How to Buy Ethereum in the UK: The Coinlist Guide

Since its launch, Ethereum has taken blockchain technology to another level, allowing anyone to create and run decentralised applications on its network. For this reason, Ethereum is one of the most popular of the “altcoins” – crypto-currencies other than Bitcoin.

Ethereum has alternated between being the 2nd and 3rd most traded crypto-currency over the last couple of years. Due to this popularity, investing in Ethereum has become a new way for traders and investors to diversify their portfolios, while taking advantage of new and profitable investment opportunities.

In this guide, we will explain everything there is to know about how to buy Ethereum – the reasons why you should buy it, how to buy it, which payment methods you can use, how to invest, which platforms are the best for your investment style, and much more – so keep reading!

Recommended places to buy Ethereum

Why should you buy Ethereum?

Ethereum, created in 2015 by Vitalik Buterin, is the first blockchain to introduce smart contracts, created within its own programming language, called Solidity. Ethereum is also the first to offer companies the opportunity to do their own ICOs, allowing them to raise funds more easily.In the crypto-currency ecosystem, the size of the community and the number of developers are key indicators to determine the strength of a network.The Ethereum team is definitely the key to its success, as there are, in addition to its creator, many prominent figures within the Ethereum community, such as Vlad Zamfir and Joseph Lubin.

The latter created Consensys in 2014, which helps companies to develop and implement software and applications on the Ethereum network, which supports Etherem’s development team and price.

The Ethereum blockchain is therefore one of the most popular among programmers, which is its strength. Indeed, the development team is more interested in overcoming obstacles on the network (such as scalability for example), rather than making money at any cost.

The Ethereum blockchain is perfectly functional and has already proven its worth! No other cryptocurrency has such a rich, varied and functional ecosystem, which makes Ethereum a very promising investment.To this end, one should also keep in mind the development and implementation of several new features.These include the Proof of Stake (PoS) consensus, and updates such as Plasma and Sharding, which should allow the Ethereum network to strengthen its position as a market leader in its field.

Interested in Ethereum?

You can either buy Ethereum via specialised exchanges and hold the coins in a wallet, or trade Ethereum via brokers on trading platforms specialised in CFDs or other financial derivatives.

Best trading platforms to invest in Ethereum

You need to choose the right broker to be able to trade in the best trading conditions (speed of execution, low latency, low spreads and commissions, trading platform quality, trading tools and technical indicators, etc.).

eToro

eToro has also a branch in the U.S. dedicated to crypto-currency trading. In addition to Ethereum (ETH), it offers currency pairs with more than 13 other crypto-currencies like:

eToro only accepts online banking or wire transfers for American customers. Elsewhere, clients can use bank transfers, credit cards (Visa, MasterCard and Diner’s Club), e-wallets like Skrill, PayPal, Neteller, Webmoney, as well as China Union Pay, Giropay, and Yandex. The minimum deposit is $200, and eToro trading accounts are only in USD, so all your funds sent in local currencies will be converted into USD.

Visit eToro

Investous

Created in 2018 and based in Cyprus, Investous is a new broker specialized in CFDs, Forex and crypto-currencies. Operating through F1 Markets Limited in the European Economic Area (excluding Belgium) and Switzerland, this broker is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the licence 267/15.

There is no commission payable to invest in crypto-currencies with Investous, it earns money with the spread, which is the difference between the buying price and the selling price. In addition to Ethereum (ETH), Investous offers currency pairs with:

Visit Investous

eToro Vs. Investous

eToro Investous
Visit eToro Now Visit Investous Now
76% of retail investor accounts lose money when trading CFDs with this provider Between  74-89% of retail investor accounts lose money when trading CFDs.
Created in 2006 2018
Regulated by CySec (Cyprus), FCA (UK) and ASIC (Australia) CySec (Cyprus)
CFDs - Total Offered More than 1,400 (Forex, Crypto-currencies, Indices, Stocks, Commodities, EFTs) More than 300 (Forex, Crypto-currencies, Indices, Stocks, Commodities, EFTs)
American traders allowed             Yes No
Payment methods accepted Credit cards (Visa, MasterCard, Diner's Club), bank transfers, GiroPay, PayPal, China Union, Yandex, Webmoney, Skrill and Netteller Credit cards (Visa, MasterCard, Discover), bank transfers as well as Netteller
Account currency US Dollar (USD) US Dollar (USD), British Pound (GBP), Japanese Yen (JPY), Euro (EUR), Russian Ruble (RUB)
Minimum Deposit $200 $250
Crypto-currencies available to trade Bitcoin (BTC), Bitcoin Cash (BTH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Dash (DASH), Ripple (XRP), Stellar (XLM), Iota (MIOTA), Cardano (ADA), Eos (EOS), Neo (NEO), Tron (TRX), Zcash (ZEC) Binance Coin (BNB)

against other crypto-currencies or the CHF, the EUR, the GBP, the USD, the CAD, the JPY, the AUD and the NZD.

Bitcoin (BTC), Bitcoin Cash (BTH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Dash (DASH), Ripple (XRP), Monero (XRM) and Stellar (XLM)

against the EUR, the USD and the GBP

 

Trading platforms Proprietary Platforms:

Social Trading / Copy-Trading (Open Book). Web-based platform (WebTrader). Trading app (Mobile Transfer)

Proprietary Platforms:

Web-based platform (WebTrader), Trading app.

MetaTrader 4 (MT4)

Best exchanges to buy Ethereum

Before buying your Ethereum, it is important to choose a reputable, robust and reliable exchange platform that has never been hacked and that offers significant security solutions.

It is strongly recommended to transfer your crypto-currencies to your own wallet once you have purchased them, rather than leaving them on the exchange platform (see our section below on “how to buy Ethereum”).

Binance

Created in 2017, Binance has rapidly grown to become one of the largest cryptocurrency exchange platforms online. It has even evolved to become a popular exchange for high frequency investors. Daily trading volumes exceeded $1 billion during the market boom at the end of 2017.

With Binance, it is possible to buy many crypto-currencies (more than 150 crypto-currencies and tokens). In addition to a very complete crypto-currency catalogue, the platform is easy to use, while offering advanced trading tools for those who need them via Trading View, which is perfect for any type of investor.

Binance’s customer service department is very attentive to customer needs, and wants to continuously improve its offering. As a result, the company is constantly evolving with new products and services, as well as new options to develop its services in new and different parts of the world.

To be able to buy Ethereum via Binance, you can use some crypto-currencies, especially Bitcoin (BTC), or you can also use Visa and MasterCard credit cards (USD and EUR are the only two fiat currencies available so far).

Visit Binance

Bittrex
Bittrex, founded in 2014, is one of the first American crypto-currency exchanges that was created by former security experts.

To be able to buy Ethereum with Bittrex, you will need to have crypto-currencies beforehand, as this platform is mainly a crypto-to-crypto exchange only. You can trade more than 50 crypto-currencies against the USD, the BTC, the ETH, and the USDT.

However, it is now possible for verified personal and corporate customers to deposit USD and trade currency pairs against USD, or about 20 crypto-currencies. You just need to fill out an application for approval for fiat USD trading, deposit and withdrawals.

Recently, Bittrex declared that it will power a new global digital asset trading platform in the European Union: Biteeu, which currently only focuses on Bitcoin markets, Ethereum Markets and USDT markets

Visit Bittrex

Binance vs Bittrex

Binance Bittrex
Visit Binance now Visit Bittrex now
Created in 2017 2014
Crypto-currencies pairs -  Total More than 465

against BTC, BNB, ETH, PAX, TUSD, USDS, USDT and XRP

More than 345

against BTC, ETH, USD and USDT

Payment methods Yes Yes
Minimum deposit - There is a minimum deposit amount, which varies by currency.

For verified personal accounts in Fiat (US Dollar), the deposit minimum is $1,000 per wire transfer

Trading platforms Proprietary Platforms:

Web Based Trading Platform, Mobile Trading App

Proprietary Platform:

Web Based Trading Platform

Our preferred Ethereum platform

eToro

We mentioned 4 ways to take advantage of Ethereum positive aspects, but our preferred place to invest in Ethereum is eToro.

eToro is one of the most popular brokers in the industry, which makes it a great option to take advantage of Ethereum price movements.

More importantly, it is a regulated broker, so your money will be safer with it. Being regulated in 3 different jurisdictions, eToro needs to comply with more legal rules and requirements than the other exchanges we talked about. Moreover, it provides numerous protections for retail investors.

The process of buying Ethereum using eToro is also simpler than determining which wallet to open to store your coins. As a CFD broker, you can also trade different assets than crypto-currencies in one place and implement a diversified investment strategy.

We believe eToro to be the easiest investment method for new Ethereum buyers. They sell investment contracts (CFDs), not coins, so don’t use this method if you want to spend your Ethereum. But if you simply want to buy Ethereum and watch it grow, without the worry of addresses and digital wallets, eToro is your best bet.

CySEC & FCA regulated, eToro is available in many different countries (most recently the United States!). Users can choose to copy the trading strategies of skilled traders, or use their own methods to make big bucks.

The platform supports a wide variety of payment methods (China Union Pay, debit/credit card, Giropay, Neteller, Paypal, Skrill, Webmoney, wire transfer, Yandex). The commissions are low and its performance is fast and reliable. 

How to Buy Ethereum

Choose the right platform to buy Ethereum according to your needs

Trade Ethereum

If you do not wish to buy Ethereum to hold them, you can simply take advantage of price fluctuations with financial products such as CFDs.

Reminder: CFDs, or Contracts for Difference, are financial contracts you have with your broker to exchange the price change of an asset between trade entry and exit. CFDs allow you to benefit from bullish and bearish markets without owning the underlying asset.

Therefore, using CFDs is a good option if you want to take advantage of short-term Ethereum price variations without owning the coins.

Invest in Ethereum

When you want to buy Ethereum to store your tokens and use them later, you usually have to get them through an exchange.

An exchange allows you to convert your so-called “fiat currencies” (euros, dollars, pounds sterling, etc.) into Ethereum. You can also use crypto-to-crypto exchanges, where you can buy your Ethereum with other virtual currencies.

By investing and buying Ethereum, you own them. It is therefore preferable to store them somewhere other than on the exchange platform you used to buy them, for security reasons. To do this, it is necessary to create a wallet that you control.

Get the right Ethereum Wallet

An Ethereum wallet is the tool you need to manage your Ethereum and keep your coins safe – with a wallet, you can receive, send and store your coins.There are many different types of wallets that offer different degrees of security. However, they can be grouped into two main categories: hot wallets and cold wallets.

Hot wallet vs. Cold wallet

The main difference between these two types of wallets is its connection to the Internet.A hot wallet is directly connected to the net, while a cold wallet is not. As a result, the cold storage solution will better protect your money, as it limits the risk of hacks.The two most popular offline wallets are hardware wallets, such as a USB flash drive or external hard drive, and paper wallets. As for hot wallets, there are lightweight wallets and web extension wallets, among others.Pro tip: always download an Ethereum wallet from authorised and reputable sources to avoid wallet scams.

Transfer the Ethereum you bought to your own Ethereum wallet

As we said, if you own Ethereum, you need to have a place to store them, which is what a wallet does.

For higher security, you should always use your own personal wallet, as wallets offered by exchanges can be hacked, which can result in the irrecoverable loss of all your funds.

To transfer your Ethereum into your own personal wallet from an exchange, you need to go to the “Withdraw” tab of the selected exchange. There, you can add the address for Ethereum withdrawals (which is where you want the funds to go to) and the amount you want to withdraw. The last step is to confirm your withdrawal to receive your Ethereum.

Buying Ethereum with different payment methods

Depending on the kind of platforms you use (CFD trading platform vs. Exchange platform), you can use different payment methods to make Ethereum investments, or buy Ethereum coins.

Usually, using a credit card is the fastest way to fund your accounts. But, you can also use bank wires, prepaid cards, e-payments, or other crypto-currencies.
For further information, read the following pages:

Conclusion

Ethereum is among the best cryptocurrency networks in the industry. Even after the decline in the crypto market in 2018, experts are optimistic for the future of Ethereum. Why? Because its network and smart contracts can be implemented across a range of different industries.Whether you prefer to use eToro, Investous, Binance, Bittrex, or any other platforms, you will always be able to profit from Ethereum investments, or accumulate Ethereum coins. If you are only interested in taking advantage of the high volatility, then we would recommend you trying eToro’s platform.

Recommended places to buy Ethereum

Ethereum FAQs

What about ethereum?

Before you buy Ethereum, we need to define exactly what it is. A common description is that it’s an open-source, public, blockchain-based computing platform. Anyone can use it, anyone add to it, and anyone can use it to distribute their coins. This increased functionality is a big reason for the huge growth we’ve seen.

Ethereum ETH is Bitcoin’s biggest rival; it is widely used and hosts a massive range of other altcoins on its blockchain (far more than Bitcoin). The ability to purchase Ethereum is also beginning to be easier than bitcoin, with more Ether wallets becoming available.

The vast majority of ICOs (Initial Coin Offerings) accept donations in Ether, Ethereum’s native currency, only which has helped raise the profile of ETH considerably. In addition to facilitating the transference of Ether, the Ethereum blockchain also hosts ‘smart contracts’; these contain all manner of information, including but not limited to invoices, employment contracts, and proof of ownership documents. It’s worth noting that the Bitcoin network does not support this functionality.

Should I buy ethereum UK or elsewhere?

Buying Ethereum in the UK is fairly similar to buying it anywhere else. However each country does have its own set of rules regarding cryptocurrencies in general. For example the Ecuadorian government issued a ban on Ethereum and other cryptocurrencies.

What about localethereum?

Local ethereum is another place you can buy ethereum directly using fiat currency. The advantage it has over Coinbase is that is offers a huge amount more fiat currency. For example, those in India can use it to directly buy ETH with rupees.

Whereas Coinbase is an exchange, local ethereum is more of a market place that matches buyers with sellers and vice versa. This means that you and the person on the other side of the exchange are accountable for the exchange.

There is a risk that the other party does not honour their side of the deal. However, this is avoided by a rating and feedback system whereby everyone gets ranked on the quality of their exchange. You are considerably less likely to buy from someone who has poor feedback.

It is obviously advisable to go to someone who has great feedback and has never had a problem in the exchange.

  1. To buy ethereum with Local ethereum, you must sign up by clicking the ‘Sign Up’ button in the top right corner.Local Ethereum - Sign Up
  2. Enter your details in the field as requested.Local Ethereum - Enter Details
  3. Next you go back to the homepage and decide whether you want to buy or sell, how much and in what fiat currency. You will then be given options of different sellers that offer the criteria you are after.Local Ethereum - Options
  4. You will then be taken to a confirmation stage where you have a certain amount of time to complete your side of the exchange. This will be you paying the seller for the ethereum, via which ever payment method was agreed.

More about Ethereum

Add Comment

3 Comments

Can you make a guide on how to buy Ripple in the UK please!

How can I buy Ethereum outside the UK???

The steps for buying Ethereum are pretty much the same anywhere in the world, provided it is legal to buy there. You can start by looking at our exchange reviews and seeing which ones that offer Ethereum are available in your country. Hope this helps.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.