Moneyzine
/Investing/How to Buy Ethereum

How to Buy Ethereum in the UK: A Beginner's Guide

Explore the fastest, easiest, and cheapest ways to buy Ethereum in the UK.
Dominikas Pupkevicius
Author: 
Dominikas Pupkevicius
Idil Woodall
Editor: 
Idil Woodall
36 mins
November 16th, 2023
Advertiser Disclosure

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. For those who are looking for ways to buy Ethereum in the UK must know that the price of ETH in GBP is determined by the international Ethereum market, so basically, the price to be found on cryptocurrency exchanges in the UK and all around the world

Today, Ethereum 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 crypto exchange types offering Ethereum, it’s difficult to decide which investment 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 investment safe with different crypto wallet options and alternative ways to make money from Ethereum in the UK.

Buy Ethereum in Four Steps

Step 1 - Choose a Cryptocurrency Broker

To buy Ethereum, or any cryptocurrency for that matter, you will need to sign up for an account with a cryptocurrency broker or exchange that allows you to exchange your pounds with crypto assets. If you are just starting out, it'd be wise to find a platform that is easy to use and with a straightforward pricing structure.

eToro is a prime example. It combines an easily navigable platform and transparent pricing with impeccable social trading capabilities. Following and interacting with more seasoned traders, you can expand your knowledge while trading.

Buy Ethereum With eToro Now

eToro8.7Visitetoro.com

Don’t invest unless you’re prepared to lose all the money you invest.

Step 2 - Select a Payment Method

You will find that some cryptocurrency exchanges and brokers require users to deposit a certain amount to verify their accounts, while some don't. In any case, you will need to select a suitable payment method for your purchase. Card payments are attractive to many; they are near-instantaneous, but they also come with additional processing fees. Credit card payments, especially, cost a fair bit. Albeit slowest, bank transfers are often the cheapest method.

Step 3 - Place Your Order

After you fund your account, you can place your order to buy Ethereum. It's the second most commonly used cryptocurrency, so it's fairly easy to locate on exchanges. If not, you can search for it with its ticker ETH.

You should also consider how much you'd like to invest. As of this writing, one Ethereum costs £1,694 — for most folks, this means getting a portion of an Ethereum. There's nothing stopping you from purchasing one, two, or even three whole coins, but remember that crypto assets, even those that are established and widely used as Ethereum, are extremely volatile. This means that there's a chance you may end up losing all your initial investment. A good rule of thumb is never to invest more than you can afford to lose, or any funds you allocate to sustain your day-to-day life, such as money for rent, groceries, or bills.

Step 4 - Store Your Ethereum

You have several options to store your Ethereum. The software you can use for storage are called wallets, they can be hot (online) or cold (offline). Many exchanges offer their own wallets, or alternatively, you can find one that's more suitable for you.

Different Ways of Buying Ethereum

The best way to buy Ethereum in the UK is via a cryptocurrency broker or exchange. These platforms are regulated, and make trading Ethereum, or any coin listed, very convenient as there are multiple swap pairs and support a straightforward trading mechanism.

Top Platforms to Buy Ethereum in the UK

Sort by
eToro8.7Visitetoro.com

Don’t invest unless you’re prepared to lose all the money you invest.

Coinbase8.4Visitcoinbase.com
Uphold8.4Visituphold.com
Bitpanda7.8Visitbitpanda.com
Kraken7.6Visitkraken.com
CoinJar6.5Visitcoinjar.com
Bitstamp6.8Visitbitstamp.net

Disclaimer: Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more.

The Easiest Way: Buy Ethereum in the UK Using Cryptocurrency Brokers

Crypto brokers make it easy to buy and hold Ethereum using simple trading software and providing educational content. Below we’ve outlined the best crypto brokers in the UK along with small reviews. You can also trade Ethereum on these crypto brokers.

Top Cryptocurrency Brokers

Provider

Fee

🥇 eToro

1% fee for buying or selling crypto.

🥈 Binance

Starts from 0.1%; varies based on trading volume.

🥉 Coinbase

Starts from 0.6%; varies based on trading volume.

Buy Ethereum using 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.

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 crypto assets. It also offers different payment methods like credit or debit card.

Buy Ethereum using 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.

Buy Ethereum using Coinbase. The most user-friendly crypto exchange is Coinbase, which offers multiple useful features, such as the option for buying or selling Ethereum instantly, an advanced trading platform, an NFT marketplace, a Visa card, and Ethereum staking. Moreover, in this crypto exchange, you can earn free coins for finishing courses that teach you about different cryptocurrencies.

TRADING CRYPTOCURRENCY CFDS IS NOW BANNED IN THE UK

In a bid to curb the gigantic losses traders may experience, the Financial Conduct Authority (FCA) banned the use of any leveraged products, including CFDs, with cryptocurrencies as underlying assets. The regulatory body cited that the use of leverage is simply too dangerous with volatile assets such as cryptocurrencies. This means that any exchange or broker offering cryptocurrency CFDs is either unregulated or engaging in illegal activities.

The Most Convenient Way: Best Apps to Buy Ethereum in the UK

There are many different options when looking for the best crypto apps in the UK. Apps like Coinbase, Crypto.com, and Kraken make it convenient to buy Ethereum in the UK with their simplistic interfaces. All features are easy to find, and creating a fresh account takes minutes.

The Best Apps to Buy Cryptocurrency in the UK

Provider

Fee

🥇 Coinbase

The spot trading fee starts at 0.6%. Varies based on trading volume.

🥈 Crypto.com

The spot trading fee starts at 0.075%. Varies based on trading level.

🥉 Kraken

£2.60. Varies based on trading volume.

The Cheapest Way: Buy Ethereum in the UK With Exchanges

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.

The Best Cryptocurrency Exchanges in the UK

Provider

Fee

🥇 Crypto.com

The spot trading fee starts at 0.075%. Varies based on trading level.

🥈 Binance

The spot trading fee starts at 0.1%.

🥉 Kraken

£2.60

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:

Platform

eToro Broker

Binance Exchange

Deposit fees

£0

£0

Purchase fees

£10

£1

Holding fees

£0

£0

Selling Fees

£10

£1

Payout fees

£5

£15

Total fees

£25

£17

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. Read our UK cryptocurrency tax guide.

The Anonymous Way: Buy Ethereum in the UK Using Decentralized Exchanges (DEX)

As well as you can buy Bitcoin anonymously in the UK, you can do the same with ETH.

Decentralized exchanges (DEXs) offer an alternative way of buying Ethereum. These are applications built on the Ethereum 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.

The Best DEX to Buy Ethereum

Provider

Fee

🥇 Uniswap

0.3% trading fee

🥈 SushiSwap

0.3% trading fee

🥉 Curve

Varies

  • Buying Ethereum in the UK 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.

  • Buying Ethereum in the UK 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.

The Independent Way: Buy Ethereum in the UK Using P2P Services

Many established crypto exchange types offer P2P trading as part of their overall service. This is where you buy Ethereum in the UK 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.

The Best P2P Services to Buy Ethereum

Provider

Fee

🥇 Binance P2P

0 % to 3.5% trading fee

🥈 KuCoin P2P

No fees

🥉 Huobi P2P

No fees

Can You Buy Ethereum in the UK 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 Platform

Can You Buy ETH?

Fee

Binance

Yes

Starting from 0.1%; varies based on trading volume.

TD Ameritrade

No

N/A

Bitstamp

Yes

Starting from 0%; varies based on trading volume.

Bittrex

Yes

Starting from 0.35%; varies based on trading volume.

Coinbase

Yes

Starting from 0.6%; varies based on trading volume.

Poloniex

Yes

Starting from 0.155%; varies based on trading volume.

BitMart

Yes

Starting from 0.25%; varies based on trading volume.

Bitrue

Yes

Starting from 0.098%; varies based on trading volume.

BlockFi

Yes

Starting from 1% spread; varies based on trading volume.

CoinDCX

Yes

Starting from 0.2%; varies based on trading volume.

CoinSwitch

Yes

Starting from 0.5%; varies based on trading volume.

Crypto.com

Yes

Starting from 0.075%; varies based on trading volume.

EtherDelta

Yes

0.3% trading fee

E*TRADE

No

N/A

Fidelity

No

N/A

Gate.io

Yes

Starting from 0.2%; varies based on trading volume.

Hotbit

Yes

Starting from 0.2%; varies based on trading volume.

Kraken

Yes

Starting from 0.26%; varies based on trading volume.

KuCoin

Yes

Starting from 0.1%; varies based on trading volume.

Robinhood

Yes

£0 commissions; varies based on order flow fee and trade volume.

Uphold

Yes

Buy spread of 1.8%.

Venmo

Yes

The fee will vary based on the purchase or sale amount.

Voyager

Yes

£0 commissions

WazirX

Yes

0.2% commissions

Wealthsimple

Yes

£0 commissions.

Webull

Yes

£0 commissions.

Depositing Options to Buy Ethereum

UK investors have access to multiple payment methods to buy Ethereum UK. 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 exchange types and brokers for specific payment methods.

  • The Fastest Way: Buy Ethereum in the UK Instantly With Online Banking. You can deposit on Kraken with online banking and use the spot trading software to buy Ethereum.

  • The Safest Way: Buy Ethereum With PayPal in the UK. You can buy Ethereum on PayPal via their crypto investments section. Alternatively, you can deposit on eToro or Coinbase using PayPal.

  • The Cheapest Way: Buy Ethereum Using a Debit Card in the UK. 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.

  • Buying Ethereum Using a Credit Card in the UK. 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.

Can You Buy Ethereum Offline in the UK?

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 crypto wallet. Therefore, you’ll want to give your public key when buying crypto offline.

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 crypto 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 updates on the Ethereum network is excellent news as the Ethereum 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.

Major Milestones in the History of Ethereum

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 community

Centralized 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.

Other Ways to Make Money With Ethereum in 2023

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 Ethereum 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 in the UK Using ETPs (ETFs & ETNs). ETPs are securities traded on the stock exchange. You can buy Ethereum UK 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. Check our guide to find a suitable trading platform.

  • Ethereum Mining in the UK. 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.

Coin

Symbol

Learn how to buy

Cardano

ADA

Buy Cardano

Algorand

ALGO

Buy Algorand

Cosmos

ATOM

Buy Cosmos

Tron

TRX

Buy Tron

Binance Coin

BNB

Buy Binance Coin

Is It Still Worth Investing in Ethereum in the UK?

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 the Ethereum 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?

Contributors

Dominikas Pupkevicius
Dominikas is a content and research writer with over 6 years of experience. He is passionate about blockchain technology and believes cryptocurrency is the future of humanity. Dominikas lives in the countryside with his 3 dogs and enjoys long walks.
Idil Woodall
Idil is a writer with interests ranging from arts and politics to history and finance. She spent several years in publishing before becoming a full-time writer, and learning the inner workings of an industry she loved ignited her interest in economics. As an English graduate, she cultivated valuable research and storytelling abilities that she now applies to make complex matters accessible and understandable to many. When she’s not writing, she can be found climbing or watching a movie.
Moneyzine 2024. All Rights Reserved.