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How to Buy Ethereum UK

Ethereum is currently the second largest cryptocurrency in the world second only to Bitcoin. If you are looking to get your hands on this popular cryptocurrency, my detailed guide will tell you everything you need to know about how to buy Ethereum UK.

Like most cryptocurrencies, Ethereum has been exposed to the fall in the cryptocurrency market. You may be wondering if now is the perfect time to buy Ethereum while the price is low, however, before you embark down that road, you should be aware that crypto assets are a highly volatile, unregulated investment, and a complete lack of protection could mean that you end up losing some, or all of your money.

Also consider: How to buy cryptocurrency

5 Simple steps for buying Ethereum in the UK

  1. Choose a cryptocurrency exchange – I have detailed the best crypto exchanges to buy ethereum below.
  2. Create your account – You will need your national insurance number, personal ID and bank details to hand.
  3. Deposit funds – Deposit at least the minimum amount.
  4. Buy Ethereum – Search for ETH and buy your ethereum.
  5. Store your Ethereum – Keep your ethereum safe in your crypto wallet.

Top cryptocurrency exchanges to buy ethereum UK

eToro logo

eToro

With over 26 million users, eToro is the largest crypto exchange on the planet and with good reason. Opening an account is a breeze and you can be purchasing your first Ethereum in less than 10 minutes.

eToro is also a cost-effective solution, with zero-commission trading and low spreads. Zero account fees also help keep costs low; however, it is worth being aware that you will need to deposit a minimum of $50 to get started, and there is an inactivity fee of $10 per month for accounts that have been inactive for over one year.

For investors looking to purchase Ethereum as part of a diverse investment portfolio, then eToro won’t disappoint with over 120 cryptocurrencies to choose from as well as more than 250 other assets, CFDs and Exchange Traded Funds but where they shine is with their thriving social trading community and robust copy trading options.

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Crypto dot com logo

Crypto.com

Crypto.com is another firm favourite among crypto traders with a vast user base and access to over 250 cryptocurrencies including Ethereum.

Crypto.com is one of the lowest cost options with only a maker/taker fee to consider which is 0.4% per position for a monthly trade volume of less than $25,000. There is also the option to reduce this to only 0.36% by paying your trading in CRO, Crypto.com’s own coin. In addition, there are no minimum deposit or inactivity fees.

Because of the excellent design of the app, it really couldn’t be easier to buy Ethereum at Crypto.com and keeping track of your portfolio is a breeze with price alerts and a real-time breakdown of your portfolio which you can access on the move. The app even provides scope to obtain a crypto loan, with no credit check required.

Beginners really will find this exchange very user-friendly and Crypto.com even provide a dedicated education section with a wide variety of articles, designed to enhance your trading skills.

Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.

Coinbase logo

Coinbase

With over 56 million users from around the world, Coinbase is one of the largest crypto exchanges available. It is also listed on the stock market, providing an extra layer of security in addition to their cold wallet storage.

Opening an account with Coinbase is extremely easy and perfect for people entering the crypto space for the first time. Registering takes about 1 minute and depositing funds can be done using a credit or debit card or bank transfer, both options being easy and instant.

However, this is where the disadvantage of Coinbase comes in because credit/debit card purchases attract a fee of 3.99% and that’s not where the costs end, with trading commissions of up to 0.60% % each time you buy or sell your Ethereum.

However, there are instances where a cost could be considered worthwhile, and for many of its users, this lies in their excellent education section. Beginners can complete online learning modules in order to earn free crypto and there is a free wallet that can be linked to your account.

Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.

BlockFi logo

BlockFi

BlockFi are worthy of consideration due to the interest of up to 15% APY you can earn on your crypto when stored in the BlockFi interest account. They also offer a credit card which triggers cashback of up to 3.5% each time you use it; however, this is currently only available to US residents.

BlockFi also offer loans, allowing users to borrow funds against their crypto assets so they can retain their position in the market.

This is considered a low-cost solution, with no transaction fees, inactivity fees, or trading costs. How do they make their money? BlockFi lends to institutions which pays for the interest paid on client crypto holdings. This does make BlockFi a riskier option than the other exchanges listed here however plenty of people feel that the rewards are worth the risk.

Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.

Coinsmart logo

Coinsmart

Coinsmart have created a perfect environment for complete beginners to buy Ethereum and start building on their crypto trading skills. This is largely to do with the streamlined interface design that makes navigating the platform so easy and partly due to their GetSmart Hub which is packed full of learning tools including articles, blogs, and how-to guides.

Opening an account is super quick and easy, as you would expect from a platform like CoinSmart, and what is even better is the SmartGuarantee provides same-day deposits, same-day verification, and all fiat withdrawals within five days.

There is also the option to build your bankroll at CoinSmart as they offer one of the most generous refer-a-friend programs in the industry.

Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.

Useful information about Ethereum

Everything you need to know about buying and holding Ethereum in the UK. I’ve detailed everything below to get you started.

What is Ethereum?

Ethereum is a software platform that utilises blockchain technology to power digital money, global payments, and applications.

None the wiser?

Essentially, all you need to know is that this Ethereum technology is the backbone of the cryptocurrency Ether (trading ticker ETH), second only to Bitcoin in value. Most people refer to Ether as Ethereum.

So, Ethereum is the software that powers the network, Ether is the cryptocurrency, and ETH is the trading ticker for Ether. 

How does Ethereum work?

The Ethereum blockchain is where all records are stored of digital transactions. It is decentralised which means that there is no governing body or authority stipulating how transactions are made which in turn provides scope for peer-to-peer transactions without the need for a third party or bank.

The Ethereum blockchain is one of the most advanced in the crypto sector with greater flexibility. This gives you complete control over your Ethereum funds, allowing you to send ETH securely, lend, trade, and more with the security of proven cryptography.

All you need to make all this happen is an internet connection and an online wallet. Your online wallet is where you hold your Ethereum, just as you would hold your cash in a bank.

What is the purpose of Ethereum?

The main purpose of Ethereum is to provide a system that facilitates greater control over users’ data whilst also providing scope for applications to be built and run using the blockchain.

Ether is the cryptocurrency run on the Ethereum blockchain. This can be used for financial transactions, as an investment or as a store of value.

Conversely, Bitcoin is not on a decentralised network and therefore cannot create and run applications, smart contracts and other transactions.

What is Ethereum 2.0?

Ethereum 2.0 is essentially an upgrade to Ethereum’s Mainnet which promises to increase scalability. This aims to phase out the use of mining which not only uses a large amount of energy but also requires expensive mining equipment. This will effectively reduce Ethereum’s carbon footprint by a whopping 99.95%.

What is staking?

Staking is the process that will replace the need for mining in order to verify Ethereum transactions. It involves locking away 32 ETH in order to participate in the verification of the transaction.

Can Ethereum overtake Bitcoin?

Firstly it is important to establish that the purpose behind Bitcoin as a virtual currency and store of value is very different to that of Ethereum which aims to give users greater control as well as the opportunity to build applications, smart contracts and other transactions on the network.

However, when comparing the two cryptocurrencies, many analysts have speculated that Ethereum has the opportunity to overtake Bitcoin in terms of market cap as a result of the proof-of-stake blockchain which will increase its scalability. The Ethereum network can handle more transactions than Bitcoin and Ethereum transfers are faster.

Is a Ethereum a good investment?

The blockchain technology used by Ethereum is actually considered more sophisticated than Bitcoin which some investors believe will elevate Ethereum to the top spot in terms of value.

In fact, this technology is so advanced that Ethereum has been used successfully at bricks and mortar establishments, and was accepted as payment at Christie’s for a work of art by Beeple, priced at $69.3 million.

You should only risk a small amount of your wealth on cryptocurrencies, and you should always be prepared to lose the full amount.

Remember, crypto-asset investments are completely unregulated in the UK with no EU investor protection, which leaves you with zero consumer protection should things go south.

How can I buy cryptocurrency in the UK?

Cryptocurrency can be purchased using an exchange. A cryptocurrency exchange is a platform that facilitates the buying, storing, and selling of crypto assets. Refer to my list of exchanges above for more details on how to choose the right exchange for you and then follow these easy steps:

  1. Open your account
  2. Deposit your funds using UK bank transfer, debit/credit card, or e-wallet
  3. Use the search bar to find the cryptocurrency you wish to trade
  4. Buy your cryptocurrency

Also consider: How to buy cryptocurrency in the UK

Can I buy ETH with GBP?

Yes, you can easily buy ETH with GBP simply by using a bank transfer or credit/debit card to transfer money into your chosen exchange and using your GBP to then purchase ETH.

What is the best way to purchase Ethereum?

To buy Ethereum coins you will need to first select the best exchange for your level of experience and requirements. Once you have done this, you simply need to

  1. Register an account using your National Insurance number
  2. Deposit your fiat currencies using a bank transfer, debit/credit card, or e-wallet
  3. Enter ETH in the search bar
  4. Select ‘Trade’
  5. Enter the amount of Ethereum you wish to purchase
  6. Confirm your selection

Can I directly buy Ethereum?

Yes, you can own Ethereum today simply by opening an account at a cryptocurrency exchange.

How do I start investing in Ethereum?

There are several considerations that you should ask yourself to start investing in Ethereum.

Firstly, there is no denying that investing in any cryptocurrency is a gamble, and Ethereum is no different. Prices fluctuate wildly, which creates opportunity but also causes massive losses.

Therefore, the first step toward investing in Ethereum, is to determine whether you can afford to lose the money you stake. You should have little to no debt and a rainy day fund before even considering investing in cryptocurrency.

Once this has been established you simply need to select a crypto exchange that works for you.

How can a beginner invest in Ethereum?

The first step for a beginner looking to invest in Ethereum is to identify whether this is a good option for them.

  • Can you afford to lose your stake?
  • Do you have debt that should be paid off first?
  • Do you have any savings or an emergency fund?
  • Is your investment part of a diversified portfolio?

These are all questions you should ask yourself before you buy any cryptocurrency.

Should you decide that you would like to proceed, you simply need to create an account and either buy your Ethereum to hold, or alternatively, use a platform like eToro to either practice using their demo account, or utilise their copy trading facilities to mirror the trades of experienced and successful investors.

What is the cheapest way to buy Ethereum?

The cheapest way to buy Ethereum that I have come across is by purchasing it via the exchange BlockFi. BlockFi makes its money by lending to institutions, which in turn means that investors are free of any transaction fees, inactivity fees, or trading costs.

In addition, BlockFi offer up to 15% APY. What’s the catch? Well because funds are on loan, in a largely unregulated environment, you will assume more risk.

How can I buy Ether without fees?

Whilst many of the exchanges I have listed above are commission free, there are often ‘hidden fees’ to contend with such as withdrawal fees or inactivity fees.

The only option that is completely free of all fees is BlockFi, but please bear in mind that BlockFi is a riskier option. BlockFi stores client funds at its custodian exchange, Gemini, which is not insured. However, Gemini do take measures to protect funds from hackers, such as keeping all clients’ funds in cold storage.

What is the best way to buy Ethereum in UK?

The best way to buy Ethereum is by using an online exchange such as the ones that I have listed above. The reason these exchanges are such an excellent option is that they provide you with the tools and features you need to buy, store and sell your Ethereum.

In addition to being a low-cost option for buying Ethereum, online cryptocurrency exchanges provide access to your investments 24/7 and often you will have the option to download an app so you can manage your account on the move.

Is it worth investing in Ethereum?

Like all the cryptocurrencies, Ethereum has suffered substantial losses in 2022 with prices dropping as low as $720 in July 2022. This has led many investors to wonder if this volatility is best avoided, or whether now is the time to take advantage of the low price.

Firstly, it’s important to establish that Ethereum is still a very risky investment, and should you choose to take the risk, you could end up losing all of your initial investment.

Ethereum is still the second largest blockchain platform after Bitcoin and its advanced technology has led many analysts to believe that the price could grow in the long term, despite the current conditions.

One of the major factors influencing this opinion is the second iteration of Ethereum. Instead of mining, Ethereum 2.0 will have a strong focus on energy efficiency and staking, in addition to the increase in the use of blockchain technology in the facilitation of online payments, loans, and commodities trading.

In fact, Ethereum facilitates the purchase of assets from across the globe without the need for the interaction of banks.

That being said, no one can predict what the future has in store for Ethereum. At the time of writing this article, the cryptocurrency has started to gain momentum, however, there is still a large amount of risk when investing in Ethereum.

It is up to you as an individual investor to ascertain whether this is an investment that is right for you based on your own analysis and research.

How do I buy ETH for MetaMask UK?

MetaMask is a cryptocurrency wallet designed to provide users access to their Ethereum wallet using a browser extension or mobile app. This provides scope for storing and managing account keys, broadcast transactions and sending and receiving Ethereum-based cryptocurrencies and tokens.

Users will need to first set up their MetaMask wallet by downloading it from the App Store, Google Play, or the MetaMask website.

After this, you simply need to click the ‘Buy’ button and select the provider you would like to use. This will automatically prompt you to be redirected to your provider’s platform where you can simply enter the amount of fiat you would like to spend on Ethereum.

How much does it cost to buy 1 Ethereum?

Ethereum, like all cryptoassets, are highly volatile, and as such its price will swing according to market movement. Therefore, if you want to know the price of Ethereum at any given time, you should enter ‘ETH Price’ into your Google browser where you can see a live price.

Where is the safest place to buy Ethereum?

The safest option for the purchase of Ethereum is to use a licensed Ethereum platform with high liquidity. The options I have listed in this article all enjoy an excellent reputation when it comes to safety. However, how you store your Ethereum after your Ethereum purchase is paramount to keeping it safe from hackers and security breaches.

Where is the easiest place to buy Ethereum?

Coinsmart offer one of the easiest platforms to navigate and are ideally suited for beginners and investors looking for an uncomplicated way to buy Ethereum.

That being said, all my recommended platforms are viable options and have been designed in such a way that just about anyone would be able to quickly open an account and purchase Ethereum without any hassle.

Where is it best to buy Ethereum?

My top recommended platform is eToro for a number of reasons. Whilst not the cheapest, they are still a cost-effective platform with zero commission trading and access to a large number of cryptocurrency assets.

For investors looking to purchase Ethereum as part of a diversified portfolio, depending on your level of experience, you may want to consider following the trades of successful crypto traders via eToro’s Copy Trading facility.

How much ETH can I get for $1,000?

At the time of writing this article, $1,000 was enough money to purchase 0.728 ETH. However, it is important to consider that this is a constantly changing price and you should therefore check live price statistics at the exact time that you intend to purchase ETH.

How can I buy Ethereum stock in the UK?

The cryptocurrency exchanges I have listed above are all available to UK residents and are an excellent option for buying Ethereum stock in the UK. Therefore, all you need to do is:

  1. Select the best exchange for you using my guide
  2. Register an account
  3. Fund your account
  4. Buy the amount of Ethereum you want
  5. Store your Ethereum in either ‘hot’ or ‘cold’ crypto wallets until you intend to sell Ethereum

What is ETH trading?

Trading Ethereum aims to make a profit from the swings in the value of ETH by buying the token at one price, and selling it at a higher price should the token increase in value.

Trading ETH involves making use of economic and political factors in an attempt to predict how the price of the token may move. This includes factors such as market manipulation, availability, wider acceptance, government regulation, media coverage, and technological advances.

Where can I trade Ethereum in the UK?

You can trade cryptocurrency including Ethereum by selecting a crypto exchange from the following:

  1. eToro – Best overall
  2. Crytpo.com – Best app for usability
  3. Coinbase – Best for education
  4. BlockFi – Best for earning interest and rewards
  5. Coinsmart – Best for beginners

Is Ethereum money?

Ethereum refers to the blockchain technology that hosts the cryptocurrency Ether so is not directly a form of money. However, Ether as a cryptocurrency can be used in much the same way that money can.

What happens after I buy Ethereum?

You have two main options when it comes to what you do with the Ethereum you have purchased. The first option is to leave the Ethereum in the exchange where you purchased it with the intention of exchanging back to fiat when the price is right, or exchanging it for other digital currencies.

The other option, which is often considered safer, would be to transfer your Ethereum to a secure wallet.

What is a digital wallet?

A digital wallet acts in much the same way as a physical wallet such as you would use to store your cash. However, a digital wallet can be on a mobile device, desktop, or web-based and your digital currency is kept safe using private keys.

What are private keys?

A private key is used to keep your cryptocurrency safe. It acts in much the same way as a password for your UK bank account would and should therefore never be shared with anyone. Private keys are usually made up of a long sequence of numbers and letters. Without your private keys, you cannot access your Ethereum investment so you should make sure you keep them safe.

What are public keys?

A public key is the address that you can share with third parties in order to receive Ether and other tokens on the Ethereum network.

What is a hot wallet?

When considering how to buy Ethereum UK, you will also need to consider how to store your cryptocurrency. A hot wallet is a digital place where you can store Ethereum. This wallet is always connected to the internet which makes it easy to store, send, and receive tokens with public and private keys to ensure your assets are safe.

However, because a hot wallet is always connected to the internet, it tends to be less safe than keeping your cryptocurrency in a cold wallet.

What is a cold wallet?

A cold wallet acts in much the same way as a hot wallet, providing storage for your cryptocurrency, however, a cold wallet is not connected to the internet, and is, therefore, a much safer option with very little risk of cryptocurrency exchange hacks.

What is the current price of Ethereum?

The current live price for Ethereum (ETH) compared to GBP is as follows:

Source: Livecoinwatch.com

How to Buy Ethereum FAQs

Is Ethereum legal in the UK?

Yes, Ethereum is legal in the UK. However, it is your responsibility as an investor to ensure you pay the appropriate Capital Gains Tax on any profits made from your investments. We recommend purchasing Ethereum through eToro.

Can you still purchase Ether?

Yes, Ethereum is still widely available at most cryptocurrency exchanges, however, you should check the price and the fees for your purchase before proceeding. We recommend purchasing Ethereum through eToro.

A note about cryptoasset regulations

Crypto assets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital.

Cryptocurrencies and other digital financial services are also not covered by existing consumer protection laws.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested when you buy crypto.

Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

This article is for informational purposes only and does not constitute financial investment advice. All contents are based on my understanding of HMRC legislation, which is subject to change.

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Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.