Please keep in mind that cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. You could lose all the money you put into them.

How to Buy Ethereum in the UK

Updated On: Dec 29, 2021
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; Crypto wallet; Advanced crypto trading tools

eToro Logo
Minimum Deposit
US$10
Trading Fees
Red Cross Mark
Withdrawal Fees
Green Check Mark
FX Fees
Green Check Mark

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. With eToro, you have over 115 cryptocurrencies to choose from, including popular coins like Bitcoin, Ethereum and Litecoin. 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 any deposit or trading fees other than spreads. Trading on the eToro platform occurs in USD, so a conversion fee will apply if you deposit or withdraw in a foreign currency other than USD. Withdrawals incur a fee of US$5, and the minimum withdrawal amount is $50. eToro offers other products, including 0% commission stocks.

Please note: Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk. Additionally, 68% 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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Gemini - Live prices; Crypto wallet; Beginner-friendly

Gemini Logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.25% - 0.00% / 0.35% - 0.03%
Withdrawal Fees
Green Check Mark
FX Fees
Green Check Mark

Gemini, founded by Tyler and Cameron Winklevoss, is an easy-to-use cryptocurrency exchange suitable for both beginners and advanced crypto traders. Gemini makes it simple to research the crypto market, buy Bitcoin, Ethereum and 50+ digital currencies, and build a portfolio of cryptocurrencies and tokens. With Gemini, you can trade assets, manage your holdings, and set recurring trades and dynamic price alerts. You can also track your trades and monitor market movements via the web app or iOS and Android mobile apps. UK customers can access the Gemini Exchange, which offers various beginner-friendly and advanced crypto trading tools. Gemini allows users to choose a default currency from GBP, USD, AUD, CAD, EUR, HKD and SGD. UK customers can also access the Gemini wallet, which lets you store all your assets in an insured hot wallet or institutional-grade cold storage system. 

There are multiple fees involved when trading crypto on Gemini, including transaction fees, Maker-Taker fees and withdrawal fees depending on whether you access the Gemini Exchange via the mobile app, web app or ActiveTrader interface. Gemini charges between £0.75 - 1.49% for mobile and web app trades and Maker-Taker fees for orders placed via ActiveTrader.

Please note: Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk.

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Coinbase - Live prices; Crypto wallet; Crypto card; Earn free crypto

Coinbase logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.50% - 0.00% / 0.50% - 0.04%
Withdrawal Fees
Green Check Mark
FX Fees
Green Check Mark

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, Binance Coin, 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. 

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: Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk.

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Bitstamp - Advanced order types; Analytical tools; Beginner-friendly

Minimum Deposit
£0
Trading Fees
0.50% - 0.00%
Withdrawal Fees
Green Check Mark
FX Fees
Green Check Mark

Bitstamp was established in  2011 and is one of the oldest cryptocurrency exchanges in the market. With Bitstamp, you can buy, sell and earn 50+ cryptocurrencies and tokens, including Ethereum, Bitcoin, USDC and Cardano. You can buy cryptos instantly with your standard payment card or via your bank account. Bitstamp is suitable for both beginners and advanced crypto traders. The mobile app features advanced order types and analytical tools for experienced traders and a simple buy and sell interface for those just getting started. Bitstamp also has a web app if you prefer to carry out your trades on the web. You can also access live crypto prices, four order types, real-time charts & order book and a range of analytical tools.

The minimum trade amount (order size) is £20. There are multiple fees involved when trading crypto on Bitstamp. Depending on how you choose to trade, you would have to pay a trading fee, FX fee and market spread. There is a withdrawal fee of £2 for faster payments and 5% for card transactions.

Please note: Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk.

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Bitpanda - Automatic investing; Crypto card; Beginner-friendly

Bitpanda logo
Minimum Deposit
€25
Trading Fees
1.49% - 0.10%
Withdrawal Fees
Red Cross Mark
FX Fees
Green Check Mark

Bitpanda is an easy-to-use multi-asset investment platform that allows you to invest or trade in stocks, crypto and metals. With Bitpanda, you have over 50 cryptocurrencies to choose from, including popular coins and tokens like Bitcoin, Ethereum and Polkadot. It is entirely free to open an account with Bitpanda, but you need to deposit a minimum of €25 to start trading or investing. Once you start investing, you can choose to swap your cryptocurrencies with stocks, precious metals and other Bitpanda assets whenever you want. You can also set up automatic and recurring daily, weekly or monthly payments and invest in your favourite digital assets over time. Bitpanda allows you to deposit and withdraw in multiple currencies including, GBP, CHF, EUR, TRY and USD. You also get a free crypto card which you can use to spend your crypto like cash. You can upgrade to Bitpanda Pro for more advanced features, including professional trading solutions, price matching capabilities and fully automated clearing, settlement and netting processes.

There are multiple fees involved when trading crypto on Bitpanda. All fees for buying and selling cryptocurrencies and digital assets are already included in the offered prices. This means you will always receive the exact amount of coins or fiat that is shown on the order confirmation page. Bitpanda currently has over 3 million users across multiple countries.

Please note: Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk.

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Coinsmart - Beginner-friendly; Advanced crypto trading tools

Coinsmart logo
Minimum Deposit
£0
Trading Fees
0.20% - 0.30%
Withdrawal Fees
Green Check Mark
FX Fees
Green Check Mark

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.

Please note: Cryptoassets are a highly volatile unregulated investment product. 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
Trading Fees
1.50% - 2.50%
Withdrawal Fees
Red Cross Mark
FX Fees
Green Check Mark

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.

Please note: Cryptoassets are a highly volatile unregulated investment product. 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, Gemini 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, Gemini 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; Crypto wallet; Advanced crypto trading tools
  • Gemini - Live prices; Crypto wallet; Beginner-friendly
  • Coinbase - Live prices; Crypto wallet; Crypto card; Earn free crypto
  • Bitstamp - Advanced order types; Analytical tools; Beginner-friendly
  • Revolut - Round ups; Automatic investing; Beginner-friendly
  • Bitpanda - Automatic investing; Crypto card; Beginner-friendly
  • Coinsmart - Beginner-friendly; Advanced crypto trading tools

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, Gemini 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.



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Credits

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

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