Where & How to Buy Ethereum (ETH) in 2023

The following guidelines and information cover how you can get started if you are interested in buying Ethereum, both with brokers or exchange. Here are some of the most important steps you need to take. 

Step 1: Find an Appropriate Platform to Buy/Trade Ethereum

As it has already been discussed that if you want to own the ETH token, you need to go for an exchange and if you just want to trade then brokers will be a much better choice. Whatever platform you choose, ensure that you research their pros and cons to identify whether they are regulated and trustworthy enough to invest your money. 

Look for regulatory compliance, user-friendliness, fee structure for the cheapest way to buy/trade Ethereum, online reviews and available payment methods before you decide. You can choose a platform that offers features according to your preferences.

For instance, eToro and Plus500 are two of the most renowned brokerage websites, while Coinbase and Binance are highly praised crypto exchanges. If you want to go for convenience and user-friendliness, then eToro and Coinbase are better choices. However, if you want more control and freedom over your investments, Plus500 and Binance give you exactly that. 

Step 2: Registration / Create a New Account

After you have chosen which crypto platform suits your requirement, you’ll need to register with that platform and create a new account. There are a few differences in terms of what platforms require from the users who want to sign up, but usually, you will only need to fill in basic documentation such as identity proof and bank account details. 

While there are platforms on the web that require fewer KYC documents and deliver enhanced anonymity, it is riskier to do business with them as they might not be adequately regulated. 

Step 3: Deposit Funds

Once you have signed up, you can now move on to the step of depositing your funds that will act as your working capital. Before you do that, ensure that you are choosing the right payment method as most platforms offer a diverse variety of payment modes including bank transfers, debit card, credit card, PayPal and other e-payment solutions to buy Ether. You need to weigh the payment method expense, speed and convenience to finalise your decision.

Also, keep in mind that different platforms have different minimum deposit limits. Some like Skilling will ask for only $100 while some may not have any minimum limit at all such as Pepperstone. Transaction fees will also be different from platform to platform.

Step 4: Start Trading or Buying Ethereum

After you have set up your account and deposited your working capital, you are ready to buy Ethereum tokens. If you have selected a broker, then it will enable you to trade Ethereum in the form of Contracts for Difference or CFDs and other financial instruments. 

If you want a more comprehensive approach and desire to own ETH tokens, exchanges will give you that option along with a secure wallet. 

Having said that, as the demand for Ethereum tokens is so high and diverse, there are other platforms as well. For instance, on eToro, you can engage in direct trading but they are also brokers. 

Moreover, some exchanges, including Binance and Bitmex offer crypto investors the financial trading tools such as futures contracts, crypto loans margins and leveraged tokens. Few of these features include advanced trading methods and can be quite risky if not done with prior knowledge and trading awareness. 

Step 5: Optional Steps

Once you have started to trade Ethereum, it is time to decide what you will do with your ETH tokens and how you are going to keep them secure. Here are some of the leading options for Ethereum investors:

• Move funds to a wallet:

You can use the built-in wallet provided by the platform or get your own software or hardware wallet to keep your ETH secure. 

• Participate in staking: 

If you want to provide support to ETH miners and the developer community who ensure Ethereum remains operational, you can put your ETH tokens in certain wallets that you can put your tokens into that serve to provide financial support to the operations and security of the Ethereum network. 

• Sell high, rebuy low: 

If your primary objective is to gain maximum profits from the crypto exchange, then you would want to keep an eye on the price surges to sell at a ceiling. Once it drops to the floor, you can buy again and keep repeating the process to make money. 

Available Payment Methods for Buying Ethereum

Subject to availability and your own requirements, you will find that there are various payment modes that are better suited to your investment strategy. Some of the best ways to buy Ethereum are listed below.

• Buy Ethereum with Cash

If you want to buy Ethereum with cash, you can go to the nearest Ethereum ATM or teller service to do so. Use CoinATMRadar.com to find the nearest Ethereum ATM. 

• Buy Ethereum with Credit / Debit Card

You can also use your credit or debit card to buy Ethereum as many of the leading crypto platforms have made this option available including Coinmama, eToro and Coinbase.

•  Buy Ethereum with Bank Transfer

If you want to buy Ethereum through bank transfer, it will depend on your country of residence. Coinmama has the widest availability among all platforms and works with almost all countries. You can check whether your platform of choice supports bank transfers or not. 

• Buy Ethereum with Cryptocurrency

If you have Bitcoin or other altcoins such as Monero, Dash or Ripple, you can exchange them for Ethereum tokens. Make sure you see the spread and fees before you buy. 

• Buy Ethereum with PayPal

Currently, it is quite challenging to buy Ethereum with PayPal due to regulatory issues. That being said, crypto platforms, as well as blockchain networks, are working tirelessly to bring this option to users. PayPal has recently rolled out its crypto services in the US.

What Are the Fees for Buying Ethereum?

Wondering how to buy Ethereum without fees? Unfortunately, this is quite hard to do. At the time of writing, the average transaction fee of ETH transfers on the network is $0.9599 per transaction, almost a 600% increase from last year when the fee was hovering around the mark of $0.1325 per transaction.

Moreover, the charges and fees levied by different crypto platforms, including trading brokers and exchanges vary in terms of percentage and fee structure. Generally, usual buying and selling through bank transfer will cost you 0.5% to 2% while instant buying using credit or debit cards can cost you back anywhere between 3% to 7%. The pricing structures aren't that complicated, but they vary substantially based on multiple factors such as payment mode and geographical location.

If you want to actively trade by putting your capital on the line, you need to do the homework on every coin and keep up with the latest developments and news. Reading different analyses and predictions by experts can also assist you in making an informed decision on when is a good time to buy Ethereum. Most importantly keep an eye on the price movements. You will begin to notice price trends that will enable you to improve the accuracy of your trades. 

What Drives the Coin’s Price?

Since cryptocurrencies like Ethereum have risen in importance in a pandemic-hit world, everything from rumours and political events to social influences and opinions of pundits can have an effect on the price. Since there is no central authority to control the price, Ethereum's price is determined solely by market factors.

How to Sell Ethereum

If you want to sell your Ethereum to make a profit, you can do so in three different yet effective ways:

• Crypto Exchange - If you own ETH tokens, you can sell them on an exchange for fiat money or other cryptocurrencies. 

• Trading/Broker Websites - If you have invested in financial instruments like ETH CFDs, then you will have to choose a crypto broker to sell off your Ethereum.

• Peer-to-Peer Network - These are marketplaces that help buyers and sellers of cryptocurrencies to buy and sell ETH tokens.