford to lose.
Resist ‘fear of missing out’– Apart from having a sound trading strategy, discipline is another integral part of successful crypto trading. Having a fear of missing out from a coin’s uptrend can easily blow up your trading account. Ensure you follow your strategies strictly without letting emotion get in your way.
Comply with tax policies – Like other things, cryptocurrency is a taxable asset. Therefore, ensure you comply with tax liabilities.
Long vs. short-term investment – Before considering trading Ethereum as a long or short-term investment, it is important to assess its benefits and disadvantages. Also, it is important to choose an exchange that is compatible with your preferred long or short-term investment.
Is Ethereum legal in the UK?
Yes, buying Ethereum and other cryptocurrencies is legal in the UK.
Will Ethereum overtake Bitcoin?
Expert analysts speculate that Ethereum will become the largest cryptocurrency. This is because, unlike Bitcoin, Ethereum has several real-world applications.
Can you buy less than 1 Ethereum?
Yes, you can buy less than 1 Ethereum with fractional trading. This allows you to buy less than 1 token down to 0.001 of the token.
Is it too late to buy Ethereum?
The general crypto market is in a dip; therefore, it may not be too late to buy Ethereum. Ethereum applications like DeFis and NFTs, which make it a good investment, are still in infancy.