Cheapest Way to Buy Ethereum

• Ethereum is the second-largest cryptocurrency, and it can be purchased at almost any crypto exchange.
• You can use credit cards, debit cards, ACH, PayPal, and even crypto ATMs to purchase ETH
• The most prudent investors use dollar-cost averaging and store their ETH in cold wallets after purchasing

You can purchase Ethereum on almost any crypto exchange, but not all exchanges are created equal. Below we take a look at the best places to purchase Ethereum, weighing fees, trading minimums, and more. We also cover the safe storage and handling of your ETH.

Buying ETH requires just a few steps.

Step 1: Choose an Exchange

Step 2: Sign-up and verify your account

Step 3: Pay for Ethereum

Step 4: Store Ethereum - Keep it on an exchange or transfer it to a crypto wallet like Metamask.

Ethereum is a popular cryptocurrency that’s supported by almost all of the exchanges out there today. Below we cover the top 3 exchanges where you can buy ETH.

1. Kraken

Kraken is one of the largest crypto exchanges out there, so it offers plenty of liquidity for Ethereum trades. To purchase ETH through Kraken, you’ll first need to create an account and fund your account balance. Once you’ve purchased your ETH, you can either store it on the exchange or transfer it to Metamask or another external wallet.

Read our full Kraken review, or buy ETH on Kraken.

2. Binance

Binance is the largest crypto exchange by trading volume. You can purchase ETH through the Binance website or by using the Binance app. You can fund your Binance account with a credit card, debit card, or bank deposit and store your purchased ETH on the Binance exchange or in an external wallet.

Read our full Binance review, or buy ETH on Binance.

3. Coinbase

Coinbase is a popular US-based crypto exchange and one of the most regulation-friendly crypto trading platforms out there. This means that Coinbase is a safe and compliant choice for both new and experienced traders. Ethereum and many other popular cryptocurrencies are available for trading on Coinbase.

Read our full Coinbase review, or buy ETH on Coinbase.

Buy Ethereum Through DeFi Exchanges

Ethereum uses its smart contract technology to power an entirely new way of trading financial assets known as “decentralized finance” (DeFi). Through DeFi, individuals can trade, lend, and borrow crypto without relying on centralized intermediaries but instead by utilizing automated programs that link buyers and sellers and facilitate transactions.

Quick Sip

Decentralized finance, or DeFi, is an anonymous, cheap, and fast way to purchase Ethereum. It’s not always beginner friendly, but the learning curve is often worth it, and DeFi is the trading method of choice for many pros.

Below we look at the two largest DeFi platforms that you can use to buy Ethereum.

1. Uniswap

Uniswap is the most popular DeFi exchange. The application provides trading pairs for hundreds of different coins, which means that you can swap almost any cryptocurrency for ETH. In addition to purchasing crypto, users can earn a return on their tokens by funding liquidity pools using their assets.

Read our full Uniswap review, or buy ETH on Uniswap.

2. dYdX

dYdX is the second most popular DeFi exchange by trading volume after Uniswap. The exchange supports a wide range of trading pairs and offers a hard-to-beat 0% trading fee on all trades up to $100k per month. The exchange also offers advanced trading mechanisms like perpetual futures trading.

Read our full dYdX review, or buy ETH on dYdX.

• Credit Cards: Exchanges such as Kraken, Binance, and Coinbase support purchasing ETH and other cryptocurrencies using a credit card. Keep in mind, however, that many exchanges will charge an extra fee for processing credit card transactions.
• Debit Cards: For many, debit cards are the default way to buy Ethereum. Exchanges like Kraken, Binance, and Coinbase support crypto purchases made through debit cards.
• ACH: Automated Clearing House (ACH) is a popular method for sending money directly between bank accounts. ACH is a great way to purchase Ethereum in bulk, but keep in mind that clearing times may be several business days, and exchanges may assign spend limits.
• PayPal: The online payment provider supports purchasing Ethereum through their website and mobile app. You will need a PayPal account in order to complete your purchase.
• Crypto ATMs: The on-the-go method for purchasing Ethereum is to use a crypto ATM. These ATMs have locations all around the world, just like traditional ATMs, and provide a quick and easy way to top up your crypto balance. The downside is that crypto ATMs charge significantly higher fees than most exchanges.

• How to Buy Ethereum with a Credit Card

  Expand to learn more

  We will use Kraken for this example.

  Step 1: Log in to your Kraken account

  

  Step 2: In the “Explore” section, select “Ethereum”

  

  Step 3: Click the “Buy” button and enter the amount of ETH you’d like to purchase

  

  Step 4: Add your credit card as a payment method and complete your purchase

  

• How to Buy Ethereum with a Debit Card

  Expand to learn more

  We will use Binance for this example.

  Step 1: Log in to your Binance account and click “Buy Crypto”

  

  Step 2: Choose “Ethereum” from the asset list

  

  Step 3: Enter the amount of ETH you’d like to purchase, and complete your purchase

  

• How to Buy Ethereum on PayPal

  Expand to learn more

  You can buy Ethereum either directly through PayPal, or by using PayPal to fund your account balance on a website like Coinbase. Below is a step-by-step process for buying ETH on Coinbase by using PayPal.

  Step 1: Log in to your Coinbase account

  

  Step 2: Add your PayPal account as a funding method for your Coinbase balance

  

  Step 3: Select “Ethereum” and enter the amount you’d like to purchase. Make sure you have selected “PayPal” under the “Pay with” option

  

  Step 4: Click “Preview Buy” to preview your purchase. When you’re ready, click “Buy now” to complete your ETH order.

  

Quick Sip

ETH has had several bull runs in the past, which means timing your purchase can be tricky. Thankfully, you can use methods like dollar-cost-averaging to spread your investment out and buy in at an average market price.

Ethereum, along with the broader crypto market, moves in cycles known as “bull” and “bear” markets.” Bull markets are when the price of crypto goes up, and investors are optimistic (bullish), while bear markets are when the price of crypto goes down, and investors are pessimistic (bearish).

Ethereum had an initial bull run in 2018, where the price reached $1,385 per ETH. A bear market set in later in 2018, and the price started dropping, bottoming out at less than $90 per ETH in 2019. The second large bull market started at the end of 2020 and reached an all-time high of $4,811 in 2021 before bottoming out at under $1,000 in June 2022.

When it comes to crypto investing, you should attempt to buy low and sell high. Of course, no one knows where the market is going to go, so you will have to learn about Ethereum’s fundamentals, research upcoming changes, and listen to investor sentiment to decide when to buy.

Dollar-Cost Averaging

If you know you want to own some Ethereum, but you’re not sure which exact moment you should make your purchase, you can use dollar-cost averaging. Dollar-cost averaging is the practice of spreading out your investment into several smaller investments over several days, weeks, or months.

This allows you to “average” out the price of your overall purchase and helps even out spikes and dips in price. DCA has several benefits:

• DCA lowers your investment risk
• You don’t have to worry about timing the market
• DCA can provide peace of mind to investors

The major downside of DCA is:

• Having to pay high transaction costs due to multiple purchases

Quick Sip

There are two main ways to store your ETH: in a “hot” wallet that’s always connected to the internet and in a physical “cold” wallet that only connects whenever you need to transfer funds. Each option has its tradeoffs.

Your Ethereum, and all your other cryptocurrencies, are stored in a crypto “wallet.” This is a software program that authenticates your private credentials and gives you access to your funds. Wallets can be either online “hot” wallets or offline “cold” wallets.

Hot Wallets

A “hot” crypto wallet is a software wallet that is connected to the internet. Hot wallets allow you to easily store, transfer, and receive cryptocurrencies and authorize transactions.

Despite the convenience of a hot wallet, there are significant drawbacks. The most significant risk is that your wallet is vulnerable to attack at all times. If someone knows your seed phrase, which is your password, they can access your wallet and steal your funds. Additionally, if you authorize any hacked applications to access your wallet, your funds can be stolen.

Some popular Ethereum hot wallets include:

• MetaMask
• Rainbow
• Exodus
  

Cold Wallets

A “cold” crypto wallet is a wallet that is not connected to the internet. Most “cold” wallets are physical USB drives that look similar to a traditional USB file storage flash drive but are used to store your crypto instead.

To use a cold wallet to transfer your funds, you’ll need to plug in the physical USB to a computer and enter a password in order to access the wallet. This means, of course, that anyone who has access to the physical USB and knows your password will also have access to the funds inside. Additionally, if you lose your physical USB, you will also lose access to your wallet.

Popular Ethereum cold wallets include:

• Ledger Nano S
• Trezor Model One

Ethereum is one of the most well-supported cryptocurrency assets out there, so there is no shortage of ways to purchase ETH. For beginners, sticking to large exchanges like Kraken is probably your best bet, while intermediate traders can get a better deal on their ETH trades by navigating DeFi options like Uniswap and dYdX.

It’s important to keep in mind that the nascent world of crypto is still full of scams and malicious attempts to steal your hard-earned crypto. Remember to never open links you don’t recognize, never share your wallet seed phrase with anyone, and always double-check the URLs of the websites you visit.

• Where can you purchase Ethereum?

  Expand to learn more

  You can purchase Ethereum at most crypto exchanges.

  Our top picks for crypto exchanges are Kraken, Binance, and Coinbase. You can also purchase ETH at DeFi exchanges like Uniswap and dYdX.

  
  

• What is the minimum Ethereum purchase?

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  Most exchanges will have some minimum requirement for each purchase.

  While it varies by exchange, this minimum is usually no more than a few dollars worth of ETH.

  
  

• Is buying Ethereum a good investment?

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  Ethereum has had several bull cycles and is currently in the midst of a bear market.

  While there are many crypto skeptics who say Ethereum will never again reach its all-time high, there are also many crypto champions who point to the ballooning number of ETH use cases as evidence that the next bull run will be even better for ETH.

  Ultimately, however, there is no way to tell if Ethereum will be a good investment long-term.

  
  

• How do you purchase Ethereum anonymously?

  Expand to learn more

  All centralized exchanges, such as Kraken, Binance, and Coinbase, are required to run identity checks before allowing you to purchase Ethereum or any other crypto.

  You can benefit from more anonymity by using a decentralized exchange such as Uniswap or dYdX. These DeFi exchanges don’t perform identity checks and simply execute your trade and send the funds to your wallet.