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We feature the top brokers and exchanges that offer the option to buy Ethereum (ETH) with a credit card or debit card. For larger sums you can also send a wire transfer. We list exchanges and services based on personal experience, and reputation. Please view the risks associated with cryptocurrency trading at the bottom of this page. Also access our affiliate disclaimer.
How to Buy Ethereum (ETH) with a Credit Card
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.
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.
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?
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)
- 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.
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.
Ethereum (ETH) Cryptocurrency Trading Risk Disclaimer
There is a very high degree of risk involved in trading securities, and this trading risk is higher with Cryptocurrencies such as ETH due to markets being decentralized and non-regulated. There is no central bank that can take corrective measure to protect the value of Cryptocurrencies in a crisis or issue more currency. You should be aware that you may lose a significant portion of your portfolio.
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All information contained herein should be independently verified and confirmed. We do not accept any liability for any loss or damage whatsoever caused in reliance upon such information or services. Please be aware of the risks involved with any trading done in any financial market. Do not trade with money that you cannot afford to lose. When in doubt, you should consult a qualified financial advisor before making any investment decisions.
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