How To Buy Ethereum Online in 2022
If you’ve got minimal experience investing in cryptocurrencies, learning how to buy Ethereum might feel daunting. Don’t worry, though, because the process is pretty simple. Ethereum is one of the biggest cryptocurrencies out today with many ETH transactions happening every day.
On this page, you’ll learn how to buy Ethereum and trade it, along with what you need to consider when investing in Ethereum.
Best Way To Buy Ethereum in 2022
Part of knowing how to buy Ethereum (ETH) is choosing the right broker to buy Ethereum. Several options exist already, and the market continues to grow daily. Some Ethereum brokers are safer than others, and the broker you choose can also determine the deal you get. If you would like to know how to buy Ethereum, to save you time searching, we’ve put together a list of the best Ether brokers below.
Note: Depending on where you are located, you might be able to find better Ethereum deals or brokers. Check out our guide on how to buy Ethereum in the UK to find the best ETH brokers.
What Is the Difference Between Buying and Trading Ethereum?
When investing in Ethereum, you can either buy ETH or trade the coin. Understanding their differences is an excellent place to start before we look at how to trade or how to buy Ethereum coin.
When you buy Ethereum, you own the coin outright. As such, you pay the total market value. Buying Ethereum means that you often look at the long-term game.
When trading Ethereum, you don’t need to pay capital gains tax. Trading is better for short-term investors, though you can also use it as a long-term strategy.
How To Buy Ethereum Online
Okay, so now you know the difference between buying Ethereum and trading it. If you’ve decided that buying Ethereum is a better option, you’ll find a step-by-step guide to buy Ethereum below:
How To Trade Ethereum
Of course, buying Ethereum is not for everyone. In some cases, you might decide that trading ETH fits your goals better. Below are the steps you need to take to trade Ethereum:
What Are the Different Ways To Pay for Ethereum?
When you’re ready to buy Ethereum, you’ve got plenty of options for doing so. Below are four ways you can use to purchase Ethereum:
Buy Ethereum (ETH) with credit and debit card
You can use credit and debit cards to buy most things online, so you can also buy Ethereum with a credit card or debit card. The only real difference between which one you use is that debit cards use money directly from your linked bank account, whereas you can pay credit card purchases back later.
If you're looking for the easiest way to buy Ethereum instantly, using your debit card is probably the best and safest way to go.
If you want to know more about buying Ethereum with credit cards, take a look at our guide:
Buy Ethereum with PayPal/Venmo
PayPal is one of the best-known names in financial services, with over 300 million active users across the globe. In recent years, PayPal has become open to cryptocurrencies, making it an ideal option for depositing money to the exchanges and buying Ethereum.
Apart from buying Ethereum with PayPal, you can easily pay for your ETH using Venmo, which is also owned by PayPal.
Buy Ethereum (ETH) with cash and ATMs
You can also use cash to pay for Ethereum. ATMs in several countries, including the UK, Germany, the US and Canada, allow you to do so. You’ll typically need a QR code, but the process isn’t complicated.
Buy Ethereum with Skrill
Skrill is a digital wallet solution owned and operated by UK-headquartered Paysafe Group. Like PayPal, the service has been pretty welcoming when it comes to cryptocurrencies, including Ethereum. You can use Skrill in more than 120 countries to buy Ethereum.
What To Consider When Buying Ethereum Online
If you want to buy Ethereum online, you’ll need to make several considerations. To help you make better decisions when investing in Ether, you’ll find some of the primary aspects to keep in mind below:
Fees will vary depending on how and where you buy Ethereum. Before purchasing, consider all of the possible payment solutions, exchanges and brokers.
Ethereum is known for its volatility, and prices can fluctuate dramatically in little time. If you’re making short-term investments, you must keep an eye on the market.
Because Ethereum is one of the most popular cryptocurrencies, you’ll need to pay more if you want to buy coins. Like with anything else, don’t buy what you can’t afford.
Ethereum has grown significantly since the beginning of 2020. Again, though, profitability in the future will depend on market trends, so make sure you keep updated with the latest news.
While Ethereum itself runs on a deregulated system, some governments have not taken a kind approach to cryptocurrencies. It’s legal in the UK and US, but not in Indonesia or Turkey. Make sure you’re legally allowed to use cryptocurrencies where you live before investing.
Long-term Holding (HODL):
Hold on for dear life, also known as HODL, means holding onto your Ethereum during market crashes. It’s often used as an investment strategy to maximize profits.
Short-term holding refers to buying and selling coins based on short-term market speculation.
Is It Safe To Buy Ethereum (Eth) Online?
However, cryptocurrency scams are commonplace – so you need to exercise caution.
You can improve your online safety by doing the following:
Storing your coins in an offline wallet
Using two-factor authentication (2FA)
Only asking for help on an official website
Creating a hard-to-guess password for your accounts and using different codes
Passing only relevant information for know-your-customer (KYC) checks. Your name is okay to share, but your bank card’s PIN is not.
How To Store Ethereum
Once you’ve bought an Ethereum coin, we recommend that you store it in a wallet. Doing so will both help protect yourself better and keep everything organized. You can store Ethereum in any of the different wallet types:
Offline wallets can either be on hardware or in the form of paper with a code written on it. This safest version of a wallet that you can use.
Several online Ethereum wallets exist. You can use these to access your coins from anywhere and will need to verify your identity when you sign in.
How To Sell Ethereum
You can sell your Ethereum coins using various methods. The most popular and secure ways to do this include:
Cryptocurrency exchanges are a convenient way to sell Ethereum coins. All you need to do is set up a selling order on your account, and the platform will do the rest.
ATMs are helpful for buying cryptocurrencies and you can also use them to sell your Ethereum coins. As long as you live in a covered area, you shouldn’t have too many issues finding one that can facilitate this type of transaction.
Brokers are popular for investors looking to trade cryptocurrencies rather than buying them outright. Some of the best-known platforms include eToro and Binance.
You can also sell Ethereum on peer-to-peer (P2P) platforms. On these, you can talk to others about pricing and the like before making transactions. Unlike brokers and exchanges, P2P Ethereum selling doesn’t have a middleman.
Increasingly, digital wallets are allowing users to buy and sell the major cryptocurrencies. While this isn’t ideal if you choose a smaller currency, it shouldn’t be much of an issue for Ethereum. Skrill allows this, and so does PayPal.
Is It Worth Buying Ethereum Right Now?
Even with a couple of significant crashes, Ethereum has grown significantly in the past 18 months or so. With its price rising along the way, buying the coin has become more expensive.
At the time of writing in October 2021, Ethereum’s price is doing well with many transactions ETH happening every day, but it’s probably not worth investing in the short term.
If you’re looking for something to invest in for the long-term, you might want to consider it and buy Ether coins.
Final Thoughts on Buying Ethereum in 2022
Having read this guide and knowing how to buy ETH, you should have a good idea about where you can buy Ethereum and the payment methods you can use. You’ll also understand the associated risks and how you can mitigate these.