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How to Buy Ethereum in the UK 2024

Tobi Opeyemi Amure
Reviewed by:
How to buy Ethereum UK

In a nutshell, to buy Ethereum in the UK, start by selecting a reputable cryptocurrency exchange or brokerage that operates within the UK, such as Coinbase, Uphold, or eToro. Register an account, complete the necessary KYC (Know Your Customer) verification, deposit GBP using your preferred payment method (bank transfer, credit/debit card, etc.), and then purchase Ethereum directly through the platform.

This article was reviewed by Tobi Opeyemi Amure, a cryptocurrency expert and writer at InvestopediaInvesting.com, and Trading.biz, to ensure its accuracy.

Step-by-Step Guide to Buying Ethereum

Here’s a detailed guide on how to purchase Ethereum in the UK:

1. Register with an exchange

Choosing an exchange: Research crypto exchanges that support Ethereum transactions, focusing on their security measures, ease of use, and credibility. Consider transaction fees, user feedback, customer support quality, and regulatory compliance.

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Creating an account: Visit the selected exchange’s website or mobile app. Look for the sign-up or registration button to start the process.

Verification process: To comply with regulatory standards, provide necessary personal details and a government-issued ID for identity verification. This step is crucial for account security and to prevent fraud.

Securing your account: Enhance your account’s security by enabling two-factor authentication (2FA). This typically involves linking your account to a phone number or an authenticator app, adding an extra layer of security beyond just a password.

2. Deposit GBP into your newly created account

Linking a payment method: Add a payment method to your exchange account, such as linking a bank account, credit card, or debit card. Ensure that your chosen method is approved for transactions with cryptocurrency platforms.

Making a deposit: Access the ‘Deposit Funds’ section, select GBP as your currency, input the amount you wish to deposit, and confirm your transaction. Be mindful of potential deposit fees and transaction limits.

Transaction processing time: The processing time for your deposit can vary depending on your chosen method and bank. It’s important to wait for the transaction to fully process before proceeding to purchase Ethereum.

3. Conduct thorough research on Ethereum

Understanding Ethereum’s fundamentals: Educate yourself about Ethereum’s core technology, including its blockchain basis, smart contract functionality, and its role in the broader crypto ecosystem.

Market analysis and trends: Regularly follow Ethereum market trends, news, and expert analyses. This will help you understand market dynamics and make more informed investment decisions.

Risk assessment: Evaluate how Ethereum’s price volatility aligns with your risk tolerance and investment goals. Cryptocurrency markets can be unpredictable, so it’s crucial to understand your personal risk threshold.

Below is the current price of Ethereum:

4. Purchase Ethereum

Exploring the exchange: Familiarise yourself with the exchange’s user interface, specifically the section for buying and selling Ethereum.

Planning your purchase: Decide the amount of Ethereum you want to buy. It’s advisable to start with a small amount if you’re a beginner, to understand the market without significant risk.

Executing the transaction: Find Ethereum (ETH) on the platform, enter your desired purchase amount, check the current price and associated fees, and then confirm the transaction. Ensure that your account balance reflects the new Ethereum holding.

5. Set up a secure Ethereum wallet

Choosing the right wallet: Research and select a crypto wallet that supports Ethereum. Decide whether a hardware wallet (for higher security) or a software wallet (for more convenience) fits your needs better.

Wallet setup: Follow the provided instructions to set up your wallet. This could involve downloading software or purchasing and setting up a hardware wallet device.

Ensuring wallet security: Secure your wallet with a strong, unique password. Write down your recovery phrase and store it in a safe place. Consider using additional security features if available.

6. Safely store your Ethereum

Assessing storage options: Weigh the advantages and risks of keeping your Ethereum on the exchange (for ease of access and trading) versus transferring it to your private wallet (for enhanced security).

Transferring Ethereum to your wallet: If you opt for a wallet, generate a receiving address in your wallet, and use this to transfer Ethereum from your exchange account.

Ongoing management: Regularly monitor your Ethereum investment. Stay updated with market trends and changes in security protocols, especially if you keep a significant amount in your wallet or on the exchange.

For those planning to use or trade small amounts of Ethereum in the near term, keeping it on the exchange might be practical.

However, for larger amounts or long-term holdings, transferring to a secure hardware wallet is generally recommended for enhanced security.

What Happens After I Invest in Ethereum?

After you purchase Ethereum, several things can happen depending on your intentions and actions:

  • Holding: You can choose to hold onto your Ethereum as an investment, expecting its value to potentially increase over time. By securely storing your Ethereum in a cryptocurrency wallet, you can monitor its price movements and decide when to sell or use it for other purposes.
  • Trading: If you’re interested in actively trading Ethereum, you can use cryptocurrency exchanges or trading platforms to take advantage of price fluctuations. Traders aim to profit from short-term price movements by buying low and selling high. This involves monitoring the market, analysing charts, and implementing trading strategies.
  • Using Ethereum: Ethereum is more than just a cryptocurrency; it’s a decentralised platform that enables the creation of smart contracts and decentralised applications (DApps). You can use your Ethereum to interact with DApps, participate in decentralised finance (DeFi) protocols, or access various services and applications within the Ethereum ecosystem.
  • Transferring or Sending: Ethereum can be sent or transferred to other individuals or addresses. If you need to make a payment or send Ethereum to someone else, you can initiate a transaction by specifying the recipient’s Ethereum address and the amount you want to send.

It’s essential to ensure the security of your Ethereum by using respected wallets, following best practices for storing private keys, and staying informed about potential security risks or scams in the cryptocurrency space.

FAQs

Is Ethereum legal in the UK?

Ethereum, like other cryptocurrencies, is legal in the UK. The UK government regulates crypto assets to some extent, focusing on anti-money laundering and counter-terrorist financing. However, it does not recognise Ethereum as legal tender.

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.

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Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as a basis for investment decisions.

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Crypto assets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

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Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”.

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