How to Buy Ethereum – A quick start beginner’s guide

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Note: If you’re looking to buy Ethereum for trading purposes only you may want to check out  Plus500 Ethereum CFD trading.

Lately there has been a lot of talk about the hottest altcoin in the community – Ethereum.

What is Ethereum?

Ethereum is a cryptocurrency and a blockchain platform with smart contract functionality. It’s basically a decentralized platform for developers to build apps on top of and it was invented by Vitalik Buterin in 2013.

Ethereum can be used to codify, decentralized, secure and trade just about anything: voting, domain names, financial exchanges, crowdfunding, company governance, contracts and agreements of most kind, intellectual property.

And what is Ether?

Well, Ether is the currency of the Etherium platform. Ether will be required by anyone wishing to build upon or use the Ethereum platform. Just like BItcoin, Ether can be traded around the web and mined. In a second I’ll show you exactly where you can buy it. Most people use the term Ethereum to refer to the currency instead of Ether and that’s why it can get so confusing.

The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale of the currency. The results were roughly:

  • 60 million ether created to contributors of the presale
  • 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation
  • 5 ethers are created every block (roughly 15-17 seconds) to the miner of the block
  • 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn’t included (called uncle/aunt reward)

The founders of Ethereum state that Ether is not a currency as much as it is “crypto-fuel”, meaning it’s a token that has one main use – to pay for the Ethereum platform. This means that you probably won’t be able to buy stuff with Ether online. However you can still trade it and invest in it in hopes its price goes up.

Because Ether is less “mature” than Bitcoin at the moment, it’s less suitable for non technical people. For example, you can download Ether’s official wallet app from github, but there’s no “user friendly” version of it yet. There’s also MyEtherWallet and EthereumWallet available with a simple interface.

Ethereum (ETH) vs. Ethereum Classic (ETC)

Ethereum Classic is a cryptocurrency that was created due to a disagreement with the way original Ethereum conducted business. The catalyst for the split was due to a hacker finding a way to steal $60m worth of Ethereum coins. The supporters of ETH said that the code should be altered and the stolen coins should be refunded, while the supporters of ETC said that “code is law” and whatever happened happened. So in real life what happened is that ETC was the same original Ehtereum code and ETH forked their code to create a new Ethereum.

Therefor 2 identical competing currencies were created that had 2 different exchange rates. Today ETH’s price is much higher and is more common around the general cryptocurrency community.

How to buy Ethereum (credit card, wire transfer and cash)

The easiest way to buy Ethereum (i.e. Ether) would be through one of the popular Bitcoin exchanges that also supply Ethereum.

Buy Ethereum through Coinbase

The most convenient and cheapest way to buy Ethereum would be Coinbase (if it’s available in your country):

  1. Open a Coinbase account
  2. Add your payment method (Credit card or bank account)
  3. Go to “Buy/Sell” and select the amount of Ethereum you desire
  4. Click “Buy Ethereum”

Coinbase will sell you ETH for a fee of 1.49%-3.99% depending on your payment method (credit cards have a higher fee than wire transfers).

Buy Ethereum on Coinbase Read our Coinabse review

 

buy Ethereum Coinbse

Buy Ethereum through Cex.io

CEX.io is a Bitcoin exchange that also sells ETH via a credit card. The fees for on CEX.io are already calculated into the exchange rate, that’s why it will seem higher than other exchanges. For example, the exchange rate for 1 ETH on CEX.io can be around 7% higher than on Coinbase. However, CEX.io works with countries worldwide (unlike Coinbase).

  1. Open a CEX.io account
  2. Add your payment method (Credit card or bank account)
  3. Go to “Buy/Sell” and select Ethereum
  4. Choose the amount of Ethereum you want to buy
  5. Click on “buy Ethereum”
Buy Ethereum on Cex.io Read our Cex.io review

 

Buy Ethereum on Cex.io

Buy Ethereum through Coinmama

Coinmama is a worldwide seller of Ethereum. The site allows you to buy Ethereum with your credit card and exchange rates are relatively fair considering the alternatives. Coinmama is a very reputable exchange that has been working in the cryptospace since 2014.

Buy Ethereum on Coinmama Read our Coinmama review

 

coinmama ethereum

Buy Ethereum through Coinhouse

If you live in the EU (Eurozone) another good option could be buying Ethereum from Coinhouse. The company is a Bitcoin and Ethereum broker that started out supplying service only to people from France and gradually expanded to the rest of Europe. You can pay via a credit card, debit card or Neosurf.

Buy Bitcoins on Coinhouse     Coinhouse review coming soon

You can also get Ether from several Bitcoin exchanges like Krakenpoloniex and shapeshift.io.

Buy Ethereum with Cash

At the moment there is no site like LocalBitcoins for Ethereum where you can meet people face to face and buy Ethereum with Cash. However, you can buy Bitcoins with cash and then exchange it to Ethereum through Shapeshift or Poloniex.

Don’t want to buy? You can day trade as well

If you’re only into Ethereum to profit on the exchange rate you can also invest in Ethereum CFDs (contract for difference). The idea is that instead of actually buying Ethereum you can just trade according to the exchange rate. CFDs is usually suited for experienced traders and your money is at risk when doing so. At the moment Plus500 are the only company that offers Ethereum CFDs.

You can also mining Ethereum

Mining Ethereum uses proof-of-work. It’s similar to Bitcoin mining in a sense that there is a diminishing block reward for every block mined.

You can try mining Ethereum using your own computer (CPU mining), but it will probably not get you too far. However, if you have a dedicated GPU set up for the task then you can get some real rewards. For information on exactly how to mine Ether visit Ethereum’s official web page or on our blog post about it.

Ether and Ethereum in General are disruptive technologies that are set to change how the Internet works. Whether it succeeds or not remains to be seen, but for now you can easily get your share of “the Internet’s future” by following the steps mentioned above.

If you want to learn more about Ethereum you can use the variety of social channels dedicated to the platform: Facebook, Twitter, YouTube, Reddit, StackExchange and the Etheruem blog.

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

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102 Comments on "How to Buy Ethereum – A quick start beginner’s guide"

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Ady
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Ady

Can you suggest some best mining rig configurations for optimum mining?

John
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John

Its worth mentioning that bitmex also offer an Ethereum CFD 7 day expiring futures contract.

Ady
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Ady

I’m very new to cryptocurrency, Should I buy or start mining. If so where should I start?

Zsofia Elek
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Zsofia Elek

Hi Ady, here is a guide about how to mine Ethereum: https://99bitcoins.com/guide-ethereum-mining-how-to-mine-ethereum/

Martin
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Martin

Ofir where can South Africans purchase ETH. We have a company locally but their markup is around $100. Where can I purchase ETH by using my credit card. Coinbase do not support S Africa.

Zsofia Elek
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Zsofia Elek

Hi Martin, you can try Cex.io, I think they accept users from South Africa according to their site: https://blog.cex.io/cryptonews/buy-bitcoin-in-south-africa-15366, if you can open an account to buy Bitcoin, you can also purchase Ethereum from them.

vishal Chauhan
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vishal Chauhan

HI,

i am from INDIA , how can i buy ethereum ? Please help me.

Thanks

Zsofia Elek
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Zsofia Elek

Hi Vishal, Cex.io accepts users from India.

umar
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umar

but the price is too high. the market price is 317$ but they are charging 366$ .. this is too high

ernesto
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ernesto

i just start in this, i just want to know if this work

Eli
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Eli

Why is it so difficult to set up a bank account with Coinbase? And even when I do, the purchase doesn’t actually take place when I buy. Nothing seems to work when I try to purchase ethereum. Could my bank be stopping these transactions?

KevinCrypto
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KevinCrypto

Just set up an account with Gemini (Gemini.com)… it’s simple, and the fees are much lower. My wife and I have been using Gemini for a couple months and it’s great.

Zsofia Elek
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Zsofia Elek

Hi Eli, probably it is best to follow up with Coinbase support team and ask them what is the problem.

Di
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Di
Hi Ofir Beigel (23/7/2017) My name is Di , I am from Australia. Firstly I wanted to thankyou for giving your time and all this information to help people, that is really nice of you. I have NEVER invested in any shares, I have absolutely no idea how to go about it and would like how to get started and how to be careful to try to invest as safely as I can ( I realise there are no guarantees). Do you have any suggestions of a good way to try to determine which shares to invest in, to try… Read more »
Zsofia Elek
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Zsofia Elek

Hi Di, thanks for the feedback on the site. Regarding your questions, I suggest you read this article first about investing in cryptocurrencies: https://99bitcoins.com/should-i-invest-in-bitcoin-heres-what-you-need-to-know/ and here is a good article to read about bitcoin safety tips: https://99bitcoins.com/bwbt-bitcoin-safety-expert/ You can follow up with the support team of Coin Bank directly if they offer their services in your area.

Daniel
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Daniel

Since coinbase doesn’t work with customers located in Israel. In your opinion, what is the best way to buy ETH from Israel?

Johnny D
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Johnny D

When you place an order to buy ETH on coinbase, are you buying at that days price or the price on the day the order shows up in your account? Price dropped $150 since order was placed so do you get “screwed” on the drop?

Zsofia Elek
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Zsofia Elek

Hi Johnny, generally speaking you should pay the price at the time your order was placed. But I suggest you to reach out to their support team for confirmation.

Lalit
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Lalit

Hi ,

We are planing to open coin exchange for ripple , ethereum and bitcoin in INDIA,

Can someone suggest me how to buy ethereum and ripple in bulk from the parent organisation

Osama
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Osama

I am in UAE which is best way to buy and sell Eth coins

bhupinder setia
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bhupinder setia

hi..need to buy ethereum in india, please help

Zsofia Elek
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Zsofia Elek

Hi, you can try Cex.io they accept users from India.

Bsienn
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Bsienn

Lol they sell for 25 more than the actual price, atm BTC is $2513 and they are selling at $2850 LOL No Thanks.

Pulsar
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Pulsar

I just closed Coinbase account. Stay away from these crooks.

ch_rqbx
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ch_rqbx

Amen

crig
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crig
hi i have been trying to open a coinbase account for weeks now it has restricted my account even though the verification has been accepted it wont accept any of my accounts they are uk GBP and US dollar accounts and i am a UK citizen what is going on at coinbase they don’t answer any of the e mail requests you send and seem totally inept should i continue to try with them or change to another provider and who would you reccommend a i a beginner in this but want to buy bitcoin and ether. thanks
Jeremy
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Jeremy
Thank you for the introductory. As a beginner, it seem like there’s a lot of homework to be done before really getting the cash sum into crypto-currency. 1.Get to know your crypto currency 2.Get to know the real dealer such as sellers, traders, Xchange or even hobbist. 3.Get to know which wallets are suitable for what purposes Last not the least which still puzzle me as a question. The scenario goes like this. David is a expat who is working in a develop state that have facilities to transact BTC or ETHE. Meaning to say he is also holding a… Read more »
Zsofia Elek
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Zsofia Elek

Hi Jeremy, this scenario depends on the infrastructure what the home town has – in case of internet connection and mobile network, there are a lot of exchanges on the market, who accepts users worldwide without the banking system with the help of anternative payment providers.

Zsofia Elek
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Zsofia Elek

If you do not manage to open the account at Coinbase, you can also try Cex.io to buy Ethereum. Here you can find a complete list of exchanges, where you can buy Bitcoins: https://99bitcoins.com/how-to-buy-bitcoin-with-a-credit-card/

Valera
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Valera

Why do you delete negative comments about CEX.IO ? Is it paid post?

Zsofia Elek
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Zsofia Elek

Hi Valera, comments are moderated once in every day. We do let negative comments in, your comment has been approved just now. This is not a paid post.

Valera
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Valera

Verification on CEX is horribly frustrating, and if you have problem then you need to speak on a live chat with bot that sends you links to FAQ. Customer service is bad considering how much money they make daily.

Willy Bonty
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Willy Bonty

Mr OFIR BIEGEL. Thank you for all your insights and advice on cryptoccurrencies. I really appreciate them. I read through your comment here and you made mention of not trusting ethereum yet o invest innit. Could you please give some professional advice on what crypto that could be a good investment?

Zsofia Elek
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Zsofia Elek

Hi Willy, thanks for the feedback. Cryptocurrency investment is always a tricky questions, as Ofir mentioned before you definitely need to understand first what are you investing in, this is the only professional advice we can give you.

Aishah Abubakar
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Aishah Abubakar

Hi,
Please i want to invest in Ethereum in Nigeria. Which wallets is supported in my Country. I noticed Coinbase is not supported for buying and selling. I will be glad if i will be guided. Thanks

Zsofia Elek
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Zsofia Elek

Hi Aishah, try cex.io, I think they accepts users from Nigeria.

pouya reza
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pouya reza

Hi can I ask you something, I want to buy etherium and sell it after 5 or 6 years. What steps do I have to take because im getting stuck between coinable and poloniex. I just want to buy for like 1000 use etherium and check it after 5 or 6 years to see if its profitable to sell it to get some money in exchange. What do I have to do. Hope you can help me what and where I have to buy etherium to hold it like 5,6 years

Zsofia Elek
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Zsofia Elek

Hi Pouya Reza, there are couple of exchanges where you can buy Ethereum, you can find them here: https://99bitcoins.com/guide-buy-ether-ethereum/ However if you want to hold them for long term, I suggest you use a cold wallet as that is safer. You can find couple of options here: https://99bitcoins.com/best-ethereum-wallet-review/

Meshie .U.
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Meshie .U.

Hi OFIR, I want to know if Ether can be bought from Nigeria and how? pls, help me with any contact.
Thanks,

Zsofia Elek
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Zsofia Elek

Hi Meshie, I think Cex.io accepts users from Nigeria. Have you tried them?

Adedamola
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Adedamola

They don’t accept users from Nigeria

Zsofia Elek
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Zsofia Elek

Hi Adedamola, have you contacted Cex.io for this? The last information I see on their website is that they accept users from Nigeria: https://support.cex.io/hc/en-us/articles/115002812708-Card-deposits-and-withdrawals-available-for-Nigeria-

Kshitiz Kaushal
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Kshitiz Kaushal

my card verification is taking ages…2 weeks still not done

Zsofia Elek
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Zsofia Elek

Hi Kshitiz, I suggest you to follow up with the Cex.io team regarding to your issue.

ola
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ola

How do I buy ethereum in Nigeria

shriya
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shriya

sir how can we estabilsh a ether exchange in india like bitcoin’s exchange

Zsofia Elek
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Zsofia Elek

Hi Shriya, setting up an exchange is a fairly difficult process, both from the technical side (website, trading engine, security) and from the legal side (local banking regulation, compliance). Probably you need a team of specialist for this.

aashish
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aashish

Hi ,
I am from india. Could you please suggest me, how I buy ETH from here?
Thanks.

fred
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fred

what your advise on Tbc coin?

Zsofia Elek
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Zsofia Elek

Hi Fred, I do not see this coin listed on Coin Market Cap, which is a warning sign already. Probably it is best to run through our Scam Test, so you can decide if it’s legit or not. https://99bitcoins.com/bitcoin-scam-test/

dalu kingsley
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dalu kingsley

hi, i am from Nigeria and i visit your blog every once in awhile, going the current rate ether rate, do you still think investing/buying/selling ether is profitable?

Zsofia Elek
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Zsofia Elek

Hi Dalu, the cryptocurrency investments is a tricky topic, you have to consider several factors, like time horizon, risk attitude, amount of money and your level of knowledger before spending money. There is no yes or no answer to this question.

Ami Turgman
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Ami Turgman

If I buy ETH on CEX.IO, is there a way to send it to my wallet somehow? I couldn’t find any way…

Tom
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Tom

Ofir one Beigel…please tell share the reason why have you not bought any Ethereum?

JB
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JB

Hi Ofir,

Thanks for all of the wonderful crytpocurrency information you’ve provided over the years.

Quick question: For the coming year, I’ll be working in a DoD deployment zone, and won’t have access to a cell phone through which to receive verification codes from Gemini, Kraken, Coinbase, etc. I want to buy Ethereum and BitCoin today. What do I do?

J. Anthony
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J. Anthony

Hi Ofir,

Thanks for all of the wonderful crytpocurrency information you’ve provided over the years.

Quick question: For the coming year, I’ll be working in a DoD deployment zone, and won’t have access to a cell phone through which to receive verification codes from Gemini, Kraken, Coinbase, etc. I want to buy Ethereum and BitCoin today. What do I do?

Zsofia Elek
Admin
Member
Zsofia Elek

Two factor authentication is an important security measure to make sure your coins are in safe. If you have internet connection, I would suggest to try to keep that and find a solution to receive the messages online.

Jephin joseph
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Jephin joseph

Hi I am from India and I want to invest in ETH . Can u tell me any platform where I can buy using Indian credit card

jeff barbieri
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jeff barbieri

I don’r see the buying with cash suggestions.

Akshay Gupta
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Akshay Gupta

I’m from India. We have a wallet named Zebpay for Bitcoin. ETH is not available here. I have a question. Is that possible that I’ll transfer the bits from my zebpay wallet to my friend’s coinbase wallet who is located in Alabama and he can purchase the ETH from those bits? And can ETH could be directly sold and amount will be submitted to Coinbase wallet or it has to be through Bitcoin conversion?

Jacob
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Jacob

ETH is on the rise. Might be able to beat BTC in the long run.

Oberdan Aguiar
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Oberdan Aguiar

It will most certainly beat bitcoin sooner than we think!

Screw Ether
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Screw Ether

BEst joke of the day

Steve
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Steve

YOu cannot use coinbase for NY purchasing of ETH you can only use gemini at this time.

Jaco Pretorius
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Jaco Pretorius

This is no longer the case – you can now buy ETH on Coinbase if you live in NY

SS
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SS

I am located in NY.How about purchasing ETC? I managed to buy ETH at gemini.

Nigel
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Nigel

Wasn’t it the ETC camp who objected to changing the code. I thought it was the ETH camp who changed the code in order to invalidate the tokens that had been fraudulently obtained by the DAO hacker. Haven’t you got it the wrong way round in your article?

Irfan Mohammed
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Irfan Mohammed

Can you suggest some trusted faucets for ether?

achim03
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achim03

irfan khan
I built a quite extensive list of ether faucets. What has to be said about these faucets is that they are all self-hosted since there is no external service like faucetbox that supports this currency yet. For many of these faucets the payout level is quite high and it takes a lot of time to be paid out. You should be able to access the list by klicking my name above this comment.

Kevin
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Kevin

I just turned all my BTC into Ether on my Eobot!! and changed all my mining settings to Ether. I could actually see a future for this, Just like how BTC was worth literally nothing. Its something worth investing on. I can’t wait to see 5 years later it being with hundreds. If you’re gonna invest INVEST NOW!!

Kirin
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Kirin

are you rich now, Kevin?

Anonymous
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Anonymous

I m from Croatia and want to buy etherium, can I do it without giving my personal info, and how can I sell Ether for EURO and on what sites?

Zsofia Elek
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Zsofia Elek

You can check this article about where to buy Ethereum: https://99bitcoins.com/guide-buy-ether-ethereum/ Coinhouse uses EUR for its operations.

Murat Kekec
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Murat Kekec

is it easy to mine Ether? do you need special hardware for Ether?
Thanks

LUIS
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LUIS

How does eobot works? is it legit ? thanks

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