Investor or not, you must’ve heard of Ethereum (ETH), probably for its role in the creation of NFTs (Non-fungible Tokens). Or, maybe you’ve heard of ETH as the world’s second-most popular cryptocurrency, following the footsteps of Bitcoin, and want to move with it as an investment.
Well, no matter how you came around the cryptocurrency, experts from the UK suggest that ‘NOW’ might be the perfect time for you to get started as an investor! Here’s why:
- Ethereum has moved upwards of more than 30,000% over the past five years and continues to do so.
- ETH carries more potential and functionality over BTC, adding to its potential use advantage.
- A revolutionary in how it processes transactions, increasing their scale and speed.
All of these and more such factors make Ethereum one of the top digital currencies for beginners to invest in. Therefore, if you’re an avid investor looking to pave your way in the world of crypto, ETH might be your gateway to it!
Continue reading as we explore how to buy Ethereum in UK and give you an idea of the investments in this detailed blog.
What is Ether?
Before you are all set to invest your money in buying this digital coin, you must understand what you’re investing into! Ether (ETH) is a transactional token that initiates transactions over the decentralized, open-source blockchain Ethereum network. In simple terms, Ether can be described as a mode of payment that network participants need to execute their requested services over the network.
Marking itself as the second-largest cryptocurrency in terms of market capitalization and the second most popular crypto investment after Bitcoin, ETH shares a price history to support its potential future!
Similar to Blockchain, Ethereum technology also replaces consumer data storage, including financial ledgers, via third-party Internet companies. However, the latter comes with some significant differences as well.
The primary difference between BTC and ETH is that ETH utilizes an open-sourced blockchain technology for its functioning for operating and computing functionality. In comparison, the Bitcoin blockchain is limited to operating as a ledgers account.
This provides ETH significant leverage over BTC as its ecosystem can be used to run and create applications that can be used to conduct decentralized financial operations.
Now that you understand what Ether is and have an idea of what you’re investing into, let’s look at how to buy Ethereum in UK.
How To Buy Ethereum In the UK
Thanks to their country-wide acceptance today, Ethereum (ETH) is readily available at numerous places in the United Kingdom. You can easily acquire it from various sources like a cryptocurrency exchange, a bitcoin ATM, or via a peer-to-peer organization dealing in cryptos.
The best way to buy Ethereum in UK as a beginner investor is to start by registering yourself at an exchange and obtaining a crypto wallet. Or, you could also trade it by selling and purchasing contracts for difference (CFDs) on ETH without owning a single unit of the currency.
Here’s a detailed walkthrough of the different steps involved in buying Ethereum in the UK. Let’s check it out:
- Open your crypto exchange account at a reliable exchange
Before you begin creating an account at a crypto exchange, it’s important to understand how you are going to pay for it.
To open an account with a crypto exchange in the United Kingdom, you’ll need liquid cash (in GBP) present in another wallet in cryptocurrency or a bank account. Additionally, many Ethereum-based exchanges in the country also allow you to initiate SEPA transfers or bank transactions to open an account under them.
Besides, you always have the option to buy ETH from a Bitcoin ATM in exchange for cash. However, you need to understand that the ATMs are limited to their offerings and might not work for ETC. Other sources for buying Ethereum in UK include online brokers, a peer-to-peer network, or a spread betting business.
- Go for a cryptocurrency wallet
Once you’re done with the source from where you want to purchase your ETH, the second step is to create a crypto wallet. A cryptocurrency wallet address has a similar function to an email address. The only difference is that the wallet may be used to pay for services, goods, gifts, and payments. Its role is to initiate transactions between you and your exchange or another source from where you’ve purchased your ETC or ETH.
When using a crypto wallet, you need to understand that it comes with a public and a private key. Like your email, the public key may be shared with others, while the private key needs to be kept private to ensure that you’re in charge of all your crypto funds.
You can also access your crypto wallets via different sources like laptops, desktops, tablets, or even a smartphone once you’ve downloaded the wallet’s application. Besides, you also can utilize a web-based wallet without having to download anything.
- Withdraw ETH to your Crypto Wallet
Moving to the third step, this is the final step where you withdraw your ETH, ETC, into your crypto wallet. Once you’ve purchased the cryptocurrency, you can later use the QR code to withdraw it to your multi-asset or Ethereum-specific wallet.
Note: No matter which wallet or means you approach to buy and store your cryptos, always ensure that you have access to its private keys. Storing your investments in a place whose access you don’t have might jeopardize your investments. Here, you face the dangers of your ETH being hacked if you’ve left your ETH on the same exchange where it was obtained. Therefore, it’s always logical to keep your ETH in a private, key-controlled wallet.
There, you have it cracked! In the section above, we’ve walked you through the where and how of buying Ethereum in the UK. However, once you start putting it to practice, the chances are that you might end up in great confusion.
Why? The many crypto exchange options that you come across! Selecting one among the many can be a great confusion. We have sorted it out for you in the next section.
Where To Buy Ethereum In UK?
Given the vast crypto exchange options that we have in the UK, any beginner investor might sign up for an exchange that’s not designed for such investors. Therefore, to help you out better, we have curated a list of the top beginner-friendly exchanges in the UK.
eToro is a renowned name that tops the list of crypto exchanges in the UK. One which has a user base of over 23+ million investors, its clean UI and intuitive UX make the platform a great option for every first-time user. In addition, eToro brings a slew of advanced functionalities like the CopyTrader function, spot trading, Fiat trading, and more for beginner investors and traders.
eToro brings you both CFDs and online trading options via a regulated platform. The platform is backed by stringent regulations by the FCA (Financial Conduct Authority) of the UK, CySEC of Cyprus, and ASIC of Australia, making it a safer place for your investments.
Home to over 16 supported cryptocurrencies, eToro also supports trades over numerous fiat currencies, giving you the scope of expanding your portfolio over time. In addition to investing in cryptos and purchasing shares from different exchanges, you can also invest in organizations from different parts of the globe like the UK, Sweden, the US, Germany, and more.
Talking of the charges, eToro has earned its name around its commission-free offer. Additionally, there is no fee associated with accounting opening and keeping it idle. You can hold your ETH investments forever with eToro.
|Crypto Conversion Fee||0.10%|
Standing second on our list, Coinbase is the oldest and most recognizable platform in the picture. Another beginner-friendly crypto exchange to start your journey as a trader. A perfect fit for beginners, the Coinbase exchange is easy to navigate and comes with features that are easy to use compared to other similar platforms.
What makes it stand out is that Coinbase is the only platform listed on the NASDAQ and holds over 30+ Million customers worldwide. Besides, the platform holds over 151+ types of crypto coins and tokens for beginners to diversify their portfolios.
Besides easing the process of investors who buy Ethereum in the UK, Coinbase introduces a slew of features for both beginner and advanced users. It brings you advanced trading tools, a premium trading platform, and advanced trade options over the platform.
Talking of its fee structure, the trading fee is fixed at around 0.1%, along with maker and taker fees. Other fees involved revolve around the time you place your order and other relevant factors like the payment method, order size, liquidity, and volatility.
However, as an exchange, Coinbase offers FCA regulation covered by its excellent reputation. The platform stores over 98% of its funds offline over its ‘cold’ wallet system.
|Minimum Deposit ||
|Crypto Conversion Fee||0.5%
OKEx or OKX is another leading cryptocurrency platform in the UK that has made a significant name amongst other giants. The Seychelles-based exchange is home to over 300+ cryptos, giving the users access to multiple assets to diversify their portfolio.
What makes OKX reliable for new investors is its clean UI which makes it easy for every type of user over the platform. Additionally, advanced saving and staking features allow users to access high yields, besides other wide range of services.
Coming to the safety features of the platform, OKX relies on industry-standard practices to ensure the safety of its investors. Other security practices in the platform include cold storage for maximum assets. OKX also offers additional features like password protection over withdrawal and anti-phishing measures.
OKX comprises numerous fee structures as the platform breaks down the currencies into different tiers. The fee is generally determined on account holdings and trade volume. In addition, the fee may vary for different options of swaps, futures, and options.
However, OKX’s one big downside is that it doesn’t disclose the fee for withdrawals and deposits. While most of the platform’s fee is transparent, the hidden cost details are a red flag for many!
|Crypto Conversion Fee||0.10%
Binance is preferably one of the largest crypto giants today! Touted to be the most liquid crypto exchange, it attracts the highest number of trades worldwide with its low fees (0.1% commission).
If you’re a beginner investor, deciding how to buy Ethereum UK, Binance can be a perfect opportunity. The platform is home to 500+ cryptos, bringing you a slew of different options besides ETH to diversify your platform. Besides, you can use different trading options for traders of all types.
In terms of its security, Binance isn’t regulated. However, several crucial safety features are backed by the platform, including a 2FA process over individual withdrawal requests and log-ins. Additionally, the Binance Secure Asset Fund for Users (SAFU) is a discretionary fund used to compensate users in the event of theft or fraud.
Coming to its fee structure, the platform used to attract a fee of 3% in general, which has now been reduced to 1%. Alternatively, you can also use the platform to stock crypto stablecoins like Binance USD, Tether, and Coinbase USD Coin) or fiat currency, using them to purchase ETH.
|Minimum Deposit ||$10|
|Transaction Fee||0.10-0.20% (depending on the transaction value)|
|Crypto Conversion Fee||0|
Probably the latest entrant into the crypto exchange market, Coinjar is Australia’s most trusted digital currency broker. The platform initiates trading, selling, and purchasing cryptos, making it the perfect spot for beginner investors.
Additionally, Coinjar has introduced a 24-hour digital Bitcoin exchange to stand out from the crowd, allowing investors and traders to make the most of the crypto’s movements. For its beginner investors, the platform brings multiple learning tools. On the contrary, advanced users can utilize the platform for multiple trade options.
Thanks to its iOS and Android applications, Coinjar is intuitive and user-friendly, making it an easy option to begin with.
In terms of its safety, the platform utilizes advanced features for most of it! To begin with, it stores 90% of the user’s funds over offline wallets. In addition to the other industry-standards like data encryption, two-factor authentication (2FA), regular security audits, and Transport Layer Security (TLS). What makes the platform unique is that it also utilizes machine learning to detect suspicious behavior of its users.
|Minimum Deposit ||$5
|Crypto Conversion Fee||1%
Best Ways To Buy Ethereum In UK
Let’s accept it; when buying or investing in anything, we like to check for cheaper options around. Similarly, when it comes to ETH, investors are often found to try and find the best way to buy Ethereum in UK.
To save you the research and the troubles, here is a list of affordable ways to buy Ethereum in the UK.
Buy Ethereum with GBP
GBP or British Pound can help you purchase ETH without any trouble! To buy ETH using GBP, you’ll have to sign up with a crypto exchange or an Ethereum wallet. Then, you can use a regular GBP payment card to purchase the ETH directly.
Buy Ethereum With Debit Card
Buying Ethereum with a debit card is as simple as linking your card to the platform. Once done, you can fund your account to purchase the desired crypto.
Buy Ethereum With Credit Card
Credit cards are another reliable way to purchase ETH. Like debit cards, you need to link your crypto exchange with the platform and initiate the transactions. However, it should be noted that credit cards generally attract high charges.
Buy Ethereum With Bank Account
Buying ETH using bank accounts is by far the best method to do so. All you need to do is simply allow your bank account to accept the transaction amount and change the value for ETH over our crypto platform. However, it should be noted that this process isn’t real-time. It takes some time to process the purchase in your account.
Buy Ethereum With PayPal
Yes, PayPal has finally allowed its users to invest in Ethereum and other relevant cryptos. However, it also attracts some serious limitations to the purchases. To be able to buy ETH using PayPal, you need to fund your account and select the crypto you want to invest in. This is a smarter way of buying ETH cost-effectively as it comes with no additional fee.
Buy Ethereum With Bitcoin
Probably one of the preferable options, you can convert your Bitcoin to Ethereum over almost every crypto exchange. You could easily go to your registered exchange platform and swap your BTC for the ETH value, excluding the fee.
How to Sell Ethereum?
There are multiple methods to sell your Ethereum in the UK. However, using a crypto exchange is what tops it all! Here are a few steps you need to follow to sell Ethereum in UK:
- Choose where to sell
Choosing the proper exchange is one of the most critical components of selling Ethereum. Because various exchanges charge varying fees for selling Ethereum, it’s critical to pick one that will provide you the most money when your Ether (ETH) is sold.
Furthermore, if you wish to sell your ETH for fiat cash, you must be able to withdraw the fiat into a bank account. Unfortunately, this feature is not accessible on all exchanges, so check the listing of exchanges below to see which ones are compatible with your bank account.
- Deposit ETH
The first step in the selling procedure is to deposit your Ethereum on an exchange. This is done by copying the Ethereum deposit address from the balance page of the exchange. Never try to write down the complete Ethereum address manually; instead, use the exchange’s “copy” option. This strategy is prone to errors and may result in irreversible financial loss.
Remember, if you’re unsure, send a tiny test amount first and then the remainder. Then, when you’re sure you’re transferring Ethereum to the correct address provided by the exchange, click send and wait for the cryptocurrency to arrive. Before granting you the deposit, each exchange requires several “confirmations.”
- Sell You ETH
There are several ways to sell ETH, but they all have a lot of similarities. So, regardless of whatever exchange you use, you need to figure it out if you understand the overall concept. Also, when selling Ethereum, take in mind the fees you’ll be charged and the asset you’ll be selling Ethereum for.
Ethereum may be sold for fiat currency, but it can also be sold for most other cryptos. So the first step is to figure out how much you’re going to sell the ETH for. Then you’ll need to discover an exchange where you may trade one for the other.
To proceed with the trade, you’ll have to choose between two types of trade, namely:
- Market order: A market order executes instantly and provides you with maximum assets at the best available price in the current market. You could acquire less of the other item than you expected, depending on the amount of ETH you’re trying to sell.
- Limit order: With a limit order, you may specify the price you wish to sell your ETH. These orders may execute instantly if the sale price is less than the current, highest purchase price. In this case, you are the taker, and you must pay the taker charge. If your sell price is greater than the current best purchasing price, you are the trade maker and must pay the maker fee.
Once you’ve followed the steps mentioned above, you’re done with the process of selling your ETH. Congratulations!
How to Buy Ethereum UK
So that’s a wrap on how you can buy, sell, and possibly trade with your ETH! Remember, crypto as an asset class or an investment is highly volatile. Before jumping into investing, ensure that you’ve been through the basics of crypto and understand its market movement. Only once you’ve truly understood the basics can you make the most of your investments in Ether. All the best!
Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.