How to Buy Ethereum | Buy ETH in 4 Steps (October 2023)

Ethereum is an open-source distributed blockchain network that simplifies smart contract scripting. Importantly, the platform allows developers to streamline and build decentralized applications that function on blockchains. Consequently, the platform has introduced the world to a host of new functionalities and applications.

To learn more visit our Investing in Ethereum guide.

How to Buy Ethereum (ETH) in 4 Steps

The whole process can take as little as 10 minutes, and all you'll need is a smartphone or computer, photo identification, and a means of payment.

1. Compare Crypto Exchanges – We list the top cryptocurrency exchanges that offer the ability to buy Ethereum (ETH) cryptocurrency.
2. Create an account – Verify your email address and identity.
3. Make a deposit – Debit Card, Credit Card, Wire Transfer, or Bitcoin.
4. Buy Ethereum – Use your funds to Buy ETH.

We list the top 8 exchanges that offer the ability to buy Ethereum (ETH) cryptocurrency with a credit card, debit card, or Bitcoin (BTC).

1. eToro USA

This is a leading cryptocurrency exchange that has been operating since 2007 and is exclusively recommended for USA residents. They offer an unbeatable trading experience and have become popular for crypto trading.

eToro is registered with FinCEN in the USA as a money services business, which gives it a platform to expand its service offering within the US through its American entity, eToro USA LLC.

As you would expect eToro keeps you protected by using segregated bank accounts within top-tier financial institutions. This ensures that in the very unlikely event, there were some financial issues at the broker, your funds would be fully protected. eToro also furthers this protection by providing negative balance protection as a standard. This stops you from ever losing more money than you deposit in your trading account.

They offer trading opportunities for most USA residents excluding the states of Hawaii, Minnesota, Nevada, New York, & Puerto Rico.

Read our eToro Review or visit eToro USA.

eToro Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

2. Uphold

A top exchange in the United States & UK, Uphold is an experienced and extremely innovative trading platform that should be able to meet your needs for trading across a number of cryptocurrencies including Ethereum (ETH). Beyond the ease of use and innovative features within the trading platform, what stands out about Uphold is the credibility it has gained in the industry.

Uphold offers both a desktop and mobile app trading experience that is extremely intuitive. The trading view is completely customizable with the assets that you trade the most and is very easy to navigate while providing a modern feel on both desktop and mobile. It is a very popular and suitable choice, particularly for new traders.

Besides being visibly appealing, the Uphold trading platform allows you to place your trades with great ease. Just a couple of clicks, and you can make trades directly from your deposit method without even having to wait for funds to clear to your account. This one-step ordering is another innovation from a company that prides itself on the usability of its platform. Uphold also provides the ability to execute limit orders.

Best of all they offer ETH staking opportunities.

German & Netherlands residents are prohibited.

For the full lowdown, see our Uphold review or visit Uphold to get started now.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. 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..

3. Paybis

Paybis is designed for simplicity and is an extremely trustworthy starting point for buying Ethereum (ETH) and other cryptocurrencies.  This exchange has been operating since 2014 and has assisted numerous traders in beginning their crypto trading journey, offering the convenience of purchasing with just a credit or debit card.  Unlike other exchanges where you buy tokens from other users, with Paybis you purchase directly from the exchange, making the process much simpler and smoother.

Paybis is a truly global company offering services to residents from 180+ countries including Canada, Europe, UK, & USA.

The fees you will encounter here are good value and competitive with others in the sector depending on the payment method you use.

FinCEN Department of the Treasury, United States of America Money Service Business Registration: 31000224635628.

Read our Paybis Review or visit Paybis.

4. Kraken

Founded in 2011, Kraken is one of the most trusted names in the cryptocurrency industry with over 9,000,000 users and over $207 billion in quarterly trading volume.

From humble beginnings, Kraken now offers over 200 digital assets including Ethereum (ETH). For more sophisticated investors Kraken also offers futures and margin trading.

Kraken has continued to evolve its platform, and its commitment to the industry by being one of the first exchanges to offer buying opportunities on new tokens.

Kraken offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommended exchange for USA residents. (Excluding New York & Washington state)

Read our Kraken Review or visit Kraken.

5. KuCoin

KuCoin is a well-known name in the industry, and one of the most competitive when it comes to fees and trading costs. The exchange has grown exponentially from its early days of offering only crypto to crypto trading.  It now offers a varied range of services including a P2P exchange capability, and purchasing with credit or debit cards.

KuCoin currently offers Ethereum (ETH) cryptocurrency trading as well as over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.

This exchange currently accepts USA residents.

Read our KuCoin Review or visit KuCoin.

6. Binance

Binance is one of the largest and most well-known cryptocurrency exchanges in the world. The benefits of purchasing Ethereum (ETH) here are both lower fees than competing exchanges, and increased liquidity enabling you to buy and sell quickly to take advantage of market-moving news.

This exchange is best for investors residing in Australia, Singapore, UK & internationally. Canadian & USA residents are prohibited.

Read our Binance Review or visit Binance.

Use Discount Code: EE59L0QP for 10% cashback on all trading fees.

7. Huobi Global

Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion. Having once accounted for half of the world’s digital asset transactions, Huobi now serves more than 5 million users in over 130 countries around the globe. It should be noted that Huobi Global currently does not accept USA or Canadian residents.

Huobi Global is one of the top exchanges that currently offer Ethereum (ETH) trading opportunities.

Read our Huobi Global Review or visit Huobi Global.

8. WazirX

Launched in 2018, WazirX is India’s biggest cryptocurrency exchange with over 6,o00,000 users, and is expanding rapidly. It is one of the most reputable exchanges to currently offer Ethereum (ETH) trading opportunities and currently accepts clients from all over the world. This exchange is part of the Binance Group, which ensures a high standard of quality.

USA residents are prohibited.

Read our WazirX review or visit WazirX

What is Ethereum (ETH)?

Ethereum is a popular blockchain project, which utilizes an open-source protocol.  Boasting smart-contract functionality, Ethereum can act not only as a currency but as a platform for hosting decentralized applications (dApps).

Ethereum makes use of its native token, ‘Ether’ for transactions occurring on its network.  These tokens are structured as ‘ERC-20’ – a protocol developed by Ethereum, and utilized by various blockchains.

What does it do?

Built using blockchain, Ethereum utilizes smart-contracts, allowing for the ability to run applications atop its protocol.  Its native token, Ether, also acts as a currency, providing its holders with an easy means for transferring value.

Various implementations of Ethereum’s capabilities have been attempted throughout the years.  One of the most promising examples includes applications surrounding Decentralized Finance (DeFi).  This sector entails a series of financial-based applications based on blockchains, like Ethereum.

How does Ethereum work?

Behind the scenes, the network makes use of a proof-of-work protocol to function.  This means that the network is decentralized among a series of miners around the world.  These miners host nodes, verifying transactions and storing up-to-date records of the Ethereum blockchain.

To complete a transaction on the Ethereum network, a small fee is required by the initiator.  This fee is commonly referred to as ‘gas’.  The amount of gas required to complete a transaction varies, as it is dependent on network congestion; more gas increases the speed at which a transaction will be completed – due to a greater incentive for miners to process.

Projected Developments?

Despite many competitors, which tout equal, or greater, functionality, Ethereum has managed to retain its spot atop its class.

It is widely expected that Ethereum will soon transition from a ‘proof-of-work’ based protocol to a more efficient ‘proof-of-stake’.  While the commonly used POW relies upon computational power for a network to function, POS does not.  Rather, POS allows for network validators to operate through ownership of coins/tokens.

Underlying Ideology?

Nearly from the onset, Ethereum was meant to be a non-profit endeavor.  This remains true to this day and has played a role in its regulatory acceptance.

Many view Ethereum as striving to achieve the ‘Internet 2.0’; A platform that eliminates the need for centralized operations, bringing democracy, and security, simultaneously to our data needs.  In doing so, Ethereum is, essentially, giving power over data back to the user.

Acceptance and Controversies?

Ethereum is arguably the most well-known, and popular, blockchain-based project not named Bitcoin.  It is found on virtually every platform which supports cryptocurrencies.

Acceptance is expected to continue, as it is believed that 2020 will see the first Ethereum Futures being offered – an event that will bring new levels of awareness surrounding the project.

Acceptance has moved beyond the public, with government entities around the world piloting the use of Ethereum.  One such example is the National Research Council of Canada building an Ethereum-based platform, which provides Canadians with real-time access to government-funded grants and expenditures.

To date, two of the larger controversies surrounding Ethereum include:

• Hard fork
  • Led to the creation of Ethereum Classic (ETC)
• Solidity
  • Utilizes a unique coding language, making developing more difficult

Beyond these two leading controversies, there remains a third, which is also shared by Bitcoin.  This is the usage of a POW model.  While POW has treated Ethereum well enough to grow into its current state, a transition to POS is believed to be needed.  If the goal of Ethereum is to continue growing, then its power demands by network miners will continue to do so as well.  A transition to POS will greatly diminish these power requirements, removing a major obstacle on the route to success.

This transition has already been confirmed by Ethereum developers and was originally expected to take place in early 2020.  While this has since been delayed, it is still expected sooner than later.

Regulation?

Unlike most cryptocurrencies, Ethereum has received endorsement from various high-ranking regulatory officials in the United States as NOT being a security.

Ethereum presented an interesting case, as regulators noted that, although the asset may have begun its life as a security, it has since evolved beyond that classification.  This is due to a lack of centralized oversight, and its ability to function autonomously with no direct benefactor.

This classification, however, may be precarious in the coming months.  With an announced transition to POS, officials from the CFTC have noted that providing the ability to ‘stake’ tokens may result in being classified as a security.