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How to Buy Ethereum (ETH)

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

We list the top 7 exchanges that offer the ability to buy Ethereum (ETH) cryptocurrency with a credit card, debit card or Bitcoin (BTC).

Bitstamp

Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world and are a popular choice in the USA. The exchange now has more than 4 million users worldwide and offers a wide range of cryptocurrencies to choose from including Ethereum (ETH).

A highly experienced exchange, Bitstamp provides a thorough and user-friendly trading environment that is secure and with enough choice to satisfy most traders. The global nature of the company and the trusted regulation and licensing put in place is also a positive aspect for many new or experienced users.

They currently accept Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.

Read our Bitstamp Review or visit Bitstamp.

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 which 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.

Germany & Netherland residents are prohibited.

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

Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.

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, Canada, Singapore, UK & internationally.  USA residents are prohibited from purchasing most tokens.

Read our Binance Review or visit Binance.

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

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.

Coinbase

Coinbase is a publicly traded crypto exchange listed on the NASDAQ.  It is one of the most widely used exchanges in the United States and accepts clients from 100+ countries including Australia, Canada, Singapore, and the UK.

Over 460 billion dollars in volume has been traded by over 70 million users at Coinbase. Security is a paramount feature with 98% of customer funds being stored in secure offline storage. The platform is simple to use and is available on desktop, Android, and iOS, offering trading opportunities in over 140 cryptocurrencies including Ethereum (ETH).

This exchange currently accepts USA residents excluding Hawaii.

Read our Coinbase Review or visit Coinbase.

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 offers Ethereum (ETH) trading opportunities.

Read our Huobi Global Review or visit Huobi Global.

WazirX (INDIA Only)

WazirX is India’s biggest cryptocurrency exchange with over 400,000 users and they are expanding rapidly. They are one of the most reputable exchanges that currently offers Ethereum (ETH) trading opportunities and they currently accept 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 as not only 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 endeavour.  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 which 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 to surround Ethereum include:

  • Hard fork
    • Led to 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 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 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.

Daniel is a big proponent of how blockchain will eventually disrupt big finance. He breathes technology and lives to try new gadgets.

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