Ethereum has surged from $8 in early 2017 to over $1,000 by the end of the same year, sparking widespread interest in how to buy it.
Whether you're new to cryptocurrency or already familiar with the topic, this guide will help you navigate the platforms available for purchasing Ether (Ethereum’s native currency). It also covers whether Ethereum is a worthwhile investment and how to choose the safest option for your needs.
Cryptocurrencies are innovative, rapidly evolving, and far from simple—but this guide simplifies the process! Before diving into purchasing Ethereum, let’s explore how Ethereum works and why it’s more than just digital money.
Key Takeaways:
- Ethereum leverages blockchain technology to enable decentralized applications (dApps) and smart contracts.
- Ether (ETH) serves as the fuel for transactions and computational services on the Ethereum network.
- You can buy Ethereum through reputable exchanges, peer-to-peer platforms, or by converting other cryptocurrencies.
Why Should You Buy Ethereum?
The Rise of Decentralization
Ethereum introduces a decentralized model, reducing reliance on centralized institutions like banks and governments. This shift is seen by many as the future of finance, business, and technology.
Price Growth Potential
- January 2017: 1 ETH = $8.24
- January 2018: 1 ETH = $747.52 (a 9,000%+ increase)
While Ethereum is volatile short-term, long-term projections suggest continued growth as adoption expands.
Faster Transactions
Unlike Bitcoin’s 10+ minute transaction times, Ethereum processes transactions in seconds, making it more practical for everyday use.
Smart Contracts Eliminate Intermediaries
- Automated agreements execute without third parties (e.g., banks, brokers).
- Examples: Payroll systems, car purchases, cross-border payments.
How to Buy Ethereum in 3 Simple Steps
Step 1: Get a Digital Wallet
Ether is stored in crypto wallets. Choose from:
Web-Based Wallets (e.g., MyEtherWallet)
- Less secure; best for small amounts.
Software Wallets (e.g., Exodus, Jaxx)
- Balance security and convenience.
Hardware Wallets (e.g., Ledger Nano S, TREZOR)
- Most secure for long-term storage.
👉 Compare the best Ethereum wallets here
Step 2: Purchase Ethereum
Exchanges Supporting Fiat-to-Crypto Purchases
| Platform | Fees | Supported Currencies | Key Features |
|-------------------|--------------|----------------------|-----------------------|
| Coinbase | 1.49%–3.99% | USD, GBP, EUR | User-friendly, high liquidity |
| CEX.io | 3.5% + $0.25 | USD, EUR, RUB | Global availability |
| Coinmama | 6% | USD, EUR | Direct wallet delivery |
Peer-to-Peer (P2P) Options
- LocalEthereum
- Cryptocurrency swaps via ShapeShift
Step 3: Secure Your Ether
Transfer ETH from the exchange to your wallet for enhanced security:
- Coinbase: Navigate to Send/Request → Enter wallet address → Confirm via SMS.
- CEX.io: Go to Finance → Withdraw ETH → Enter wallet details.
FAQs
1. Is Ethereum a Good Investment?
Ethereum’s value hinges on its utility in decentralized applications. While volatile, its long-term potential is strong due to ongoing blockchain adoption.
2. What’s the Cheapest Way to Buy Ethereum?
Bank transfers typically have lower fees (e.g., 1.49% on Coinbase) compared to credit/debit cards (up to 6%).
3. Can I Store Ethereum on an Exchange?
Exchanges are convenient but riskier than personal wallets. Use them for trading, not long-term storage.
4. How Long Do Ethereum Transactions Take?
From seconds to an hour, depending on network congestion. Ethereum 2.0 aims to improve scalability.
5. What’s Gas in Ethereum?
Gas fees pay for transaction processing on the Ethereum network. Prices fluctuate based on demand.
Conclusion
Now you know how to buy Ethereum, where to purchase it safely, and why it’s a transformative technology. Whether you’re investing or using ETH for dApps, always prioritize security by storing funds in a private wallet.
Final Tip: Diversify your crypto portfolio and stay updated on Ethereum’s upgrades (like Ethereum 2.0) to make informed decisions.