Home Cryptocurrency

How To Buy Ethereum (ETH) – Forbes Advisor UK – Forbes

Ads

The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. This comes from two main sources.
First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market.
Second, we also include links to advertisers’ offers in some of our articles. These “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor.
While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.
The comparison service on our site is provided by Runpath Regulated Services Limited on a non-advised basis. Forbes Advisor has selected Runpath Regulated Services Limited to compare a wide range of loans in a way designed to be the most helpful to the widest variety of readers.
The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. This comes from two main sources.
First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market.
Second, we also include links to advertisers’ offers in some of our articles. These “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor.
While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.
The comparison service on our site is provided by Runpath Regulated Services Limited on a non-advised basis. Forbes Advisor has selected Runpath Regulated Services Limited to compare a wide range of loans in a way designed to be the most helpful to the widest variety of readers.
While Bitcoin is the top cryptocurrency based on the value of its coins in circulation, Ethereum is no slouch. With a market capitalisation of over £240 billion, it’s the second leading form of cryptocurrency and has support from business leaders such as Mark Cuban, the US billionaire entrepreneur and television personality.
What’s more, it’s been a profitable investment choice. If you invested £1,000 in Ethereum in August 2015, your investment would have been worth more than £1.6 million six years later.
Here’s how to get started buying Ether, the official name of the token more commonly called Ethereum because of its association with the Ethereum platform that it powers.

1
Coinbase
Fees (Maker/Taker)
1.99%*/1.99%*
Cryptocurrencies Available for Trade
50+
1
Coinbase
On Coinbase’s Secure Website
2
eToro
Fees (Maker/Taker)
1%/1%
Cryptocurrencies Available for Trade
20+
2
eToro
On eToro’s Website
3
Crypto.com
Fees (Maker/Taker)
0.40%/0.40%
Cryptocurrencies Available for Trade
100+
3
Crypto.com
On Crypto.com’s Secure Website
Investing in Ethereum may be easier than you think. Here’s how to get started in just five steps:
There’s no getting around it – buying Ethereum is a gamble. While all investments have some risk associated with them, cryptocurrencies are especially vulnerable to price fluctuations. Just think about the impact a couple of hundred characters can have on crypto pricing: when Tesla boss, Elon Musk, tweeted last year that his company would no longer accept Bitcoin as payment, for instance, the coin’s value tumbled 15%.
Although Ether has had impressive returns in the past, it’s also had some significant crashes, sometimes in astonishingly short amounts of time. Notably, it went from a high of almost £3,000 per coin in May 2021 to less than £1,300 a month later, a drop of more than 50%. That’s some pretty extreme volatility.
That’s why it’s important to consider your risk tolerance along with the diversity and stability of the rest of your investment portfolio before buying Ether. Experts recommend that you never invest more in crypto than you can afford to lose.
Buying Ether is more complicated than just buying shares or collective investment funds through your brokerage account. Cryptocurrencies aren’t traded on major exchanges like those of London or New York, and many brokerages don’t offer crypto investing.
To buy crypto, you have to first create an account on a crypto exchange. Practically speaking, it’s just like the brokerage platforms you may be more familiar with: Crypto exchanges allow buyers and sellers to exchange fiat currencies – such as pounds and dollars, for example – for cryptocurrencies such as Ethereum, Bitcoin or Dogecoin.
If you don’t already have a crypto exchange in mind, take a look at our list of best cryptocurrency exchanges to find the one that’s right for you. Though some exchanges’ trading platforms can be complex, most offer a simple purchase interface for beginners, though it may charge higher fees than the main trading platform.
A couple of key points: When choosing an exchange, make sure it offers a crypto wallet to store your investments. The vast majority do, but if yours doesn’t, you’ll need to get one of your own.
And if you’re a true beginner, you can always use a platform like Robinhood or Cash App. This will greatly simplify the crypto purchasing process for you, but it comes at a hidden cost: you can’t withdraw your Ethereum investment to put it in a third-party wallet or use it to pay for online purchases.
Using one of these simplified platforms will mean your crypto can only be traded within the platform you buy it on. So you’d need to cash out of that platform and then rebuy it on a crypto exchange to hold it in a separate wallet.
Buy And Sell Cryptocurrency With Coinbase
The world’s largest and easiest place to buy cryptocurrency
Before you can buy Ethereum through a crypto exchange, you have to fund your account. In most cases, you’ll deposit money from a bank account, such as your current account. You can also generally use a debit card or deposit money from a payments provider.
When choosing a funding method, review the crypto exchange’s fees as they can vary based on the method. For example, a platform may charge a fee of a few percentage points for a debit card transfer.
One warning: some platforms allow you to buy cryptocurrency using a credit card. While that may seem tempting, credit card companies generally consider cryptocurrency purchases to be cash advances. Depending on the card that you have, you might have to pay a higher interest rate and cash advance fee on top of the crypto exchange’s fees.
Investors buying shares, collective/pooled funds or exchange-traded funds are limited by market hours. For example, the London Stock Exchange trades between 8:00 am and 4:30pm and is closed at the weekend and on bank holidays.
Cryptocurrencies such as Ethereum work very differently. Because they’re decentralised currencies, you can buy and sell them around the clock.
To purchase Ethereum, enter its ticker symbol – ETH – in your exchange’s “buy” field and input the amount you want to buy. If you don’t want to buy a whole Ethereum token or don’t have enough money in your account for a full coin, you can purchase a fraction of one. For example, if the price of Ethereum is £2,000 and you invest £100, you will purchase 5% of an Ether coin.
After your purchase of Ethereum has been processed, you have to store your cryptocurrency. While some platforms will store it for you, some people opt to store their investments themselves to reduce the likelihood they will lose their crypto to a hack.
This is understandable, but it’s also important to note that most major exchanges do insure their clients’ holdings and often store the majority of their assets offline to prevent massive theft. What’s more, historically exchanges that have been hacked have reimbursed any losses.
But if you want peace of mind surrounding your crypto, you can choose to move it to one of two types of third-party wallets:
To sell your Ethereum, simply head back to your crypto exchange and enter the amount you want to sell.
If you’re selling a substantial amount of crypto, though, you may want to consult a tax professional. Despite its decentralised nature, profits from a sale of crypto are potentially liable to capital gains tax.
Ethereum is extremely popular, with over 116 billion coins currently in investors’ hands. But just because it’s one of the more well-known cryptocurrencies doesn’t mean it’s right for you.
Before buying a volatile investment like Ether, you’ll want to make sure you’ve done your research and your finances are in good shape. Ideally, you should have a large ‘rainy day’ fund, be exposed to minimal debt and have your pension arrangements in good shape. Even if you can tick all those boxes, it’s important to diversify your portfolio, so only a portion of your investments should be in Ethereum or other cryptocurrencies.
Buy And Sell Cryptocurrency With Coinbase
The world’s largest and easiest place to buy cryptocurrency
John Schmidt is the Assistant Assigning Editor for investing and retirement. Before joining Forbes Advisor, John was a senior writer at Acorns and editor at market research group Corporate Insight. His work has appeared in CNBC + Acorns’s Grow, MarketWatch and The Financial Diet.

source

Ads
Previous articleTwelve South refreshes SurfacePad iPhone 13 leather folio case with two new spring colors – 9to5Toys
Next articleHow to Disable Caps Lock in Windows 10/11 PC – BollyInside