Please keep in mind that cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. You could lose all the money you put into them. Capital gains tax may apply to profits from cryptocurrency sales.

How to Buy Ethereum in the UK

Updated On: Aug 4, 2022
How to buy Ethereum UK

Contents:

Where to Buy Ethereum

We've compiled a list of some of the best places to buy Ethereum in the UK. These are exchanges, wallets, apps and trading platforms where you can buy Ethereum, Bitcoin, Litecoin and other cryptocurrencies in the UK.


Please remember that cryptoassets, such as Ethereum, are a highly volatile unregulated investment product with no UK or EU investor protection. You could lose all the money you put into them.


Here are some of the best places to buy Ethereum in the UK:


eToro - Live prices; Wallet; Advanced trading tools; Popular coins

eToro Logo
Minimum Deposit
US$10 (£8)
Trading Fees
1%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

eToro is a multi-asset trading platform that offers both investing in stocks and crypto assets, as well as trading CFDs. With eToro, you have over 120 cryptocurrencies to choose from, including popular coins like Bitcoin, Ethereum, Tether, XRP, Binance Coin (BNB) and Solana. It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practice buying crypto and other assets before committing to them. eToro does not charge a deposit fee but charges a 1% trading fee on all buy and sell orders. Trading on eToro occurs in USD, so a conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5, and the minimum withdrawal amount is US$50.

For UK customers, eToro offers an eToro Money app which allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs. The app also functions as a wallet for storing your crypto holdings and allows for easy transfer of your cryptocurrency from one exchange or wallet to another. In addition to cryptocurrencies, eToro offers other products, including 0% commission stocks.

Please note: Cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. Your capital is at risk. Additionally, 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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CoinJar - Live prices; Crypto wallet; Crypto card; Beginner-friendly

Minimum Deposit
£10
Trading Fees
1%
Withdrawal Fees
Red cross mark indicating no
FX Fees
Red cross mark indicating no
FCA Registered
Green check mark indicating yes

CoinJar is a cryptocurrency app and exchange based in the UK and Australia. With Coinjar, you can trade or invest in 50+ cryptocurrencies, including popular coins such as Bitcoin, Ethereum, XRP and USD Coin. Customers can buy, sell, hold or spend cryptocurrencies via the CoinJar app and wallet. The CoinJar Card lets you make purchases with your crypto, online and in-store. It’s free to activate, and there are no monthly fees for using the card. You also earn CoinJar Rewards every time you spend with your card. CoinJar is suitable for both beginners and advanced investors.

The minimum deposit to open an account with CoinJar is £10. Deposits are made in GBP, so FX fees do not apply. There is a trading fee of 1% on the CoinJar mobile app and website. The CoinJar Exchange (for market orders and aggressive limit orders) charges 0.00% for taker orders and 0.04 - 0.1% for maker orders (limit orders).

Please note: Cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. Your capital is at risk.

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Coinbase - Best for beginners; Live prices; Wallet; Popular coins

Coinbase logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.50% - 0.00% / 0.50% - 0.04%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Coinbase is a cryptocurrency exchange that allows you to buy, sell and earn popular digital currencies, and keep track of them in one place. With Coinbase, you have over 500 cryptocurrencies and other digital assets to choose from, including popular coins and tokens like Bitcoin, Ethereum, USD Coin, Tether, Dogecoin and Cardano. You can set up recurring trades and invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly. You can also track your trades and monitor market movements via the web app or iOS and Android mobile apps. The Coinbase Wallet allows you to store all your crypto and NFTs in one place, trade 500+ assets on DEXes and earn interest. Of all the crypto exchanges listed here, Coinbase has the highest number of popular coins (cryptocurrencies with the highest market capitalisation) on offer.

There are multiple fees involved when trading crypto on Coinbase. Fees are calculated at the time you place your order and may be determined by a combination of factors, including the selected payment method, the size of the order, and market conditions such as volatility and liquidity.

Please note: Cryptocurrency is not regulated by the Financial Conduct Authority (FCA) and is not subject to protection under the Financial Services Compensation Scheme or within the scope of jurisdiction of the Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may apply to profits from cryptocurrency sales.

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Uphold - Good for beginners; Cheap Forex rates; Crypto wallet

Uphold Logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
1.25% - 0.85% / 1.25% -  1%
Withdrawal Fee
Red cross mark indicating no
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Uphold is a beginner-friendly cryptocurrency exchange that allows you to buy and sell over 90 cryptocurrencies and utility tokens, including majors, altcoins and emerging tokens. You can also buy and sell up to 3 national currencies, including GBP, EUR and USD. With Uphold, you can schedule regular transactions using AutoPilot, which allows you to set up recurring buy or sell orders and reduce the impact of price volatility. Uphold also lets users withdraw funds to bank accounts in 36 countries or to private wallets on five crypto networks - instantly and fee-free. Uphold currently has over 2 million customers worldwide.

There are multiple fees involved when trading crypto on Uphold. Fees are calculated at the time you place your order, so the price you see before your trade is the same price you pay when you trade. The most important fees to look out for are trading fees, FX fees, and market spreads.

Please note: Cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. Your capital is at risk.

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Coinsmart - Good for beginners; Advanced crypto trading tools

Coinsmart logo
Minimum Deposit
£0
Trading Fees
0.20% - 0.30%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Red cross mark indicating no

Coinsmart is an easy-to-use crypto exchange on a mission to make cryptocurrency accessible to everyone. It is designed to be a simple crypto-trading platform that anyone can use and understand. With Coinsmart, you can buy and sell Bitcoin, Ethereum, Litecoin and other digital currencies quickly and easily on desktop and mobile. There are multiple fees involved when trading crypto on Coinsmart. Some of the fees include withdrawal fees (depending on your withdrawal method) and trading fees.

Promo: Get C$20 (~£12) in Bitcoin when you fund your account with a minimum of C$100 (~£63). Promo code: getcrypto.

Please note: Cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. Your capital is at risk.

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Phemex - Live prices, Advanced crypto trading tools, Crypto wallets

Phemex logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.025% / 0.075%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Red cross mark indicating no

Phemex is a crypto trading platform with custom-built trading engines that process 300,000 transactions per second with order response times of less than one millisecond. The founding team consists of ex-Morgan Stanley executives who boast decades of practical Wall Street experience. With Phemex, you can buy Bitcoin, Ethereum, Tether, Dogecoin, Chainlink, Cardano, XRP, Litecoin, and other popular cryptocurrencies with your debit or credit card. The platform is suitable for both beginners and advanced crypto traders. However, advanced traders will find Phemex particularly appealing as you can trade BTC, ETH and over 224 Crypto Pairs with zero trading fees (Premium users only). Users can also boost their crypto knowledge by taking advantage of the 400+ articles on hot crypto projects available on the platform.

There are multiple fees involved when trading crypto on Phemex, including trading and withdrawal fees. These fees depend on whether you trade cryptocurrencies via the Phemex wallets, trading accounts, spot trading platforms or contract trading platforms. Click here to learn more.

Promo: Up to US$180 welcome bonus. Learn more here.

Please note: Cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. Your capital is at risk.

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Revolut - Round ups; Automatic investing; Beginner-friendly

Revolut logo
Minimum Deposit
US$1 (£0.80)
Trading Fees
1.50% - 2.50%
Withdrawal Fees
Red cross mark indicating no
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Revolut is a personal finance and money management app that allows you to invest in Bitcoin, Ethereum and other tokens in 30+ currencies from as little as US$1. With Revolut, you can stay on top of market movements, receive notifications when crypto hits your desired prices and enjoy the latest market news directly in-app. Revolut also allows you to round up your spare change and invest the difference in any cryptocurrency of your choice (subject to availability on the platform). Revolut charges a single, fixed fee for crypto conversions. This fee is 2.5% for Standard and Plus users (and 1.5% for Premium and Metal users). Revolut does not charge you any other fees for this service. Click here to learn more about Revolut’s fees. Revolut also has other products, including savings accounts, investment accounts, currency exchange and international money transfers.

Promo: Sign up and get a £10 top-up + 1 month of Revolut Premium for free!

Please note: Cryptoassets are highly volatile unregulated investment products with no UK or EU investor protection. Your capital is at risk.

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How to Buy Ethereum

You can buy Ethereum from a crypto exchange such as eToro, Uphold or Coinbase

After purchasing Ethereum, you can do one of two things:

On the one hand, you can leave your Ethereum in the crypto exchange where you can monitor the value and exchange it for other cryptocurrencies (such as Bitcoin, Litecoin, USDC and more) or fiat currencies (such as GBP, USD, EUR and others). 

On the other hand, you can move your Ethereum and other crypto holdings to a secure wallet that can be separate from or owned by the crypto exchange you use.

In order to manage your Ethereum, there are three basic concepts you must understand:

  1. Public Key: This is like an email address that you can share with others. With your Ethereum public key, you can receive ETH and Ethereum-based tokens like USDC and Dai.
  2. Private Key: This is like a password to your Ethereum holdings, and you should not share it with anyone. A private key is a long string of letters and numbers. It is extremely important to keep track of your private keys and keep them safe. If you lose them, you lose your Ethereum forever.
  3. Wallet: You need a wallet to store and manage your Ethereum and other crypto holdings. Crypto exchanges such as eToro, Uphold or Coinbase offer a simple Ethereum wallet for storing and securing your Ethereum. A wallet and a crypto exchange are two separate things, even though most crypto exchanges listed on Koody have their own wallets. As mentioned above, you do not need to use a wallet if you prefer to leave your Ethereum in a crypto exchange.


What Is Ethereum?

Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee. It also powers applications that everyone can use, and no one can take down.

The Ethereum cryptocurrency is called Ether (ETH), but most people call it Ethereum. Ethereum actually refers to the decentralised blockchain network powered by Ether. Ethereum, unlike Bitcoin, was not created to be digital money. Instead, the founders set out to build a global, open source, decentralised computing platform that takes the security and openness of blockchains and extends those attributes to a vast range of applications.

According to the official Ethereum website, Ethereum is for more than just payments. It is a marketplace of financial services, games and apps that cannot steal your data or censor you.

Ethereum was launched in 2015 and is the second-biggest cryptocurrency in the world by market capitalisation after Bitcoin. For context, Bitcoin was launched in 2008. Ethereum builds on Bitcoin's innovation, with significant differences making it an even more exciting blockchain network and cryptocurrency.


What’s the difference between Ethereum, Ether and ETH?

  1. Ethereum is the name of the network
  2. Ether (ETH) is the cryptocurrency used by the Ethereum network. However, most people call it Ethereum.

To learn more about cryptocurrencies, tax on crypto in the UK and blockchain technology, read What is Cryptocurrency?.

How Does Ethereum Work?

"The Ethereum blockchain is a public database that keeps a permanent record of digital transactions. Importantly, this database doesn't require any central authority to maintain and secure it. Instead, it operates as a "trustless" transactional system - a framework in which individuals can make peer-to-peer transactions without needing to trust a third party OR one another." Preethi Kasireddy


While the Ethereum blockchain is similar to the Bitcoin blockchain, it is much more flexible than the Bitcoin blockchain. Computer engineers can use the Ethereum blockchain to build a wide range of tools from gaming software to logistics management software to the entire universe of decentralised finance (DeFi) applications which span lending, trading and more.


Ether (or ETH) is the currency of Ethereum apps and the Ethereum network.


ETH is secured by proven cryptography. This protects your wallet, your ETH and your transactions.


ETH keeps the Ethereum network running. You interact with the Ethereum network by using ETH to pay the network to execute smart contracts.


ETH lets you be your own bank. You can control your own funds with your wallet as proof of ownership - no third parties necessary.


You can send your ETH without any intermediary service like a bank. It is like handing cash over in person, but you can do it securely with anyone, anywhere, anytime.


You can buy and hold ETH like you buy stocks and other assets.


ETH is decentralised and global. No company or bank can decide to print more ETH or change the terms of use.


You only need an internet connection and a wallet to use ETH. You do not need access to a bank account to receive payments.


ETH is divisible up to 18 decimal places, so you do not have to buy 1 whole ETH. You can buy fractions at a time - as little as 0.000000000000000001 ETH if you want.


A new version of the Ethereum blockchain called Ethereum 2.0, which aims to increase efficiency, began rolling out in December 2020. The transition to the new blockchain is scheduled to happen over the next two years.


What Is the Purpose of Ethereum?

In 2013, Vitalik Buterin (a 19-year-old computer programmer and Bitcoin Magazine co-founder) published a white paper, proposing a highly flexible blockchain that could support virtually any kind of transaction. The Ethereum blockchain would allow for automated and immutable cause-effect statements, allowing for the development of next-generation smart contracts and decentralised apps (dApps). Buterin's focus was unifying how dApps run.

Ethereum was launched in 2015 by a small group of blockchain enthusiasts. The Ether (ETH) cryptocurrency was designed to be the cryptocurrency of the Ethereum network.


Frequently Asked Questions

1. What is Ethereum 2.0?

Ethereum 2.0 (ETH2) refers to a set of upgrades that will make Ethereum more scalable, more secure and more sustainable. These upgrades are being built by multiple teams from across the Ethereum ecosystem.


2. What is staking?

Staking or Proof-of-Stake is Ethereum 2.0's consensus mechanism. You can think of it like mining in the Bitcoin blockchain. Staking is the act of depositing 32 ETH to activate validator software. As a validator, you'll be responsible for storing data, processing transactions, and adding new blocks to the blockchain. This will keep Ethereum secure for everyone and earn you new ETH in the process. This process, known as proof-of-stake, is being introduced by the Beacon Chain. Learn more about Staking on Ethereum.org.


3. Can Ethereum overtake Bitcoin?

Robert Metcalfe, the founder of ethernet technology, once stated that the value of a telecommunications network is proportional to the square of the number of connected users of the system. If this is true, then a measure of the increased value of Ether is directly related to the number who use this cryptocurrency. Ethereum has 770,144 network addresses, whereas bitcoin has 675,937. Also, the daily transaction volume has grown by 53% for Ethereum, whilst bitcoin saw a 14% decline. These statistics indicate that Ethereum may overtake Bitcoin, although since Bitcoin and Ethereum have different goals, it is hard to compare them directly.

Yes, Ethereum is perfectly legal, provided you pay tax on profits made when you dispose of your Ethereum, as required by HMRC.


5. How can I buy Ethereum in the UK?

You can buy Ethereum directly from a crypto exchange or Ethereum wallet. Here are some of the best crypto exchanges to buy Ethereum in the UK:

  • eToro - Live prices; Wallet; Advanced trading tools; Popular coins
  • Uphold - Beginner-friendly; Crypto wallet; Cheap Forex rates
  • Coinbase - Live prices; Crypto wallet; Popular coins; Earn free crypto
  • Coinsmart - Beginner-friendly; Advanced crypto trading tools
  • CoinJar - Live prices; Crypto wallet; Crypto card; Beginner-friendly
  • Revolut - Round ups; Automatic investing; Beginner-friendly

6. Can I buy ETH with GBP?

Yes, you can buy ETH with GBP. To buy ETH with GBP, you need to sign up to an Ethereum wallet or crypto exchange such as Coinbase, Uphold or eToro and use your regular GBP payment card to buy ETH directly. You can also do a bank transfer, where possible, to reduce your total fees.


7. Is it worth buying Ethereum right now?

There are risks as well as potential benefits when it comes to investing in Ethereum. In terms of the risks involved, as with all cryptocurrencies, the Ethereum cryptocurrency is volatile. The volatility can be measured by looking at the volatility index. For context, the latest 30-day estimate for the volatility index of ETH was 5.2%, whilst gold has a volatility index of 1.2%, and major currencies have volatility indices between 1.0% and 0.5% (at the time of first publishing this article).


8. How much is Ethereum worth right now?

When Ethereum was launched in July 2015 and first traded on the 7th of August, it was worth $2.77. The following day the value had fallen below $1 to $0.81 and remained under a single dollar until January 2016. However, it has since grown. At the time of first publishing this article, one Ether token was worth £2,920.70 (approximately 1,000 times what it was worth on August the 7th), although due to the volatility of the cryptocurrency market, this value fluctuates daily. To find out the price of Ethereum at any given time, simply Google "Ethereum price" to view the price in your local currency.


9. What is ETH trading?

ETH trading is the buying or selling of Ether tokens. You can use your Ethereum holdings to run decentralised applications (dApps) or use smart contracts. To use these applications, you need ETH to pay for the gas, a metric that measures how much computing power is required to run the application. Alternatively, you can buy and hold or trade ETH in the same way we trade stocks.


10. Is Ethereum money?

Ethereum itself is not a form of money. However, it does have a native cryptocurrency called Ether (ETH), which can be used just like money or any other cryptocurrency.

11. Where can I trade cryptocurrency in the UK?

To trade cryptocurrencies in the UK, you need to create an account with a crypto trading platform. Here are some of the best crypto trading platforms in the UK that are registered with the Financial Conduct Authority (FCA):

  • eToro - Live prices; Wallet; Advanced trading tools; Popular coins
  • Coinbase - Live prices; Crypto wallet; Popular coins; Earn free crypto
  • Uphold - Beginner-friendly; Crypto wallet; Cheap Forex rates
  • CoinJar - Live prices; Crypto wallet; Crypto card; Beginner-friendly
  • Revolut - Round ups; Automatic investing; Beginner-friendly



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Credits

  1. Ethereum.org
  2. Coinbase
  3. Financial Conduct Authority
  4. Preethi Kasireddy

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