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Do not invest unless you are prepared to lose all the money you invest. Cryptoassets are high-risk investments, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Additionally, capital gains tax may apply to profits from cryptocurrency sales.
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You can buy Ethereum in the UK from crypto exchanges, such as eToro, Coinbase, and CoinJar. Crypto exchanges make it possible to buy and sell Ethereum directly from your smartphone, tablet, or computer.
After purchasing Ethereum, you can do one of two things:
You can leave your Ethereum in the crypto exchange where you can monitor the value and exchange it for other cryptocurrencies (such as Bitcoin, Litecoin, USDC and more) or fiat currencies (such as GBP, USD, EUR and others).
Alternatively, you can move your Ethereum and other crypto holdings to a secure wallet that can be separate from or owned by the crypto exchange you use. Storing your cryptocurrencies in a wallet instead of a crypto exchange is better because wallets are typically independent of exchanges. If the exchange goes bust, for example, you can rest assured that your money is safe on the blockchain and separated from the crypto exchange.
In order to manage your Ethereum, there are three basic concepts you must understand:
We’ve compiled a list of the best places to buy Ethereum in the UK. These are exchanges, wallets, apps and trading platforms where you can buy Ethereum, Bitcoin, XRP, Dogecoin, and other cryptocurrencies in the UK.
Please remember that cryptoassets, such as Ethereum, are highly volatile, unregulated investment products with no UK or EU investor protection. You could lose all the money you put into them.
Here are the best places to buy Ethereum in the UK:
eToro is a multi-asset trading platform that enables you to trade or invest in cryptocurrencies, NFTs, stocks, ETFs, commodities, forex, and indices. With eToro, you can trade over 70 “real” cryptocurrencies, including popular coins like Bitcoin, Ethereum, XRP, Binance Coin (BNB) and Dogecoin.
Crypto trading on eToro is suitable for both beginners and advanced traders. Beginners can benefit from the educational materials, user-friendly desktop and mobile apps and copy trading tools (which allow you to copy the trades of top-performing crypto traders on the eToro platform). Advanced traders can take advantage of superior charting and analytics tools, social trading features, and real-time crypto market news and insights. You can also benefit from eToro’s risk management tools, such as Stop Loss, Take Profit and Trailing Stop Loss, to better manage your positions, protect your investments and secure your profits. Stop Loss and Take Profit are not guaranteed.
It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practise buying crypto and other assets before committing real money. eToro does not charge a deposit fee but charges a 1% trading fee on all crypto positions. Trading on eToro occurs in USD, so a conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5 (£4), and the minimum withdrawal amount is US$30 (£24). For UK customers, eToro offers an eToro Money app that allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs. The app also functions as a crypto wallet for storing your crypto holdings and allows for easy transfer of your cryptocurrency from one exchange or wallet to another.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
CoinJar is a cryptocurrency app and exchange based in the UK and Australia. With CoinJar, you can trade or invest in 50+ cryptocurrencies, including popular coins such as Bitcoin, Ethereum, XRP, USD Coin, Dogecoin and Shiba Inu Coin. The CoinJar app, which doubles as a crypto wallet, allows you to buy, sell, hold, spend and transfer cryptocurrencies securely on your desktop, iOS or Android device. The CoinJar card lets you make purchases with your crypto, online and in-store, anywhere Mastercard is accepted. It is free to activate the CoinJar card, and there are no monthly fees for using it. When paying with the card, your crypto is automatically converted to fiat currency using CoinJar’s best rates at the time of the transaction. You can choose to have a virtual or physical card or both. The CoinJar card is fully integrated with Google Pay, so Android users can spend crypto instantly and securely with any device.
CoinJar has a unique feature called a Crypto Bundle. A Crypto Bundle is a themed basket of cryptocurrencies, similar to a crypto index fund, crypto ETF or a ready-made stock portfolio. For example, you can buy a CoinJar Universe bundle, which is a portfolio of all the cryptocurrencies available on CoinJar. One investment into such a bundle means you have invested in every cryptocurrency available on CoinJar with just a click of a button. Crypto Bundles can either be proportional, where the weight of each cryptocurrency in a bundle is equal or cap-allocated, where the weights are allocated based on market cap performance.
CoinJar is suitable for both beginners and advanced traders. Beginners can take advantage of the easy-to-use app and ready-made crypto portfolios, while advanced and professional traders can take advantage of CoinJar’s institutional-grade crypto solutions, such as the CoinJar OTC, with razor-thin spreads and globally sourced liquidity. The minimum deposit to open an account with CoinJar is £10. Deposits are made in GBP, so FX fees do not apply. There is a trading fee of 1% on the CoinJar mobile app and website. The CoinJar Exchange (for market orders and aggressive limit orders) charges 0.00% for Taker orders and 0.10% - 0.04% for Maker orders (limit orders).
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
Coinbase is a global cryptocurrency exchange that allows you to buy, sell and hold cryptocurrencies, NFTs, and other DeFi products and keep track of them in one place. With Coinbase, you have over 240 cryptocurrencies to choose from, including popular coins and tokens like Bitcoin, Ethereum, USD Coin, Tether, Dogecoin, and Polygon. You can also trade new or rare coins that may not be available on other crypto exchanges. New cryptocurrencies are added to the Coinbase exchange as frequently as every few days.
Coinbase also gives you access to a self-custody crypto wallet where you can store all your crypto and NFTs in one place. The Coinbase Wallet also supports thousands of tokens and dApps, and users can use DeFi liquidity pools to supply or borrow crypto and swap assets on decentralised exchanges. Coinbase offers a crypto card powered by an FCA-licensed e-money institution. With the Coinbase card, you can spend crypto like cash anywhere Visa cards are accepted. The Coinbase desktop and mobile apps are easy to use and offer a range of products that are suitable for beginners, advanced crypto traders, and businesses.
There are multiple fees involved when trading crypto on Coinbase. Fees are calculated at the time you place your order and may be determined by a combination of factors, including the selected payment method, the size of the order, and market conditions such as volatility and liquidity. For basic trading, fees will be listed in the trade preview screen before you submit your transaction and may differ for similar transactions. For advanced trading, Coinbase charges a Maker fee ranging from 0.40% to 0.00% and a Taker fee ranging from 0.60% to 0.05%, depending on the size of your order. The larger the order size, the smaller the fee on a percentage basis. Coinbase also has a subscription product, Coinbase One, that offers zero trading fees for buying and selling cryptocurrencies, but it has certain limitations. Members may still have spreads included in their quoted prices.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
Uphold is a beginner-friendly cryptocurrency exchange that allows you to buy and sell over 250 cryptocurrencies, including majors, altcoins and emerging tokens such as Bitcoin, Ethereum, XRP, Dogecoin, Polkadot, ApeCoin, PancakeSwap and Audius. Users can also buy and sell up to 3 national currencies, including GBP, EUR and USD and enjoy competitive forex rates. Uphold offers a free virtual crypto card that allows you to spend your crypto anywhere a Mastercard is accepted. With the Uphold crypto card, you receive up to 1% cashback on your card transactions paid to you in GBP. The card has no transaction fees when spending locally or internationally and can be easily linked to Apple Pay or Google Pay.
As an Uphold customer, you can earn staking rewards when you put your digital assets to work. Currently, customers can earn up to 13% APY. Please keep in mind that staking rates are variable and may change at Uphold’s discretion. Uphold offers crypto wallets for up to seven cryptocurrencies and crypto networks. Customers can store their crypto in the Uphold Bitcoin Wallet, Ethereum Wallet, XRP Wallet and many more. With Uphold, you can schedule regular transactions using AutoPilot, which allows you to set up recurring buy or sell orders and reduce the impact of price volatility. As an Uphold customer, you can also take advantage of the limit order feature, which allows you to buy or sell a cryptocurrency at a specified price. Customers can place up to 50 limit orders using one pool of capital.
There are multiple fees involved when trading crypto on Uphold. The most important fees to look out for are trading fees, FX fees, and market spreads. In the UK, US and Europe, Uphold charges a market spread ranging from 0.9% to 1.2% on BTC and ETH. Spreads can be significantly higher for low-liquidity cryptos and tokens such as XRP, ZIL, OXT, UPT, DOGE and others. You will be able to see the total cost of your trade before you place the trade. Uphold charges a withdrawal fee of $3.99 for bank transfers and $2.99 for crypto transfers. Visit Uphold to learn more.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee. It also powers applications that everyone can use and no one can take down.
The Ethereum cryptocurrency is called Ether (ETH), but most people call it Ethereum. Ethereum actually refers to the decentralised blockchain network powered by Ether. Ethereum, unlike Bitcoin, was not created to be digital money. Instead, the founders set out to build a global, open-source, decentralised computing platform that takes the security and openness of blockchains and extends those attributes to a vast range of applications.
According to the official Ethereum website, Ethereum is for more than just payments. It is a marketplace of financial services, games and apps that cannot steal your data or censor you.
Ethereum was launched in 2015 and is the second-biggest cryptocurrency in the world by market capitalisation after Bitcoin. For context, Bitcoin was launched in 2008. Ethereum builds on Bitcoin’s innovation, with significant differences making it an even more exciting blockchain network and cryptocurrency.
To learn more about cryptocurrencies, tax on crypto in the UK and blockchain technology, read How to Invest in Cryptocurrencies.
“The Ethereum blockchain is a public database that keeps a permanent record of digital transactions. Importantly, this database doesn’t require any central authority to maintain and secure it. Instead, it operates as a “trustless” transactional system - a framework in which individuals can make peer-to-peer transactions without needing to trust a third party OR one another.” Preethi Kasireddy
While the Ethereum blockchain is similar to the Bitcoin blockchain, it is much more flexible than the Bitcoin blockchain. Computer engineers can use the Ethereum blockchain to build a wide range of tools, from gaming software to logistics management software to the entire universe of decentralised finance (DeFi) applications, which span lending, trading and more.
Ether (or ETH) is the currency of Ethereum apps and the Ethereum network.
ETH is secured by proven cryptography. This protects your wallet, your ETH and your transactions.
ETH keeps the Ethereum network running. You interact with the Ethereum network by using ETH to pay the network to execute smart contracts.
ETH lets you be your own bank. You can control your own funds with your wallet as proof of ownership - no third parties necessary.
You can send your ETH without any intermediary service like a bank. It is like handing cash over in person, but you can do it securely with anyone, anywhere, anytime.
You can buy and hold ETH like you buy stocks and other assets.
ETH is decentralised and global. No company or bank can decide to print more ETH or change the terms of use.
You only need an internet connection and a wallet to use ETH. You do not need access to a bank account to receive payments.
ETH is divisible up to 18 decimal places, so you do not have to buy 1 whole ETH. You can buy fractions at a time - as little as 0.000000000000000001 ETH if you want.
A new version of the Ethereum blockchain called Ethereum 2.0, which aims to increase efficiency, began rolling out in December 2020. The transition to the new blockchain is scheduled to happen over the next two years.
In 2013, Vitalik Buterin (a 19-year-old computer programmer and Bitcoin Magazine co-founder) published a white paper proposing a highly flexible blockchain that could support virtually any kind of transaction. The Ethereum blockchain would allow for automated and immutable cause-effect statements, allowing for the development of next-generation smart contracts and decentralised apps (dApps). Buterin’s focus was unifying how dApps run.
Ethereum was launched in 2015 by a small group of blockchain enthusiasts. The Ether (ETH) cryptocurrency was designed to be the cryptocurrency of the Ethereum network.
To buy Ethereum in the UK, you’ll need to:
Ethereum 2.0 (ETH2) refers to a set of upgrades that will make Ethereum more scalable, more secure and more sustainable. These upgrades are being built by multiple teams from across the Ethereum ecosystem.
Staking or Proof-of-Stake is Ethereum 2.0’s consensus mechanism. You can think of it like mining in the Bitcoin blockchain. Staking is the act of depositing 32 ETH to activate validator software. As a validator, you’ll be responsible for storing data, processing transactions, and adding new blocks to the blockchain. This will keep Ethereum secure for everyone and earn you new ETH in the process. This process, known as proof-of-stake, is being introduced by the Beacon Chain. Learn more about Staking on Ethereum.org.
Robert Metcalfe, the founder of ethernet technology, once stated that the value of a telecommunications network is proportional to the square of the number of connected users of the system. If this is true, then a measure of the increased value of Ether is directly related to the number of people who use this cryptocurrency. Ethereum has 770,144 network addresses, whereas Bitcoin has 675,937. Also, the daily transaction volume has grown by 53% for Ethereum, whilst Bitcoin saw a 14% decline. These statistics indicate that Ethereum may overtake Bitcoin, although since Bitcoin and Ethereum have different goals, it is hard to compare them directly.
Yes, Ethereum is perfectly legal, provided you pay tax on profits made when you dispose of your Ethereum, as required by HMRC.
You can buy Ethereum in the UK from the following crypto exchanges:
Yes, you can buy ETH with GBP. To buy ETH with GBP, you need to set up an Ethereum wallet or register with a crypto exchange such as Uphold or eToro. You would then be able to use your regular GBP payment card to buy ETH. You can also do a bank transfer, where possible, to reduce your fees.
There are risks as well as potential benefits when it comes to investing in Ethereum. In terms of the risks involved, as with all cryptocurrencies, the Ethereum cryptocurrency is volatile. The volatility can be measured by looking at the volatility index. For context, the latest 30-day estimate for the volatility index of ETH was 5.2%, whilst gold has a volatility index of 1.2%, and major currencies have volatility indices between 1.0% and 0.5% (at the time of first publishing this article).
When Ethereum was launched in July 2015 and first traded on the 7th of August, it was worth $2.77. The following day, the value fell below $1 to $0.81 and remained under a single dollar until January 2016. However, it has since grown. At the time of first publishing this article, one Ether token was worth £1,496.28, although due to the volatility of the cryptocurrency market, this value fluctuates daily. To find out the price of Ethereum at any given time, simply Google “Ethereum price” to view the price in your local currency.
ETH trading is the buying or selling of Ether tokens. You can use your Ethereum holdings to run decentralised applications (dApps) or use smart contracts. To use these applications, you need ETH to pay for the gas, a metric that measures how much computing power is required to run the application. Alternatively, you can buy and hold or trade ETH in the same way we trade stocks.
Ethereum itself is not a form of money. However, it does have a native cryptocurrency called Ether (ETH), which can be used just like money or any other cryptocurrency.
To trade cryptocurrencies in the UK, you need to create an account with a crypto trading platform. Here are some of the best crypto trading platforms in the UK that are registered with the Financial Conduct Authority (FCA):
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