Looking to buy Ethereum? In the crypto sector, Ethereum is second only to Bitcoin in size. And with its exciting Ethereum 2.0 upgrade ongoing, investors are viewing ETH as a relatively safe bet for future growth. The price of ETH has bounced 24% in the last few days after its January low brushing the $2,100 mark. 

Is it time to buy the ETH dip? We find out below. We also review six vendors where you can buy Ethereum using credit card and PayPal. We recommend eToro, with its UK FCA regulation and beginner-friendly reputation, as the best Ethereum broker overall.

How to Buy Ethereum UK – Quick Steps

  1. Step 1: Open an account with eToroHead to eToro. Sign up. Supply two forms of ID to get verified.
  2. Step 2: Deposit – Use PayPal, bank transfer or credit card to deposit GPB (or any of 15 currencies).
  3. Step 3: Search for Ethereum on eToro – You will find ETH in seconds by typing ‘eth’ into eToro’s top toolbar.
  4. Step 4: Invest – Buy Ethereum instantly using funds in your account. Or copy another crypto trader’s moves with CopyTrader. Or diversify your approach and invest in a crypto Smart Portfolio to get exposure to Ethereum as well other crypto.

Where to Buy Ethereum in the UK

What’s the best place to buy cryptocurrency in the UK right now? You will need to choose between buying with a broker and buying with an exchange.

We review top broker eToro and five reputable best crypto exchanges UK:

1. eToro – Overall Best Place to Buy Ethereum with Tight Spreads

eToro-logo23m+ investors have already signed up with eToro. But is eToro the best place to buy Ethereum? Certainly with eToro, you can spend as little as $10 on Ethereum with only tight spreads charged on crypto trades. That’s a low-risk way for beginners to get started. And, when it comes to managing risk, eToro offers regulation by the stringent Financial Conduct Authority (FCA) of the UK. The broker is also regulated by ASIC of Australia and CySEC of Cyprus. 

Regulation will not save you from financial ruin if your investment choices are unwise, but it does mean that you are dealing with a reputable business. (It can be dicey trading out there on the internet, and some exchanges are not regulated at all.)

With eToro, you can buy Ethereum in the UK or elsewhere in 4 different ways.

etoro

  1. You can deposit funds into your account and buy as much Ethereum as you want in what is known as a ‘spot trade’. This is the simplest way. You buy the crypto and eToro will store it for you for free. You can then sell it back to eToro when you judge the time is right. Or you can transfer your Ethereum to your free eToro Money crypto wallet and use your ETH to pay for things. 
  2. You can invest in the price of Ethereum vs. another crypto or fiat currency. This is called trading ‘pairs.’ This method is favoured by investors with some experience. You can invest in Ethereum pairs with crypto XLM, BTC and EOS. Fiat pairs are available for Ethereum with EUR, GBP, JPY, AUD, CAD, NZD, CHF.  
  1. With eToro’s free CopyTrader function, you can let more experienced traders take the tough decisions on your behalf. With CopyTrader there are 600+ traders you can copy who trade in crypto. You can browse through their performance stats and risk ratings and then pick one (or many) to copy. Allocate funds, and CopyTrader will automatically copy their trades in real time.
  1. You can invest in any of eToro’s 8 crypto Smart Portfolios. These are strategic positions designed by eToro experts that you can buy into in one go. The DeFi Smart Portfolio, for example, features a 28% holding in Ethereum and has delivered a healthy return of 38% in the last 12 months. DeFi means ‘Decentralised Finance’. The DeFi Smart Portfolio invests in crypto used in DeFi applications.

eToro has a range of 45+ crypto available to buy individually. This means that you can buy XRP, ETH, DOGE, SHIB, and more safely in 2022. More are added regularly. In January 2022, SNX, REN and FET joined the eToro crypto range. Aside from crypto, eToro is also known for its broad selection of other assets including stocks, 250+ ETFs, commodities and indices.

What about freebies? The eToro Money crypto wallet is free and allows you to manage all your digital assets in one place. You get a blockchain address, an unloseable key and powerful send/receive/exchange options. A rarity for a crypto wallet, the eToro Money crypto wallet is regulated (Gibraltar Financial Services Commission). 

The eToro smartphone app is also free. For keeping track of the fast-moving crypto sector whilst you are on the move, this is a no-brainer. This is the most downloaded trading app in the UK and was downloaded 10m times in the first half of 2021.

Ethereum is followed by 3.3m investors on eToro, with 30% holding an Ethereum position.

 To join them from the UK, you can deposit funds into your eToro account using PayPal, bank transfer or credit/debit card with no deposit fee. Other deposit methods are available too for UK investors, whilst options vary by country.

Generally, eToro is a cinch to use. With loads of help pages and a massive social trading community, the Ethereum beginner should feel well-supported here.

Pros

  • Buy Ethereum online with just $10
  • Regulated by the FCA, ASIC and CySEC
  • Tight spreads on crypto trades
  • Smart Portfolios and CopyTrader
  • Stake ETH with the free eToro Money crypto wallet
  • Most popular smartphone app in the UK
  • 45+ crypto plus other conventional assets on offer

Cons

  • $10 inactivity fee after 12 months of no account activity.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Huobi – Top-Rated Crypto Exchange with 4M Users

trezor reviewHuobi was founded as a crypto exchange in 2013 in China. It is now headquartered in the Seychelles with offices in Japan, Korea and Singapore.  Huobi was listed on the Hong Kong Stock Exchange in 2018. 

With its roots in Asia-Pacific, Huobi might seem an unusual choice when deciding where to buy Ethereum in the UK. But hang in there! Huobi has the third highest crypto trading activity in the world, and offers numerous useful options. Huobi offers 348 crypto with 60 payment options in all.

You can trade for Ethereum on the open exchange marketplace. Or you can use P2P (peer-to-peer) trading to trade Ethereum direct with other users. Or you can opt for an instant buy using credit card, your GBP balance, or Faster Payments. A minimum purchase of £10 applies to credit card purchase of ETH. There’s a handy widget that shows you exactly how much Ethereum you will receive, depending on what payment method you use (see below):

As with all our reviewed Ethereum vendors, Huobi allows you to stake Ethereum for rewards during the upgrade of Ethereum known as Ethereum 2.0. A minimum stake of 0.1 BETH (the equity token for ETH 2.0 staking) is required. Other crypto financing options are available too, including liquidity pools, savings and loans. 

Huobi is alone amongst our reviewed ETH vendors in offering a joining incentive. Sign up and conduct some simple tasks to receive up to $300 as well as 20,000 Shiba Inu crypto (SHIB).

For security, Huobi is similar to Coinbase in keeping most of its client funds in cold storage. It also runs a HKD50,000 scheme to reward users for reporting fraudulent use of the system. This is called the Huobi Trading Protection and Guardian Project.

Overall Huobi offers a range of powerful crypto options. A downside is that the exchange is not as clear about its fee structures as its competitors. And certainly it does not offer the reassuring FCA regulation that eToro does. But generally there is plenty to recommend to the more adventurous Ethereum investor.

Pros

  • Trading Protection and Guardian Project
  • Instant buy ETH with credit card
  • Cash incentives for sign-up
  • Numerous financing options, including ETH 2.0 staking
  • Cold storage security

Cons

  • Not regulated
  • Orientated to Asia Pacific payment methods

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Crypto.com – Best Exchange to Buy Ethereum for Beginners

crypto.com logo

Another highly-recommended platform if you’re looking to buy Ethereum UK is Crypto.com. Like the other platforms on this list, Crypto.com has millions of registered users worldwide and offers over 150 cryptocurrencies to trade. The Crypto.com platform is split into two distinct components – the exchange aspect and the mobile app. The former is targeted towards advanced investors, whilst the latter is more suited to casual investors.

If you buy Ethereum on the exchange, the only fee that applies is the maker/taker fee. This equates to 0.4% per position for a monthly trade volume less than $25,000. Notably, you can opt to pay trading fees in CRO and receive a 10% reduction – meaning maker/taker fees are only 0.36%! On the other hand, if you use the Crypto.com app, you can instantly buy ETH (and other cryptos) using a credit or debit card.

buy ETH crypto.com

This feature is fee-free for the first 30 days, although it will cost 2.99% per trade after this. If you’d rather make a deposit and then make your purchase, then Crypto.com supports both FIAT and crypto deposits. Both types are free to make, with UK-based traders able to make instant GBP deposits via Faster Payments.

The app itself makes the trading process extremely easy, as users can buy digital currencies in just a few taps. Although price charts aren’t as detailed as some other platforms, there is still real-time price data and in-depth portfolio statistics. Finally, Crypto.com also has a reputation as a very secure platform, as it stores 98% of customer holdings in cold storage and has a $750 million crypto reserve fund.

Pros

  • Card fees waived for first 30 days
  • Low maker/taker fees
  • User-friendly trading app for iOS and Android
  • 98% of users’ crypto held in cold storage
  • Over 150 coins to invest in

Cons

  • Slow customer support
  • Not regulated in the UK

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Coinbase – Popular Cryptocurrency Exchange with Huge Asset Portfolio

coinbase logoUnlike eToro, Coinbase is a crypto exchange. It was founded in San Francisco in 2012, making it 5 years younger than eToro. As an exchange, Coinbase lacks the FCA regulation that eToro offers. But generally Coinbase has an excellent reputation:

  1. Over 70m investors have used Coinbase at some point. The business currently has 30m+ customers worldwide. Coinbase is the first ever crypto exchange to come to the stock markets. It had its IPO (International Public Offering) on the NASDAQ in April 2021. You can trade Coinbase as a stock under its ticker COIN with eToro: currently trading at $177 a share.
  2. Coinbase’s range of crypto is larger than eToro’s, with 151+ crypto coins and tokens. Generally Coinbase is known as being second only to Binance in its commitment to crypto choice.
  3. 98% of customer funds are stored with Coinbase offline in a ‘cold’ wallet system. This is a great security bonus against the threat of cyber-theft. Cold wallets are less vulnerable because they are only connected to the internet when conducting transactions.

How to buy Ethereum with Coinbase? The process is roughly the same as with broker eToro. Sign up for an account, providing ID. Get verified, then deposit funds. Track down Ethereum onsite (not difficult), allocate funds and execute your trade. Note that, unlike eToro, Coinbase does not allow UK investors to deposit funds with PayPal. 

When it comes to fees, Coinbase does not enjoy a great reputation. For example, a 3.99% fee applies to credit card transactions. Trading fees are calculated as a mix of flat fees and commission. It can be confusing. The good news is that Coinbase’s fee structure is changing soon.

Coinbase generally gives an easy ride to beginners. A standout offering is Coinbase’s crypto learning program. Just complete online learning modules, and Coinbase will give you free crypto. Like eToro, Coinbase offers a free wallet which you can link to your account, as well as a smartphone crypto app (4.7/5 rating on Google Play from 1.6m reviews, 4.3/5 rating on the App Store from 630k reviews). 

Pros

  • Minimum ETH investment of £25
  • Buy Ethereum in the UK instantly with credit card (3D Secure cards only)
  • Stake ETH for rewards
  • Upgrade to Coinbase Pro
  • Free Coinbase crypto wallet
  • Well-reviewed smartphone app
  • Range of 151 tradeable crypto
  • Free crypto learning incentives

Cons

  • Convoluted fee structure
  • 3.99% credit card fee 

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Binance – Leading Exchange to Buy Ethereum with Credit Card

Binance LogoLike Coinbase, Binance is a giant crypto exchange. In fact, Binance is the most liquid crypto exchange in the world. In other words, it has the highest amount of trades anywhere. This means that fees are very low (0.1% commission). 

If you are a beginner and deciding how to buy Ethereum UK, though, Binance can be daunting. It is set up to offer a wealth of powerful trading options that can be confusing to the newbie. Your best bet as a beginner is to sign up for Binance’s smartphone app and access the Binance Lite option, which makes trading simpler. Or choose the Classic interface option on the desktop site.

With Binance, a plus for beginners is that you can buy Ethereum and 100+ other crypto directly with credit/debit card. A fee of 3% usually applies, but currently that fee is reduced to 1%. Alternatively, you can stock your Binance account with fiat currency or crypto stablecoins (Binance USD, Coinbase USD Coin, and Tether) and use them to fund an Ethereum purchase. Or, if you are feeling adventurous, you can trade Ethereum and 500+ other crypto with other investors using the Binance P2P exchange. 

When it comes to security, Binance has a unique offering in the form of the Binance SAFU (Secure Asset Fund for Users). This is a discretionary fund to compensate users in the event of fraud/theft. It is funded by 10% of all trading fees that Binance receives. In December, 2021, Binance also launched Project Shield, which aims to audit new crypto coins (ERC-20 and BEP-20 tokens) as they come to market in order to protect Binance users from fraud.

Like eToro, Binance offers a free crypto wallet for you to manage your digital assets (Binance Trust wallet) as well as a smartphone trading app (4.7/5 from 96k App Store reviews and 4.3/5 from 570k Google Play reviews). As with all our reviewed vendors here, Binance’s help pages are excellent, showing you clearly how to buy Ethereum stock in a number of ways.

Pros

  • Buy ETH in the UK with credit card (ID verification necessary)
  • Buy 100+ crypto (credit card), trade 500+ crypto with P2P trading
  • Binance SAFU 
  • Many ways to trade ETH
  • Low fees
  • Stake crypto for rewards

Cons

  • No social trading
  • Not regulated
  • Can be daunting for newbies

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

6. Luno – Best Exchange For Simple Range of Crypto

Launched in Singapore in 2013, crypto exchange Luno has 10m customers spread across 40m countries. Investors looking where to buy Ethereum in the UK will be reassured that Luno has an office in London.

Unlike the crypto exchanges we review above, Luno offers a streamlined choice of only 6 cryptos. This means you can buy XRP, Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash BCH and stablecoin (USDC). This makes things a lot less overwhelming for crypto newbies. 

Like eToro, Coinbase, Binance and Huobi, you can buy ETH instantly with GBP deposited (1.5% commission) and credit card (3.5% commission). You can also buy ETH from the exchange marketplace that Luno provides by matching buyers with sellers with a maker/taker fee scheme. As with Binance, you are looking at a low ‘taker’ commission of 0.1% for Ethereum purchases.

As with eToro, you can earn more Ethereum by staking what you have with Luno Savings. An annual interest reward of 7.6% is available. Luno also provides a crypto wallet. This is a custodial wallet, which gives users the advantage of ‘deep freeze’ protection behind multiple layers of encryption (as with fellow exchange Coinbase). The Luno wallet has strong support from online reviewers, gaining 4.4/5 from 3.5k reviewers on the App Store and 3.8/5 from 95k Google Play reviewers.

Luno is certainly beginner-friendly. But more advanced users will be pleased to see a range of orders available to buy your Ethereum, including limit order, market orders and stop-limit orders. 

Pros

  • 10m users
  • Buy ETH at 0.1% commission or instant buy with credit card
  • Free wallet with good reputation
  • No deposit or withdrawal fee
  • Ethereum savings scheme
  • Easy, uncluttered interface

Cons

  • Narrow choice of crypto
  • 3.5% charge on credit card transactions

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

What is Ethereum?

Ethereum is the world’s second largest crypto behind Bitcoin. It has a market capitalisation of over $300bn. It was founded in 2015 by programmer Vitalik Buterin. The key to the success of the Ethereum blockchain is that it acts as a platform for developers to build more decentralised applications. NFTs and many other crypto are based on Ethereum. The blockchain’s crypto ETH is also used as a common means of payment on the internet.  

Should I Buy Ethereum Now?

Buy the Dip

The price of ETH has just bounced 24% from its late January 2022 low. Of course, the price could suddenly fall lower. But this bounce represents investors buying in. Now may be the time to join them. ETH has not been this cheap since August 2021.

Stake ETH to Earn Rewards

If you buy ETH now, you can engage with the staking opportunities special to the ongoing Ethereum upgrade. Ethereum has got so popular as a way of doing business that its network has became congested. The solution has been to upgrade, which will also massively reduce its use of electricity. Ethereum is moving from old Proof-of-Work protocols to new Proof-of-Stake protocols.

You can buy ETH and stake it to support this upgrade process – and earn rewards when the upgrade is finally complete. All ETH vendors reviewed above allow you to engage with this process.

Whilst the Ethereum upgrade is ongoing, it is referred to as Ethereum 2.0. Tokens used to support the upgrade and earn user rewards are called ‘BETHs’. When the upgrade is complete, the meaning of ‘Ethereum 2.0’ will change to refer to the consensus layer of the blockchain (vs. ‘Ethereum 1.0’ which will refer to the execution layer which handles transactions and data). 

Buy into the Backbone of the Internet

Ethereum is not some novelty token that somebody thought would be fun to create. The Ethereum blockchain is sometimes referred to as the backbone of the new internet because it supports so many dapps (decentralised applications) as well as other crypto. 

The crypto sector exploded in 2021 with hundreds of novelty tokens. Crypto like Shiba Inu (SHIB) were introduced as fun, speculative items and attracted a lot of buying interest. Most of these tokens are actually ERC-20 tokens. They are priced independently to Ethereum. But, like NFTs, they are literally made out of Ethereum. Whatever the highs and lows of speculative crypto, Ethereum offers a sensible place to invest because it is well-established as the root of so much other crypto activity. 

Pay for Web 3.0 Stuff with ETH

ETH is a common form of exchange for buying NFTs (Non-Fungible Tokens). If you want to get involved in Metaverses and NFT gaming, you will need some ETH. Buy it now perhaps whilst it is cheaper than it has been for six months.

Ethereum vs. Bitcoin?

Should I buy Bitcoin or Ethereum? Generally we recommend spreading your crypto investment around different crypto. Likewise, we recommend ensuring that your entire crypto investment forms only a small part (1%-5%) of your total investment portfolio. The crypto sector is notoriously volatile, and diversification helps to spread risk. But if you had to choose between Bitcoin and Ethereum, there is a strong argument right now to choose Ethereum. That’s because, with its ongoing upgrade, Ethereum is forging its new future as a more environmentally-friendly crypto. This makes it far more resistant to future government regulation than Bitcoin; Bitcoin mining worldwide uses as much electricity as Holland, and that is not going to change anytime soon. 

Ethereum Price

The price of Ethereum is currently around the $2,500 mark, having bounced from a recent low around the $2,1000 mark. All crypto took a steep tumble during January 2022, as did conventional tech stocks on NASDAQ. Reasons for this include the US Federal Reserve tapering money supply as well as raising interest rates, the worst inflation for 40 years and fears over Coronavirus. The market is currently seeing some recovery. 

Ethereum Price Prediction

Some analysts say Ethereum is likely to test $4,000 again this year, with this recent correction having rinsed out all likely profit-takers. Certainly Ethereum has attracted strong buying support at the bottom of its dip. And that support is likely to continue with Ethereum’s centrality as the go-to blockchain of choice for developers looking to build apps and crypto tokens. Reinforcing Ethereum’s positive prospects is, of course, its ongoing Ethereum 2.0 upgrade, which will make it a lot faster as well as environmentally-friendly.

Ways of Buying Ethereum

You have many options when it comes to how to buy Ethereum UK. Of our reviewed exchanges, Huobi offers the least flexibility for GBP investors. But eToro, Binance, Coinbase and Luno allow you to deposit GBP by bank transfer. 

Buy Ethereum with PayPal

With eToro, you can buy Ethereum with PayPal by charging your account with PayPal and then buying ETH.  Houbi supports PayPal too. With Binance, you can use PayPal only with the exchange’s P2P marketplace. You cannot use PayPal to buy Ethereum with Coinbase, but you can withdraw GBP from your account to PayPal.

Buy Ethereum with credit card or debit card

All our reviewed vendors permit you to buy Ethereum with credit card. The exchanges (Binance, Coinbase, Huobi and Luno) allow you to make instant buy purchases. But watch out for those credit card commissions! Only eToro does not charge a commission on using credit cards (apart from a 0.5% currency conversion fee on GBP). With eToro you cannot theoretically ‘instant buy’, but you can charge your account instantly with credit card, and then buy Ethereum instantly — so it boils down to the same thing.

Choosing an Ethereum Wallet

The good news about Ethereum wallets is that they are usually free. But crypto wallets come in many different types offering different pros and cons; it can be confusing! We recommend the eToro Money crypto wallet as a good place to start. That is because, first and foremost, it is regulated (by Gibraltar’s Financial Services Commission). Secondly, it offers an unloseable key. Thirdly, you can buy/send/receive/exchange ETH using it. Fourthly, you can even use the eToro Money crypto wallet to stake ETH direct with eToro and earn rewards. Fifthly, this wallet allows you to manage other crypto assets as well as your money online.

eToro money crypto wallet

When to Buy Ethereum

One way to decide when to buy Ethereum is to learn about technical charting. This is a methodology that analyses patterns in an asset’s price chart to predict what will happen next. Some say technical charting is not reliable. Certainly it did not predict the recent January 2022 crypto crash. 

A more reliable (if less sophisticated) method is to buy and HODL (Hold on for Dear Life). HODL works on the principle that, with global take-up of crypto growing, it is likely that crypto prices will rise over the long-term. According to HODL, the best time to buy Ethereum is right now. 

How to Buy Ethereum UK – Tutorial

Below we look at the five common steps to buy ETH, using regulated broker eToro as our example:

1. Choose a Broker to Buy Ethereum

Where to buy Ethereum in the UK? ETH is a global asset. Most brokers and exchanges offer access to ETH from international locations, the UK included. If you are based in the UK, you might want to shop close to home. The exchanges we have looked at above are based in the USA (Coinbase), the Seychelles (Huobi) and Singapore (Binance and Luno). As a broker, eToro is the only Ethereum provider that offers UK-specific regulation in the form of oversight by the FCA. 

2. Sign up with eToro

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Head to eToro.com. You can fill out a few personal details or sign up using your Facebook or Google account. As per standard KYC (Know Your Customer) procedures that apply to all regulated brokers, you will then be asked a few questions about your investing knowledge. 

3. Verify your ID with eToro

eToro is legally bound to confirm your personal identity and your address. You will need to supply scans or screenshots of two forms of ID. Use a valid passport to get verified quickest. Once you are verified, you will receive a confirmatory email.

4. Deposit Funds with eToro

For UK investors, eToro offers a really solid choice of deposit options, including PayPal, credit card, bank transfer and other payment providers. Deposit is free. But a currency conversion fee (0.5% for GBP) applies.

5. Buy Ethereum UK with eToro in Seconds

If you have finalised your decision on where to buy Ethereum in the UK, then you are seconds away from owning ETH. First find the Ethereum homepage on eToro. Simply type ‘eth’ in the top toolbar.

If you click on the ETH logo, you will be taken to the Ethereum homepage where you can review stats, a newsfeed and powerful charting options. When you are ready to finalise your trade, press the blue ‘Trade’ button. This brings up the box below.

Buy Ethereum on eToro

Just input how much you want to spend and press the ‘Open Trade’ button. (Note that all eToro transactions are denominated in USD, so you won’t be able to change the currency here). In all likelihood your transaction will be executed immediately. You will receive onscreen notification. You can review your Ethereum purchase in your portfolio.

Conclusion

With its Smart Portfolios and CopyTrader function, eToro really makes it easy for the crypto beginner. You can buy Ethereum with eToro in many ways with competitive crypto spreads. eToro’s FCA regulation means investors can put their mind at rest over fraud.

Buying Ethereum with a crypto exchange offers advantages, but global broker eToro offers the most-rounded experience for the Ethereum beginner. How to buy Ethereum UK? Head to eToro!

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Frequently Asked Questions When Buying Ethereum in the UK 

How Can I Buy Ethereum in the UK?

Is it Legal to Buy Ethereum in the UK?

What’s the Cheapest Way to Buy Ethereum?

What is the Best Place to Buy Ethereum?

Is Ethereum a Good Investment?

Should I Buy Ethereum or Bitcoin?

What is the Best Way to Buy Ethereum?

How do I Buy Ethereum Stock?

What is Ethereum Classic?

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