How to Buy Ethereum ETH

how to buy ethereum

The Ethereum blockchain supports thousands of applications and transactions, but it failed to shake off the scalability issues that have plagued it for a long time. The Ethereum network has the capacity to process about 30 transactions per second, but it has a target of 100,000 TPS. Ethereum’s whitepaper in 2014 saw developers push the envelope, harnessing the blockchain network for the second generation of crypto.

One of the main features of Ethereum is that you keep control of your own assets by managing your own account. This means you don’t have to trust any third party with your assets, and you are protected from any custodian acting dishonestly, going bankrupt or getting hacked. Once you have an Ethereum account, all you need to do is share your address to start sending and receiving ETH (and other tokens) peer-to-peer.

Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. That’s why it’s important to consider your risk tolerance along with the diversity and stability of the rest of your investment portfolio before buying Ether. Experts recommend that you never invest more in crypto than you can afford to lose.

Start Investing In Ethereum Today With Coinbase

Ethereum is also backed by multiple Fortune 500 companies and is being used by multiple financial institutions. For all of these reasons and more, many investors are rapidly adding ETH to their portfolios. You’ll need a way to securely store the private keys that allow you to sell, spend or otherwise use your digital currencies.

  1. In most cases, you’ll deposit money from a bank account, like your personal checking or savings account.
  2. Crypto assets were created around the idea of decentralization where no one entity calls the shots.
  3. Ethereum’s negative performance in 2022 is largely the result of crypto winter, which has dragged down the prices of many cryptocurrencies.
  4. Ethereum’s “decentralization” is a contentious topic, with many outspoken critics becoming disappointed in how centralized the project has become.

This means there are fewer geographical restrictions than with centralized alternatives. If someone is selling what you want and accepting a payment method you can provide, you’re good to go. If you’re looking to purchase ETH, you can check out crypto exchanges such as Binance, Bybit, Bitget, Coinbase, Kraken or eToro. These solutions are built on top of the mainnet to ease network congestion, which ultimately helps to lower fees. For example, sending ETH via Metis Network costs less than $0.01, and a token swap will set you back a mere 2 cents.

As the basis for placing any trades, it is important to identify the best trading platform for your needs. There are a few options when it comes to cryptocurrencies with some of the top platforms including Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex. Before you can buy Ethereum through a crypto exchange, you have to fund your account. In most cases, you’ll deposit money from a bank account, like your personal checking or savings account.

Follow wallet instructions

I’m most interested in the crossroads between cryptocurrencies and the wider economy. In a recent report, American megabank JPMorgan raised the alarm on Ethereum’s centralization. It directed attention to how the top-five liquid staking providers — Lido, Coinbase, Figment, Binance and Kraken — control over 50% of Ether staking, with Lido controlling nearly one-third. Interestingly, in May 2022, Buterin said no liquid staking service should exceed 15%.

how to buy ethereum

Be sure to follow them carefully – in most cases, no one can help you if you lose access to your account. Ethereum’s scalability issues and high gas fees have spurred the rise of Layer-2 (L2) solutions, which have been a hit with the masses. For example, the network is currently processing 19 transactions per second. Ethereum’s 2022 upgrade, called “the Merge,” was widely expected to solve Ethereum’s scalability, but it did address the issue in a meaningful manner. Whether you’re planning to HODL for the long term or trade actively, this article aims to serve as your North Star in this vast sea of options, guiding you toward the best exchanges to buy ETH.

Buy Ethereum

One of the biggest considerations for choosing a cryptocurrency trading platform is the type of exchange. Cryptocurrency trading platforms can be either fiat exchanges or cryptocurrency to cryptocurrency exchanges (C2C). As one of the two largest cryptocurrencies in the world, investors can trade Ethereum easily on fiat exchanges. For fiat currency platforms, this can be relatively easy after verification of your payment information.

Deposit Currency

This first generation of crypto wasn’t all that exciting with participants focusing on making the nascent technology better. Verifying the account is usually the final step in the account opening process. Most all exchanges will require that you verify your account in one or more ways. This is where you will likely need to upload documents to verify your identity and ensure that your account passes regulatory muster. Verification can take anywhere from approximately one hour to potentially a day or two depending on the exchange. Your decisions may also be informed by whether you view Ethereum as a long-term investment, a short-term buy, or a speculative bet on a volatile asset.

You can buy cryptocurrency with traditional fiat currency such as U.S. dollars. If you don’t already own cryptocurrency, you’re going to have to use cash at some point. If you’re using a centralized exchange, you can fund your account using a bank transfer, a credit card or a debit card.

You can buy Ethereum from a reliable crypto exchange such as Bybit, Binance or Kraken using your credit/debit card or directly through your bank account. When choosing a funding method, review the crypto exchange’s fees; they can vary based on the method. Buying Ethereum directly via the funds in your bank account comes with a few benefits over a card payment method. As you’re aware, Bitcoin is the most famous crypto, and when its price rises, so do most altcoins, including Ethereum. Speaking of, British lender Standard Chartered expects ETH to reach $8,000 by the end of 2026 thanks to the Ethereum network’s dominant position in gaming and tokenization. Ethereum marked a significant leap forward by addressing these limitations.

Fiat exchanges make it easy to withdraw ETH by simply selling and sending the proceeds to your bank account. On a C2C platform, you would need to code transfer your ETH to a fiat exchange and then sell to cash out. On all platforms, you also generally have the option to send ETH to a wallet.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Although Ether has had impressive returns in the past, it’s also had some significant crashes, sometimes in astonishingly short amounts of time. Notably, it went from a high of almost $4,000 per coin in May 2021 to less than $1,800 in June 2021.