It’s favored by a lot of investors and has huge support from the crypto industry because it is used by other developers to start new blockchain projects. To sell your Ethereum, simply head back to your crypto exchange and enter the amount you want to sell. Cryptocurrency trading and trading in related products like crypto contracts for differences (CFDs) or futures may be limited by country or jurisdiction. As the original smart contract blockchain, Ethereum has garnered incredible network effect over the years and acted as a springboard for many of the world’s biggest crypto projects since 2017. That being said, smaller-cap altcoins usually rise more during bull runs relative to ETH since they have more room to grow.

• Alternatively, there are also non-custodial P2P marketplaces like LocalCryptos that have escrow services that provide a safety net for both buyers and sellers for a fee.
• This is where you will likely need to upload documents to verify your identity and ensure that your account passes regulatory muster.
• In a sense, a decentralized exchange, or DEX is the truest way to trade cryptocurrencies in that there is no third party whatsoever.
• All you need to do is open an account with eToro, make a deposit of at least $200 with your debit/credit card or e-wallet, and invest at least $25 into Ethereum.
• Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use.

How to invest in Ethereum in the UK: step-by-step

For example, if the price of Ethereum is $2,000 and you invest $100, you will purchase 5% of an Ether coin. As of May 28, 2024, trading volume on the exchange amounted to $21.15 billion. The type of exchange you choose depends on your preferences and risk tolerance.

Ethereum’s correlation with Bitcoin

This bureau safeguards the US financial system by working to prevent money laundering, terrorist-financing activity and other financial crimes. While this has helped make ETH the #2 crypto by market cap, Ethereum is still a highly volatile asset capable of major price swings in a single day. This method allows users to engrave or print an Ethereum account’s private keys onto a steel plate or a piece of paper, respectively. Once you buy your Ether coins, you need a place to store them safely. As we’ve noted before, you are better off avoiding exchange wallets since they are more vulnerable to attacks. The best alternative is to have a self-custody wallet that will let you control your private keys.

Is investing in Ethereum in the UK safe?

It uses its own cryptocurrency (Ether) that can be used as a store of value or traded on the Ethereum network. The main benefit of using Ethereum, and similar to other cryptocurrencies, is that it operates as a decentralised platform. This means users can send and receive value worldwide without any interference or observance from third parties such as governments, police, or other firms. Once you have purchased Ethereum on the Binance platform, you can store your cryptocurrency investment in their official Trust Wallet. This wallet allows you to safely hold any crypto you own whilst offering some great features that enhance your experience.

A quick guide to Ethereum

Any user with any amount of ETH can help secure the network and earn rewards in the process. Having an appropriate strategy is critical when operating in the crypto market. A solid plan allows you to formulate rules that determine How to Invest in Ethereum when you should enter the market and also when you should exit. Taking a quick look at their market caps, Ethereum’s currently totalled $201billion, whilst Bitcoin’s is substantially higher at roughly $1trillion.

Ethereum ETFs and Their Fees, Promotions and Holdings

It is one of the few coins that is used by ICOs (Initial Coin Offerings), which means it acts as a launchpad for new tokens. This makes Ethereum a valuable platform to the community, and also means the price of Ether could continue to grow as more people continue to use it. The coin was forked because a crypto exchange was hacked, and a lot of Ethereum Classic coins were stolen. To punish the hackers, the Ether community decided to fork Ethereum Classic and stop using the Ethereum Classic token. By doing that, Ethereum Classic lost a lot of value, and the new Ethereum token became the more valuable of the two.

How to invest in Ethereum (ETH)

You’ll find the spot market under a “Trade” or “Spot” heading on the site or app menu of the platform you’ve chosen to use. If you see colorful charts with a range of prices, you’re probably in the spot market. Be prepared to pay a markup on ETH’s market rate in exchange for the convenience. If it’s your first time buying Ethereum, this will be the fastest method – but also the least cost-effective. Most exchanges let you buy as little as $5 worth of ETH, if not less.

Smart contracts also allow you to build software applications on Ethereum, and it was the first blockchain to bring this programmability to cryptocurrencies. Web wallets are software applications on a website providing users with the utmost convenience but often at the expense of security. They are easy to connect to the vast Ethereum network of decentralized applications making it fast to transfer funds between accounts and dApps.

Investing is just as much about growing capital you already have, as it is about acquiring new assets. You can earn a yield on any ETH you already own through a number of methods, such as lending, staking and DeFi. The easiest method, which can be done through an exchange, is via lending, also known as crypto savings accounts.