how to buy ethereum
Buying ethereum (eth) is a relatively simple process to follow. you just need a photo ID to create an account on a platform that sells it, then link a payment method to buy it, like a bank account or debit card. credit cards are another common way to buy eth, and we have a separate guide to buying eth with a credit card.
Cryptocurrency exchanges are the main way people buy ethereum and other cryptocurrencies. don’t worry, although the technology behind ethereum is complex, finder has all the information you need to buy eth. the process is the same to buy other cryptocurrencies, so it will be easy to buy crypto assets and tokens and have a diverse portfolio. you are not forced to buy a lot or a little ethereum, it is completely up to you how much you spend.
Reading: Australia buy ethereum
step 1: choose where to buy
The first step is to choose a cryptocurrency exchange to buy ether. An exchange acts as a go-between service for users who want to convert fiat currency or other cryptocurrencies into eth. There are many cryptocurrency exchanges in the world, and a full comparison list can be found on the search engine’s cryptocurrency exchange page. however, generally speaking, users will choose an exchange that works best for them in terms of fees, currencies and services offered, and location.
To buy ethereum, you will need to choose an exchange that accepts payments in Australian dollars.
some of the most popular exchanges that accept aud are coinspot, swyftx and digital surge. all are based in australia and comply with local regulations.
To help you choose an exchange, consider the following:
- Fees: Fees are generally charged on every purchase or sale you make. credit card purchases are the most expensive option due to cash advance fees. look for exchanges with free deposit methods like payid or poly. platforms have different fees for depositing, withdrawing and trading fiat or crypto assets. look for an exchange with low trading fees, zero deposit fees for fiat and crypto, and cheap or covered withdrawals.
- currencies: which crypto currencies and tokens you are interested in buying others what eh? for a diverse portfolio, you will need a platform with all your cryptocurrencies of interest. if you only want to buy ethereum, look for the exchange with the cheapest rates and the most security.
- location: Australian cryptocurrency exchanges must comply with local laws and regulations. make sure the exchange is registered with austrac for peace of mind.
step 2: create an account
once you have selected an exchange to buy ethereum from the table above, you will need to register.
- You can sign up for an account by selecting the go to site button.
- This will take you to the account creation page, where you can fill in your details, starting with your name and email address.
- To do this, you’ll need a photo ID and a copy of a recent bank statement or utility bill that has your address on it.
- kyc is usually approved instantly, though in some cases, you may need to wait a few days before your account is verified.
step 3: fund your account
To buy ethereum, deposit money into your exchange account or link a credit or debit card. there are exchanges that accept registration without kyc but then require it when you are going to fund an account with fiat or buy ethereum with a card.
There are numerous ways to fund an exchange account to buy ethereum. each of them will have a different wait time before payments are deposited. wait times will range from almost instant to a few business days, depending on the method.
Each exchange accepts different forms of payment for deposits, and there are often Australian-specific methods. Some financing methods include:
- credit/debit card
step 4: buy ethereum
navigate to the markets section on your chosen exchange to find your desired ethereum pairing. find the section on buying eth and type in the amount of the paired cryptocurrency you want to spend or the amount of eth you want to buy.
- Note: Please carefully review the details of your transaction, including the amount of Ethereum you are purchasing and the total cost of the purchase, before completing the transaction.
Some crypto exchanges only offer one way to buy crypto, while others give you a few options. the most popular methods to buy ethereum are instant purchase and spot market.
instant buy/market order
Most exchanges offer the ability to buy high volume cryptocurrencies like ethereum instantly, and this is one of the fastest ways to buy eth. simply enter the amount you want to buy in aud and the exchange will calculate the equivalent amount in eth, according to the market rate.
Buying cryptocurrencies via the instant purchase method is usually more expensive than on the spot market, as an additional exchange fee is usually added to the market price. This can be an easy way to buy crypto for beginners, but it’s important to be aware of the additional costs involved, especially if using this method with a linked credit card, as the fees add up.
The spot market is offered on most exchanges and is the most common way to buy and sell crypto tokens or assets. There are a few different ways to buy crypto on a spot market, but market buys and limit orders are the most common.
An exchange buy is similar to an instant buy, but without the additional fee the exchange charges for negotiating the deal. there is still a merchant fee, but it is less than for instant purchase.
a limit order means placing an order for ethereum at a fixed price and amount of eth. the order is filled as other users sell their assets via a sell limit or market sell order at the set price. trading fees for a limit order are lower than for a market buy.
after having bought ethereum
After you’ve acquired eth, there are several things you can do with it. the first is just nothing, just hang on to it. however, if you are considering keeping any cryptocurrency for a long period of time, we recommend transferring it from an exchange for safekeeping. alternatively there are ways you can make use of eth on the exchange. Let’s explore these options in detail.
send your ethereum to a wallet
transferring eth to a wallet you control is the best way to keep your eth safe for an extended period of time. As long as you have chosen a good wallet and follow the best practices for keeping eth safe in that wallet, then the wallet is the safest place to keep your eth long term. once the eth is off an exchange and safely secured by the wallet, it is free from the possibility of being stolen on an exchange. use the finder’s ethereum wallet guide to select the best wallet for you.
keep your ethereum on an exchange
There are a few reasons why you might want to keep your eth on an exchange. Depending on the exchange, it may offer you the option to earn a return on your Ether in a number of ways. Some exchanges will give you the ability to lend your Ethereum, allowing you to passively collect a return on the amount borrowed. They can also give you the ability to stake your eth within eth2.0, but without the need for technical experience or 32 eth. however, there are unique risks associated with both options, including a lack of consumer protection if your funds are lost. Lastly, you may want to trade your eth on a centralized exchange, taking advantage of fast and cheap transactions, rather than decentralized exchanges that cost more and take longer.
where to buy ethereum
the risks of buying ethereum
Cryptocurrencies are complicated and volatile assets, and buying any digital coin or token carries a high level of risk. Before you buy, make sure you do a lot of research and that you can identify the factors that could drive the price of a cryptocurrency asset either up or down. here are some risks of buying eth:
- competition. there are new projects coming onto the market that create competition and can dilute the market values of other assets in the sector, or exceed them.
- regulatory changes. government regulation could negatively affect cryptocurrency prices, such as a country banning cryptocurrencies.
- exchange or account hacking. while rare, there is a risk of an exchange or your account being hacked and funds stolen.
keeping ethereum safe in a wallet
Although some people choose to store their cryptocurrency tokens in their exchange account, this is not recommended. exchanges are regular targets for hackers and thieves. it is a much safer option to move coins and tokens to a wallet that allows you to keep full control of your private keys. there are hardware and software wallets for desktop and web browsers available to store cryptocurrencies. keep ethereum safe with any of the wallets recommended by the search engine.
frequently asked questions about buying ethereum