In terms of decentralized crypto products, Ethereum is one of the most actively invested in – globally. Unlike the proof-of-work mechanism used by Bitcoin, this network recently proof-of-stake – making it even more desirable.
If you want to know how to buy Ethereum from the comfort of your home – stay right where you are.
Today, we delve into everything you need to be aware of when investing in this flexible crypto-asset. Taking into account different ways to purchase Ethereum, investment strategies, and how to find a trusted broker.
eToro - Buy and Invest in Assets
eToro - Buy and Invest in Assets
Table of Content
How to Buy Ethereum in 10 Minutes – Quickfire Guide
Before you can buy Ethereum, you will need to join a brokerage that can facilitate your purchase. In other words, one that can offer access to the market in question.
Don’t worry if you don’t have the time to read this guide in full right now – if you are keen to get started, you can follow our quick-fire guide below.
- Step 1: Head over to a creditable cryptocurrency broker – eToro holds licenses from 3 jurisdictions and you can buy Ethereum without paying any commission.
- Step 2: Select ‘Join Now’ to open an account – enter the details needed as per the sign-up box on your screen.
- Step 3: As proof of identity, upload a clear copy of your photo ID – such as a passport or driving license. You will also need to send proof of address such as a utility bill or bank statement.
- Step 4: To fund your new account, enter the amount you wish to deposit and select from the many payment methods available at eToro. Once satisfied – ‘Confirm’
- Step 5: Search for Ethereum and click ‘Trade’. Now you can create a ‘buy’ order and enter the amount you wish to purchase
You have just made your first commission-free Ethereum investment at eToro!
Select a Trusted Ethereum Broker
As noted above, you will need a broker to buy Ethereum. To save you hours of in-depth research, we have narrowed the best Ethereum platforms down to five.
1. eToro – Best ZERO Commission Ethereum Broker 2021
This highly rated broker has been at the forefront of the fintech revolution for over a decade. As we said, eToro will charge you zero commission when investing in or trading Ethereum! Now that's out of the way we can dive into what else this platform has to offer.
In addition to Ethereum, the platform can provide you with access to 15 other cryptocurrencies - all of which are available to invest in traditionally or trade as CFDs. This includes fiat currencies like US dollars, British pounds, Japanese yen, and Australian dollars.
When the time comes to diversify you can choose between thousands of different markets - which covers stocks, indices, ETFs, forex, and commodities. Moreover, this broker offers leverage. As with all regulated brokers, the amount offered will depend on where you are located. Regulation is super important, so we will never recommend a platform that doesn't hold a legitimate license.
At eToro, the broker is regulated by three major authorities - the FCA, CySEC, and ASIC. The website is super easy to navigate and you will be able to buy and sell Ethereum using a whole host of payment types. This is inclusive of e-wallets like PayPal and Skrill, bank transfer, and credit and debit cards backed by Visa and MasterCard.
Before spending your hard-earned cash, you might want to hone your skills using a free demo trading facility? eToro will give you an account loaded with $100,000 in paper money. Furthermore, when you are ready to move onto a real account you can buy Ethereum from just $25 upwards.
- User-friendly Ethereum platform
- Commisson-free crypto investing
- Accepts many different payment methods
- If not funding account in US dollars - 0.5% exchange fee payable
2. EightCap – Ethereum CFD Platform With Access to MT5
Ethereum provider EightCap was founded in 2009 and offers over 200 different markets. This includes CFDs on cryptocurrencies, indices, forex, and heaps of blue-chip stocks. When it comes to applying leverage to Ethereum CFDs, most EU residents will be offered up to 1:2, and many non-EU residents can access up to 1:25.
Furthermore, you will be able to access crypto-pairs including ETH/USD on a commission-free basis - provided you sign up to the 'Standard' account. There is also a 'Raw' account for people that invest larger amounts. Although the commission on this offering is charged at $3.50 per transaction, you will often pay nothing in spreads.
You can easily place orders, access heaps of technical indicators, and make use of educational information under one roof by syncing your account up to MT5. This also enables you to access automated features and other trading tools. It's easy to place orders on this platform, but if you need more practice you can use the free demo account on offer.
EightCap is regulated by strict regulatory body ASIC, so you can access cryptocurrency CFDs in a safe environment. In terms of payment methods, the broker is compatible with credit and debit cards, as well as e-wallets like Neteller and Skrill. Furthermore, you can deposit funds into your account with as little as $100.
- Holds a license from regulatory body ASIC
- Commission-free standard account
- Works harmoniously with MT5
- No stocks in demo account mode
3. Capital.com – Newbie Friendly Ethereum Trading Platform - Minimum Deposit is $20
CFD broker Capital.com not only includes Ethereum amongst its offerings but also over 3,000 alternative markets. This comprises a multitude of other cryptocurrencies - in addition to forex, commodities, indices, and stocks. You can buy and sell crypto CFDs 100% commission-free at this brokerage.
In terms of protection, Capital.com has been approved and regulated by both CySEC and the FCA. Furthermore, Ethereum can be traded against heaps of fiat currencies. This includes the Australian dollar, Swedish krona,South African rand, Mexican peso, New Zealand dollar, and also crypto-assets like Bitcoin. Features at this top-rated crypto broker include webinars, news, economic calendars, and analytical insight.
Moreover, there are heaps of courses covering specific financial instruments and markets. There are a few accounts to choose from, however, if you are a newbie trader you might want to stick with the 'Standard' account. There is also a free demo facility to take advantage of - and you can switch to real money trading whenever you like at the click of a button.
The minimum deposit to trade Ethereum at Capital.com is $20 and you can fund your account via bank transfer or a credit/debit card. Alternatively, you can use e-wallets such as Skrill, however, this does depend on your location.
- Charges no commission on cryptocurrencies
- Minumum deposit a mere $20
- Licensed byTier-1 regulatory bodies CySEC and the FCA
- Lack of Ethereum based fundamental analysis
4. AvaTrade – Ethereum Platform With Heaps of Techincal Analysis Tools
AvaTrade offers access to heaps of CFDs, covering Ethereum and other cryptocurrencies, indices, ETFs, commodities, bonds, and stocks. All can be traded on a commission-free basis. When it comes to the technical analysis tools - there is an abundance at AvaTrade. This is made up of multiple strategies, tutorials, indicators, asset-specific lessons, economic calculators, and AvaProtect.
If you are interested in using a free demo facility whilst learning how to trade Ethereum, AvaTrade offers one with a balance of $10,000 in paper funds. If, however, you would like to start trading using real money from the offset, the minimum deposit is $100. Furthermore, if you are an MT4 user you can connect your AvaTrade account quite easily.
Alternatively, if you would rather not download any software, you can stick with the proprietary platform. This includes a good selection of trading tools. If you would like to be sociable when trading Ethereum, you could check out the AvaSocial app. This feature is great for gaining market insight from experts and fellow investors - as well as giving you the option to automate your trades.
AvaTrade serves over 100 countries and is regulated by several jurisdictions such as the UEA, South Africa, and the EU. As such, you can expect a transparent and fair service. Furthermore, there are plenty of payment types accepted. This includes wire transfers, major credit cards, and e-wallets like Qiwi, Neteller, Skrill, and Boleto.
- Minimum deposit only $100
- Regulated in heaps of places including Japan, EU, and South Africa
- Access Ethereum CFDs whilst paying 0% commission
- Admin fee pricy after 12 months of not trading
5. EuropeFX – Regulated Ethereum Trading Site With Several Platforms
At CFD brokerage EuropeFX, you can access markets including cryptocurrencies, indices, stocks, forex, and commodities. There are a whopping six accounts available via this platform so you won't be short of choice.
If you are still learning how to trade Ethereum you will likely be betteroff signing up for the commission-free 'Standard' account to start. Nevertheless, this is another online broker on our list that works well with third-party trading suites such as MT4. Alternatively, if you would prefer to use the native platform to avoid installing software - EuroTrader 2.0 offers heaps of trading tools.
When it comes to safety, the platform is regulated by CySEC, so there is no doubting the company's legitimacy. EuropeFX will allow you to deposit funds into your account using a variety of payment types, such as bank transfer, debit and credit cards, and e-wallets including Webmoney, Neteller, and Skrill.
The minimum deposit at this brokerage is $200. Please note that in some parts of the world you will not be able to transfer money into your EuropeFX account using e-wallets.
- More suited to seasoned crypto traders
- Ethereum CFDs commission-free
- Regulated by CySEC
Consider Your Ethereum Strategy
Before you can properly learn how to buy Ethereum, you will need to think about what strategy you might adopt.
Take a look at the two most common ways to buy and sell Ethereum below.
Buy and Hold Ethereum
A popular way to access the Ethereum markets is by utilizing a buy and hold strategy. Subsequently, this will see you purchasing ETF and holding on to the digital coins for months or years at a time.
In terms of accessing Ethereum to purchase, there are different avenues you can take. For instance, you could buy Ethereum via a cryptocurrency exchange, although it has to be said that these spaces are often free from regulation. For security reasons, the best option is to buy crypto assets via a licensed brokerage.
Ultimately, the goal of this strategy is to hold onto your cryptocurrencies until you spot a potentially profitable opportunity.
See a quick example below:
- Ethereum is priced at $1,770 but you think it is undervalued
- As such, you place a $1,000 buy order
- 11 months pass and you predicted correctly – Ethereum has risen by 26% to a value of $2,230
- Pleased with your gains, you cash out your investment with a sell order
- From your initial investment of $1,000, you made a profit of $260
Crucially, when adopting this strategy, it’s also important to consider how you are going to store your coins. First, there is the option of looking after them yourself via a private crypto-wallet.
As you may already know this means you are entirely responsible for keeping your coins safe from hackers. You must also trust yourself to look after the lengthy private key needed to access your Ethereum.
Alternatively, you can store your Ethereum at a top-rated brokerage like eToro. The platform is regulated and will allow you to safely store your coins at no extra charge. On top of that, there is no need to worry about accessing your Ethereum – as you can cash out your purchase very easily, and at any time.
When considering how to buy Ethereum, there is also the option of short-term trading via CFDs (Contracts for Differences). For those unaware, CFDs enable you to hypothesize on the rise or fall in the value of the underlying asset – without having to own it.
Trading Ethereum CFDs entails predicting the increase or decrease in the exchange rate of a pair. The two distinct categories of crypto-pairs you will see at online brokers are ‘crypto-fiat’ and ‘crypto-crypto’.
In case you don’t know, a crypto-fiat pair contains a digital currency and a government-printed one. Ethereum against US dollars is shown ETH/USD. It can also be paired with euros, UK pounds, Japanese yen, Australian dollars, and more.
Trading crypto-crypto pairs will see you trading Ethereum with another cryptocurrency – such as Bitcoin. This would be displayed as ETH/BTC. Other popular crypto-crypto pairs are ETH/LTC (Litecoin) and ETH/XRP (Ripple). Crucially, no two brokers are the same, so if you are keen on a particular Ethereum pair, it’s important to make sure it is available at your chosen crypto platform.
One of the most appealing things about CFDs is that they enable you to go both long and short. Ergo, if you think Ethereum is heading for a nosedive in terms of price – you will be able to make gains from the downfall of its value.
Crucially, CFDs are tasked with tracking the real-world price of the asset in question so will always mirror market value.
See an example below:
- Ethereum against the Chinese yuan is priced at ¥11,685
- As such, ETH/CNH CFDs are also valued at ¥11,685
- After performing analysis on the pair, you believe it is overvalued
- Consequently, you place a $500 sell order
- A week later ETH/CNH falls to ¥9,581 – which shows an 18% drop
- Pleased with your profit of $90 ($500×18%) – you cash out with a buy order
- You believed Ethereum would lose value, so you went short. This will be done by placing a sell order at your chosen brokerage
- If, on the other hand, you think the crypto coins will rise in value, you need to go long by creating a buy order
For those unaware, CFDs also enable you to apply leverage to Ethereum trades. Leverage is shown as a ratio or multiple such as 1:5 or 5x and enables you to boost your stake. In the case of 1:5, this magnifies your position 5-fold.
Some traders can get their hands on as much leverage as they like, others will be restricted. This is mainly dependent on where you live. In Europe, for example, leverage on crypto-assets is capped to 1:2. This means with $100, you could still potentially open a $200 position.
See our earlier ETH/CNH example, this time with leverage:
- Upon creating a $500 sell order on ETH/CNH – you apply 1:2 leverage
- Your position is now worth $1,000.
- As such, when this pair falls by 18% – you make $180 profit instead of $90 ($1,000*18%)
Notably, US and UK citizens will not be eligible for crypto CFDs – nor the leverage they invite. Equally as importantly, whilst leverage can clearly do wonders when the market goes your way – it can magnify your losses as well.
Where to Buy Ethereum
When considering how to buy Ethereum, the natural thought process takes us to where. As we’ve already said, you can buy crypto-assets at unregulated exchanges, or preferably via a trusted trading platform.
Buy Ethereum Debit Card
The vast majority of modern-day brokers will enable you to buy Ethereum using a debit card. With that said, it’s important to be aware that this may come at a charge, depending on the platform.
eToro is denominated in USD. As such, you will be charged a small exchange fee of 0.5% if not depositing funds in US dollars. In contrast, Coinbase charges a 3.99% fee on all debit card transactions. Binance on the other hand charges somewhere in the range of 3% to 4%, depending on your location.
Buy Ethereum Credit Card
Another option is to buy Ethereum using a credit card. Be aware that there are sometimes a few hurdles with this payment method. First of all, some credit card companies charge a cash advance fee in the region of 3-5%. Furthermore, you might find that your card issuer doesn’t allow cryptocurrency purchases.
At eToro – as long as you are depositing funds into your account using US dollars – you will not be charged a cent when buying and selling via credit card. If it’s a non-USD, then the fee is just 0.5%.
Buy Ethereum Paypal
Did you know you can also buy Ethereum with PayPal? With that said, our guide found that not many brokers accept this payment type.
However, at eToro you can deposit and buy Ethereum using this popular e-wallet at the click of a button. Furthermore, long-standing crypto trading platform AvaTrade will also enable you to deposit funds via PayPal. You can then trade Ethereum CFDs commission-free.
There are almost 20,000 crypto ATMs worldwide. Whilst some just offer Bitcoin – many allow you to buy Ethereum. To clarify, the regular cash machines we use to withdraw tangible money differ somewhat from Ethereum ATMs.
Specifically, rather than making a fiat withdrawal – you will insert government cash like US dollars or euros into the machine in order to buy cryptocurrencies. Next, you will select the amount you want to buy, put your money in the machine and digital coins will be added to your crypto wallet.
Notably, this is considered to be one of the most expensive ways to buy Ethereum, largely due to the extortionate commission fees. Depending on the location of the ATM – this can be in excess of 10% of your crypto purchase.
Have you ever thought about what Ethereum techniques and strategies you might want to add to your framework? This might include dollar-cost averaging, or perhaps utilizing crypto signals to reduce the learning curve.
One of the most popular and straightforward investment strategies to implement is dollar-cost averaging. To start, think about how much money you can or would like to dedicate to buying Ethereum. This could be worked out on a weekly, or monthly basis.
For instance, you might decide to put aside $100 per month to buy Ethereum, spending $25 per week on coins. The idea is to build up your investment portfolio gradually, rather than blowing everything in your account on one purchase.
Buy the Dip
There is a saying amongst the investing/trading community – “don’t catch a falling knife”. This means that you should hold off until the price bottoms out.
However, this is not to be confused with ‘buying the dip’ – which will see you incorporate the dollar-cost averaging system when Ethereum is in the midst of a sharp price decline – and/or buy it when things have settled down.
See an example below:
- It comes to your attention that the value of Ethereum has fallen dramatically from $11,709 to $9,601
- This represents an 18% decrease in price
- As such you begin to buy Ethereum little and often as the price continues to fall
As you can see, by buying the dip you will be in a better position to make gains – when the digital coins inevitably rise in value further down the line. Alternatively, some traders and investors prefer to hold off until the market has settled down.
In terms of your investment portfolio, diversification is not only a way to boost your returns, but also hedge against market volatility. To further explain, you may start by looking to buy Ethereum only – but this means you will be exposed to one single market for better or worse.
Alternatively, you can mitigate your risk by also incorporating other digital currencies such as Ripple, Bitcoin Cash, Polkadot, and such. With that said – one of the best ways to diversify your portfolio is by adding different assets entirely.
Thing along the lines of gold or stocks. These are popular options because they behave in a different way to digital currencies. By spreading your investments across different investment classes, if one asset in your basket isn’t doing too well, its poor performance will usually be counteracted by a well-performing asset.
Ethereum Trading Signals
Another useful strategy to incorporate is trading signals. As we eluded to, this saves you having to learn as much before you can get started. It’s no secret that technical analysis plays a very important role in cryptocurrency trading, however, the problem is learning it can take such a long time.
Ethereum trading signals are like suggestions. Each signal will usually include the asset to be traded, whether to go long (buy) or short (sell), and also tips on what limit order price to deploy. The best signal services will also include a stop-loss and take-profit order. Put simply, a team of seasoned traders and analysts scour the markets for money-making opportunities and share the results.
More often than not this is done via the encrypted messaging app Telegram. Here at Learn 2 Trade, we offer free Ethereum trading signals, as well as a Premium service with a 30-day money-back guarantee.
How to Buy Ethereum Online – Full Walkthrough
By this point in our guide, you are likely feeling ready to get started. If you have invested or traded before – this part will be instantly familiar.
For those who have no experience in the space – see a full walkthrough below of how to buy Ethereum today! We are using eToro in our example, as the regulated broker allows you to buy Ethereum commission-free and the minimum purchase is just $25.
Step 1: Sign Up With an Ethereum Broker
Head over to the official eToro website and click ‘Join Now’.
Now you can fill in the sign-up box accordingly. As you can see this includes your name, email – and the usual KYC requirements.
Step 2: Upload Some Identification
You will also need to provide proof of identity. This can be your driving license, passport, or in some cases national ID card.
To demonstrate your address, the broker will accept a recent bank statement or utility bill. Note, this step can be completed at a later date – but it must be before you either request a withdrawal or deposit a sum of $2,250 or more.
Step 3: Deposit Funds Into Your Account
Now it’s time to deposit some funds so that you can buy Ethereum.
Enter the amount you wish to purchase and select your preferred payment method. It’s also important to check through the info you have entered – before pressing ‘Deposit’.
Step 4: Buy Ethereum
Use the search bar function to find Ethereum, or click ‘Trade Markets’ and you will see it listed under ‘Crypto’.
Look over all of the information in the order box and hit ‘Set Order. eToro will then execute your Ethereum purchase for you – commission-free!
It’s never been easier to buy Ethereum from the comfort of your own home. You might fancy investing directly, or trading via CFDs. With a respected broker on your side to execute orders and offer access to a range of assets – you will be off to the best start possible.
Think about what systems to incorporate in your strategy – which could include buying the dip, or dollar-cost averaging. You could also consider branching out by investing in other assets such as stocks, oil, or gold.
This is a great way to mitigate the risks involved when focussing on just one asset class. Finally, a word to the wise – always use a regulated broker to buy Ethereum. eToro is a great option here – as the platform allows you to invest in ETH commission-free and at a minimum stake of just $25!
eToro - Buy and Invest in Assets
eToro - Buy and Invest in Assets
How much does it cost to buy Ethereum?
The answer depends on the brokerage in question. For instance, at eToro, you can partake in fractional investments. This means that you are able to invest in Ethereum from $25. If a full ETH coin is $1,820, your $25 investment means you own 1.4% of a coin.
How much is Ethereum likely to be worth in 5 years?
Published research suggests that the coin could reach a value of over $16,000 in 5 years time. However, if such predictions were a certainty, we would all be rich. By performance technical analysis and researching historical price data - you will gain a much clearer understanding of where the currency might be in 5 years' time.
Where is the best place to buy Ethereum?
Our guide found that the best place to buy Ethereum is at top-rated brokerage eToro. The platform is easy to use and enables you to purchase and store cryptocurrencies on a commission-free basis and at no extra charge. Importantly, the broker is regulated by the FCA, ASIC, and CySEC.
How can I sell my Ethereum?
The easiest way to sell Ethereum is via a broker such as eToro. This is because as well as purchasing crypto-assets there, you will also store them safely. When you feel ready to sell - simply create a 'sell' order and the broker will add the cash to your trading account.
Can Ethereum make you rich?
Some people believe that the best way to make a profit from Ethereum is to adopt a buy and hold strategy. This will see you purchasing Ethereum and selling it much later down the line - crucially when it has increased significantly in value.