Ethereum is a widely recognized open-source blockchain that enables numerous decentralized applications, known as dApps. It is often seen as the leading platform in the emerging Web 3.0 era, making it a significant player in the cryptocurrency space.
This article provides you with a clear guide on how to buy Ethereum in 2024. It covers the various platforms for purchasing, the safest wallets for storage, and an overview of what makes investing in Ethereum appealing.
Key Takeaways
- You can easily buy Ethereum through various platforms in just a few steps.
- Choosing the right wallet is crucial for keeping your Ethereum secure.
- Understanding the potential of Ethereum can help inform your investment decisions.
How to Buy Ethereum – 3 Easy Steps
Here’s a straightforward guide to help you purchase Ethereum.
Step 1: Set Up an Ethereum Wallet
Start by creating a secure Ethereum wallet. A recommended option is the Best Wallet app, which offers excellent security features.
You can download it for iOS or Android. After installing, configure a PIN or use biometric security. Don’t forget to write down your backup passphrase for safekeeping.
Step 2: Create an Account on a Crypto Exchange
Next, you need an account on a cryptocurrency exchange. The Best Wallet app also functions as an exchange, enabling you to handle your crypto assets directly.
This allows you to buy Ethereum, store it, and even swap cryptocurrencies effortlessly with just a few taps.
Step 3: Trade ETH through the Best DEX
Link your wallet to the Best DEX to trade Ethereum and BNB smart chain tokens quickly.
The Best DEX offers user-friendly features like real-time market updates and advanced charting tools.
For added security, transfer your ETH to the Best Wallet app after purchasing to maintain full control over your assets instead of depending on the exchange.
Different Ways of Buying Ethereum – Wallets vs Exchanges
Buy Ethereum Through a Crypto Wallet
Buying Ethereum through a crypto wallet can be a convenient option for many investors. These wallets, while primarily designed for storing Ethereum, often partner with payment processors that facilitate the purchase of ETH directly.
This means you can use traditional payment methods like credit cards and e-wallets to acquire Ethereum quickly.
When you complete your purchase, the Ethereum is immediately available in your wallet. This eliminates the extra step of transferring funds from an exchange, making the process seamless. However, you should be aware that this method might come with higher costs.
Fiat payment gateways often charge fees that can reach 3.5% to 5% or more. For instance, some wallets impose additional markups on these fees, making it more expensive. Therefore, while convenience is a significant advantage, it’s essential to consider the potential extra costs.
Best Wallet – Our Recommended Wallet
Our top recommendation for a crypto wallet is Best Wallet. This wallet stands out as an excellent decentralized option.
Best Wallet allows you to have complete control over your Ethereum, ensuring that only you have access to your private keys.
It’s designed for both iOS and Android devices, and a browser extension will be available soon.
Security is paramount, and Best Wallet includes features like two-factor authentication and biometric locks.
Additionally, it uses a backup passphrase for account recovery, emphasizing user safety.
Best Wallet not only supports Ethereum but also accommodates all ERC-20 tokens. Plans are in place to add Bitcoin support as well.
Purchasing Ethereum through Best Wallet is straightforward. Once you complete the quick Know Your Customer (KYC) process, you have the option to buy via debit or credit card.
The moment the transaction is complete, your coins will appear in your wallet.
Best Wallet is also set to introduce a feature allowing you to cash out your ETH. For detailed guidance on this process, check out the resource available on buying Ethereum with Best Wallet.
Other Wallets to Consider
If you’re considering different options for buying Ethereum, there are several other wallets worth exploring:
- Ellipal Titan 2.0: This hardware wallet is renowned for its security features. It operates without needing internet access, using air-gapped technology to keep your funds safe from online threats.
- Ledger Nano X: Priced at $149, this multi-chain hardware wallet connects to Ledger Live, a comprehensive app that supports Ethereum transactions seamlessly.
- Trezor Model One: Ideal for investors on a budget, the Trezor Model One costs $59. It offers advanced security features but does not support Ethereum staking.
By evaluating these options, you can find the wallet that best suits your needs while providing a secure way to buy and store Ethereum.
Buying Ethereum Through a Crypto Exchange
Cryptocurrency exchanges are a popular option for purchasing Ethereum in 2024. These platforms cater to beginners, making it easy for newcomers to buy Ethereum without complications.
Many of the best exchanges are properly licensed and can accept different payment types, including debit and credit cards, as well as local bank transfers.
Compared to Ethereum wallets that depend on third-party gateways, crypto exchanges often provide better pricing.
For example, while some services may charge up to 5% for credit or debit card transactions, exchanges like eToro charge significantly less, starting from just 1.5%. Moreover, if you deposit in US dollars, you might avoid fees entirely.
After buying Ethereum, it is a good idea to transfer your coins to a private wallet.
This way, you maintain control over your assets and reduce the risks associated with keeping them on an exchange.
Although this additional step might seem inconvenient, many trustworthy exchanges process wallet transfers almost instantly, making the process straightforward.
eToro – Our Recommended Exchange
eToro stands out as a top choice for purchasing Ethereum. Founded in 2007, this exchange operates in a regulated environment, providing a secure platform for investments.
The platform is designed to be user-friendly, and you can access it both online and via a mobile app.
Opening an account is quick and involves a Know Your Customer (KYC) verification. You can fund your account using debit or credit cards, e-wallets, or local banking options like ACH transfers.
You can buy Ethereum with a minimum investment of $10. As soon as you make the purchase, the coins go into your eToro wallet, which is a custodial wallet.
However, eToro does allow you to withdraw your Ethereum to your personal wallet, giving you more control over your assets.
Keep in mind that while eToro is safe and easy to use, it does charge a trading fee of 1%, which may be higher than other exchanges.
Other Exchanges to Consider
Beyond eToro, there are many other exchanges where you can buy Ethereum. Here are some additional options worth exploring:
- Margex – Established in 2019, Margex is a versatile crypto platform that provides copy trading, perpetual contracts for crypto futures, and opportunities for staking tokens.
- MEXC – This well-reviewed exchange allows transactions in over 1,000 cryptocurrencies without charging spot trading fees. It can handle 1.4 million transactions every second, making it a fast option.
- Binance – Known as the largest exchange by daily trading volume since its launch in 2017, Binance lets you purchase Ethereum at a competitive commission of only 0.1% per transaction.
What Is Ethereum?
Ethereum stands as the second-largest cryptocurrency project, right after Bitcoin. Unlike Bitcoin, which primarily focuses on wallet-to-wallet transactions, Ethereum provides a platform with a range of applications.
It introduced the concept of smart contracts, enabling the development of decentralized applications (dApps).
Developers have the freedom to create their projects on the Ethereum blockchain, leading to a variety of side projects known as ERC-20 tokens.
The existence of numerous projects enhances the Ethereum ecosystem, as these ERC-20 projects contribute to network fees paid in ETH, Ethereum’s own cryptocurrency.
If you’re unfamiliar with smart contracts and dApps, consider Uniswap, a well-known decentralized exchange for anonymous token swaps.
This platform operates autonomously; when you initiate a trade, smart contracts execute the process.
For example, if you swap USDT for DAI, Uniswap uses the Ethereum blockchain to confirm the transaction, allowing for a seamless exchange with fees paid in ETH.
Ethereum is also a key player in the development of Web 3, supporting decentralized finance (DeFi) applications that include loans, savings accounts, staking, and yield farming.
It is utilized by NFT marketplaces and projects within the metaverse such as Decentraland and the Sandbox.
Additionally, play-to-earn gaming is emerging as a significant aspect of Ethereum, with leading titles like Axie Infinity, Gala, and Illuvium gaining traction.
Furthermore, Ethereum transitioned to a proof-of-stake (PoS) consensus mechanism in 2022.
This upgrade allows you to stake ETH for passive rewards, akin to depositing cash in a savings account.
Beyond enhancing energy efficiency by over 99%, the PoS upgrade aims to improve scalability and reduce fees in the long term.
Is Ethereum a Good Investment?
The Future of Web 3 – Unique Opportunities
Ethereum is at the forefront of the Web 3 revolution, serving as a layer 1 blockchain. This means it operates its own network, which is essential for decentralized applications (dApps) and various other projects.
From gaming and virtual worlds to decentralized financial services, Ethereum supports a wide range of uses.
Every third-party project that runs on the Ethereum platform must pay transaction fees in ETH.
This creates a consistent demand for the currency, regardless of the success or failure of individual applications.
Think of it like a highway with tolls:
- Ethereum functions as a major roadway available to all.
- Vehicles represent different projects that travel on this highway.
- To use the road, these projects must pay a toll in ETH.
- As more projects enter the Ethereum space, the demand for ETH increases, fueling a steady revenue stream.
This model allows you to invest in Ethereum as an infrastructure play rather than trying to predict the next breakout project. If the ERC-20 market thrives, Ethereum’s value is likely to rise alongside it.
Price History and Future Potential
Ethereum has made impressive financial strides since its launch in 2015. The network held an initial coin offering (ICO) in 2014, selling ETH for just $0.31 each.
Fast forward to today, and Ethereum reached an all-time high of $4,891 in late 2021, showcasing a remarkable growth of over 1.6 million percent in about seven years.
Current figures as of September 18, 2024, show Ethereum (ETH) trading at $2,305.97, reflecting a slight dip of 2.67% over the past day.
With a market capitalization of approximately $277.50B, Ethereum has captured significant investor interest, especially following the highs of 2021.
| Ethereum (ETH) | Current Price | Market Cap | 24-Hour Change |
|---|---|---|---|
| $2,305.97 | $277.50 B | -2.67% |
While Ethereum’s price has decreased from its peak, it has shown a growth of about 39.41% over the last year. This could indicate that now may be a good time for first-time investors to enter the market at a more favorable price point.
Some analysts, including Cathie Wood, speculate that Ethereum could skyrocket to a market value of $20 trillion by 2032. If that happens, the potential upside could exceed 56 times your initial investment.
It’s important to note, though, that this is speculation, and you should always do your own research before making financial commitments.
Ethereum ETFs Could be Launched in 2024
The approval of exchange-traded funds (ETFs) for Ethereum could occur as early as 2024, marking a significant milestone.
If approved, Ethereum would join Bitcoin as the second cryptocurrency to have its own ETF, which could greatly influence Ethereum’s market value.
Bitcoin saw a notable price increase after its ETF announcement. For example, Bitcoin was priced at $49,000 when its ETF was made public and surged to over $73,000 just two months later.
Given Ethereum’s lower market capitalization, an ETF approval may lead to even more substantial price gains.
An ETF would provide an avenue for financial institutions to invest in Ethereum without needing to interact with exchanges. This could potentially lead to massive inflows of capital, similar to the Bitcoin ETF experience.
If you are considering investing, keep an eye on developments regarding Ethereum ETFs, as this could significantly affect your investment strategy and outcomes.
Things to Consider Before Investing in Ethereum
Anticipate Significant Price Fluctuations
Ethereum is known for its price swings. Unlike stable assets, it experiences sharp increases and decreases.
For example, the price reached an all-time high of nearly $4,891 in late 2021 but fell to just over $1,000 the following year, representing a drop of about 80%. More recently, it achieved a 52-week high of $4,092, showcasing a rise of roughly 310%.
These fluctuations are typical in the cryptocurrency market.
Given this volatility, you should treat Ethereum as a long-term investment.
To manage risks associated with price swings, consider strategies such as dollar-cost averaging.
This method involves making regular purchases of ETH over time, which can help smooth out the impact of sudden price changes.
Legal Challenges in the Cryptocurrency Landscape
Recently, Consensys, a developer within the Ethereum ecosystem, launched a lawsuit against the SEC. The company claims that the SEC is unfairly trying to label Ethereum as a “security.”
This classification could have significant implications for investment opportunities related to Ethereum, including the potential for exchange-traded funds (ETFs).
You should remain informed about ongoing legal issues in the crypto world, as they can impact your investment decisions.
For example, a similar situation occurred with Ripple, where the courts eventually ruled in favor of Ripple.
Any delays regarding Ethereum’s status with the SEC can affect future market access and investor confidence.
Intense Competition from Other Blockchain Platforms
Ethereum faces strong competition from other smart contract platforms. While it maintains a robust ecosystem for decentralized applications, rivals like Solana are gaining traction due to advantages in scalability and transaction fees.
Although Ethereum upgraded its network’s consensus mechanism in late 2022, it can still process only about 12 transactions per second.
This limited capability often leads to network congestion, causing transaction fees to rise significantly.
For instance, the average cost to swap ERC-20 tokens on Ethereum is approximately $6.37, while NFT transactions can reach fees around $10.76. Such high costs make smaller transactions less feasible.
In contrast, platforms like Solana offer a median transaction fee of just $0.00064 and can support thousands of transactions per second. With a block confirmation time of only 400 milliseconds, Solana is also faster than Ethereum.
It’s important to note that many experts consider Ethereum a safer long-term investment despite its competition.
Understanding these factors regarding price volatility, legal challenges, and competition can help inform your investment strategy. Always evaluate your risk tolerance and make informed decisions about how Ethereum fits within your overall investment portfolio.
What is the Price to Acquire Ethereum?
The price of Ethereum constantly shifts due to supply and demand dynamics. Currently, Ethereum trades for nearly $3,000 per coin.
Compared to Bitcoin, which is over $60,000, Ethereum is a more budget-friendly option for many investors.
You can also purchase fractions of Ethereum.
The smallest unit is called “wei,” and there are 1 quintillion wei in one ETH. This fractionization allows you to buy as little as a few micro-cents.
Additionally, if you’re willing to invest time and learn, there are opportunities to earn Ethereum for free.
Final Thoughts
You have several choices for investing in Ethereum in 2024.
Many beginners find crypto exchanges appealing, especially when using traditional money, due to their low fees and commissions.
Alternatively, you can opt for a crypto wallet that features a fiat on-ramp. This option allows you to buy Ethereum directly with your debit or credit card.
Upon purchase, your ETH will be automatically added to your wallet, eliminating the need for a separate exchange.
Choose the method that suits your preferences and start your investment journey.
FAQs
How do I purchase Ethereum?
To buy Ethereum, you can use a cryptocurrency exchange. Start by creating an account, then connect your bank account or card to fund your purchase.
What is the price of one Ethereum?
The price of one Ethereum fluctuates regularly. You can check this on cryptocurrency exchanges to get the current market value.
Where is the best place to buy Ethereum?
The best platforms to buy Ethereum include major exchanges like Coinbase and Kraken. They are known for being secure and user-friendly.
Is buying Ethereum a good idea?
Deciding to buy Ethereum depends on your financial goals and risk tolerance. Research the market trends before making your decision.
References
You can explore various aspects of Ethereum, including its evolution and market dynamics. Resources cover Ethereum’s transformative events, pricing trends, regulatory developments, and ongoing legal actions. Here are some key references:
- Bloomberg on the Ethereum Merge
- CoinMarketCap for price data
- Reuters on ETF expectations
- The Wall Street Journal regarding SEC litigation
Frequently Asked Questions
What is the best platform for buying Ethereum online?
When selecting a platform to buy Ethereum, consider factors such as security, fees, user experience, and available payment methods.
Popular options include centralized exchanges like Coinbase and Binance, as well as decentralized exchanges like Uniswap. Each platform has its own advantages, so choose one that aligns with your needs.
Can you purchase Ethereum with PayPal, and how does it work?
Yes, it is possible to buy Ethereum using PayPal on certain exchanges.
To do this, you’ll need to create an account on a platform that supports PayPal transactions, like Coinbase.
After linking your PayPal account, you can proceed to buy Ethereum directly using your PayPal balance.
What should a beginner do to start investing in Ethereum?
If you’re new to Ethereum, follow these steps:
- Choose a Reliable Exchange: Find a trustworthy platform to buy Ethereum.
- Create an Account: Sign up and verify your identity as required.
- Deposit Funds: Add money to your account using your preferred payment method.
- Make Your Purchase: Select the amount of Ethereum you want to buy and confirm the transaction.
- Secure Your Assets: Consider moving your Ethereum to a personal wallet for better security.
Can you acquire Ethereum without paying transaction fees?
Typically, when buying Ethereum, transaction fees are charged by exchanges or payment processors.
However, some decentralized platforms might offer lower fees, but they may not completely eliminate them. Be aware that fees can vary widely based on the method you use to buy.
How do you buy Ethereum using MetaMask?
To purchase Ethereum with MetaMask, follow these steps:
- Install MetaMask: Get the MetaMask extension for your browser or download the app.
- Create a Wallet: Set up your wallet and secure it with a strong password.
- Add Funds: You can either buy Ethereum directly via the app or transfer it from another wallet.
- Use a Service: Some crypto exchanges allow you to buy Ethereum directly through MetaMask for added convenience.
What are the ways to buy Ethereum on Binance?
On Binance, you can purchase Ethereum using various methods:
- Bank Transfer: Deposit funds from your bank account to buy Ethereum at lower fees.
- Credit/Debit Card: Use your card for an immediate purchase, though this may incur higher fees.
- P2P Trading: Binance offers a peer-to-peer service, allowing you to buy ETH directly from other users with various payment options.
