After Bitcoin, Ethereum is the second most valuable, popular, and largest cryptocurrency project within the digital market. By adding smart contracts, Ethereum is credited with expanding the capabilities of distributed ledgers and popularising them due to added functionality. The high use case has seen ETH register an ROI of over 447,295% from it's all-time low registered six years ago and with many improvements coming its way, the value of Ethereum is expected to continue to grow with time.
Are you looking for ways to buy Ethereum in the UK? This guide will offer you everything you need to accomplish this goal.
Quick Guide to Buy Ethereum in The UK Today
identify a reputable platform that offers access to Ethereum and sign up. This can be a broker or exchange, and your choice will depend on what you are trying to achieve. Towards the end of this guide, you will see a recommendation of the best places you can access Ethereum with ease. The sign-up process involves entering your email address/phone number and setting a strong password.
Fund your account
After your account has been approved, it's time to fund it and make a purchase or your first trade. Various platforms will support many modes of payment that you can use to fund your account, including bank transfers, credit/debit cards, third-party payment processors, and other local payment modes. How quickly the funds get to your account will depend on the mode you have chosen. For example, PayPal can be faster compared to bank transfers.
Once the funds hit your account, it's time to make your first purchase/trade. Most brokers and exchanges will allow you to purchase ETH using GBP directly. Click on the "Buy" tab and select the mode you intend to use to make the purchase. Enter the amount of ETH you would like to purchase or the amount of GBP you want to spend and proceed to complete the transaction.
Where to Buy Ethereum in The UK in 2021
There are two options to purchase Ethereum in the UK; you can opt for brokers or cryptocurrency exchanges. Brokers mainly deal with trading. Brokers offer the easiest way to access the Ethereum market since all you need to do is fund your account with the minimum required capital, and you are ready to trade. Brokers are for those looking to trade financial instruments such as CFDs attached to ETH with higher profitability since they will be using leverage. Unlike exchanges, you don't need wallets to store your coins since you are not dealing with the actual asset.
On the other hand, exchanges offer access to the actual asset. They are ideal for people that want to buy the asset itself and maybe store it for the long-term or use it to make a transaction. If you opt to handle the actual asset, make sure you invest in a hardware wallet that will help safeguard your coins from bad actors. We have shortlisted the best brokers and exchanges where you can invest with ease.
Step by Step Guide – How to Buy Ethereum in The UK
The sections above have roughly explained what you need if you intend to buy or trade Ethereum in the UK. Given that cryptocurrencies are somewhat a technical subject, the part below will take you through the necessary steps you need to take to buy ETH successfully in the UK.
Step 1: Find an Appropriate Platform to Buy Ethereum
Just like any other purchase you might intend to make, the first step involves locating an appropriate platform where you can make your purchase. There are plenty of reputable brokers and exchanges that allow you to buy Ethereum in the UK. Exchanges allow you to access the actual asset and hold it for the long term or use the coins to settle transactions. As for brokers, they offer financial instruments attached to the asset known as CFDs. These instruments allow individuals to exploit the volatile price of ETH with leverage for higher returns.
Step 2: Registration / Create a New Account
After identifying a suitable platform, register an account by entering your email address/phone number and setting a strong password. Then you have to verify your account since most platforms have to abide by AML and KYC regulations. This involves uploading a photo of your ID/passport and taking a selfie. The platform may request a video call to confirm if it's you that appears on the document you just submitted. Also, to increase your trading or buying ability, you will have to verify your address by submitting a utility bill such as a bank statement that isn't more than 6 months old.
Step 3: Deposit Funds
Once everything checks out, you can proceed to fund your account. Most brokers have a stipulated minimum amount required for this process. The amount ranges from $100 to $250. As for exchanges, the amount you use to fund your account will depend on how much you intend to spend on buying ETH. Various platforms will support different modes to enable you to fund your account. Most of the common modes you are likely to see include using bank transfers, credit/debit cards and third-party payment processors such as PayPal.
Step 4: Start Trading or Buying Ethereum
After funds reflect on your broker account, it's time to trade CFDs attached to ETH. Some brokers such as eToro will allow you to spot purchase ETH without leverage. Also, an exchange such as Binance will offer access to the actual asset and a chance to trade derivatives attached to various cryptocurrencies, including ETH. If you are completely new to this activity, ensure you use the demo account to learn how to set strategies and other educational materials on offer to better your skills before engaging in actual trading.
Step 5: Optional Steps
If you buy the actual asset on an exchange and your intention isn't transacting immediately with the coins, it's wise to move them to a safe hardware wallet where they are secure and out of reach from bad actors. Therefore, in case the exchange is breached, your funds are safe. Also, as a long-term investor, it's possible to stake ETH thanks to the coming of Ethereum 2.0. However, you will need at least 32 ETH to become a validator.
On the other hand, if you opt to trade derivatives attached to ETH using brokers, you are better off hedging your positions to minimise potential losses.
What is the Best Payment Method for Buying Ethereum in The UK
There are many ways to make your first purchase or fund your account in the UK. The mode you choose to go with will depend on your personal preferences, such as speed, security and fees to be incurred. Luckily, most payment modes are supported in the English nation. Below are some of the most common ones you can use to purchase ETH.
Buy Ethereum with Cash – This is possible using a crypto ATM or peer-to-peer platform by meeting the seller.
Buy Ethereum with a Credit Card – This is the most popular option supported by many platforms. It's fast, but you are likely to incur higher fees.
Buy Ethereum with Bank Transfer – Another popular option supported by various platforms. The fees are pretty low, but it's very slow, with transfers taking 3 to 5 business days.
Buy Ethereum with PayPal – Third-party payment options such as PayPal are also popular in the UK. This mode is relatively fast and convenient.
Buy Ethereum with Bitcoin – This has to be the most convenient of all the modes listed here since it involves direct swap or trading Bitcoin (BTC) for ETH. The catch is that you need to have BTC first before you can complete the transaction.
Why Buy Ethereum?
Launched six years ago, Ethereum has quickly established itself as one of the most important projects within the cryptocurrency space thanks to introducing smart contracts to the blockchain space. From the start, the platform aimed to become the go-to place for decentralised applications by allowing users from any corner of the earth to write and run software that is resistant to censorship, downtime and fraud.
Today Ethereum hosts over 90% of the DeFi activity, a market that has peaked in interest since mid-last year, fueling the recent crypto bull run. Increased activity on Ethereum has seen the network slow down with high fees incurred from transactions. Scalability has been a major issue for the network since it's designed as a Proof of Work protocol. But, the team behind this project has been busy trying to transition to Proof of Stake, which is less harmful to the environment and will allow more transactions to occur. Ethereum 2.0 has launched and is currently in the test phase, and with time the network should transition completely. This has inspired greater interest in the protocol and its token.
As an investment, ETH remains one of the most solid assets one can put their money on. As mentioned at the start of this guide, the coin has grown 4472x since it's all-time low recorded six years ago.
As insane as these returns seem, as the project grows, the ROI will continue to increase. The good thing with crypto is that it's never too late to get involved with any project as long as it's solid and you can make money either by trading or holding the tokens for the long term. If you had entered the ETH market one year ago, today, your investment would have grown almost 10x, and this is despite the recent market crash that has seen ETH lose over half its value.
Is it Legal to Buy Ethereum in The UK?
The UK has never officially endorsed cryptocurrencies as legal tender or outrightly banned them. The FCA has warned users to be careful though dealing with this new asset class due to the numerous scams surrounding them. That said, buying Ethereum and other cryptocurrencies is completely legal in the UK. One thing you need to be aware of is trading cryptocurrencies is likely to attract capital gains tax. Therefore, you need to keep clear records of your trades. Also, even though you are free to purchase digital assets in the UK, it's wise to use reputable platforms to minimise the chances of losing your funds by dealing with fraudulent platforms.
Where Can I Use Ethereum in The UK?
You are likely to struggle to find businesses that accept crypto coins, such as ETH in the UK, but there are a few cafes that will sell you coffee for the coin. One good example is Falkirk in Scotland. But this doesn't mean you can't spend your crypto as you like in the UK. If you find an individual or business that is okay with buying goods or paying for services using ETH, feel free to go for it. Also, you can sell your ETH using ATMs or other platforms for fiat and spend the money as you wish. ETH boosts excellent liquidity, and it's supported on almost every crypto platform, so this conversion process should be pretty straightforward. Over 174 Bitcoin ATMs in the UK are scattered in various cities such as London 99, Birmingham 23, Manchester 12, Cardiff 6, and many others.
Our Recommended Best Way to Buy Ethereum in The UK
This guide has gone over all the necessary steps you need to take to buy Ethereum in the UK. By following the various steps and advice offered here, you should be good. As for the best platform that allows you to make the purchase quickly, see our recommendation below.
Frequently Asked Questions
A common misconception among beginners is that they have to buy a whole coin which is not true. Not everyone can afford to spend $1800 to buy the asset in one go, and it's okay since you can buy fractions of the coin. Most exchanges will allow you to buy coins worth as little as $10. The amount you spend will depend on how much you have planned for the activity.
Yes. This can be done in two ways; either via peer-to-peer platforms that allow you to meet up with the seller, make the payment, and they transfer the coins to your wallet, or at Bitcoin ATMs which accept GBP.
Yes. This means you need to keep a detailed copy of your trades to make filling for tax easy.
If you are a trader, you can hedge your positions to minimise losses. If you are a long-term holder of the coin, you need to invest in a secure hardware wallet and move your coins after making the purchase.
By investing time to learn how to trade. Know how to conduct technical and fundamental analysis, set take profit and stop loss and how to hedge your investment.