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How to Buy Ethereum in the UK in 2022

Last updated 25th Nov 2022
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Ethereum (ETH) was the first cryptocurrency to come with its own programming language and smart contracts, making it easily stand out from the early competition. Today, it has gained tremendous value exceeding a market cap of 150 billion, placing it second behind Bitcoin.

Due to Ethereum’s popularity and use cases, many believe the coin has a long-term feature, especially with the recent ETH upgrades that reduced gas fees. However, with dozens of exchanges offering Ethereum, it’s difficult to decide which platform to sign up for. Therefore, to save you time, we’ve created this comprehensive guide that discloses which platforms are best for specific uses. Also, we’ll explain how to keep your Ethereum safe with wallets and alternative ways to make money from Ethereum in the UK.

eToro - The Overall Best Way to Buy ETH in the UK

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Buy Ethereum Using Cryptocurrency Brokers - The Easiest Way

Crypto brokers make it easy to buy, trade, and hold Ethereum using simple trading software and providing educational content. Below we’ve outlined the top choices along with small reviews.

ProviderFee (USD 1000)🥇 eToro1% fee for buying or selling crypto.🥈 BinanceStarts from 0.1%; varies based on trading volume.🥉 CoinbaseStarts from 0.6%; varies based on trading volume.

eToro

eToro is brilliant for beginners because it doesn’t feature complex trading interfaces. The whole platform is built with the consumer in mind, and finding essential features is easy. Also, upon signing up, you can read about crypto news and join the eToro academy.

Binance

Binance is the largest cryptocurrency exchange offering several trading pairs for Ethereum. In addition, you can stake on Binance without needing the 32 ETH minimum since investors’ coins are pooled together.

Coinbase

The most user-friendly exchange is Coinbase, which offers multiple useful features, such as instant buy/sell, an advanced trading platform, an NFT marketplace, a Visa card, and Ethereum staking. Moreover, you can earn free coins for finishing courses that teach you about different cryptocurrencies.

Best Wallet to Buy and Store Ethereum - ETH Wallet Comparison

The most secure way to hold your cryptocurrency holdings is with a software or hardware wallet because the only way to access the coins is with a private key. Not your keys, not your crypto. Below are the overall hot and cold wallets:

ProviderWallet Type🥇 Ledger Nano XHardware🥈 Trezor Model THardware🥉 Trust WalletSoftware

Buy Ethereum Using CFDs - Best for Trading

If you’re interested in investing in Ethereum using CFDs; these are the top brokers that provide a premium service:

ProviderFee (USD 1000)🥇 eToro1% fee for buying or selling crypto.🥈 Plus500The market spread is 0.25%.🥉 EightcapThe minimum spread is 1.

eToro

The top choice for CFD trading is eToro because of its easy-to-use trading interfaces and demo accounts. Also, you can access plenty of educational material to help expand your trading knowledge.

Plus500

Plus500 is fantastic for traders with more experience because it comes with alerts, risk management tools, and indicators. Also, their news and insights section provides valuable information about new developments in the market.

Eightcap

Eightcap is brilliant for those looking to actively trade because it comes with the MetaTrader 4 and MetaTrader 5 software. Also, like the previously mentioned brokers, Eightcap has a dedicated learning section that teaches strategies and trading basics.

Best Apps to Buy Ethereum - Most Convenient

Coinbase, Crypto.com, and Kraken make it convenient to buy Ethereum with their simplistic interfaces. All features are easy to find, and creating a fresh account takes minutes.

ProviderFee (USD 1000)🥇 CoinbaseThe spot trading fee starts at 0.6%. Varies based on trading volume.🥈 Crypto.comThe spot trading fee starts at 0.075%. Varies based on trading level.🥉 Kraken£2.60. Varies based on trading volume.

Buy Ethereum With Exchanges - The Cheapest Way

The platforms selected below have generous fee structures along with easy-to-use trading software. Also, Binance and Crypto.com offer native cryptocurrencies that will reduce your fees further.

ProviderFee (USD 1000)🥇 Crypto.comThe spot trading fee starts at 0.075%. Varies based on trading level.🥈 BinanceThe spot trading fee starts at 0.1%.🥉 Kraken£2.60

Buy Ethereum Using Decentralized Exchanges (DEX) - The New Way

Decentralized exchanges (DEXs) offer an alternative way of buying Ethereum. These are applications built on the blockchain that use smart contracts to function. They are not owned or regulated and do not require ID, making them ideal for buying coins anonymously.

ProviderFee (USD 1000)🥇 Uniswap0.3% trading fee🥈 SushiSwap0.3% trading fee🥉 CurveVaries

Can You Buy Ethereum Using P2P Services?

Many established exchanges offer P2P trading as part of their overall service. This is where you buy Ethereum directly from a seller rather than through conventional spot trading. The P2P section will have a list of sellers and a price for each ETH coin.

ProviderFee (USD 1000)🥇 Binance P2P0 % to 3.5% trading fee🥈 KuCoin P2PNo fees🥉 Huobi P2PNo fees

Can You Buy Ethereum Using Other Trading Platforms?

There are several great cryptocurrency platforms offering Ethereum buying services, which you can learn about below. Also, we’ll uncover their starting fee rates and provide in-depth reviews so you can find out more information.

Cryptocurrency PlatformCan You Buy ETH?Fee (USD 1000)ReviewBinanceYesStarting from 0.1%; varies based on trading volume.Binance reviewTD AmeritradeNoN/AN/ABitstampYesStarting from 0%; varies based on trading volume.Bitstamp reviewBittrexYesStarting from 0.35%; varies based on trading volume.Bittrex reviewCoinbaseYesStarting from 0.6%; varies based on trading volume.Coinbase reviewPoloniexYesStarting from 0.155%; varies based on trading volume.Poloniex reviewBitMartYesStarting from 0.25%; varies based on trading volume.N/ABitrueYesStarting from 0.098%; varies based on trading volume.Bitrue reviewBlockFiYesStarting from 1% spread; varies based on trading volume.N/ACoinDCXYesStarting from 0.2%; varies based on trading volume.N/ACoinSwitchYesStarting from 0.5%; varies based on trading volume.N/ACrypto.comYesStarting from 0.075%; varies based on trading volume.N/AEtherDeltaYes0.3% trading feeN/AE*TRADENoN/AN/AFidelityNoN/AN/AGate.ioYesStarting from 0.2%; varies based on trading volume.N/AHotbitYesStarting from 0.2%; varies based on trading volume.N/AKrakenYesStarting from 0.26%; varies based on trading volume.Kraken reviewKuCoinYesStarting from 0.1%; varies based on trading volume.KuCoin reviewRobinhoodYes£0 commissions; varies based on order flow fee and trade volume.N/AUpholdYesBuy spread of 1.8%.N/AVenmoYesThe fee will vary based on the purchase or sale amount.N/AVoyagerYes£0 commissionsN/AWazirXYes0.2% commissionsWazirX reviewWealthsimpleYes£0 commissions.N/AWebullYes£0 commissions.N/A

What Is the Difference Between Buying Ethereum and CFDs?

When buying CFDs (contract for differences), you acquire a derivative product, meaning you will not own ETH while still being invested. Therefore, you won’t be able to withdraw, stake, or spend your Ethereum. Whereas, when buying Ethereum, these options are available as you directly own the coins.

Pros of using CFDsCons of using CFDsBrokers issuing CFDs require ID verification.Brokers tend to have much higher fees.You will not encounter liquidity issues when buying CFDsNo Ethereum staking pools are available.Easy to get startedYou cannot spend, transfer, or utilize your Ethereum as you are purchasing a derivative product.Some brokers would insure your money if it were stolen up to a certain amount.No ability to receive airdrops

Best Ways to Buy Ethereum in the UK

UK investors have access to multiple payment methods for buying Ethereum. However, selecting the top platform for each deposit method can be difficult, especially for beginners. So to save you time, we’ve found the best crypto exchanges and brokers for specific payment methods.

Buy Ethereum Instantly With Online Banking - The Fastest Way

You can deposit on Kraken with online banking and use the spot trading software to buy Ethereum.

Buy Ethereum With PayPal - The Safest Way

You can buy Ethereum on PayPal via their crypto investments section. Alternatively, you can deposit on eToro or Coinbase using PayPal.

Buy Ethereum Using a Debit Card - The Cheapest Way

The cheapest way to buy ETH via debit card is using it as a deposit method on Binance and then spot trading, as this will encounter the best fee rates.

Buy Ethereum Using a Credit Card

Crypto.com is a leading brand in the UK that allows users to buy Ethereum instantly via credit card. Furthermore, the crypto exchange remembers your card details so you won’t have to re-enter your details for future deposits.

Best Platforms to Buy Ethereum in Other Countries

Cryptocurrencies are becoming more adopted worldwide, and many countries allow exchanges to operate within their region. However, due to regulations and laws, there are discrepancies in top providers in each nation. Here you can analyze the top platforms for buying Ethereum in countries around the globe.

Country to Buy ETH inBest ProviderProvider TypeFeeAustraliaCoinbaseExchangeStarting from 0.6%; varies based on trading volume.UKCoinbaseExchangeStarting from 0.6%; varies based on trading volume.BangladesheToroBroker1% fee for buying or selling crypto.CanadaBinanceExchangeStarting from 0.1%; varies based on trading volume.HawaiiCEX.ioExchangeStarting from 0.25%; varies based on trading volume.IndiaWazirXExchangeStarting from 0.2%; varies based on trading volume.JapanBitFlyerExchangeNo trading feeNepalKrakenExchangeStarting from 0.26%; varies based on trading volume.New ZealandBinanceExchangeStarting from 0.1%; varies based on trading volume.PakistanKuCoinExchangeStarting from 0.1%; varies based on trading volume.PhilippinesBinanceExchangeStarting from 0.1%; varies based on trading volume.SingaporeCrypto.comExchangeStarting from 0.075%; varies based on trading volume.South AfricaeToroExchange1% fee for buying or selling crypto.UAECoinbaseExchangeStarting from 0.6%; varies based on trading volume.

What Are the Fees When Buying Ethereum in the UK?

These are the fees you’d pay for buying £1,000 worth of Ethereum and holding for 30-days on the following platforms:

PlatformeToro BrokerPlus500 CFDBinance ExchangeDeposit fees£0£0£0Purchase fees£10Spread of 0.25%£1Holding fees£0£0£0Selling Fees£10Spread of 0.25%£1Payout fees£5£0£15Total fees£25Spread of 0.25% for selling/buying£17

Cheapest Way to Buy ETH

The exchanges below have the best fee costs by using tier systems that calculate rates based on your 30-day trading volume. Also, Crypto.com and Binance offer native coins that will give significant discounts on platform fees.

ProviderFee (USD 1000)🥇 Crypto.comThe spot trading fee starts at 0.075%. Varies based on trading volume🥈 BinanceThe spot trading fee starts at 0.1%. Varies based on trading volume🥉 KrakenThe spot trading fee starts at 0.26%. Varies based on trading volume

Fastest Way to Buy ETH

You can use the instant buy section with your debit card to quickly acquire Ethereum. Alternatively, you can spot trade and set the terms to “market”, which takes the best available price and instantly executes the trade.

ProviderFee (USD 1000)🥇 eToro1% fee for buying or selling crypto.🥈 CoinbaseThe spot trading fee starts at 0.6%. Varies based on trading volume.🥉 Crypto.comThe spot trading fee starts at 0.075%. Varies based on trading volume.

How to Buy Ethereum Anonymously in the UK?

This section will inform you of the best platforms for buying Ethereum anonymously, without KYC, or ID.

How to Buy Ethereum Without Registration or KYC?

You can buy Ethereum without KYC via a decentralized exchange. These platforms do not require verification or signing up. UniSwap is the best DEX to use and is compatible with many Ethereum wallets.

How to Buy Ethereum Without Verification?

Binance and KuCoin let you deposit crypto and trade without verifying your identity. However, you will have account limits and won’t be able to deposit fiat currency.

Can You Buy Ethereum Offline?

Yes, you can buy ETH offline by taking advantage of paper wallets. When you create a paper wallet, you are given a private and public key. The private key provides access to your crypto, while the public key acts like a routing or IBAN number for your wallet. Therefore, you’ll want to give your public key when buying crypto offline.

Should You Buy or Sell Ethereum?

Ethereum is worth buying because it has longevity through its smart contracts. It’s currently the largest smart contract coin and has recently switched to a proof-of-stake consensus mechanism, making it more efficient to run. Also, Ethereum has always hit new all-time highs every bull run and is considered a blue chip cryptocurrency by many.

Why should you buy Ethereum?Why should you sell Ethereum?Ethereum is decentralized.Price is very volatile.Ethereum has switched to a proof-of-stake consensus mechanism, which has made the coin more scalable and energy efficient.High competition from other smart contract coins like Cardano.Strong communityCentralized exchanges own the majority of Ethereum staking pools. This can make the coin become somewhat centralized in the future.Ethereum is the largest smart contract cryptocurrency, with many dApps built on its blockchain.Ethereum is uncapped.Historically Ethereum has always performed well during bull runs.There is a 32 ETH staking minimum unless you use an exchange.

Do You Need to Pay Tax on Ethereum in the UK?

UK residents must pay a flat tax on crypto profits based on their income bracket. Earnings less than £50,270 will result in a 10% tax, and anything over will be taxed at 20%. Also, UK investors are allowed a capital gain tax allowance of £12,300.

Ethereum Price Prediction: What Is the Future of ETH?

Many experts predict Ethereum will have a successful future due to its use cases and improved scalability. However, many factors can impact how Ethereum will perform, which we will expand upon in this section.

What Impacts Ethereum Price?

The main aspects that impact Ethereum’s value are:

  • Market performance: One huge factor is the current market status since money flowing into crypto influences prices heavily. For example, during bull runs, financial institutions invest in various altcoins like Ethereum bringing in huge investment capital. However, during bear markets, less money goes into crypto as it’s deemed too risky, and prices fall.

  • Crypto laws: Regulations and laws can make crypto more accessible or less to investors. Thankfully, the UK is very friendly towards cryptocurrencies, making Ethereum readily available on most licensed exchanges.

  • Competition: Many smart contract cryptocurrencies like Cardano and Avalanche are in direct competition with Ethereum. This can be a disadvantage as they take more market share.

  • Updates: Ethereum receiving network updates is excellent news as the blockchain becomes more efficient. For example, Ethereum sharding is a multi-phase upgrade that improved its scalability and gas fees.

  • Demand: As Ethereum gets more demand, investors are willing to pay more for each token, increasing its price.

Historical Ethereum Course: Major Milestones in the History of Ethereum

This graph shows how Ethereum has performed in the past, along with a few historical milestones.

Other Ways to Make Money With Ethereum in the UK in 2022

The main method of making money with Ethereum is holding and waiting for the price to rise. However, there are alternative ways to build your portfolio with ETH that we will explore in the following section.

Stake Ethereum Using DeFi or CeFi

Ethereum has recently switched to a proof-of-work consensus mechanism, making it available to stake. When you allocate your Ethereum to a staking pool, you’ll help uphold the network and receive a reward based on the amount staked. Binance and Coinbase are the top platforms for staking due to their ease of use.

Buy Ethereum Using ETPs (ETFs & ETNs)

ETPs are securities traded on the stock exchange. You can buy Ethereum ETPs on VanEck.

Buy and Sell NFTs Using ETH

NFTs are digital assets that convey ownership to individual users. They are mainly used for digital art but have many more use cases, for example, event tickets, MetaVerse content, and home ownership. The best NFT marketplace for Ethereum is OpenSea.

Buy Stocks and Shares in Companies Owning Ethereum

You can buy shares in Tesla and Google, which own Ethereum. Their stock is available for buying on eToro.

Ethereum Mining

Ethereum mining is no longer relevant after the Paris merge since ETH has switched to a PoS consensus mechanism.

Use Ethereum Faucets

Coinbase is a fantastic platform offering small rewards for completing courses about various cryptocurrencies. The exchange will show the rewards beforehand, and you can quit the course at any moment.

What Cryptocurrencies Are Similar to Ethereum?

Here are some great hand-picked smart contract cryptocurrencies similar to Ethereum.

CoinSymbolLearn how to buyCardanoADABuy CardanoAlgorandALGOBuy AlgorandCosmosATOMBuy CosmosTronTRXBuy TronBinance CoinBNBBuy Binance Coin

Is It Still Worth Investing in Ethereum or Not?

Ethereum has recently undergone a few upgrades that switched it to a proof-of-stake consensus mechanism and made transaction fees much smaller. The cryptocurrency has thousands of dApps built on its blockchain, giving it many use cases. In my opinion, Ethereum is worth adding to your portfolio as it dominates the smart contract sector and has always reached high valuations during bull markets. Note: Not Financial Advice (NFA).

FAQs

What Is the Best Provider to Buy Ethereum in the UK?
What Is the Cheapest Provider to Buy Ethereum in the UK?
Is It Worth Investing in Ethereum Right Now?
Is There a Limit to How Much Ethereum I Can Buy?
Can You Buy Ethereum on the Blockchain?
What Can You Buy With Ethereum?

Dominikas Pupkevicius