Cheapest Places to Buy Ethereum [month_year] (2024)

How To Buy Ethereum

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.

Own Ethereum in 4 Steps

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 likeMetamask.

Cheapest Way to Buy Ethereum for Metamask

Ethereum is a popular cryptocurrency that’s supported by nearly all crypto exchanges. Below we cover the topexchangeswhere you can buy ETH.

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, andborrow cryptowithout relying on centralized intermediaries but instead by utilizing automated programs that link buyers and sellers and facilitate transactions.

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

Payment Methods Accepted

• Credit Cards:Most major exchanges no longer support purchasing ETH and other cryptocurrencies using acredit card. However, debit cards are widely accepted on exchanges, including Coinbase and Kraken.
• Debit Cards:For many, debit cards are the default way to buy Ethereum. Leading exchanges like Kraken and Coinbase support crypto purchases made through debit cards. Be sure to compare fees against using ACH, which is often more cost-effective.
• 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 to complete your purchase. Coinbase also supports PayPal funding for ETH and other crypto purchases.
• Crypto ATMs:The on-the-go method for purchasing Ethereum is to use acrypto 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.

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 debit card as a payment method and complete your purchase

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.

When To Buy ETH

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 will 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 (DCA). 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 higher transaction costs due to multiple purchases

Where To Store ETH

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. Here’s the main one: Your wallet is always vulnerable to attack. If someone knows your seed phrase, which is your password, they can access your wallet and steal your funds. Additionally, if you authorize anyhackedapplications 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 device 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 device and knows your password will also have access to the funds inside. Additionally, if you lose your physical USB device, you will also lose access to your wallet.

Popular Ethereum cold wallets include:

• Ledger Nano X
• Trezor Model One

To Sum It Up

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 Conbase or 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 world of crypto is still riddled with scams and malicious attempts to steal your hard-earned crypto. Remember never to 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.

Frequently Asked Questions