How to Buy Ethereum in the UK

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Adam Woodhead
Adam Woodhead

Adam Woodhead

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Adam is a Co-Founder and content creator for The Investors Centre. His key areas of interest and expertise are cryptocurrency and blockchain technology.

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Dom Farnell
Dom Farnell

Dom Farnell

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Dom is a Co-Founder of TIC, a passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management. "My goal is to empower individuals to make informed investment decisions through informative and engaging content."

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Last Updated 03/01/2024
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Please keep in mind that Crypto assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.

Cryptocurrencies have revolutionized the financial industry, offering individuals the opportunity to invest in digital assets and participate in decentralized networks. Ethereum, often referred to as the second most valuable cryptocurrency after Bitcoin, has gained significant popularity due to its smart contract capabilities and potential for various applications beyond simple transactions.

As Ethereum continues to soar in popularity, finding the right trading platform to buy ETH and trade ETH has become increasingly crucial. With various options available, including margin trading and more traditional centralised crypto trading platforms, it’s important to understand their features, fees, and security measures. Here we will explore Ethereum trading platforms, discuss the best way to buy Ethereum, and shed light on important factors like higher fees, Ethereum transfers, withdrawal fees, and the significance of private keys.

Buying Ethereum in the UK can be an exciting and potentially lucrative venture. By following the guide outlined in this article, you can navigate the process with confidence, buy Ethereum and start building your cryptocurrency portfolio. Remember to choose a secure exchange with consumer protection, set up a secure digital wallet with a private key, and practice good security measures to protect your investments.

depicting the process of buying Ethereum, featuring a digital interface that highlights the transaction from fiat currency to Ethereum. The design incorporates Ethereum's logo and visual cues related to blockchain technology, aiming to convey the simplicity and innovation of the purchase process

Quick Answer: How To buy Ethereum in 2024?

  1. Educate Yourself: Understand the Ethereum network, its operations, and potential risks and rewards.

  2. Choose a Cryptocurrency Exchange: Popular exchanges in the UK include Coinbase, Coinsmart, and Kraken.

  3. Set Up an Account: Provide necessary details like name, email, and ID for verification.

  4. Deposit Funds: Use approved methods like bank transfers, debit cards, or Apple Pay.

  5. Purchase Ethereum: Search for Ethereum (ETH) on the exchange and buy it. Remember to account for transaction fees.

  6. Keep Your Ethereum Safe: Consider transferring your Ethereum to a secure digital or hardware wallet.

Remember, always research and ensure your actions align with your investment strategy due to the volatile nature of the crypto market.

Ethereum Exchange Comparison Table

OKX
Kraken
Coinbase
Coinjar Logo
Coinjar
Etoro Logo
Etoro
Cryptocurrencies Available
4.7/5
4.7/5
4.3/5
4.2/5
4/5
User Experience
4.1/5
4.3/5
4.5/5
4/5
3.8/5
Fees
4.4/5
4.2/5
3.5/5
4.1/5
3.7/5
Mobile App
4.5/5
4.4/5
4.4/5
4/5
3.9/5
Community
4.2/5
4.1/5
3.9/5
3.9/5
3.8/5
Staking
4.4/5
4.2/5
4.0/5
3.8/5
3.9/5
Transparency
4.3/5
4.5/5
4.2/5
4/5
3.7/5
Advanced Trading Tools
4.6/5
4.4/5
4.1/5
4.1/5
3.8/5
UK Accessibility
3.5/5
4.3/5
3.9/5
3.8/5
3.6/5
Overall Review Score
4.35/5
4.3/5
4.1/5
3.9/5
3.7/5

Where to Buy Ethereum in the UK 2024?

The best place to buy Ethereum is through a crypto exchange. A Cryptocurrency exchange is an online platform that enable users to convert fiat currency (such as GBP or USD) into cryptocurrencies or trade one such digital currency or asset for another. They act as intermediaries, connecting buyers and sellers and providing a digital wallet to store the acquired assets securely. Each exchange may support a varying range of cryptocurrencies, offering users options to diversify their investment portfolios.

If you’re looking for the best place to start investing in Cryptocurrencies then check out our list of the best Exchanges below and our more in depth look on our Best Crypto Exchange page.

The following are our preferred partners. We have detailed some of their best features and benefits as well as our favourites for: Lowest trading fees, best for altcoins, best for staking, best mobile app.

4.35/5

TIC OKX Review Score 4.35/5

OKX - Best Exchange Overall

OKX Exchange, established in 2017 and headquartered in Seychelles, is a dynamic player in the global cryptocurrency market, offering a wide array of trading options and advanced security measures.

Pros

Cons

Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.

4.3/5

TIC Kraken Review Score 4.3./5

Kraken - Best for Security

Founded in 2011, Kraken.com is a leading cryptocurrency exchange known for its extensive cryptocurrency options, strong security, and user-friendly platform, catering to both new and experienced traders.

Pros

Cons

Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.

4.2/5

TIC Coinbase Review Score 4.2/5

Coinbase - Best for Beginners

Coinbase is renowned for its user-friendly interface, making it an ideal choice for beginners entering the cryptocurrency space. It also offers a robust security framework and a wide range of cryptocurrencies, ensuring a secure and diverse trading experience.

Pros

Cons

Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.

3.9/5

TIC CoinJar Review Score 3.9/5

CoinJar - Easiest to Use

CoinJar is celebrated for its simplicity and ease of use, making it an excellent choice for those new to cryptocurrency trading. It offers a streamlined interface and a straightforward fee structure, catering well to casual investors and beginners.

Pros

Cons

Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.

3.7/5

TIC Etoro Review Score 3.7/5

Etoro - Best for a Range of Other Investing Features

eToro, in the context of cryptocurrency trading, is widely recognized for its social trading features, allowing users to follow and copy the trades of experienced investors. It also stands out for offering a diverse range of investment options beyond crypto, appealing to those interested in a broader portfolio.

Pros

Cons

Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.

What is Ethereum?

Before diving into the process of how to buy Ethereum (ETH), let’s briefly explore what Ethereum is and why it has gained so much attention in the cryptocurrency space.

Ethereum is an open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It was proposed by Vitalik Buterin in late 2013 and launched in 2015.

Unlike Bitcoin, which primarily serves as a digital currency, Ethereum’s primary focus is on providing a platform for developers to create and execute programmable smart contracts. These contracts are self-executing contracts with predefined conditions, allowing for trust less and automated agreements. Ethereum’s native cryptocurrency, Ether (ETH), is used to power these contracts and incentivize the network’s participants.

The Ethereum platform has seen significant adoption and has become a breeding ground for innovative blockchain-based projects. This has resulted in the creation of numerous decentralized applications across various industries, including finance, gaming, supply chain management, and more. Ethereum’s potential for widespread adoption and its role in the rapidly evolving decentralized finance (DeFi) sector have contributed to its popularity and value. This means that on top of being a store of value there are a lot of things you can do with your Ethereum coins in the world of crypto.

How to Buy Ethereum UK

The best way to buy Ethereum in the UK is through a crypto exchange. Crypto exchanges allow you to buy Ethereum and also sell & trade in the UK from your computer or smartphone.

  1. Educate Yourself on Ethereum
    Before you start investing in cryptocurrency, buying Ethereum and adding to your crypto holdings it’s essential to understand your Ethereum investment. Research into the Ethereum network, Ethereum blockchain, Ethereum transactions, what it is, how it works, and the potential risks & rewards involved.

  2. Choose a Cryptocurrency Exchange
    There are several popular cryptocurrency exchanges available to buy Ethereum in the UK, each with their unique security features, benefits, and fees. Advanced crypto traders may look for advanced trading tools. Most crypto exchanges will have Ethereum available for purchase. Some of the most popular cryptocurrency exchanges to purchase Ethereum are Coinbase, Coinsmart, and Kraken.

  3. Set Up Your Crypto Exchange Account
    After choosing a crypto exchange the next step is to set up your account. Be sure to use a private key. The process will vary depending on the exchange, but most will require you to provide your name, email address, and a government-issued ID for verification purposes.

  4. Deposit Funds
    To buy Ethereum in the UK you need to deposit funds using one of the methods approved by the exchange. Some have options for modern payment methods such as bank transfer of fiat currencies, credit or debit card, Apple Pay and PayPal.

  5. Buy ETH
    Find Ethereum (ETH) on the exchange and purchase Ethereum. To buy Eth in the UK you will also need to pay fees. Be sure that this investment fits within your broader investment strategy. Just like with the Ethereum purchase there may be a small withdrawal fee associated with the transaction. This will vary slightly depending on which crypto exchange you use. More on wallets soon. Which ever method you use for your crypto wallet, you should increase security features by using private keys and 2 factor authorisation.

  6. Bonus step – Keep Your Ethereum Safe

    Now you own your own Ethereum, you need to decide if you are going to leave it on the exchange, in your digital crypto Ethereum wallet or your hardware wallet. Holding it on the exchange may enable you to access rewards when you stake Ethereum on the crypto exchange, alternatively you could potentially stake on the Ethereum network. Unless this is the case, we always recommend taking your Crypto off the exchange and onto your wallet.

As with any investment, it’s important to stay informed, conduct thorough research, and consider your risk tolerance before you buy Ethereum or any other cryptocurrency. The crypto market is dynamic and can be highly volatile, so it’s crucial to approach it with caution and make informed decisions.

Ethereum Price UK

The price of Ethereum has experienced significant fluctuations since its inception. Initially, it started at a few cents per coin and soared to an all-time high of over $4,000 in early 2021. However, it’s important to note that Ethereum, like any other cryptocurrency, is highly volatile, leading to price swings that can be both lucrative and risky for investors.

Like a lot of other cryptocurrencies, ETH experienced sizable surges in price during the last bull run. Proving some fortunate investors with great returns.

The above visual paints a good picture of where ETH has been over the last few years.

Please see the above live chart from our friends at Trading View. These price charts are hugely helpful for investors. It may be worth favouriting this page on your browser to stay up to date on the ETH price.

Our position on ETH is consistent across all team members. Potentially bearish in the short term, but bullish in the long term. There are a few catalysts coming up in 2023 that may bring some volatility. The jury is out if this will affect the asset price positively or negatively. I will reiterate that this is not advice and we are not telling you to buy Ethereum.

This price chart above shows the price of Ethereum over the past few years. This chart is interactive and is a valuable resource to any investor. It might be an idea to save this page to your favourites in your preferred internet browser. You will notice the considerable price increase in 2021 when the market peaked and everybody and their dog rushed in to buy Ethereum. before a correction in early 2022. Whilst still trading at roughly 50% of its all-time high, ETH is trending positively since the big lows of spring 2022.

Ethereum has been gathering a little steam in 2023, but the jury is still out if we are currently in a bear or a bull market. As a team at the TIC we are approaching the market with cautious optimism. Bullish over the long term. This is not advice.

Ethereum's Future Price

The following are all catalysts that may influence Ethereum’s price in the long term:

Ethereum 2.0 Upgrade

Ethereum is undergoing a significant upgrade known as Ethereum 2.0 or Eth2. This upgrade aims to improve scalability, security, and sustainability by transitioning from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) mechanism. If successful, Ethereum 2.0 could enhance the network’s capabilities, attract more users and developers, and potentially buy Ethereum, contributing to the price appreciation of Ethereum.

Institutional Adoption

As institutional interest in cryptocurrencies continues to grow, widespread adoption by major financial institutions buying Ethereum could have a profound impact on Ethereum’s price. Institutional investors bring substantial capital and credibility to the market, and their entry into the Ethereum ecosystem could drive significant demand and price growth.

Regulatory Developments

Regulatory actions and policies play a crucial role in shaping the cryptocurrency market. Clear and favourable regulations can provide a supportive environment for Ethereum’s growth, while unfavourable regulations or stricter oversight may create challenges for people trying to buy Ethereum and impact the price negatively.

Integration of Blockchain Technology

The integration of blockchain technology into various industries and sectors has the potential to drive the demand for Ethereum. As more companies and organizations recognize the benefits of blockchain for efficiency, transparency, and security, they may seek to utilize Ethereum’s platform for their decentralized applications, leading to increased demand and potential price appreciation.

Global Economic Conditions

Cryptocurrencies, including Ethereum, are not immune to global economic conditions. Economic events such as recessions, inflation, or geopolitical tensions can influence investor sentiment and risk appetite, which, in turn, can impact the price of Ethereum.

How to Sell Ethereum in the UK

To Sell your Ethereum coins and potentially take some profits, you will need to transfer your ETH back onto a central exchange, if it wasn’t there already. Take great care when transferring Crypto and double check the wallet address before completing the transaction. Once on the crypto exchange it should be simple enough to exchange for fiat currency or other cryptocurrencies.

You will then need to pay transaction fees. These are usually small and associated with transaction for selling Ethereum in the UK. Once exchanged for fiat currencies, it should be simple enough to bank transfer into your UK bank account.

Do be aware that profits over your threshold may be liable for capital gains tax under UK law. This is your responsibility to keep track of. In our opinion, a great problem to have! Crypto assets are also not regulated in the UK, and there is no EU investor protection.

Why Buy Ethereum

Investing in Ethereum offers potential benefits but also carries risks. Before you buy Ethereum or any digital currencies, it is crucial to conduct thorough research, assess your risk tolerance, and seek professional advice if needed. Understanding the pros and cons of before you buy Ethereum empowers you to make informed decisions and navigate the evolving cryptocurrency landscape successfully.

  •  

Investment Strategies

Rather than buy Ethereum at random, there are many strategies deployed by investors to suit different investor preferences.

Long-Term Investing

Buy Ethereum and holding for an extended period, with the belief that its value will increase over time. Sometimes referred to as HODL.

Dollar-Cost Averaging

Regularly buy Ethereum with a pre determined amount of capital at predetermined intervals, regardless of the market price. This strategy minimizes the impact of short-term price fluctuations.

Active Trading

Actively buy Ethereum and sell Ethereum in the UK to take advantage of short-term price movements. This strategy requires in-depth market analysis and trading skills.

Staking

Buy Ethereum and stake it. Staking Ethereum involves locking up your ETH in a cryptocurrency wallet to support the Ethereum blockchain operations and validate transactions. In return, you earn rewards in the form of additional Ethereum. Staking can be a way to earn passive income from your Ethereum holdings while also contributing to the network’s security and decentralization.

Some exchanges like Kraken allow you to stake your Ethereum in the UK.

Ethereum Investing Tips

Establish a Budget:

Evaluate your current financial standing, including your income, expenses, and existing investments. Before you buy Ethereum, It’s important to allocate an amount that you can comfortably afford to invest without compromising your financial stability.

Create Goals:

Define your investment goals based on your risk tolerance and expected returns. Are you investing for short-term gains or long-term wealth accumulation? Setting clear goals helps you align your investment strategy with your objectives.

Research and Analyse:

Stay updated with the latest news and developments in the cryptocurrency market. Analyse Ethereums historical price data, market trends, and expert opinions to make informed investment decisions. Use charting tools like this one to keep an eye on any price action.

Consider Market Trends and News:

Monitor market trends and news that can impact Ethereums price. Factors such as regulatory changes, adoption by institutional investors, and macroeconomic events can influence the cryptocurrency market.

Diversify Your Investments:

Consider diversifying your portfolio by investing in other promising cryptocurrencies as well as other asset classes. This helps mitigate the risks associated with a single asset.

Monitor and Modify Your Strategy:

Regularly monitor your investments and evaluate their performance. Consider adjusting your investment strategy if market conditions or personal goals change.

Practice Risk Management:

Implement risk management strategies, such as setting stop-loss orders and diversifying your investments. This helps protect your capital and minimize potential losses.

FAQs

Once you have purchased Ethereum, you may be wondering what you can do with it. Ethereum is not just a digital currency; it is a platform that enables the development and execution of smart contracts and decentralized applications (DApps).

Here are some things you can do with your Ethereum:

Hold it as an Investment

One of the most common uses of Ethereum is to hold it as an investment. Just like other cryptocurrencies, Ethereum’s value can fluctuate, and some investors choose to hold onto their Ethereum in the hopes that its value will increase over time. By holding Ethereum, you can potentially benefit from price appreciation.

The safest option trying to purchase Eth is to use a licensed Ethereum platform with high liquidity. Currently in the UK, there isn’t any consumer protection. That means no protection from the government and there’s no regulator.

Trade Ethereum for Other Cryptocurrencies

Ethereum is widely accepted on various cryptocurrency exchanges, which means you can trade it for other cryptocurrencies on a licenced Ethereum platform.

Participate in Initial Coin Offerings (ICOs)

ICOs are fundraising events in the cryptocurrency space where new projects or startups issue their own tokens in exchange for Ethereum or other cryptocurrencies.

By participating in ICOs, you can invest in promising projects at an early stage. However, it’s important to conduct thorough research on the project and understand the associated risks before investing.

Use Ethereum to Access Decentralised Finance (DeFi)

Decentralised finance, or DeFi, is an emerging sector that leverages blockchain technology to create financial applications and services without the need for traditional intermediaries.

Ethereum is the foundation for many DeFi projects, allowing users to access services such as lending, borrowing, decentralized exchanges, and yield farming. By using your ether token, you can participate in the growing DeFi ecosystem.

Support Decentralized Applications (DApps)

Ethereum enables the development and execution of decentralized applications (DApps). These are applications that operate on the blockchain, offering various functionalities and use cases.

By using your Ethereum, you can interact with and support different DApps, ranging from decentralized marketplaces to gaming platforms to prediction markets. Explore the wide range of DApps available and see how your Ethereum can be utilized within them.

Use Ethereum for Online Purchases

Although still relatively limited, there are merchants and online platforms that accept Ethereum as a form of payment instead of your more common payment methods like a debit card, sometimes referred to as Ethereum money. If you come across an online store or service that supports Ethereum payments, you can use your Ethereum to make purchases.

Keep in mind that acceptance of Ethereum as a payment method is not as widespread as traditional payment options, so it’s important to check for availability.

While both Ethereum and Bitcoin are cryptocurrencies, they have different purposes. Bitcoin primarily serves as a digital currency and a store of value, whereas Ethereum provides a platform for developers to build decentralized applications and execute smart contracts. Can Ethereum overtake Bitcoin as the biggest market cap cryptocurrency? Some investors seem to think so. But the odds are long.

  • Smart contracts are self-executing contracts with predefined conditions written into code. They automatically execute when the conditions are met, removing the need for intermediaries. Ethereum’s smart contract functionality allows for a wide range of applications, from decentralized finance (DeFi) to supply chain management.

Ether, often referred to as Ethereum’s native cryptocurrency, is used to pay for transactions and computational work on the Ethereum network. It is also an investment asset that can be bought, sold, and traded on various cryptocurrency exchanges.

Ethereum mining involves validating transactions and adding them to the blockchain. Miners use powerful computers to solve complex mathematical problems, and the first miner to find a solution earns a reward in the form of newly minted Ether.

Ethereum is transitioning to a proof-of-stake (PoS) consensus mechanism called Ethereum 2.0, which will replace mining with staking.

Gas is a unit that measures the computational effort required to perform operations on the Ethereum network. Each operation, such as a transaction or smart contract execution, consumes a certain amount of gas. Gas-fees, paid in Ether, compensate network participants for their computational work.

Ethereum can be stored in a secure wallet, which come in various forms such as hardware wallets, software wallets, or online wallets. These wallets using private keys, provide secure storage for your Ether and allow you to send, receive, and manage your Ethereum holdings.

Our Favourite is the Cypherock X1

Regardless of the trading platform you choose, understanding the significance of private keys is vital. Private keys are cryptographic codes that grant access to your Ethereum holdings. It’s crucial to keep your private keys secure and never share them with anyone. By owning your private keys, you retain control over your ETH and reduce the risk of potential hacks or loss of funds stored on centralised exchanges.

The potential for buying Ethereum as an investment depends on individual circumstances and market conditions. Ethereum has shown significant growth and has a vibrant ecosystem, but investing in cryptocurrencies carries risks.

It is crucial to conduct thorough research, assess your risk tolerance, and seek professional advice before making any investment decisions.

Yes, Ethereum technology and its programmability and smart contract capabilities have led to a wide range of real-world applications. It has been used in decentralized finance (DeFi) for lending, borrowing, and trading, as well as in areas such as supply chain management, gaming, decentralized exchanges, and non-fungible tokens (NFTs).

The Ethereum community is actively working on Ethereum 2.0, a major upgrade that aims to improve scalability, security, and energy efficiency. This transition to a PoS consensus mechanism and the implementation of various scaling solutions could significantly shape the future of Ethereum and its potential for wider adoption.

Key Takeaways

  • What is Ethereum? Ethereum is a blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).

  • How do I invest? Start by setting a budget, defining your goals, researching the market, diversifying your investments, and practicing risk management.

  • How does it differ from Bitcoin? While both are cryptocurrencies, Bitcoin serves mainly as a digital currency, whereas Ethereum provides a platform for DApps and smart contracts.

  • Investment Strategy: Before investing, evaluate your financial status, set clear objectives, and diversify your investments.

  • Utility of Ethereum: Beyond being a cryptocurrency, Ethereum powers ICOs, DeFi, and a vast array of DApps, showcasing its wide applicability.

  • Safety and Storage: Secure storage, such as the Trezor hardware wallet, is crucial. Private keys, which grant access to Ethereum holdings, must be safeguarded rigorously.

  • Future Outlook: With the imminent launch of Ethereum 2.0, the platform is set to undergo significant enhancements in scalability, security, and energy efficiency.

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