Ethereum is a popular but complex cryptocurrency. Read this article and learn how to simplify investing in Ethereum, while addressing some of the common concerns about blockchain technology and security. We guide you through the essential steps, such as choosing a trading platform, setting up a secure wallet, and completing a purchase. This makes it easier, especially if you’re new to buying crypto and Ethereum.
Key Takeaways
- Selecting a reputable exchange is crucial to safely buying and storing Ethereum.
- Centralized exchanges are more common, but decentralized exchanges offer more control over your crypto assets.
- Opening an account requires identity verification and compliance with Know Your Client (KYC) regulations.
- Consider your risk tolerance when choosing between centralized and decentralized platforms.
- Safeguard your Ethereum by transferring it to a cold wallet after purchase.
Choosing the Right Ethereum Trading Platform
As the basis for buying Ethereum, it is important to identify the best trading platform for your needs. There are a few options when it comes to cryptocurrencies, including some of the top platforms, such as Coinbase, Kraken, Gemini, Binance, Bitfinex, and Bitstamp (Bitstamp was acquired by Robinhood in June 2025). All of these exchanges offer Ethereum.
One of the biggest considerations when choosing a cryptocurrency trading platform is the type of exchange. Cryptocurrency trading platforms are generally:
- Centralized Exchanges (CEXs): These are usually businesses that store user keys for them, provide order-matching services, and charge fees for using their services.
- Decentralized Exchanges (DEXs): These are platforms that connect users who rely on smart contracts to execute trades. DEX users maintain control of their keys and wallets.
The type of exchange you choose depends on your preferences and risk tolerance.
Fast Fact
You can also buy Ethereum using PayPal or Robinhood.
Keep in mind that cryptocurrencies are highly unregulated with rapid innovation. This can create a great market opportunity but also increase the risks of fraud, so it is important to be sure you are confident in the credibility of the trading platform exchange that you choose. Ask yourself these key questions as you consider an exchange include:
- Where is it headquartered?
- Does it have a license?
- How secure is the exchange’s website?
- How secure are your funds?
- Who are the managing executives?
Important
Cryptocurrency trading and trading in related products like crypto contracts for differences (CFDs) or futures may be limited by country or jurisdiction.
How to Set Up Your Trading Account for Ethereum
Once decide on a trading platform that fits your needs, the next step in buying Ethereum is to open an account. This process is similar to opening an account with a brokerage firm. You will need to provide your name, address, social security number, specified forms of identification, and more. The account opening process can usually be done pretty quickly once you settle on and are confident about a particular site.
Verifying the account is usually the final step in the account opening process. Most exchanges require that you verify your account in one or more ways. This is where you will likely need to upload documents to verify your identity and ensure that your account passes regulatory muster. Verification can take anywhere from one hour to a day or two, depending on the exchange.
Fast Fact
Regulated exchanges are required to gather client identification is what has become known as Know Your Client (KYC) procedures. This is usually for tax purposes and to discourage illicit behavior on the exchange.
Funding Your Account to Buy Ethereum
The next step is to deposit currency into your account to make an Ethereum purchase. For centralized platforms, this can be relatively easy after verifying your payment information. Simply add money through your bank account or debit card.
Cryptocurrency exchanges do not generally have high minimum investments, so you can invest as little as $5 or as much as $1,000 or more. Most exchanges have fees per trade, so it can be best to trade large amounts at once.
Depositing currency in DEXs can be slightly more difficult. These exchanges require you to send cryptocurrency from your wallet to another. Ethereum and USDT are popular depositing currencies for many DEX platforms so holding large amounts can be beneficial if you’re going to be doing a lot of trading.
Executing Your First Ethereum Purchase
Once your account is verified account and your money is deposited, you’ll be able to begin purchasing Ethereum and other cryptocurrencies through the exchange. Each exchange has an interface that works somewhat differently, but be prepared to confirm transactions and allow for processing time, which can also depend on the total number of transactions requested.
Safely Storing Your Ethereum Post-Purchase
Once you have purchased ETH through the exchange, you can withdraw the cryptocurrency a wallet you control. CEXs make it easy to withdraw ETH by simply selling and depositing the proceeds in your bank account. DEX platforms may take a longer amount of time. On a DEX platform, you would need to transfer your ETH to a CEX and then sell to cash out.
You may also have the option to send ETH to a wallet through all platforms. Withdrawing cryptocurrency differs from withdrawing money from an account. Cryptocurrency private keys give you access to your crypto, and this is what you’re withdrawing from a centralized exchange. The keys are transferred from its storage to yours.
To store your keys safely, they must be transferred from your internet-connected wallet to a cold wallet, which is a wallet without a connection.
What Is the Safest Way to Buy Ethereum?
The safest way to buy Ethereum is to use a centralized and regulated exchange. Once you make your purchase, the safest way to store your key(s) is to transfer them to your wallet and place them on a cold storage device.
Can I Buy $10 of Ethereum?
Yes. Most exchanges don’t have minimum purchase amounts, but you’ll need to decide whether the blockchain and exchange fees justify the purchase, as you might end up paying more than $10 for your $10 worth of Ethereum.
Where Can You Buy Ethereum?
You can purchase Ethereum on decentralized and centralized exchanges worldwide. Some well-known payment platforms, such as PayPal, also provide a way to buy crypto.
The Bottom Line
Buying Ethereum is more accessible than before, with many regulated exchanges offering low minimum investment options. To purchase it safely, consider a reputable platform and make sure you follow secure verification steps. Once that’s done, you can transfer your private keys to a cold wallet for added protection. By taking these precautions, you can confidently and securely invest in Ethereum.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author owns BTC and XRP.