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Ethereum is an open-source, public blockchain which offers the possibility to run smart contract functionality. It is often thought to be a cryptocurrency, but this is not correct. Ethereum’s cryptocurrency is actually called Ether, but this name never really stuck. As a result, many platforms and people refer to the cryptocurrency as Ethereum or ETH.
You can invest in Ethereum on the following CFD trading platforms:
80.5% of retail CFD accounts lose money
Your capital is at risk
Released in 2015, the cryptocurrency quickly gained popularity and launched with 72 million “pre-mined” coins. Its primary selling point potential comes from the fact that Ethereum script can be, and is used to run smart contract algorithms, in use in a variety of sectors and industries.
Buying Ethereum today is extremely easy, due to the numerous platforms and brokers which sell this digital currency online and at various physical locations. The cryptocurrency is the second largest, with a market cap of over $19 billion. Ethereum is only second to Bitcoin which has a much larger market cap of over $147 billion.
While the process to buy Ethereum varies
depending on the platform you choose, you would normally follow these
Ethereum is normally represented by its ticker symbol, ETH, or its general symbol, Ξ. The buying price of Ethereum varies depending on where and when you buy it, and it is normal that different platforms sell the coin at varying prices at the same time. On January 13th, 2018, Ethereum registered its highest ever selling price, known as all-time high, with a coin sold at $1,432.88. Today the price is significantly lower, but the coin is relatively volatile and could increase in value dramatically once again.
Choosing the best place to buy Ethereum depends on the way which you intend to pay for it. Most reputable exchange platforms, as well as brokers and trading platforms, accept one or more of the following methods.
The options to buy ETH with a credit or debit card are truly immense. Since this is the second-largest cryptocurrency, it is available on numerous top platforms. Using a credit or debit card to buy Ethereum is easy, and deposits your new coins instantly into your account. Furthermore, your card issuer will automatically convert your base currency into a currency which is supported by your platform of choice.
CEX.io is an exchange platform which allows you to buy Ethereum with a Visa or Mastercard. This platform is split between a brokerage service designed for novice users and an advanced trading platform which offers margin trading to more experienced investors. CEX.io accepts EUR, USD, and GBP payments, and offers superb fees for high volume traders.
eToro is another platform which allows you to use debit or credit cards to invest in Ethereum. Unlike CEX.io, when you trade with eToro you are faced with 2 options. Either buying the Ethereum assets or else investing in Ethereum Contracts for Difference (CFDs). Ethereum CFDs are advanced trading instruments which use leverage to give traders the opportunity to open larger trades.
CFDs are high-risk instruments which can
result in the trader losing some or all of the investment capital and
should, therefore, only be chosen by those who understand the risks
and can afford any potential losses.
In general, these are the most reputable platforms which allow you to buy Ethereum with a debit or credit card include:
CFD short compliance text
PayPal is an eWallet which is commonly used to purchase goods and services online. Over the years, it has built a reputation for being trustworthy and fast, and as a result, is used by millions around the world. Notwithstanding this immense popularity, buying Ethereum with PayPal is quite difficult. This is due to the high fees which the eWallet charges to online platforms.
If you would like to buy Ethereum with PayPal, your best options involve investing in Ethereum CFDs. Plus500 is amongst the best platforms for this as it specialises in providing CFDs in a variety of markets, including, of course, cryptocurrencies. Investing in Ethereum with PayPal on Plus500 is fast and free, and allows you to instantly own the instrument you are purchasing without the hassle of storing it.
CFD trading platforms which allow you to buy ETH with PayPal include:
Bank transfers are the primary payment method which can be processed online and does not cost the platform anything to accept. As a result, you can buy Ethereum with a bank transfer across a large number of trading and exchange platforms and brokers.
Although this method is slow (1-10 business days), it allows you to easily convert your base currency to one which is supported by your platform of choice. Furthermore, while some platforms charge deposit fees when deposits are made with other methods, deposits via bank transfers are normally free. However, be careful as your bank might charge extra for transferring the funds.
The following are just a few examples of the numerous platforms and brokers which allow you to buy Ethereum with a bank transfer:
One of the best ways to buy Ethereum anonymously is to use an Ether ATM. These ATMs do not require any identification and deposit your newly purchased coins directly into your cryptocurrency wallet. There are hundreds of Ethereum ATMs all over the world, with the majority located in North America, Europe, and Asia.
Another way to buy Ethereum anonymously and safely is to use the popular cryptocurrency exchange, Changelly. Although you are requested to input certain personal data, Changelly does not require the submission of identification documents, so you still get to enjoy a certain degree of anonymity whilst buying Ethereum from a secure source.
Buying Ethereum from a seller or independent broker online is another way to retain anonymity and still get hold of the digital currency. However, this method is highly risky, as many individuals have fallen victim to scam artists who feigned to be Ethereum sellers.
The safest and most convenient places to
buy Ethereum is online, through reputable exchange platforms,
brokers, and trading platforms. There are many different ways to buy
Ethereum or financial products based on it.
Cryptocurrency exchanges and brokers allow you to buy or trade Ethereum with ease, offering a variety of trading options and charting tools. While the majority of platforms and brokers cater to all experience levels, there are some which specifically cater to the novice or experienced trader.
A significant difference between exchange platforms and brokers are their fees. Since they invest heavily in security, functionality and technology, major platforms tend to charge higher fees than independent brokers. Similarly, due to their additional services, brokerage platforms would normally cost more to use than basic trading platforms.
Apart from using online options, it is also possible to buy Ethereum with cash, offline. Generally, this option is less convenient, especially when it is possible to buy the coin online. However, it can be difficult to obtain an online account in some jurisdictions, so in such cases, cash remains the primary payment option.
Ethereum ATMs are the best way to use cash to buy the digital currency and have it transferred instantly to your account. These ATMs are located all over the world and normally accept the fiat currency of the country in which they are located.
An alternative method to buying Ethereum with cash is to meet a seller or broker online, where you eventually both agree to meet in person. For this method to succeed, you need to locate a person who is based in your area. Be aware that with this method there is a higher possibility of fraud, so make sure your Ethereum is deposited while you are still with the seller.
Several exchanges allow you to exchange one cryptocurrency for another. It is, therefore, possible to trade one currency, such as Bitcoin, Monero or Ripple, and receive an equivalent amount of Ethereum. Binance is one of the best-known exchanges which, until recently, only accepted crypto to crypto trades. This exchange supports the trading of a large number of cryptocurrencies and offers some of the lowest fees in the industry.
Other exchange platforms which allow you to trade one cryptocurrency for Ethereum or vise-versa include:
Although trading Ethereum is generally
supported in most countries, there are a handful of countries where
cryptocurrencies are either completely banned or allowed under
certain conditions. As a result, most online platforms restrict or
ban users from certain countries.
Binance, for example, does not accept users from the US, and neither do ChangeNOW or Bitmex. Since CFD trading is banned in the country, Plus500 and IQ Option also ban US users, whilst eToro sets certain restrictions. Similarly, users in Australia cannot open an account with IQ Option or BitPanda.
EU citizens enjoy the least number of restrictions. Users based in this region can open accounts with the majority of all reputable cryptocurrency exchanges, brokers, and trading platforms.
Ethereum CFDs are a relatively recent financial instrument with which to invest in the cryptocurrency without having to own it. By investing in CFDs through several reputable online brokers, such as Plus500 and IQ Option, you can benefit from movements in the currency’s price. Depending on whether you open long or short positions, you can benefit both when the price increases or when it decreases.
Trading CFDs is normally possible through the use of leverage, which allows you to invest a multiple of your capital. Whilst leverage can result in larger gains, it can also result in significant losses. As a result, Ethereum CFD trading should only be carried out by traders who can afford potential losses and are aware of the associated risks of the instrument.
Before you even buy Ethereum you need to know where you plan to store it. While most cryptocurrency exchanges offer in-built wallets where you can store the coin, others do not, and require you to provide a wallet address. Hardware wallets are the best place to store your Ethereum, as they are extremely safe and cannot be accessed remotely.
KeepKey and Trezor are two of the best cold storage wallets for Ethereum, since they are both affordable and easy to use. Alternatively, you can get a free software wallet, such as Coinbase Wallet, which is less secure, since it can theoretically be hacked.
If your aim is to profit from Ethereum’s price movement and you do not need the actual currency, then consider investing in Ethereum CFDs. Keep in mind that when buying CFDs, you are not actually buying the coins, so you needn’t worry about storing them securely.