Where & How to Buy Ethereum [ETH] in 2024: Best Places

Ethereum is second to Bitcoin in terms of market capitalization. It offers an array of smart contract features, dApps, cryptographic tokens, and more.

If you’re ready to explore how to buy Ethereum, start by finding the best crypto exchange.

Once you verify your identity and deposit funds, you’re ready to purchase Ethereum.

We tested dozens of platforms to show you where to buy Ethereum safely, quickly, and with ease.

Dive into all the details below.

Key Takeaways

• Ethereum is an interesting investment due to its ecosystem
• The best places to buy ETH are centralized exchanges
• Investors can buy Ethereum via PayPal, Venmo, or ETF
• Ethereum fees can be confusing for new investors

How to Buy Ethereum – Step-by-Step

To get started with Ethereum, explore multiple crypto exchanges. Compare their security, features, and reputation.

Once you select the right one, connect your payment method and use one of the exchange’s tools to buy ETH.

1. Select the Right Exchange

Focus on security, regulatory compliance, reputation, liquidity, and user interface.

Start by checking past security breaches. No exchange is safe out there, but it’s how it treats its customers that counts. A hacked exchange needs to be transparent about the breach, and its next steps, and offer support to users.

Additionally, the best crypto exchanges enforce the use of two-factor authentication (2FA), whitelisting withdrawal addresses, and other security features.

Centralized exchanges are most likely to be compliant with various regulations. Such exchanges may require your ID verification since they need to follow Know Your Customer and Anti-Money Laundering procedures.

On the other hand, decentralized exchanges don’t require KYC, but their customer support is often non-existent.

You also remain fully responsible for your investments and wallets.

Reputation is key in the crypto industry, so find an exchange with great community recognition. Check Trustpilot, official subreddits, and Telegram groups to see what other users think.

Liquidity is also important since exchanges with enough liquidity help you quickly trade assets. Luckily, most well-established crypto exchanges from our list are liquid enough to offer a seamless trading experience.

Assess UI/UX for intuitive navigation and trading experience. Some exchanges, like KuCoin, are on the more complex side, and you might have a hard time finding the right feature.

Others, like Kraken, Binance, or Coinbase offer simple tools for new investors and an intuitive interface.

Look for advanced order types, charts, portfolio tracking tools, instant buy features, and similar.

When it comes to wallets, most exchanges will keep your investments in cold (offline) wallets. This way, those wallets aren’t connected to the internet and your funds are safer than on hot wallets. Uphold is among the best examples of such platforms.

Finally, compare trading, deposit, and withdrawing fees against industry averages and count those as expenses on your investment.

2. Open an Account and Verify the Identity

Opening an account on a cryptocurrency exchange typically involves a detailed identity verification process.

Some exchanges use automated ID verification systems, while others manually review documents. For automated systems, ID verification can be near-instant once documents are approved.

Manual reviews may take 1-5 business days in many cases.

You may have to provide a selfie photo holding the ID and a handwritten note to confirm validity.

Many exchanges require uploading utility bills, bank statements, or other documents to confirm the user’s residential address matches the official ID.

KYC establishes accountability and prevents anonymous registration to deter money laundering, fraud, and illicit finance activities.

KYC status is typically valid for years unless personal information changes.

3. Deposit Funds

There are several common payment methods available, each with its own fees to be aware of.

The first one is transferring funds directly from your bank account to the exchange’s bank account.

Exchange fees are usually low or nonexistent, but your bank may charge a wire transfer fee. Transactions can take 1-5 business days to clear.

Credit and debit cards are another convenient for instantly funding your exchange account. Exchanges charge a credit/debit card processing fee, usually 3-5% of the deposit amount.

Some banks treat these as cash advances, charging additional fees on your credit card.

Select exchanges allow PayPal deposits.

There’s also crypto asset transfer. You can transfer your current holdings and use them to buy Ethereum.

In this case, you need to pay the blockchain network fee (ETH gas fee if depositing ETH itself).

Options like cash deposits, and money transfers are available on some exchanges. There are higher fees to cover, but these are mostly anonymous deposits.

4. Purchase Ethereum

Once you’ve successfully deposited funds into your cryptocurrency exchange account, there are a few different ways to purchase Ethereum (ETH):

• Trading pairs with fiat currencies
• Crypto-to-crypto trading pairs
• Instant buy feature

Most major exchanges offer trading pairs that allow you to directly purchase ETH with fiat currencies like USD, EUR, GBP etc.

For example, you can place an order to buy a certain amount of ETH by spending your deposited USD balance.

The exchange acts as the intermediary, taking a small percentage fee (typically 0.1%-0.25%) on each ETH/fiat trade.

If you deposited another cryptocurrency like Bitcoin (BTC), you can trade it for ETH on the exchange’s BTC/ETH trading pair.

This allows you to convert your crypto holdings into Ethereum.

Fees are similarly low, paid by the “maker” and “taker” in the trade.

Many exchanges offer an “Instant Buy” method to purchase ETH directly with your payment method.

This allows buying a fixed amount of ETH instantly by depositing funds via debit/credit card or PayPal.

This is convenient but typically more expensive than using trading pairs due to higher card processing fees.

The benefit of the Instant Buy option is the ease and speed of acquiring ETH instantly after your payment is processed. This is ideal for quick entries or smaller purchases.

However, accessing the main exchange trading section provides more flexibility and lower fees. You can:

• Place advanced order types like limits, stops, etc.
• Analyze full order book data and charts
• Trade on leverage (if offered)
• Potentially get better pricing than instant buy

Where to Buy Ethereum – Best Places

Check out our top list of the best ETH exchanges below.

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 mins to learn more.

Disclaimer: The information provided on this website is for informational purposes only and should not be considered as financial, investment, or legal advice. Cryptocurrency investments are volatile and high-risk in nature. Consult with a qualified financial advisor and/or tax professional before making any investment decisions. We are not responsible for any loss incurred due to the use of information on this website. Do your own research and exercise caution. Don’t invest unless you’re prepared to lose all the money you invest.

Best Places To Buy Ethereum

The best places to buy Ethereum include:

• Centralized crypto exchanges
• Crypto wallets
• Peer to peer (P2P) platforms
• Cryptocurrency ATMs

1. Centralized Crypto Exchanges

Centralized cryptocurrency exchanges are among the most popular and convenient platforms for purchasing Ethereum.

They act as a middleman, facilitating trades between buyers and sellers on their order books.

The key advantages of using a centralized exchange are:

• High liquidity
• Real-time pricing data
• Advanced trading tools
• Support for various fiat currencies like USD, EUR, GBP

Most platforms make it simple for new users to directly purchase ETH after completing KYC verification and by linking a payment method.

Deposit and withdrawal fees can vary based on the asset and payment used. Plus, larger trading volumes may qualify for lower maker/taker fees.

Still, you don’t fully control the private keys when funds are stored in an exchange’s custodial wallet.

2. Crypto Wallets

An increasing number of mainstream cryptocurrency wallets like Crypto.com have integrated the ability to directly purchase Ethereum and other major cryptocurrencies.

This combines the convenience of easily buying crypto with the benefit of full self-custody over your assets.

These purchase processes are designed to be beginner-friendly while still putting you in full control of your private keys.

Beyond just purchasing crypto, these wallets allow you to securely store, send, receive, stake, and swap various assets including Ethereum. Many support other blockchain ecosystems beyond just Ethereum as well.

The fees for buying on wallet platforms are generally in line with centralized exchanges.

Wallet providers may have integrated relationships with crypto exchanges or market makers to source liquidity and facilitate the buying process.

A key advantage is enhanced security from controlling your own private keys versus relying on a third-party custodian. Your crypto assets are kept in a non-custodial wallet that only you can access with your seed phrase backup.

However, this also means you alone are responsible for securing your wallet and keeping your seed phrases and passwords safe from loss or theft. Buying via wallet may have higher minimum purchase amounts compared to some exchanges.

3. Peer to Peer (P2P) Platforms

Peer-to-peer cryptocurrency trading platforms offer a different approach to buying Ethereum compared to centralized venues.

You’ll connect directly with other buyers and sellers and agree on trade terms like payment method, exchange rate, and settlement process.

A wider range of payment options are typically available beyond just cash and credit/debit – from bank transfers to gift cards and more.

P2P exchanges generally do not require identity verification for smaller trade amounts, providing a degree of anonymity.

However, larger trades may trigger KYC requirements. Escrow systems and user ratings aim to facilitate trusted transactions.

While offering more privacy, P2P trades do come with a higher counterparty risk of dealing peer-to-peer versus an established exchange. Comprehensive due diligence is required to avoid potential fraud or scams.

Another advantage is no exchange holder custody – assets are controlled end-to-end by the individual parties involved. Overall fees tend to be higher than centralized venues to account for platform costs.

4. Cryptocurrency ATMs

Cryptocurrency ATMs installed in various locations like retail stores, or airports allow you to directly purchase Ethereum.

These BTMs (Bitcoin Teller Machines) connect to crypto exchanges and liquidity providers to facilitate purchases.

You simply walk up, deposit cash, scan your wallet QR code, and receive the ETH almost instantly to that address.

Since there are minimal deposit steps or identification required, crypto ATMs provide a very easy, anonymous way to convert cash to crypto on the go. No bank accounts or online processes are involved.

However, this convenience comes at a high cost – most BTMs charge fees of 5-10% or even higher per transaction. There are also maximum purchase limits to be aware of.

Additionally, these physical crypto ATMs are currently limited in their geographic availability compared to online exchanges or wallets. Finding one nearby can be a challenge in many areas.

Alternative Ways to Invest in Ethereum

There are several alternative methods to buy and invest in Ethereum beyond just using a centralized cryptocurrency exchange. These options may appeal to users looking for more privacy, convenience, or flexibility in payment methods.

• PayPal
• Venmo
• Credit/Debit Card
• Crypto exchange-traded funds

PayPal

Many leading crypto exchanges and brokers like to integrate PayPal. They let you buy Ethereum directly, using a PayPal account balance or linked bank accounts/cards.

The fees are higher than traditional bank transfers. Still, buying crypto with PayPal provides a convenient payment method.

Plus, you can use PayPal’s interface to purchase Ethereum directly:

• Go to the Finances tab
• Select Ethereum
• Click Buy
• Enter amount
• Confirm purchase

Venmo

The popular mobile payment app Venmo offers Ethereum. You can use your Venmo balance or linked bank accounts to purchase ETH.

Fees are comparable to other card payment methods.

Here’s how to invest in Ethereum with Venmo:

• Go to the Crypto tab
• Select Ethereum
• Enter the amount for your purchase
• Click Review
• Your app will show you a breakdown of the amounts
• Tap Buy

Credit/Debit Card

Nearly every major cryptocurrency exchange and wallet service supports purchasing Ethereum by simply charging your credit or debit card. 

Card payments are instant and convenient, but generally incur processing fees of around 3-5% of the transaction amount compared to cheaper bank transfers.

Plus, buying crypto with a credit card is slightly different compared to debit cards. Banks may see these transactions as cash advances.

American Express, Mastercard, and Visa will support crypto purchases, but some credit card issuers won’t.

Debit cards are easier to use and widely accepted. Plus, you won’t pay interest on your credit.

Crypto Exchange-Traded Funds (ETFs)

Crypto exchange-traded funds (ETFs) are investment products that let you gain exposure to Ethereum without directly purchasing and holding the digital asset.

ETF is a security that tracks the price of an underlying asset or basket of assets. With a crypto ETF, the underlying assets are major cryptocurrencies.

A crypto ETF invests in and holds a portfolio of cryptocurrencies like Bitcoin, Ethereum, and others. This portfolio is designed to mirror the performance of the crypto market as a whole or a specific crypto index.

You can purchase shares of the crypto ETF on a stock exchange, just like buying shares of a company stock. As the value of the underlying crypto holdings rises or falls, so does the price of the ETF shares.

The key benefit is simplified investment exposure. You can simply purchase crypto ETF shares through a regular brokerage.

Crypto ETFs are managed by fund providers who handle all the buying, selling, storage, and crypto custody details for the underlying assets. This provides an easier entry point.

However, crypto ETFs do carry fees for managing the fund, whereas directly holding cryptocurrencies involves just exchange and network fees when buying/selling.

How to Safely Store Ethereum?

Even the safest crypto exchanges are prone to cyber-attacks. This is why you should find a safe storage solution.

Generally, investors are advised to keep their funds away from the exchanges, in cold, hardware wallets, where only they have control over the funds. Ledger wallet is the best example of a hardware wallet with robust features and solid security.

This hardware wallet is ideal for new investors who don’t need to trade and don’t depend on constant internet connectivity for transactions.

On the other hand, if you’re looking to trade, you’ll need a safe storage option that is connected to a trading platform. Trust Wallet offers such connectivity.

Remember, moving funds from the exchange means you have all the control. You’ll be responsible for seed phrases, passwords, app updates, two-factor authentication, and more.

What is Ethereum (ETH)?

Ethereum is a decentralized blockchain network. It lets developers build and deploy decentralized applications (dApps) and smart contracts.

It was launched in 2015 and created by Vitalik Buterin.

While Bitcoin was designed to be a Peer-to-Peer digital cash system, Ethereum was designed as a programmable blockchain that could support a wide variety of decentralized applications.

Ethereum Ecosystem – Ether, DeFi Apps, NFTs, DAOs

Ether (ETH) is the native cryptocurrency used to pay for transactions and computational efforts on the Ethereum network.

But the real power of Ethereum comes from its ability to securely and transparently run programmable smart contracts on a decentralized computing infrastructure.

This has opened the doors to developers creating decentralized finance (DeFi) apps, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and more on the Ethereum blockchain.

As the interest and adoption of these Ethereum-based applications has grown, so has the demand to buy and hold ETH to participate in and pay for network usage.

When looking to buy Ethereum, investors are purchasing ETH tokens that can be used for transactions, smart contract execution, staking, and more.

Understanding Ethereum’s position as the leading smart contract and dApp blockchain helps contextualize why there is significant demand from both retail and institutional investors to gain exposure to ETH.

Gas and Gwei – Ethereum Fees

New investors often get confused by “gas” fees. Gas fees are simply fees that every user of the network pays, be it for a simple ETH transfer or a complex smart contract.

Gas refers to the unit of computation used to measure how much work a transaction will perform. The more “computationally expensive” an operation is, the more gas it will require.

Gas fees are paid in Ethereum’s native currency, ETH. The amount of ETH required is calculated as:

Base fee + Priority fee x Units of Gas Used

Gas Used is the total gas consumed by the transaction, while Gas Price is the price per unit of gas, set by the user sending the transaction. Gas prices are denoted in gwei.

Users specify the Gas Price based on how quickly they want their transaction confirmed. Higher gas prices incentivize validators to prioritize those transactions first.

During times of high network usage and demand, gas prices tend to spike as users compete to have their transactions processed promptly by offering higher fees to validators.

Most wallets and DeFi platforms implement an algorithm to automatically suggest a gas price based on current network conditions.

Gas fees are a way to compensate the decentralized Ethereum network and incentivize its continued operation and security.

Safety, Reliability, and Profitability of Ethereum

Ethereum has solidified its position as the leading blockchain for decentralized applications and smart contracts over the past few years.

Ethereum’s features contributed to impressive growth in value and adoption.

However, its trajectory has also been marked by volatility and scaling challenges. The network is actively working to address this.

In late 2021, the price of ETH hit an all-time high above $4,800 amid the booming crypto market and the explosion of interest in DeFi, NFTs, and other Ethereum-based projects.

However, high gas fees during peak demand periods emerged as a major usability issue.

Then, 2022 saw ETH’s value pull back significantly amid the broader crypto market downturn. It dropped to around $1,000 before recovering to the $1,500-$2,000 range in early 2023.

The long-anticipated Proof-of-Work to Proof-of-Stake migration in September 2022 transitioned Ethereum to a more energy-efficient consensus mechanism.

Upcoming upgrades like sharding aim to further enhance scalability and reduce gas fees.

Despite volatility, Ethereum remains the dominant smart contract platform and the second-best crypto right after Bitcoin.

Its future roadmap and continued development will be critical factors influencing its reliability and profitability potential long-term.

Ethereum vs. Bitcoin

When comparing Ethereum (ETH) and Bitcoin (BTC) there are some key differences to understand:

Ethereum (ETH) vs. Bitcoin (BTC)

While both are cryptocurrencies operating on blockchain networks, Bitcoin is designed to be digital money. Ethereum enables a wider range of decentralized applications through its smart contracts.

This has led to different investment narratives. Bitcoin is treated as “digital gold” and Ethereum powers the broader crypto economy and Web3 applications.

Ethereum plays a key role in crypto lending and interest. Without it, some of the best crypto interest accounts and crypto and Bitcoin lending sites would have a hard time operating.

From an investor perspective, some allocate to both BTC and ETH to gain exposure to the leading crypto asset and the leading smart contract platform.

Trading vs Buying vs. Investing in Ethereum

When it comes to gaining exposure to Ethereum (ETH), there are three main approaches – trading, buying, and investing.

Trading

Trading Ethereum typically refers to actively buying and selling ETH over shorter timeframes. It generates profits from its price movements.

Traders utilize technical analysis, chart patterns, indicators, and derivatives like futures and options to try and capitalize on ETH’s price movement.

This approach is more suited for experienced traders. They are comfortable with higher risk tolerance, leverage, and active trading strategies.

Successful ETH trading requires extensive market knowledge, skill in timing entries/exits, and robust risk management. For novices, trading ETH could lead to major losses.

Buying

Buying Ethereum is the most straightforward approach. It involves selecting an exchange, linking a payment method, and purchasing the desired amount of ETH.

This method has lower overhead than active trading, but you need to securely store ETH in a non-custodial wallet.

Buying suits those wanting exposure to ETH without the complexities and financial requirements of trading.

Investing

Investing in Ethereum refers to taking a buy-and-hold approach. It’s based on the long-term conviction in the success and appreciation of the Ethereum network and ETH’s value.

Investors may dollar-cost average into a diversified crypto portfolio with ETH as a core holding.

This long-term mindset ignores short-term price fluctuations.

Investors believe in Ethereum’s fundamentals – its technology, developer activity, ecosystem growth, and potential to power Web3 and the decentralized economy.

Here, the goal is to capture ETH’s value appreciation over multi-year periods.

Why Trust Us?

At CryptoManiaks, we understand that navigating the process of buying Ethereum can be daunting.

That’s why our team is dedicated to providing accurate, up-to-date, and trustworthy information. We help you confidently enter the world of Ethereum investment.

We have a team of seasoned cryptocurrency enthusiasts, traders, and analysts who live and breathe the Ethereum ecosystem.

Our goal is to educate and empower you with objective information. We help you make informed decisions that align with your investment goals and risk tolerance.

Our content is meticulously researched and sourced from reputable platforms, industry leaders, and authoritative publications. We cross-reference our information and regularly update our guides to maintain accuracy and relevance.

Frequently Asked Questions

1. 01.

   Are There Any Limits on How Much Ethereum I Can Purchase?

   

   In a way, there are limits on how much Ethereum you can purchase. The limit is determined by various factors such as the platform you are using to buy Ethereum, your account verification level, and the country you reside in. Most platforms have a tiered system where users can increase their purchasing limits by providing additional identification documents and completing certain verification processes.

2. 02.

   What Are the Current Fees Associated With Buying Ethereum?

   

   The current fees associated with buying Ethereum can vary depending on the platform or exchange you choose. Generally, there are three main types of fees to consider: transaction fees, deposit/withdrawal fees, and trading fees. These fees can range from a fixed percentage of the transaction value to a tiered fee structure based on trading volume.

3. 03.

   How Can I Buy Ethereum With Cash?

   

   To buy Ethereum with cash, you can utilize a peer-to-peer exchange platform. Here, buyers and sellers can connect directly and negotiate the terms of the transaction. Simply find a seller who accepts cash payments, agree on the price and quantity of Ethereum, and arrange a meeting in a safe public location to complete the transaction.

4. 04.

   How Do I Set up a Digital Wallet for Buying Ethereum?

   

   Look for wallets that support Ethereum and have a strong reputation in the cryptocurrency community. Once you’ve selected a wallet, visit their website or download their mobile app. Follow the registration process, which typically involves providing your email address and creating a strong password. Then, you’ll be prompted to generate a unique Ethereum address within your wallet.

5. 05.

   What Are the Advantages and Disadvantages of Buying Ethereum?

   

   Ethereum is a highly popular and widely accepted cryptocurrency. It has a strong track record of price appreciation, making it an attractive investment option. Ethereum’s blockchain technology allows for the creation of smart contracts and decentralized applications. This opens up a world of possibilities for developers and businesses.

6. 06.

   What Are Some Common Mistakes to Avoid When Buying Ethereum?

   

   One should be cautious of purchasing Ethereum from unverified or unknown sources. Use reputable cryptocurrency exchanges that have a proven track record. Double-check the wallet address before making any transactions. Sending Ethereum to the wrong address can result in irreversible loss of funds.