How to Buy Ethereum in The UK? [Best Way To Invest]

Benefits of Learning How To Buy Ethereum in The UK

A programmable blockchain that can host applications and tokens is Ethereum. Due to its features, it has evolved into the hub for non-fungible tokens and decentralized finance (DeFi) (NFTs). The Ethereum ecosystem is supported by the blockchain’s native ETH token, which is also used to pay transaction fees.

Given that Ethereum is the second-largest cryptocurrency by market capitalization, it makes natural that many individuals in the UK are interested in purchasing this well-liked digital asset. However, you must make sure that you buy Ethereum through a reputable brokerage site that provides your desired payment method in addition to reasonable costs.

On this page, we’ll go over where and how to purchase Ethereum in the UK as well as other crucial issues like payment options, wallets, and how and why you might want to make an investment in Ethereum.

Where to Buy Ethereum In The UK?

Here is a list of some of the top Ethereum retailers in the UK. These are the crypto exchanges, wallets, apps, and trading platforms where UK residents can purchase cryptocurrencies like Ethereum, Bitcoin, Litecoin, and others.

Please keep in mind that crypto assets, like Ethereum, are unregulated financial products with high volatility and no UK or EU investor protection. All of the money you invested in them could be lost.

The following are some of the top locations in the UK to buy Ethereum:

eToro

A multi-asset trading platform called eToro provides CFD trading along with stock and cryptocurrency investing. Over 120 different cryptocurrencies are available on eToro, including well-known ones like Bitcoin, Ethereum, Tether, XRP, Binance Coin (BNB), and Solana.

Opening an account with eToro is completely free, and all registered customers receive a free US$100,000 demo account that they may use to try purchasing cryptocurrency and other assets before making a purchase.

While there is no deposit cost on eToro, there is a 1% trading fee for all cryptocurrency positions. If you deposit or withdraw money in a currency other than USD on eToro, there will be a conversion fee. The minimum withdrawal amount is $50 and there is a $5 fee for each withdrawal.

Customers in the UK can download the free eToro Money app from the company’s website to convert their GBP to USD and avoid paying exchange fees. The program also serves as a wallet where you may store your crypto assets and easily move them between wallets or crypto exchanges.

eToro also provides other goods, including as equities with 0% commission, in addition to cryptocurrency.

Uphold

You can buy and sell over 90 cryptocurrencies and utility tokens, including majors, altcoins, and emerging tokens, on Uphold, a crypto exchange that is user-friendly for beginners. Along with GBP, EUR, and USD, you can buy and sell up to three different national currencies.

Using AutoPilot, which enables you to put up recurrent buy or sell orders and lessen the effects of Ethereum price volatility, you can schedule routine transactions with Uphold. Users of Uphold can promptly and without fees withdraw money to private wallets on five different cryptocurrency networks or bank accounts in 36 different countries.

Currently, Uphold serves more than 2 million clients globally.

When trading cryptocurrencies on Uphold, there are a variety of costs associated. The price you see before you trade is the same price you pay when you trade because fees are computed at the moment of your order. Trading costs, FX fees, and market spreads are the three types of expenses that need the greatest attention.

CoinJar

An program and exchange for cryptocurrencies called CoinJar is situated in the UK and Australia. You may trade or invest in more than 50 cryptocurrencies with Coinjar, including well-known ones like Bitcoin, Ethereum, XRP, and USD Coin. Through the CoinJar app and wallet, customers may purchase, trade, keep, or spend cryptocurrency.

You may use your cryptocurrency to make purchases both online and offline with the CoinJar Card. There are no monthly fees for using the card, and activation is free. Every time you use your card to make a purchase, you also earn CoinJar Rewards. Both novice and experienced investors can benefit from CoinJar.

To open an account with CoinJar, a £10 minimum deposit is required. Since deposits are done in GBP, there are no FX fees. On the CoinJar website and mobile app, there is a 1% trading fee. The CoinJar Exchange charges 0.00% for taker orders and 0.04–0.1% for maker orders (for market orders and aggressive limit orders) (limit orders).

Coinbase

Coinbase is a crypto exchange that enables you to buy, sell, earn, and keep track of a variety of digital currencies in one location. Over 500 cryptocurrencies and other digital assets are available through Coinbase, including well-known ones like Bitcoin, Ethereum, USD Coin, Tether, Dogecoin, and Cardano.

By setting up regular purchases on a daily, weekly, or monthly basis, you can invest in cryptocurrencies gradually over time. Through the web app or the iOS and Android mobile apps, you can also keep track of your trades and keep tabs on market activity.

You may trade more than 500 assets on DEXes, collect interest, and store all of your cryptocurrencies and NFTs in one location with the Coinbase Wallet.

When trading cryptocurrencies on Coinbase, there are a variety of costs associated. Fees are calculated at the moment of order placement and may be based on a number of variables, such as the chosen payment method, the order size, and market circumstances including volatility and liquidity. Coinbase provides USDC trading without commissions

How to Purchase Ethereum in the UK?

Ethereum can be purchased from a crypto exchange like eToro, Uphold, or Coinbase.

Following your Ethereum purchase, you have two options:

First, you can leave your Ethereum on the cryptocurrency exchange where you can keep an eye on its value and trade it for other cryptocurrencies (including Bitcoin, Litecoin, USDC, and others) or fiat money (such as GBP, USD, EUR and others).

Second, you can transfer your Ethereum and other cryptocurrency assets to a safe crypto wallet that may be separate from or controlled by the crypto exchange you use.

You need to understand these three fundamental ideas in order to manage your Ethereum:

• Public Key: Similar to an email address, the public key can be shared with other people. You can receive ETH and Ethereum-based tokens like USDC and Dai using your Ethereum public key.
• Private Key: You shouldn’t disclose your private key to anyone because it functions as a password for your Ethereum holdings. A lengthy series of letters and numbers makes up a private key. It is crucial that you maintain track of and safeguard your private keys. If you misplace them, your Ethereum is lost forever.
• Wallet: To store and manage your Ethereum and other cryptoassets, you need a wallet. A straightforward Ethereum wallet is available for keeping and protecting your Ethereum on crypto exchanges like eToro, Uphold, or Coinbase. Even though the majority of crypto exchanges mentioned on Koody have their own wallets, a crypto wallet and a crypto exchange are two different things. As was already indicated, if you would rather leave your Ethereum in a cryptocurrency exchange, you are not required to utilize a crypto wallet.Tip[

Tips For Investing Ethereum in the UK

Ethereum investment might be simpler than you imagine. Here are the first five steps to getting started:

1. Consider the Risks of Buying Ethereum

There is no way around the fact that buying Ethereum coins involves risk. While there is some risk involved with every investment, cryptocurrencies are particularly susceptible to price changes.

Just consider the influence a few hundred characters may have on the price of cryptocurrencies: for example, when Tesla CEO Elon Musk tweeted last year that his company would no longer accept Bitcoin as payment, the value of the digital coin dropped 15%.

Therefore, before buying ethereum online, it’s crucial to take into account your risk tolerance as well as the diversification and stability of the remainder of your investment portfolio. Never spend more in cryptocurrency than you can afford to lose, according to experts.

2. Choose A Crypto Exchange

To buy ethereum safely involves more steps than merely using your brokerage account to purchase shares or mutual funds. Major exchanges like those in London or New York do not trade cryptocurrencies, and many brokerages do not offer cryptocurrency investing.

Create an account on a cryptocurrency exchange before you may purchase cryptocurrency. Practically, it is identical to the brokerage systems you may be more accustomed to: Using cryptocurrency exchanges, buyers and sellers can trade fiat money, such as dollars and pounds, for cryptocurrencies like Ethereum, Bitcoin, or Dogecoin.

3. Fund Your Account

You must fund your account before you can buy Ethereum coins through a crypto exchange. Most frequently, a bank account like your current account will be used to deposit funds. In most cases, you can also deposit fiat currencies from a payments provider or use a debit card.

Not all service providers let you use your credit or debit card to purchase cryptocurrency; for instance, Tesco Bank, Virgin Money, and TSB restrict transactions with cryptocurrency exchanges. You might be able to purchase cryptocurrency from some providers using your credit card, but watch out for any additional trading fees they could tack on.

4. Buy Ethereum

The market hours place restrictions on investors purchasing shares, collective/pooled funds, or exchange-traded funds. The London Stock Exchange, for instance, trades from 8:00 am to 4:30 pm and is closed on weekends and bank holidays.

Ethereum and other cryptocurrencies operate extremely differently. You can purchase and sell Ethereum whenever you want because they are decentralized currency.

To acquire Ethereum, type its ticker symbol, ETH, into your exchange’s “buy” area along with the desired purchase amount. You can buy a portion of an Ethereum token if you don’t want to buy a full one or don’t have enough funds in your account to do so. If Ethereum costs £2,000 and you pay £100, for instance, you will buy 5% of an Ether coin

5. Store Your Ethereum

You must store your cryptocurrency after the processing of your Ethereum purchase. Certain people choose to store their assets personally to lessen the chance that they would lose their cryptocurrency to a hack, even if some sites will do it for you.

This is understandable, but it’s also crucial to keep in mind that the majority of significant exchanges do guarantee the holdings of their customers and frequently store the majority of their assets offline to prevent significant theft. Furthermore, in the past, exchanges that were hacked have paid up any losses.

But if you want your cryptocurrency to be secure, you can select between two different kinds of third-party wallets.

What Is Ethereum?

With the use of the technology known as Ethereum, you can send cryptocurrency for a nominal cost to anyone. Additionally, it powers programs that are available to everyone and cannot be deleted.

Although Ethereum is the name of the cryptocurrency, its full name is Ether (ETH). The decentralized blockchain network powered by Ether is actually referred to as Ethereum. Unlike Bitcoin, Ethereum was not designed to be a kind of electronic cash.

Instead, the founders sought to create a worldwide, open source, decentralized computing platform that would take the openness and security of blockchains and apply those qualities to a wide range of applications.

Ethereum is used for more than only making payments, according to the Ethereum website. It is a market place for games, apps, and financial services that cannot steal or censor your data.

The second-largest cryptocurrency in the world by market capitalization is Ethereum, which was introduced in 2015. Just for reference, Bitcoin was introduced in 2008. Ethereum network is an even more innovative blockchain network and cryptocurrency than Bitcoin cash because of its fundamental differences.

How Does Ethereum Work?

While the Bitcoin blockchain technology and the Ethereum technology are comparable, the Ethereum blockchain is far more versatile.

The Ethereum blockchain can be used by software developers to create a wide range of tools, including gaming software, logistics management software, and the whole spectrum of decentralized finance (DeFi) applications, including lending, trading, and more.

The cryptocurrency used by Ethereum networks and its apps is called ether (or ETH). Ethereum is protected by tested cryptography. This safeguards your transactions, ETH, and wallet. The Ethereum network is maintained by ETH. By utilizing ETH to pay the Ethereum network to carry out smart contracts, you can communicate with it.

You can act as your own bank with ETH. No third parties are required; you can manage your own money using your wallet as ownership documentation. Without using an intermediary provider like a bank, you can send ETH. It is similar to physically exchanging money, but you may do it safely with anybody, anywhere, at any time. Like stocks and other assets, you can purchase and hold ETH.

Global and decentralized, ETH. No business or bank may choose to increase the supply of ETH or alter the rules for use. To use ETH, all you need is a wallet and an internet connection. Payments can be made to you without having access to a bank account.

Since ETH can be divided up to 18 decimal places, you do not need to purchase 1 entire unit. If you desire, you can purchase fractions at a time for as little as 0.000000000000000001 ETH.

In order to improve efficiency, Ethereum 2.0, a new version of the Ethereum blockchain, started to be released in December 2020. Over the following two years, the switch to the new blockchain is planned to take place.

What Is the Purpose of Ethereum?

An extremely flexible blockchain that could accommodate practically any type of transaction was proposed in a white paper written in 2013 by Vitalik Buterin, a 19-year-old computer programmer and co-founder of Bitcoin Magazine.

The Ethereum blockchain would enable automatic and immutable cause-and-effect statements, enabling the creation of decentralized apps and next-generation smart contracts (dApps). Buterin worked to standardize how dApps operate.

In 2015, a tiny group of blockchain enthusiasts introduced Ethereum to the world. The cryptocurrency Ether (ETH) was created to serve as the Ethereum network’s currency.

Frequently Asked Questions

1. What is Ethereum 2.0?

Ethereum 2.0 is a collection of improvements that will make Ethereum more scalable, secure, and sustainable. Several teams within the Ethereum ecosystem are working on these upgrades.

2. Is Ethereum legal in the UK?

Yes, Ethereum is completely legal as long as you comply with HMRC’s requirements and pay tax on any gains made from selling your Ethereum.

3. How can I buy Ethereum in the UK?

Ethereum can be purchased straight from an Ethereum wallet or a crypto exchange. The top cryptocurrency exchanges to buy Ethereum in the UK are listed below:

• eToro – Live prices; Wallet; Advanced trading tools; Popular coins
• Uphold – Beginner-friendly; Crypto wallet; Cheap Forex rates
• Coinbase – Live prices; Crypto wallet; Popular coins; Earn free crypto
• OKX – Beginner-friendly; Wallets, Advanced crypto trading tools
• CoinJar – Live prices; Crypto wallet; Crypto card; Beginner-friendly
• Coinsmart – Beginner-friendly; Advanced crypto trading tools

4. Can I buy ETH with GBP?

You can buy ETH using GBP, yes. You must register for an Ethereum wallet or crypto exchanges like Coinbase, Uphold, or eToro in order to purchase ETH with GBP. You can then purchase ETH using a standard GBP payment card. If possible, you can also conduct a bank transfer to lower your overall fees.

5. What is ETH trading?

Trading in ETH refers to buying and selling ethereum. You can build decentralized applications (dApps) or employ a smart contract with your Ethereum assets. You need ETH to use these applications since gas is a statistic that indicates how much processing power is needed to execute the application. As an alternative, you can purchase and hold ETH or trade it like equities.