Buy Ethereum with Crypto Exchanges | Beginners Guide | Bankless Times

When researching places to buy and sell Ethereum, you’ll notice that exchanges show up quite frequently in search results. These platforms allow users to invest in a safe environment with the added security of a middleman.

Ethereum exchanges differ in terms of their rates, payment providers, and available help. If you’re feeling overwhelmed by all of this, don’t worry. We’ll show you how crypto exchanges work, where you can go to find them, and answer the most common questions about how to buy Ethereum on a crypto exchange on this page.

Top Crypto Exchanges That Offer Ethereum

Compare the top Ethereum exchanges to ensure they meet your needs. Below is a table of the best exchanges that you can use to ensure you make the right choice:

1

Minimum Deposit

$50

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This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

What Is an Ethereum Crypto Exchange?

An exchange is like a marketplace where you can buy and sell Ethereum. You can also use these exchanges to trade different cryptocurrencies for each other.

However, you don’t need to already have cryptocurrencies to use these exchanges. You can also quickly and easily trade fiat currency, such as the U.S. Dollar, for Ethereum.

How Do Ethereum Exchanges Work?

There are two main ways you can trade Ethereum on an exchange:

Market Orders:

Limit Orders:

• With a limit order, you get more control over when and how you sell Ethereum. If you want to sell at a higher price than the exchange’s current rate, the trade will automatically occur after meeting your criteria. This is also true when you want to buy at a lower price point.

How Do I Use an Ethereum Crypto Exchange?

To use an Ethereum crypto exchange, you’ll need to create an account. The process isn’t too different from creating an eBay account or any other account on an online exchange platform. Below are steps that will walk you through creating an account and purchasing Ethereum on a crypto exchange:

What Should I Look for in an Ethereum Exchange?

There are several factors to consider when choosing which exchange to use to trade or buy Ethereum. These include:

Accepted Payment Methods:

• Not every exchange will accept the same forms of payment. For example, it can be tough to find platforms that accept PayPal. Make sure you use an exchange that lets you pay with your desired provider.

Exchange Rate:

Geographic Restrictions:

Fees:

Design and Ease of Use:

Reputation:

1

Minimum Deposit

$50

Exclusive Promotion

More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities

Buy crypto, or trade cryptocurrencies via CFDs

This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Do I Have to Verify My Account on an Exchange?

Yes, you’ll have to verify your identity when signing up for an exchange. Exchanges are regulated, and they need to know who the users are that are transacting within them.

Ethereum exchanges will usually ask you to provide two forms of ID, such as a passport or driver’s license. Often, you’ll also need to take a selfie of yourself holding one of these documents to prove that it belongs to you.

Are Ethereum Exchanges Secure?

Ethereum exchanges have many security features but are a big target for online attacks. We recommend that you don’t hold more than a small amount of Ethereum at any time on your exchange account.

Transferring your Ethereum into a personal wallet is a better way to keep your coins safe.

How Fast Are Ethereum Transactions on Exchanges?

Transactions on exchanges are instant. As soon as you make the payment, you’ll see the coins in your account.

When transferring between exchanges, transactions might take a little longer. This is because the blockchain must first verify the transaction.

What Payment Methods Can I Use to Buy Ethereum on Exchanges?

The answer to this question depends on the exchange you use. Typically, you can use your debit card, or make bank transfers, on almost every exchange. Some exchanges will also accept credit cards or PayPal payments, but this is less common.

If you use an exchange that supports several different cryptocurrencies, you can also use other coins, such as Bitcoin and Ripple, to buy Ethereum.

Do Exchanges Charge Fees for Buying and Selling Ethereum?

Yes. Typically, you’ll need to pay attention to several fees when making transactions on exchanges, especially if you buy coins directly with your card.

Fees usually range between 0.25% and 1.5% depending on the platform, the payment method, and how much you’re spending. You can often avoid fees altogether by transferring money into your account via bank transfer and using that money to buy coins.

Are There Fees for Transferring Coins in and Out of My Account?

When transferring coins to another wallet or exchange, you’ll pay the transaction fees associated with the blockchain (also known as miners’ fees). These vary depending on the number of transactions happening at that time.

However, the exchange typically won’t charge extra fees on top of this.

Do I Need a Wallet to Use an Ethereum Exchange?

No. Usually, you’ll have an account within the exchange and you can hold your coins there.

However, we strongly recommend that you transfer your coins from your exchange account to a personal wallet if you do not intend to trade them soon, especially if you hold several Ethereum coins. You’ll keep your coins more secure if you do this.

What Are the Other Platforms That I Can Use to Buy and Sell Ethereum?

If you don’t want to use an Ethereum exchange, you’ve got a few alternatives to choose from. Contract for difference (CFD) trading platforms are popular, and so are brokerages.

Brokerages manage your buying and selling for you, whereas CFD platforms are more focused on making quick trades to take advantage of market fluctuations.

Should I Use an Ethereum Exchange?

No explicit law states that you must use an exchange. But while the choice is yours, they’re the most common and easiest way to buy and sell Ethereum. So, if you’re a complete beginner, starting with an exchange is a good idea.

1

Minimum Deposit

$50

Exclusive Promotion

More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities

Buy crypto, or trade cryptocurrencies via CFDs

This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

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