How to Buy Ethereum in the UK: Everything You Need to Know

Since it went live in mid-2015, Ethereum has become the second-largest cryptocurrency in the world by market cap. Loved by many for its potential, Ethereum isn’t just a digital currency but a platform where developers can build smart contracts and decentralised applications (dApps).

Its flexibility has attracted millions of investors from a wide range of industries, so we’ve put together this guide to tell you all you need to know about how to buy Ethereum in the UK.

Even better, I’ll share with you some of the best places where you can buy Ethereum in the UK, as well as a detailed tutorial on how to invest the token, plus the potential rewards and risks involved. Let’s dive in.

Where to Buy Ethereum in the UK

There are lots of places where you can safely and cost-effectively buy Ethereum in the UK. Some of these include:

• Ethereum wallets
• Ethereum brokers
• Crypto exchanges
• P2P exchanges

Let’s go through each of these, listing their respective representatives and detailing pros and cons along the way.

Ethereum Wallets

Ethereum wallets are the safest way to store your ETH. You could go for hardware or software wallets, with the former offering the highest security for long-term storage.

Some wallets allow for direct ETH purchases, but they usually come with higher fees, so you’re better off buying from an exchange and transferring it into the wallet. Here are the top wallet options.

Best Wallet

Best Wallet is one of the best, if not the best, Ethereum wallet on the list. It’s a one-stop shop for everything you need. The Best Wallet exchange is 100% on-chain, meaning you won’t need any third parties or intermediaries. It allows for both buying and selling crypto with fiat — and this includes buying ether with your GBP.

Best Wallet supports thousands of cryptocurrencies, including Ethereum and hundreds of ERC-20 tokens. Swaps are executed at the best available price, with Best Wallet partnering with multiple liquidity providers to make things easier for you. Best Wallet is also a non-custodial wallet, so you can not only buy Ethereum, but also store it without thinking about the “not your keys — not your crypto” problem.

Visit Best Wallet

eToro Money Wallet

The eToro Money wallet is a secure and convenient option for storing your Ethereum and other cryptocurrencies. Thanks to its seamless integration with eToro, you can easily move ETH from your investment platform to the eToro wallet for safekeeping.

You can also use the wallet to receive crypto from other wallets, swap between tokens, and monitor your investments. However, you won’t be able to convert your ETH into fiat or transfer it back to the eToro platform.

Visit eToro

Exodus

Exodus entered the crypto space in 2016 and has since emerged as one of the leading non-custodial wallets. It supports ETH and over a thousand assets but still maintains a user-friendly design that both newbies and experienced traders will like.

Furthermore, it allows users to easily swap between different cryptocurrencies and earn passive income by staking directly within the wallet. All these features enable users to safely manage their assets without ever having to transfer them from the platform.

Visit Exodus

Ethereum Brokers

If what you seek is a straightforward and direct ETH buying experience, Ethereum brokers are your best bet. These platforms set their own prices based on market conditions and allow you to simply exchange your fiat for Ethereum in a few simple clicks.

eToro

eToro is one of the most popular crypto brokers today and a common option for beginners, thanks to its user-friendly interface, which enables users to buy and sell Ethereum with ease. Even better, you can deposit fiat in a few minutes at absolutely no cost.

It also offers unique features like the CopyTrader and Popular Investor. With the CopyTrader, you can track and copy the trading strategies of popular investors on the platform. If you’re an expert trader, you can share your own trades, build up your following, and earn annual rewards.

However, eToro requires KYC verification, which you won’t like if you’re trying to buy Ethereum anonymously.

Visit eToro

Crypto Exchanges

Crypto exchanges are the most preferred option for traders looking to purchase Ethereum due to the range of extra trading features they offer. They also support more cryptocurrencies than other platforms, which can be helpful for those looking to explore other tokens in the long run.

MEXC

MEXC is a global crypto exchange known for its extensive range of available tokens and trading pairs. You can purchase Ethereum and over 2,000 other tokens, including the latest meme coins and NFTs.

However, the main reason MEXC stands out from many other exchanges is that it doesn’t charge a dime for spot trades. You also get a $1,000 bonus after creating your account; plus, you can enjoy features like copy trading and P2P trading.

Visit MEXC

Margex

There are various reasons why Margex stands out as one of the leading crypto exchanges. For one, it lets users purchase Ethereum anonymously. Yes, that’s right — it’s a no-KYC exchange where you don’t need to submit any personal information to start trading.

Next, it emphasises leverage trading, allowing users to trade Ethereum with a high leverage of up to 100x. You’ll also get to enjoy really low trading commissions, as low as 0.019% on limit orders and up to 0.6% on market orders.

Visit Margex

BloFin

BloFin is a relatively new but popular crypto exchange that’s powered by the reputable TradingView. Users can also trade Ethereum with up to 150x leverage, and if they feel like diversifying their portfolio, there are at least 250 supported tokens on the platform.

Furthermore, new users on BloFin can claim up to $5,000 in lucrative sign-up bonuses. You’ll also get to use features like copy trading and a demo account, which will help you get the hang of things. Finally, you can earn passively by staking your Ethereum with APY/APR up to 4%.

Visit BloFin

P2P Exchanges

Peer-to-peer (P2P) exchanges connect buyers and sellers directly. This allows users to trade Ethereum without any intermediaries or fees. Nevertheless, these platforms come with increased risks, as scammers usually lurk around, trying to obtain ETH without paying.

ByBit

ByBit is primarily known for being a derivatives trading platform, but its P2P trading options have become really popular in recent times. This platform enables users to buy ETH with GBP directly from other users.

You will need to create a ByBit account and link your bank account, which must match the name on your ByBit profile. This greatly reduces the risks of scams. Also, customer support is always on standby in case you need to appeal an order or report anything.

ByBit runs one the safest P2P platforms in the crypto world today and can truly be a great option for those looking to purchase ETH at zero extra costs.

Visit ByBit

How to Invest in Ethereum UK — Detailed Tutorial

Now that you’ve seen the best platforms where you can purchase Ethereum in the UK, here’s a detailed step-by-step guide to walk you through the process.

1. Pick a Crypto Platform

The first thing you need to do is find a safe and reputable crypto platform. I say safe and reputable because there are hundreds of exchanges, brokers, and P2P sites out there, but not all of them offer the same level of security and experience.

Some platforms may have hidden fees, poor customer support, and inadequate security measures, which can jeopardise your investment. Fortunately, I’ve thoroughly reviewed some of the best platforms, so you only need to click on the link of your preferred site to get going.

Find and click on the sign-up button on the site’s or app’s homepage and enter all the required details to create your account. You’ll most likely be asked to submit a government-issued ID and, in some cases, complete facial verification.

For added security, you can enable a biometric lock on your account, which will require you to log in with Face ID or fingerprint via mobile. You can also link your account to an authenticator app or enable 2FA.

2. Fund Your Account With GBP

Find the Buy Crypto tab on the platform and select the fiat option. You’ll be directed to the Deposit page, where you have to confirm your currency as GBP and select a preferred payment option, typically a credit/debit card or a bank transfer.

Always double-check the amount you’re depositing and the transaction fees before hitting the Continue button. Deposits only take a few moments to process, and once they are completed, your account balance will reflect the funds.

3. Buy Ethereum

Navigate to the platform’s Market or Trading section and locate Ethereum from the list of cryptocurrencies. Choose the amount of Ethereum you wish to purchase, but make sure to review the market price and applicable fees before confirming your order.

After placing your order, you can monitor the status in your portfolio section. Your Ethereum should be available after a short processing period. Some exchanges like ByBit offer a One-Click Buy feature that allows you to swap GBP for ETH immediately when placing orders.

4. Transfer Your Ethereum to a Personal Wallet

If you want full control over your assets and would like to protect them from potential exchange vulnerabilities, you’re best off transferring your Ethereum to a personal wallet. This can either be a software or hardware wallet, but whichever you choose, you’ll be in control of your private key.

Moving your Ethereum to your personal wallet is also a straightforward process. You simply need to set up your wallet through an app, web-based platform, or physical device. Then, visit the exchange where you bought the ETH and navigate to the Withdrawal page.

There, you’ll find an option to withdraw via a crypto network, so enter your crypto address from your wallet and confirm the transaction. You can check out our review on the most trusted Ethereum wallets if you’re struggling to make a choice.

What Is Ethereum?

Ethereum is a decentralised, open-source blockchain platform and cryptocurrency that is used by developers to build and deploy smart contracts and decentralised applications (dApps).

Unlike Bitcoin, which is mainly used as a digital currency and fiat alternative, Ethereum’s primary purpose is to allow for the creation of a wide range of applications through its programmable blockchain.

The idea was proposed back in 2013 by Vitalik Buterin, who believed that blockchain technology could offer more than just transactions. Ethereum didn’t go live until 2015, and in less than a decade, it has become the second-largest cryptocurrency in the world by market cap.

Over the years, Ethereum has undergone several upgrades, the most notable one being the switch from the proof-of-work consensus mechanism to the proof-of-stake.

Ethereum’s ability to support smart contracts and its growing ecosystem that includes non-fungible tokens (NFTs) and DeFi platforms has made it a popular choice for both investors and developers.

Potential Rewards and Risks of Investing in Ethereum

Ethereum has become a popular option for investors due to its innovative technology and multiple applications. However, even though it does carry great potential for high returns, you can’t just ignore the risks. I’ll explore both angles here.

Potential Rewards

In August 2021, EIP-1559 was introduced, and it came with Ethereum’s deflationary mechanism. What this means is that during every ETH transaction, a part of the transaction fee burns and reduces the token’s total supply.

This has led to more Ether being burned than issued in the last few years, creating a supply-demand dynamic that can lead to more burning and price appreciation.

Also, the shift to Ethereum 2.0 and the proof-of-stake model has enhanced the efficiency of the Ethereum network and attracted more users and developers. This has positioned Ethereum as a leading platform for innovation in the blockchain space and has led to more projects being built on it.

The growing ecosystem has established Ethereum as a central player in the cryptocurrency market, ideal for those who prefer long-term investments.

Potential Risks

One of the major risks of investing in Ethereum is its high volatility. Truthfully, this is a challenge most cryptos face, not just ETH, and is something investors must be comfortable with before embarking on their journey.

I remember the first two weeks of 2018 when Ethereum hit its initial peak of $1,300 — before March ended, it was down to $400, a notable 69% decrease in just a couple of months. I’m not ashamed to say that I lost a few bucks then, but if I needed a lesson on the volatility of cryptocurrency, that was it.

While you might be able to catch these price swings early if you keep up with the trends, the unpredictable nature can still lead to some pretty big blows.

Furthermore, we’ve seen the rise of other blockchains like Cardano and Solana, popularly called “Ethereum killers.” These competitors work similarly to ETH and offer faster transaction speeds and lower gas fees. If their growth continues, it may affect ETH’s market share over time.

Pros and Cons of Investing in Ethereum

How to Invest in Ethereum Safely

It can be truly rewarding to invest in Ethereum, but safety should always be your top priority. I have outlined essential practices that should help protect your investment and ensure a secure trading experience:

• Use a reputable exchange with robust security measures and low transaction fees.
• Transfer your ETH to a secure personal wallet after purchase, preferably a hardware one.
• Enable two-factor authentication (2FA) on all accounts holding your assets.
• Avoid clicking on unverified links and never share your account password or keys with others.
• Educate yourself about the crypto market and always stay on top of the latest trends.

Conclusion

Investing in Ethereum presents an exciting opportunity for both new and seasoned investors. With recent upgrades and an ecosystem bustling with exciting applications and projects, there’s no doubt that Ethereum will remain a leading player in the crypto market for years to come.

If there ever was a time to buy Ethereum, it would be now. To make things easier, I’ve reviewed some of the best platforms for you, along with steps for purchasing Ethereum and the best practices for enhanced security.

Whether you choose to use a user-friendly broker like eToro, explore low-fee exchanges like MEXC, or purchase from P2P platforms like ByBit, remember to always stay informed and continuously educate yourself about the market.

FAQs

How to buy Ethereum for beginners?

If you are a beginner, I advise you to open an account on the recommended platform, eToro. First, verify your account and deposit fiat using your preferred method. Now, head to the Trade section and search ETH. Then, enter the amount you want to exchange and click Buy.

Is it legal to buy Ethereum in the UK?

Yes, it is legal to buy Ethereum in the UK. You can purchase the token with GBP using your bank card or bank transfer.

How much Ethereum should I buy as a beginner?

The amount you decide to invest in Ethereum completely depends on you and your budget. Like most tokens, ETH is volatile, so this should be an amount that you’re comfortable with losing in case its price goes down.

Is Ethereum taxed in the UK?

Yes, profits from investing and trading Ethereum can be taxed as capital gains. If the profit was received from salary payments or through mining, it can be taxed as income.

Who created Ethereum?

Ethereum was created by Vitalik Buterin. The Canadian programmer conceived the idea in 2013, but the token and network didn’t go live until 2015.

What is the easiest way to buy Ethereum?

The easiest way to buy Ethereum is through an Ethereum broker or cryptocurrency exchange. eToro, MEXC, and Margex are some of the more trusted platforms with a simple interface for quick ETH purchases.

How much does it cost to buy one Ethereum in the UK?

At the moment, it’ll cost you £2,463.20 to buy one Ethereum in the UK.

References

What Is Ethereum And How Does It Work? (Forbes)

Inflationary vs Deflationary Crypto: Understanding Value (CoinMarketCap)

The Future Of Ethereum (Forbes)

A Dive Into Ethereum 2.0 (CoinMarketCap)