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How to Buy Ethereum in the USA in 5 Simple Steps

Ethereum USA

Ever since it was launched six years ago, Ethereum (ETH) has solidified its hold in the crypto markets and some believe it's a matter of time before this project takes over the first position in the list of cryptos by market cap. For starters, Ethereum is a second-generation blockchain that introduced smart contracts allowing individuals to build and launch decentralised applications. ETH is traded the world over and is preferred by institutional investors also. 

Are you looking to buy Ethereum in the USA? This guide will outline the necessary steps you need to take to achieve this goal.

Quick Guide to Buy Ethereum in USA Today

1

Sign up

The first step is to identify a reputable platform that will allow you to buy Ethereum with ease. Once you identify such a platform, proceed to sign up by entering personal details and verifying your account. In this guide, you will find some of our best recommendations. Feel free to use any if you feel it meets your demands.

2

Fund your account

The next step involves funding your account. Most platforms will offer various ways to fund your account, including bank transfers, credit/debit cards, and the use of third-party payment processors. Select the most suitable mode of payment for you and send funds to your broker/exchange account. The speed at which the funds get to your account will depend on the method you choose. Bank transfers will take the longest compared to the other modes.

3

Buy Ethereum

Once the funds reflect on your account, it's time to make the purchase. This process is straightforward. All you need to do is tap on the "BUY" tab and input the coin you would like to purchase ETH. Enter how much you want to spend and proceed to complete the transaction. After the transaction has been confirmed, the ETH coins will appear in your platform-issued wallet.

Step by Step Guide – How to Buy Ethereum in the USA

The section below will take you through five simple steps that you need to take to buy ETH in the USA with ease. 

Step 1: Find an Appropriate Platform to Buy Ethereum

The first step is identifying a platform that will allow you to buy Ethereum with ease. Luckily this guide has plenty of recommendations. Feel free to use any of them. Once you settle for a given platform, the next step is registering an account. Long term investors should transfer their ETH tokens into a wallet while traders can transact directly as no wallet is required while dealing with investment instruments such as CFDs. While trading, you bet on the price of the cryptocurrency and do not buy the actual asset. 

Step 2: Registration / Create a New Account

Click on the website and create a new account by entering your personal details, including your email address/phone number, and setting a strong password. A link will be sent to your email inbox. Click on it to access the account and then verify it by uploading a photo of your ID/passport and a selfie. Some platforms might ask for a video call to confirm if it's you that appears on the documents you just submitted. Also, you will have to verify your residential address to get access to higher limits. This involves submitting a utility bill such as a bank statement that isn't more than six months old. Ensure that your address is clearly visible.

Step 3: Deposit Funds

After your account is verified, it's time to deposit funds to your account and buy or start trading. As stated earlier, most reputable platforms will support various payment options such as bank transfers, credit/debit cards, and the use of third-party payment modes. Choose the mode that suits you best and make the deposit. Note that different modes will attract differing fees for the activity. Credit cards tend to charge higher fees but are a quicker method of payment. Bank transfers are free but are associated with delays. Third party payment processors such as PayPal also offer the ability to buy cryptocurrency in the USA. 

Step 4: Start Trading or Buying Ethereum

Once funds hit your account, it's time to buy and trade ETH. Exchanges will allow you to buy the actual asset, which can be transferred to a secure private wallet. As the project grows, so will the value of your investment. Long term investing is generally associated with hodlers and requires a lot of patience. Long term investors need to learn to ignore short term price volatility. But if you want to trade ETH, you are better off using a broker. Brokers will let you trade financial instruments linked to ETH with leverage. This means you don't have to worry about buying and safekeeping the asset. However, trading requires some technical knowledge such as chart analysis and predicting the direction in which the price of the coin will move in future.  

However, there are a few exceptions. Some brokers, such as eToro, will allow you to buy ETH on the spot exchange without leverage and also allow you to trade derivatives. Similarly, Binance will allow you to trade derivatives tied to the asset.

Step 5: Optional Steps

If you opt to use an exchange to buy ETH, ensure you move your coins to a private wallet where only you can access the device. This helps protect your investment in case the exchange is breached. You will not lose your funds. Hardware wallets offer the best security but are expensive. Software wallets are free to use but are not as secure as hardware wallets since most of these wallets remain online. 

If you opt for brokers, it means you want to trade the asset with higher profitability without having to worry about acquiring and storing it safely. Ensure you hedge your investment by opening trades in the opposite direction to minimise your losses. 

Thanks to the launch of Ethereum 2.0, now it's possible to stake ETH and earn passive income. However, you need around 32 ETH coins to participate as a validator.

Buy Ethereum in the UK today!

What is the Best Payment Method for Buying Ethereum in the USA

There are plenty of ways to buy ETH in America. The part below will explore the most popular ways that can be found on most platforms that offer access to the coin.

  • Buy Ethereum with Cash – This is a genuine option, and thanks to the accessibility of crypto ATMs, you can use your fiat to buy ETH using the machine. 

  • Buy Ethereum with Credit Card – This is the most common mode you will come across supported on most platforms that allow you to buy ETH but the fees can be a bit high.

  • Buy Ethereum with Bank Transfer – Another common option is making direct transfers from the bank account. However, it can be slow, with transfers taking 3 to 5 business days even though it's cheaper.

  • Buy Ethereum with PayPal – The use of third-party payment processors is another common way to buy ETH. It's fast and convenient. 

  • Buy Ethereum with Bitcoin – This is another viable option you can use to buy ETH. However, you need to own some BTC before you can make the swap.

Why Buy Ethereum?

Despite the rise of credible projects that pose a serious threat to Ethereum's dominance, the protocol enjoys the lion's share in the development of decentralised applications and with scalability coming its way thanks to the launch of Ethereum 2.0, the appeal of this project should be stronger than it has ever been. Ethereum is one of the strongest cryptocurrencies after Bitcoin and due to the network’s ability to run dApps, it is also a full fledged ecosystem rather than just a digital currency.

Given the kind of returns this project has registered over the years, it's easy to see why many top companies and even many prominent individuals are interested in this project. 

Interestingly, crypto is relatively young, and with the industry tipped to take over the financial world in the near future, it's safe to assume things will only get better. Many have realised that the sooner you get started with these projects, the better you stand to benefit in the future.  

Ethereum 1 year chart. Source: Coinmarketcap

Is it Legal to Buy Ethereum in the USA?

Buying cryptocurrencies such as Ethereum is completely legal in the USA. However, the SEC requires projects and platforms offering digital assets to follow specific guidelines. The regulators are pretty keen to protect investors from fraudulent projects. As you will see in the section below, plenty of platforms allow you to purchase ETH if you reside in America. As a trader, you are likely to be taxed by the IRS for any income made from the activity. Therefore, it's always good to keep a detailed record of your trades.

Where Can I Use Ethereum in the USA?     

There are plenty of businesses that accept crypto in the USA, and spending your ETH should not be an issue. The nation leads when it comes to embracing technology, and even regulators are pretty careful not to stifle innovation. It's possible to buy coffee, shop online using ETH, pay for services using the coin, for example, pay a freelancer for any services with ETH. Also, you can sell your coins at an ATM for fiat or convert your holding into fiat using various platforms and spend the money as you like. The USA has the most crypto ATMs compared to any other nation with over 21,000 machines that allow purchase and sale of over 10 cryptocurrencies including ETH quickly. New York has the most machines with over 2,800, followed by Saint Louis 2,374, Georgia 2,114, San Diego 1,841, and Miami 1,811.

Frequently Asked Questions

  1. Most exchanges will allow buying ETH worth as little as $10. As for brokers, you need to fund your account with at least $100 to $250. The amount you choose to use to fund your account will depend on how much you have planned for this activity.

  2. Crypto ATMs offer the quickest way to buy Ethereum using cash in the USA. Luckily, there are over 21,000 machines scattered around the cities of the nation that are easily accessible and quite convenient.

  3. Yes. It's advisable to keep a detailed copy of all your trades to make filling for taxes easier and ensure you don't have issues with the IRS.

  4. As a trader, you need to hedge your positions. This involves opening trades in the opposite direction using CFDs and futures. As a long-term investor, invest in a secure hardware wallet and move your coins there immediately after buying them.

  5. If you are completely new to dealing with these instruments, invest some time to go through the free resources provided by various brokers. Also, practice your strategies using the demo account before actual trading.

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