Key Takeaways
- Ethereum is the second-largest cryptocurrency, and it can be purchased at almost any crypto exchange.
- There are lots of options when it comes to buying $ETH, including debit cards, ACH payments, PayPal, and exchanges
- More cautious investors can use dollar-cost averaging and store their $ETH in cold wallets after purchasing
How To Buy Ethereum
You can purchase Ethereum on almost any crypto exchange, but not all exchanges are created equal. Below we take a look at the best places to purchase Ethereum, weighing fees, trading minimums, and more.
We also cover the safe storage and handling of your $ETH.
How to Buy Ethereum (ETH) in 4 Steps
Buying $ETH requires just a few steps.
Step 1: Choose an Exchange
Step 2: Sign-up and verify your account
Step 3: Pay for Ethereum
Step 4: Store Ethereum - Keep it on an exchange or transfer it to a crypto wallet like Metamask.
The Cheapest Ways to Buy Ethereum
Below we cover the top centralized exchanges where you can buy $ETH:
- Crypto.com: Best exchange for anyone in the US, UK, Canada, Australia and Europe
- OKX: Best exchange for Asian investors
- Nexo: Best for crypto-backed loans and high-yield savings
- Coinbase: Best for beginners and ease of use
- Binance: Best for low fees and wide crypto selection
- Gemini: Best Bitcoin exchange for all 50 US states
- Uphold: Best for multi-asset trading
- Bybit: Best exchange for advanced traders
- MoonPay: Best exchange for beginners
| Marketplace | Basic Trading Fees (Spot) | Basic Trading Fees (Futures) |
|---|---|---|
| Crypto.com | 0.075% maker fee, 0.075% taker fee | 0.017% maker fee, 0.034% taker fee |
| OKX | 0.08% maker fee, 0.10% taker fee | 0.02% maker fee, 0.05% taker fee |
| Nexo | 0.20% maker fee, 0.20% taker fee | 0.06% |
| Coinbase | 0.40% maker fee, 0.60% taker fee | 0.40% maker fee, 0.60% taker fee |
| Binance | 0.10% maker fee, 0.10% taker fee | 0.02% maker fee, 0.05% taker fee |
| Gemini | 0.20% maker fee, 0.40% taker fee | 0.02% maker fee, 0.07% taker fee |
| Uphold | 1.4%-1.6% on $BTC and $ETH | No derivatives products |
| Bybit | 0.10% maker fee, 0.10% taker fee | 0.02% maker fee, 0.055% taker fee |
| MoonPay | 1% on bank transfer, 4.5% on credit/ debit card | 1% on bank transfer, 4.5% on credit/ debit card |
4.6
Pros
- Wide range of features like crypto trading, stock trading and staking all on one platform
- Offers 8% cashback with Crypto.com's debit cards
- Available in the U.S.
Cons
- High withdrawal fees
- Have to hold $CRO for high rewards
- Sports betting on the NFL and NBA 🏈
- Crypto baskets to easily diversify your portfolio 🧺
- Stock trading straight from Crypto.com account 💲
Available globally, Crypto.com is a crypto exchange that also offers a range of products including (but not limited to)crypto debit cards, stock trading, and staking.
4.5
Pros
- Wide range of features like trading, staking, NFT marketplaces on one platform
- Lower trading fees than most exchanges
Cons
- Not available in the US
- OKX Wallet: Offers a non-custodial wallet that supports Ethereum, Solana and BNB Chain.
- OKX Earn: Fixed-term savings accounts to earn passive income on crypto holdings.
- Integrated TradingView:Professional-grade charting tools within the platform.
Available worldwide (except for the U.S.), OKX bridges the gap between centralized exchanges and the DeFi world with its multi-chain Web3 wallet.
4.3
Pros
- Earn up to 12% APY on crypto and fiat savings
- Offers credit card that gives you cashback in $BTC
Cons
- Not available in the US or Canada
- High interest rates often require staking $NEXO tokens
- Nexo Credit Card:Rewards of up to 2% in $NEXO or 0.5% in $BTC
- High-Yield Savings Accounts:Daily interest payouts with no lock-in period.
Nexo is a top choice for borrowing and lending, offering high-yield savings and instant crypto-backed loans with the convenience of its Nexo Card.
4.5Pros
- Easy to use for crypto beginners
- Fund account through PayPal
- Free USDC withdrawals across all supported networks except Ethereum
Cons
- Trading fees are significantly higher compared to other platforms.
- Not available in multiple Asian countries like India, UAE and Philippines.
- Coinbase Pro: Offers advanced trading tools for experienced traders.
- Coinbase Wallet:Self-custodial wallet supporting most EVM-compatible networks.
- Fiat Onramp: Supports deposits and withdrawals in multiple fiat currencies via bank transfers, credit/debit cards, and PayPal.
Coinbase is one of the most trusted names in crypto, and being a publicly traded company brings more transparency than you’ll find with many other exchanges. Coinbase fees can be high but it makes sense for the quality that they provide.
4.4
Pros
- Biggest exchange in crypto
- Lower trading fees than most exchanges
- Available in majority of US through Binance.US
Cons
- Limited features on Binance.US
- Not available in New York, Texas, Vermont andmultiple other states
- Binance Launchpad: Users can earn passive income through staking and liquidity farming.
- Binance Card: Visa debit card that gives you crypto rewards with every purchase.
- NFT Marketplace:Buy, sell, and create NFTs directly on the Binance platform.
- Countless help articles:Learn how to buyBitcoin or get answers to your other crypto questions with Binance’s help pages and the Binance Blog.
Binance has a reputation for not being as people-friendly as other exchanges, but we haven’t found that to be the case at all. The Binance.US exchange is particularly intuitive, even for beginners.
4.9Pros
- Free Bitcoin Lightning Network withdrawals supported
- Low minimum crypto purchase of $5
- Free cash deposits with a $1 minimum (Intermediate and Pro accounts)
Cons
- 0.0005 BTC minimum withdrawal
- 0.0002 BTC withdrawal fee
- Not available in NY or WA
- High Instant Buy fees
- Low Fees For Kraken Pro: Kraken’s low fees available with Kraken Pro make it one of the best places to buy Bitcoin. Pay just a 0.16% maker fee or 0.26% taker fee for trading volume up to $50,000, with additional discounts available for higher trading volumes.
- Proof Of Reserves: Log in to your account to verify Kraken’s crypto assets and ensure your holdings are included in the totals.
- Multiple Funding Methods: Kraken is one of the few exchanges to offer credit card crypto purchases (outside the US). Buy Bitcoin with a credit card or debit card, or fund your account with your bank account.
In an industry where centralized exchanges haven’t been time-tested, Kraken has weathered both bull and bear markets since 2011, making Kraken one of the most trusted Bitcoin investing sites. Fees for Instant Buys are higher than some competitors, but If you use the Kraken Pro, just a click away from the home screen, you’ll enjoy some of the lowest trading fees available.
4.6Pros
- Bank account or PayPay funding (personal PayPal accounts only)
- Low minimum order
- Great for beginners
- Fully operational in the US, UK, and Europe, with growing global coverage.
Cons
- Fewer cryptocurrencies to trade
- Minimum withdrawal of $10 to an external wallet
- Nofutures or margin trading
- High trading fees compared to other exchanges
- Easy-To-Use Trading Interface: Gemini is perfect for quick and recurring $BTC buys.
- Gemini Card: Earn instant crypto rewards on every transaction.
- Gemini Earn: Earn interest on your crypto holdings with competitive APYs
Gemini is a highly-compliant exchange that takes pride in being secure and well-regulated. It has an impressive range of features, including a credit card with crypto-back rewards. Gemini is NY-based and available to traders in all 50 states.
4.7Pros
- Can invest in crypto, metals and even fiat currencies through one platform
- Offers 4.65% APY on USD holdings
- Available in the US
Cons
- Extremely high trading feescompared to other exchanges
- Doesn’t offer leverage ormargin trading
- USD Interest Accounts:Let your funds grow passively while you wait to strike on your next buying opportunity.
- Uphold Vault: A secure self-custody solution for $BTC and $XRP, using a 2/3 multi-signature wallet.
- UpHODL Wallet: Self-custodial web3 wallet that lets you store and manage $BTC, $ETH, $XRP, ERC-20 tokens, and NFTs in one place.
Uphold is an impressively sleek and easy-to-use multi-asset platform, letting users invest in crypto, global currencies, and precious metals in one place.
4.4
Pros
- Best for trading perps and options (offers up to 100x leverage)
- 0 fees for peer-to-peer (P2P) trading
- Lower trading fees than most exchanges
Cons
- Not available in the US, UK or any other countries listedhere.
- Leveraged products can be risky for beginner
- Wide range of trading options:Whether you want to trade spot, futures oroptions, Bybit has it all.
- Advanced tools for traders:Along with 100x leverage, Bybit offers risk management features like trailing stops.
- Competitive fees: Fees starts at 0.10% (10bps).
Bybit is ideal for experienced traders seeking advanced features such as perpetuals and options. It has built a reputation for providing advanced trading tools at low costs. That being said, beginners should tread carefully on Bybit.
4.6
MoonPay is a solid pick for beginners and casual buyers who just want a simple, no-fuss way to buy crypto. The app’s easy to use, offering plenty of payment options, and the MoonPay Balance feature lets you dodge extra fees. It also has strong security, supports NFT purchases, crypto swaps, and over 80 cryptocurrencies in 180+ countries.
Pros
- Beginner Friendly
- Available in 180+ Countries including the USA (except HI, MT, NV, NY, VI, VA)
- Huge variety of fiat payment methods including Apple Pay
- Non-custodial
Cons
- Fees can sting when using instant payment methods
- No special trading tools aside from recurring buys
- Some US states not supported
Buy Ethereum Through DeFi Exchanges
Ethereum uses its smart contract technology to power an entirely new way of trading financial assets known as “decentralized finance” (DeFi). Through DeFi, individuals can trade, lend, and borrow crypto without relying on centralized intermediaries but instead by utilizing automated programs that link buyers and sellers and facilitate transactions.
Below we look at the two largest DeFi platforms you can use to buy Ethereum.
4.9Pros
- Swap both ERC-20 & Solana tokens in one place
- No charge for failed ERC-20 transactions
- Low trading fees
- Wide selection of tokens
- Protection from MEV
- Makes "Moooo" sound when you swap
Cons
- Limited blockchains
- No limit orders
New to crypto? Milk Road Swap has super-simple guides on how to swap onchain, baked right into the interface. Crypto veteran? Make low-fee 0.15%-0.25% trades with MEV protection
We’ve teamed up with CoW Swap and Raydium to create the first ever DEX that allows you to trade Ethereum (ERC-20) AND Solana based tokens in one place. Plus, with low fees and MEV protection on all Ethereum, Base and Arbitrum swaps, Milk Road Swap helps you save while you trade!
Pros
- Wide selection of tokens
- Helps users avoid scams with warnings when purchasing rarely traded tokens
- Simple fee structure
Cons
- Fees higher than some competitors
- Limited blockchains
- No limit orders
Want a DEX that’s so easy to use that you can recommend it to Mom? That’s Uniswap. But you might have to explain crypto wallets and ETH gas fees first. Uniswap has a massive user base, with about 5 million users to date and a huge selection of tokens. Quoted prices include both USD values and token values, removing the cost mystery you might find on other DEXs.
- People who want to keep things simple: DEXs can be as daunting as drunken Jenga, but Uniswap makes DEX swaps simple. You’ll find one box in the middle of the screen. No endless endless tables or complicated charts. Just enter your trade, and you’re swapping like a pro.
- People who need a larger selection of tokens: As the grandaddy of DEXs, Uniswap attracts hordes of eager traders, which also attracts liquidity providers hungry for yield. Whether it’s a common token or something new, there’s a good chance you’ll find it on Uniswap.
- Milk Road Swap: Milk Road Swap is the easiest and cheapest place to swap your crypto and the only DEX that allows you to trade Ethereum (ERC-20), Arbitrum, Base and Solana within a single interface
- OpenOcean: OpenOcean is a DEX aggregator that helps you find the best swap rates on 20 supported blockchains. You can even do cross-blockchain swaps. (More on that later.)
3.5
Payment Methods Accepted
- Credit Cards:Most major exchanges no longer support purchasing $ETH and other cryptocurrencies using a credit card. However, debit cards are widely accepted on exchanges, including Coinbase and Kraken.
- Debit Cards:For many, debit cards are the default way to buy Ethereum. Leading exchanges like Kraken and Coinbase support crypto purchases made through debit cards. Be sure to compare fees against using ACH, which is often more cost-effective.
- ACH:Automated Clearing House (ACH) is a popular method for sending money directly between bank accounts. ACH is a great way to purchase Ethereum in bulk, but keep in mind that clearing times may be several business days, and exchanges may assign spend limits.
- PayPal:The online payment provider supports purchasing Ethereum through their website and mobile app. You will need a PayPal account to complete your purchase. Coinbase also supports PayPal funding for $ETH and other crypto purchases.
- Ethereum Spot ETFs: Following the recent of approval of 11 spot Bitcoin ETFs, all attention has turned to the potential of spot $ETH ETFs being approved next. Major institutions such as BlackRock and Fidelity have already applied to launch them, with a decision scheduled for May of 2024.
We will use Kraken for this example.
Step 1: Once you are signed into Kraken, select "Ethereum" from the “Explore” section:
Kraken.com
Step 2: Click the “Buy” button, select "ETH" and enter the amount you’d like to purchase:
Kraken.com
Step 3: Add your debit card as a payment method and complete your purchase
Kraken.com
You can buy Ethereum either directly through PayPal, or by using PayPal to fund your account balance on a website like Coinbase. Below is a step-by-step process for buying $ETH on Coinbase by using PayPal. Step 1: Log in to your Coinbase account
Step 2: Add your PayPal account as a funding method for your Coinbase balance
Step 3: Select “Ethereum” and enter the amount you’d like to purchase.
Make sure you have selected “PayPal” under the “Pay with” option.
Step 4: Click “Preview Buy” to preview your purchase. When you’re ready, click “Buy now” to complete your ETH order!
Consider Dollar-Cost Averaging
If you know you want to own some Ethereum, but you’re not sure which exact moment you should make your purchase, you can use dollar-cost averaging (DCA). Dollar-cost averaging is the practice of spreading out your investment into several smaller investments over several days, weeks, or months.
This allows you to “average” out the price of your overall purchase and helps even out spikes and dips in price. DCA has several benefits:
- Prevents imprecise market timing
- Helps take emotion out of investing
- Can be automated
As with any investment strategy, DCA has downsides too:
- Higher transaction costs due to more frequent purchases
- Possibly lower returns because you’re holding cash rather than investing in a lump sum
Dollar-cost averaging your $ETH investment means you’re buying less when prices are higher and more when prices are lower. This can be effective in removing the emotion and guesswork from investing.
Where To Store ETH
Your Ethereum, and all your other cryptocurrencies, are stored in a crypto “wallet.” This is a software program that authenticates your private credentials and gives you access to your funds. Wallets can be either online “hot” wallets or offline “cold” wallets.
| Hot Wallets | Short-term storage | Not very secure since they're always online | Some providers have many recovery options including passwords and customer assistance | Easy to transfer | Generally free |
|---|---|---|---|---|---|
| Cold Wallets | Long-term storage | Very secure, only vulnerable if they're physically stolen | Recovery options are available for a lost password but not a lost device | Requires plugging the wallet USB into a computer connected to the internet | $50 and up |
Hot Wallets
A “hot” crypto wallet is a software wallet that is connected to the internet. Hot wallets allow you to easily store, transfer, and receive cryptocurrencies and authorize transactions.
Despite the convenience of a hot wallet, there are significant drawbacks. Here's the main one: Your wallet is vulnerable to an attack. If someone knows your seed phrase, which is your password, they can access your wallet and steal your funds. Additionally, if you authorize any hacked applications to access your wallet, your funds can be stolen.
Some popular Ethereum hot wallets include:
Pros
- Accessible funds
- Easy to use
- Free to set up
Cons
- Prone to malware attacks
- Some wallets are specific to just one cryptocurrency (such as ETH or Solana)
Cold Wallets
A “cold” crypto wallet is a wallet that is not connected to the internet. Most “cold” wallets are physical USB drives that look similar to a traditional USB file storage flash drive but are used to store your crypto instead.
To use a cold wallet to transfer your funds, you’ll need to plug in the physical USB device to a computer and enter a password in order to access the wallet. This means, of course, that anyone who has access to the physical USB device and knows your password will also have access to the funds inside. Additionally, if you lose your physical USB device, you will also lose access to your wallet.
Popular Ethereum cold wallets include:
Pros
- Safest way to store crypto
- Cannot be hacked unless they are plugged into a computer
Cons
- Anyone who has access to the physical device may have access to the funds inside
- If you lose your physical USB device, your funds are likely gone forever
To Sum It Up
Ethereum is one of the most well-supported cryptocurrency assets out there, so there is no shortage of ways to purchase it. For beginners, sticking to large exchanges like Coinbase or Kraken is probably your best bet, while intermediate traders can get a better deal on their $ETH trades by navigating DeFi options like Uniswap.
Remember never to open links you don’t recognize, never share your wallet seed phrase with anyone, and always double-check the URLs of the websites you visit.
Frequently Asked Questions
You can purchase Ethereum at most crypto exchanges. Our top picks for centralized exchanges are Kraken and Coinbase. In terms of DeFi exchanges, we recommend Milk Road Swap.
Most exchanges will have some minimum requirement for each purchase.
While it varies by exchange, this minimum is usually no more than a few dollars worth of $ETH.
The primary fees you’ll pay when buying $ETH are trading fees, but you may encounter other costs as well.
- Deposit Fees: Depending on your payment method and the exchange you choose, you may have to pay a deposit fee. Typically, ACH transfers are free, whereas debit and credit card transactions can be costlier.
- Trading Fees: On most exchanges, expect to pay a small percentage of the transaction or a flat fee based on the purchase amount.
- Withdrawal Fees: In most cases, you’ll pay network fees to withdraw your $ETH to another wallet. However, if you sell your $ETH, in many cases, you can withdraw to your bank account with no additional fees.
- Wallet Costs:Most wallets are free, but if you decide to invest in a hardware wallet like a Ledger device, you’ll have to purchase the wallet. Hardware wallets can be as affordable as $60, but more advanced ones may cost you a few hundred.
All centralized exchanges, such as Kraken and Coinbase, are required to run identity checks before allowing you to purchase Ethereum or any other crypto.
You can benefit from more anonymity by using a decentralized exchange such as Milk Road Swap. These DeFi exchanges don’t perform identity checks and simply execute your trade and send the funds to your wallet.
Ethereum has had several bull cycles and has received a lot of attention from the investment world. The network serves a meaningful purpose in the crypto industry, and is still in the early stages.
While there are many crypto skeptics who say Ethereum will never again reach its all-time high, there are also many crypto champions who point to the ballooning number of $ETH use cases as evidence that the next bull run will be even better for $ETH.
Ultimately, however, there is no way to tell if Ethereum will be a good investment long-term. You should always conduct your own research and see if $ETH is a good fit for your portfolio.
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