It’s 2015 and you buy 100 Ethereum coins (Ether) for $0.05. That costs you $5. Today that investment would be worth $40,800, that is a 815,000% increase on your investment. And it was higher this time yesterday (29/11/2017)!
More and more people are choosing to buy Ethereum (ETH) over Bitcoin. Experts are now not only tipping Ethereum to overtake Bitcoin, but trying to decide when it will happen. Get involved now!
- 1 What is Ethereum
- 2 Why buy Ethereum ETH?
- 3 I Know Why, But Should I Buy Ethereum UK or Elsewhere
- 4 Ethereum Trading UK Shifts to CFDs
- 5 Where to Buy Ethereum Online
- 6 eToro – Buy Ethereum as a CFD
- 7 Buy Ethereum: How-to guide
- 8 Buy Ethereum Directly – Get a Wallet
- 9 Buy Ethereum using Coinbase
- 10 Buy Ethereum using Local Ethereum
Why buy Ethereum ETH?
The value of an ETH token has exploded by roughly 5,000% since January with the price of one ETH token currently sitting at just under $500 USD, at time of writing. Most people tend to gauge the price of Ethereum against the US dollar, which will look like, ETH/USD.
The Ethereum Frontier network launched in 2015 and developers immediately began writing smart contracts and decentralized apps to deploy on the live Ethereum network; this, along with Ethereum’s status as the go-to ICO funding currency, helped secure the coin’s future as a genuine threat to Bitcoin’s market dominance.
Moreover, miners began to join the Ethereum network to help secure the Ethereum blockchain and earn themselves Ether from mining blocks. Even though the Frontier release is the first milestone in the Ethereum project and was intended for use by developers as a beta version, it turned out to be more capable and reliable than anyone expected, and developers rushed in to build solutions and improve the Ethereum ecosystem.
The rest, as they say, is history; ETH has achieved huge success in just two short years and shows no sign of letting up. Ethereum poses arguably the biggest threat to Bitcoin’s market dominance because it has been able to expand upon Bitcoin’s original appeal with massively marketable additional functionality.
Specifically, Ethereum is a public, open-source, blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized virtual machine – the Ethereum Virtual Machine (EVM) – which can execute scripts using an international network of public nodes. In terms of sheer functionality, Bitcoin is like an iPod, i.e., great at doing one thing, whereas Ethereum is like an iPhone. Both are good but one undoubtedly has more uses.
Ethereum Trading UK Shifts to CFDs
Since early 2016, Ether has pretty consistently had the second-largest market cap of all cryptocurrencies. Poloniex, the single largest exchange in terms of ETH/BTC volume, began offering the currency pair in August 2015; Kraken, Bitfinex, Coinbase and Gemini followed suit shortly after, with some offering US dollar trading. Nowadays, plenty of brokerage firms are offering CFD and derivative options on Ethereum, with Ether serving as the ‘underlying’.
This is fantastic news for traders because it means that now they can get in on the cryptocurrency action, without having to own any actual cryptocurrencies.
Where to Buy Ethereum Online
There are two routes you can go down to buy Ethereum online. You can either buy them directly or indirectly. Buying Ethereum directly means that you actually own the asset and must go through several stages to own it. The other avenue is to buy Bitcoin as a CFD.
This is an attractive prospect for many because it means they can buy Ethereum and trade Ethereum via brokerage websites, such as AvaTrade, eToro, and Plus500. Many people find these platforms very easy and user friendly as they are specifically designed for would-be cryptocurrency traders, while avoiding all the jargon and confusion surrounding the cryptocurrency market.
So, let’s have a look at how best to purchase Ethereum and trade Ethereum via one of the many reputable brokerage firms currently offering options on Ethereum. The top three firms we tend to recommend are AvaTrade, eToro, and Plus500, because they are well-established, secure, and very straightforward to use. In our guides, we alternate which brokerage firm we showcase for demonstration purposes.
For this ‘Ethereum buy’ guide we are going to use eToro’s cryptocurrency trading platform to walk you through the steps of buying and trading Ethereum.
eToro – Buy Ethereum as a CFD
What eToro says:
The world’s leading social investment network. Tap into the wisdom of the crowds to make smarter investment decisions!
Social Trading is about opening the markets to everyone. At eToro we encourage people to connect with one another to discuss, trade, invest, learn and share knowledge across the network. From now on, you don’t need to be a pro to trade like one.
- Website: http://www.etoro.com/
- Headquarters: London
- Year founded: 2007
- Company type: Privately Held
- Company size: 201-500 employees
What we say:
The site is incredibly popular with traders and it’s easy to see why; Setting up an account is incredibly fast (as you’ll see below) and the interface looks and feels great. Moreover, eToro supports a wide range of coins which is great for traders, new and experienced, looking to get the most out of trading Ethereum and other cryptocurrencies.
The site also offers comments, information, stats, and history on all featured cryptocurrencies which is, again, great for traders who are new to trading ETH and other cryptos. Often the best way to buy Ethereum on eToro is to use their social trading platform, this allows you to copy proven successful traders.
You can check each traders record and decide which one you want to choose.
Advantages to use eToro for buying ETH:
- Crypto CopyFund
- Accepts Paypal and multiple other payment methods
- Very low spreads and almost zero fees
- Regulated by CySec and the FCA
- Leverage – Allows you to reduce your risk and also gives a chance to increase your returns.
- Liquidity – Lets you get into and out of a trade very quickly, reducing any losses on slow entries and exits.
Buy Ethereum: How-to guide
So, let’s get started. First, click here to arrive at eToro’s homepage. See below:
As you can see, eToro is keen to advertise the fact that it now offers CFDs on cryptocurrencies, including Bitcoin Cash and, of course, ETH. Let’s go through the steps for setting up an Ethereum trading account with eToro. To get started, click on the green ‘Join Now’ button to arrive here:
Now, simply fill in your details (first name, last name, username, email, and phone number) and accept the terms and conditions by ticking the box and click the blue ‘Create Account’ button.
Alternatively, if you’d rather sign up via Facebook or Google Plus, simply click the Facebook or Google button, as shown above. For this guide, we’re going to do it the old-fashioned way, so to speak.
So, once you’ve filled in your details and clicked the blue button, you’ll arrive here:
eToro is great because the signing up is so quick and easy compared to other brokerage sites so you can begin trading ETH/USD in a matter of minutes. Don’t let the above scare you, you’ll soon be very familiar with the eToro’s trading dashboard.
Now, because we’re interested in trading Ethereum, we’re gonna click on the ‘Trade Markets’ button which is located on the left-hand side of the screen under the subheading ‘DISCOVER’. Once you’ve clicked on the ‘Trade Markets’ button you’ll arrive here:
As you can see, eToro is keen to promote Ethereum as a CFD trading option. Ethereum is featured before even almighty Bitcoin on the ‘Trade Market’s page.
Now, click on Ethereum (ETH) and you’ll arrive here:
Once you’re here, you’ll see that eToro displays a feed featuring comments regarding Ethereum from other users. These can be helpful but remember to take everything you read with a pinch of salt as all trading (especially cryptocurrency trading!) is highly speculative.
eToro also provides the following explanation of Ethereum:
“The world’s second-largest cryptocurrency after Bitcoin is becoming increasingly more popular. Less than two years after it was introduced, Ethereum (Ether) price peaked at an increase of over 1,600% and has already been declared by many as ‘the next Bitcoin’.”
You’ll also notice that eToro features a ‘Stats’ tab and a ‘Chart’ tab, in addition to the ‘Feed’ tab to help users get a sense of the coin’s recent activity.
Now, let’s click on the blue ‘Trade’ button to arrive here:
As you can see, eToro generates a popup dialogue box to allow you to choose exactly how much ETH you wish to take out a CFD on and how you’d like to leverage said CFD.
So, choose the amount you wish to buy/leverage and click the blue ‘Open Trade’ button and you’ll arrive here:
As you can see, eToro wants a little bit more information from you before it let’s you open a CFD on Ethereum so let’s go through the verification process, step-by-step.
So, click the blue ‘Continue’ button to arrive here:
As you can see, eToro wants to confirm your name, gender and birthday so, fill in the boxes and click the arrow to arrive here:
Now, fill in your address as required and answer the US citizen question. Click the arrow and you’ll arrive here:
Now, eToro wants to know a bit about your trading experience so click on the icon which most relates to you and click the arrow to arrive here:
Again, click the icon which best sums up your trading knowledge and click the arrow to arrive here:
Now, click on the option which best sums up your reasons for trading and click on the arrow to arrive here:
Now, answer the questions re your attitude to risk, including the below:
Once you’ve done this, click the blue arrow to confirm and you’ll arrive here:
Answer eToro’s financial status questions and click the blue arrow to arrive here:
Success! You’ve completed the process. Now, simply click on the blue ‘Continue’ button and eToro will take you here:
Almost ready to start trading now. Just fund your account using one of the many approved methods of payment which eToro supports and hey presto, you’re free to trade Ethereum to your heart’s content. Simple, right?
Buy Ethereum Directly – Get a Wallet
To buy ethereum directly and actually own Ether, there are only two places you can do this using fiat currency:
- Local Ethereum
Both these exchanges allow you to directly buy ETH with a fiat currency. In both cases you must open a wallet in order to store your Ether coins.