How to Buy Ethereum as a Beginner
Ethereum is an open-sourced blockchain that supports thousands of decentralized applications (dApps). It’s considered the de facto network for the Web 3 era.
This guide explains how to buy Ethereum in 2024. I also discuss the best places to invest, which wallets offer secure storage, and a brief overview of Ethereum’s investment thesis.
How to Buy Ethereum – 3 Easy Steps
Let’s start with a simplified overview of how to buy Ethereum:
- Step 1: Create an Ethereum Wallet – The first step is to get a secure Ethereum wallet. Best Wallet is our top pick; it’s a self-custody wallet with strong security features. Download the Best Wallet app for iOS or Android. Set up a PIN or biometrics and write down the backup passphrase.
- Step 2: Open a Crypto Exchange Account – Next, Ethereum investors need an account with a crypto exchange. Best Wallet is the best option as it allows users to manage their crypto assets within the app as well as buy, store and swap cryptos with the tap of a button.
- Step 3: Trade ETH via Best DEX – Connect your wallet to the Best DEX and start trading ETH and BNB smart chain tokens in seconds. The Best DEX is also working on introducing real-time market updates, advanced charting via Trading View, as well as token analytics.
As I explain in more detail later, I’d suggest transferring the ETH coins to the Best Wallet app. This ensures you have 100% control of the coins, rather than relying on a third-party exchange.
Different Ways of Buying Ethereum – Wallets vs Exchanges
There are two common ways to buy Ethereum in 2024. Each comes with pros and cons.
- Some investors prefer buying Ethereum via a wallet. The ETH coins are instantly added to the wallet, meaning increased convenience. However, Ethereum wallets use third-party gateways when accepting fiat money, which means higher fees.
- Alternatively, some investors prefer using a crypto exchange to buy Ethereum. This reduces the fees, as regulated exchanges can directly accept fiat money – rather than using third-party gateways. However, investors must transfer the ETH coins to a wallet, should they require self-custody storage.
Let’s explore these two investment options in more detail. This will help you choose the best place to buy Ethereum in 2024.
Buy Ethereum Through a Crypto Wallet
Although crypto wallets are primarily used to store Ethereum, many have formed partnerships with fiat gateways. These are third-party payment processors that enable wallets to indirectly accept traditional payment methods, such as Visa, MasterCard, and PayPal.
Popular examples include Transak, Simplex, and MoonPay – but many others exist. The main benefit of buying Ethereum via a crypto wallet is convenience. The ETH coins will automatically be added to the wallet once the payment is complete. This removes the need to transfer coins from a crypto exchange. However, there are also some drawbacks.
For instance, fiat gateways typically charge excessive fees. For instance, Simplex charges average debit/credit card fees of 3.5% – 5%. Some wallets will add an additional markup, meaning the fees are even higher.
Best Wallet – Our Recommended Wallet
I rate Best Wallet as one of the best decentralized crypto wallets. Best Wallet is a self-custody wallet app for iOS and Android smartphones. A browser extension for desktop devices is also being developed – expect this in the coming months. Best Wallet offers safe ETH storage away from centralized servers; only the user has access to their private keys.
Moreover, the Best Wallet app comes packed with security features. This includes two-factor authentication and biometrics. Best Wallet is also protected by a backup passphrase for account recovery. Not only does Best Wallet support ETH but all ERC-20 tokens. It also supports custom tokens from BNB Chain and Polygon. Bitcoin will be added in the next development phase.
In terms of buying Ethereum, Best Wallet offers a user-friendly fiat on-ramp. It takes minutes to complete the KYC process. Investors can then choose from a debit/credit card or e-wallet. The ETH coins will instantly be added to Best Wallet upon completion. Best Wallet will soon be launching a fiat off-ramp too, meaning ETH can be cashed for your preferred currency. Best Wallet has a great guide on How to Buy Ethereum With Best Wallet if you want to know more about the process.
Other Wallets to Consider
There are many other wallet options when exploring where to buy Ethereum.
Here are some of my other top picks for Ethereum wallets:
- Ellipal Titan 2.0 – Considered one of the best Ethereum wallets for safety, Ellipal Titan 2.0 is a hardware solution with air-gapped security. Unlike other hardware wallets, transactions don’t require a USB or Bluetooth connection.
- Ledger Nano X – Retailing for $149, Ledger Nano X is a multi-chain hardware wallet. It connects with Ledger Live, a desktop and mobile app that supports Ethereum investments.
- Trezor Model One – One of the best hardware wallets for budget investors, the Trezor Model One costs just $59. While it’s packed with advanced security features, the Model One doesn’t support Ethereum staking.
Buying Ethereum Through a Crypto Exchange
Crypto exchanges remain the most popular way to buy Ethereum in 2024. Many platforms are designed with beginners in mind, ensuring even first-time buyers can complete their purchase seamlessly. What’s more, the best exchanges are adequately licensed, allowing them to directly accept fiat payment methods, such as debit/credit cards and local bank transfers.
This makes crypto exchanges more competitively priced than Ethereum wallets, which rely on third-party gateways. For instance, I mentioned earlier that Simplex charges up to 5% on debit/credit card purchases. In contrast, eToro fees start from 1.5%. And, if you’re using US dollars, the deposit fee is scrapped entirely.
Once you’ve deposited funds and bought Ethereum, it’s wise to transfer the coins to a self-custody wallet. This ensures you’re in control of the coins, rather than worrying about counterparty risks. This extra step could be a drawback for some. That said, reputable exchanges approve wallet transfer requests near-instantly – so the extra step is minimal.
eToro – Our Recommended Exchange
I rate eToro as the best crypto exchange for buying Ethereum. Launched in 2007, eToro offers a regulated environment, ensuring investors can purchase ETH safely.
Beginners will like eToro’s user-friendly platform – which can be accessed online or via the app. It takes minutes to open an account, including the mandatory KYC process. Deposit methods include debit/credit cards and e-wallets. Local banking methods like ACH are also supported.
The minimum Ethereum purchase is $10. The ETH coins are instantly added to the eToro wallet, although this is a custodial solution. Fortunately, eToro allows users to withdraw their ETH to a private wallet. Although eToro is safe and user-friendly, it charges a 1% trading commission. This is more than other exchanges in the market.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance.
US customers can only invest in Ethereum, Bitcoin, and Bitcoin Cash.
Other Exchanges to Consider
Hundreds of other crypto exchanges support Ethereum.
Here are some of my other top picks to consider:
- Margex – Launched in 2019, Margex is a multi-faceted crypto exchange. The platform offers copy trading features, perpetual crypto future contracts, and token staking returns.
- MEXC – This top-rated crypto exchange allows users to trade 1,000+ cryptos without charging any spot trading fees. The platform facilitates 1.4 million transactions per second.
- Binance – Launched in 2017, Binance is the largest crypto exchange for daily trading volumes. Investors can buy Ethereum at a commission of just 0.1% per slide.
How Much Does it Cost to Buy Ethereum?
Ethereum’s market price is determined by demand and supply. Its price changes every second based on buying and selling pressure. This works the same as other cryptocurrencies – and financial markets in general. Today, Ethereum trades at just under $3,000 per coin.
This makes Ethereum more affordable than Bitcoin, which trades at over $60,000. However, casual investors will be pleased to know that Ethereum can be fractionized into smaller units – known as ‘wei’. There are 1 quintillion wei for every 1 ETH. In theory, this means investors can purchase any amount they like – starting from micro-cents. On top of that, there are ways to earn free Ethereum if you are patient and willing to learn a few tricks.
Conclusion
We’ve explained how to invest in Ethereum, covering various methods for beginners in 2024. Some investors prefer crypto exchanges, especially when using fiat money. This is because top Ethereum exchanges offer low fees and commissions.
Another option is to buy Ethereum via a crypto wallet. Most wallets come with a fiat on-ramp, meaning users can purchase ETH with a debit/credit card or e-wallet. The ETH coins are then added to the wallet directly, preventing the need to use a crypto exchange.
FAQs
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References
- The Ethereum Merge Ups the Stakes—and Reshapes the Crypto Universe (Bloomberg)
- Ethereum Price Data (CoinMarketCap)
- US SEC expected to deny spot ether ETFs next month, industry sources say (Reuters)
- Consensys Sues to Block SEC From Deeming Ether a Security (The Wall Street Journal)
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