How to Buy Ethereum in the UK?

What Is Ethereum?

Ethereum is a decentralised blockchain network that runs smart contracts — applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is powered by the Ether token, which can be traded on cryptocurrency exchanges for other fiat or digital currencies.

Vitalik Buterin first proposed Ethereum in 2013. After a successful crowd sale, the development of the Ethereum network began in early 2014. The network launched in July 2015.

What’s more,  Ethereum is also the backbone of the upcoming Internet of Things (IoT). Tens of billions of devices are expected to be connected to the internet in the next few years, and Ethereum will be essential for managing interactions between them.

How and Where to Buy Ethereum in the UK in 2022? — Step by Step Guide

Now that you know what Ethereum is and how it works, let’s discuss the best ways to buy Ethereum in the UK. We’ll cover everything from buying Ethereum with fiat currencies to trading on peer-to-peer marketplaces. But, to buy Ethereum using fiat currency, for example, you will need to create an account on a crypto exchange, brokerage, or investment platform that supports Ethereum trading.  

Ethereum Brokers

One of the best ways to buy Ethereum in the UK is through a broker. Many brokers offer Ether as a buyable asset, so finding one with reasonable fees and good customer service is not challenging.

To buy Ethereum using a broker, you need to create an account and deposit funds into your account. After that, you can buy Ether instantly with minimal effort; however, the fees are often higher than those charged by cryptocurrency exchanges or peer-to-peer marketplaces.

Best Brokerages to Buy Ethereum in the UK:

eToro is our top recommendation for a brokerage to buy Ethereum in the UK. The platform is user-friendly, has low fees, and offers a variety of payment methods.

Ethereum Exchanges

Another way to buy Ethereum in the UK is through cryptocurrency exchanges. These platforms allow users to buy and sell Ethereum using various payment methods, including credit cards, wire transfers or cryptocurrencies like Bitcoin (BTC) or Cardano (ADA).

The most popular exchange for buying Ethereum is Kraken. This platform has been around since 2011, and it offers a wide range of trading pairs with low fees. Other well-known exchanges that offer Ether trading include Binance, Bitfinex, and Poloniex.

To buy Ethereum using a cryptocurrency exchange, you need to create an account on the platform of your choice and deposit sufficient funds for trading. So, let’s see which crypto exchanges allow you to buy Ethereum in the UK. 

The Best Crypto Exchanges to Buy Ethereum:

Kraken is our favourite platform for Ethereum trading in the UK. Over six million clients trade through Kraken daily, so not only does it have a cool name but a decent customer base as well. 

Ethereum Peer to Peer Marketplaces

Another way to buy Ethereum in the UK is through a peer-to-peer marketplace such as LocalBitcoins or Paxful. These platforms connect buyers and sellers of cryptocurrencies, allowing them to exchange Ether currency with one another directly over the internet. The only requirement is that both parties have a Crypto Wallet.

The advantage of using a peer-to-peer marketplace is that the fees are usually much lower than those charged by brokers or exchanges. The downside is that you need to be comfortable transacting with strangers over the internet. So, before visiting peer-to-peer marketplaces, keep in mind that these platforms are not as reliable as brokerages and exchanges.

Once you start looking for a peer-to-peer marketplace, you need to create an account on the platform of your choice and deposit funds into your Crypto Wallet to purchase Ethereum.

The Best Peer-to-Peer Marketplaces to buy Ethereum are:

It’s advisable to check out LocalBitcoins first if you’re looking for a P2P marketplace to buy Ethereum in the UK. Traders from over 100 countries have been using this platform since 2012, and if you decide to join, you will get access to the global marketplace.

Ethereum Crypto Wallets

Cryptocurrency wallets are software programs that store your public and private keys. They allow you to buy, sell, send, and receive cryptocurrencies like Ethereum.

There are many different types of Ethereum wallets, but the most popular ones are:

What Is the Current Price of Ethereum in GBP?

At the time of writing this article, the current Ethereum price in pounds is £1,935.45. While it’s still too early to talk about the future of Ethereum, it’s worth noting that some market analysts predict the average price of Ether coin will reach up to $5,800 (roughly £4,280) by the end of 2025. That would represent a significant increase in value from its current price.

Whether or not it is a good time to buy Ethereum depends on your personal financial situation and investment goals. If you are comfortable with the risks of investing in cryptocurrencies, then now might be a good time to buy Ethereum.

Despite the slow start at the beginning of 2022, Ethereum is one of the most valuable cryptocurrencies, and it has been around for several years. Moreover, the price has fluctuated many times over that period, making it a potentially lucrative investment opportunity if you’re ready to face potential losses. 

You can buy up to 1.02 Ethereum with £2000 at the time of writing. However, as stated earlier, the price of Ethereum can change over time, so be sure to do your research before investing any money in digital coins.

It would be best to talk to someone with more experience in dealing with Ethereum, preferably an investment manager. In addition, you should research price predictions and see what others have to say about this coin before placing your first trade. 

It’s one thing to read about Ethereum online, but quite another to follow the market trends and compare the Ethereum value before using your available funds to purchase this coin. Still, if you believe the Ethereum price could hit new records in the future, £2000 could potentially be a profitable investment. 

There are several different types of risks associated with investing in Ethereum. The most significant risk is that the price of Ether cryptocurrency can change over time, which means you could lose money if you buy it at an inflated rate but sell it at a lower one later on.

Another risk is that many scammers claim to be legitimate exchanges or wallets, but they are just out to steal your money. With that in mind, you should always do research before buying any cryptocurrency from an unknown source.

Benefits of Ethereum

Ethereum offers Smart Contracts accounts that can be used to streamline transactions and reduce the need for third-party intermediaries. These contracts are self-executing pieces of code that automatically enforce terms between two or more parties without requiring human intervention at any point in time. Smart Contracts are also transparent, tamper-proof, and traceable.

Another benefit of Ethereum is that it’s an open-source platform which means anyone can contribute to its development. That makes it more secure than other cryptocurrencies because more eyes are looking at the code base before any changes go live. On top of that, this approach also makes hacking attempts challenging — impossible even.

Furthermore, Ethereum is great for developers who want to build decentralised applications (dApps) on top of the blockchain network since they don’t need access rights or permissions from Ethereum itself. Instead, developers can access its open-source code and APIs, which allow them all kinds of functionalities, including sending transactions between users without having any knowledge about how a transaction works internally.

Surprisingly enough, Ethereum has survived multiple crashes in recent years while still retaining its value. The only other coin that survived such crashes is Bitcoin, by far the most popular and in-demand crypto on the market.

The price of Ethereum will probably increase in the following years due to its popularity and growing demand for decentralised applications on top of the Ethereum network. Still, what matters most is that Ethereum is one of only two major cryptocurrencies worldwide, and no signs indicate this will change in the future.

Disadvantages of Ethereum

One of the possible disadvantages of Ethereum is that it isn’t regulated by any government body. The lack of regulation of this cryptocurrency makes it impossible to know who is behind the project and what their intentions might be.

Additionally, Ethereum blockchain relies on a proof-of-work system that uses more energy than other blockchain systems like Bitcoin or Litecoin. In other words, there is an environmental cost associated with using Ethereum. This could become problematic in the future if people start caring about carbon emissions on planet Earth again someday soon!

The proof-of-work model can enable only 13 transactions per second which causes network congestion that results in higher fees. Ethereum also requires users to use computer programs that require advanced computer skills. That could be a problem as many people don’t have the necessary skills to mine or work on Ethereum’s development.

Ethereum and NFTs

Non-fungible tokens (NFTs) are unique digital assets and cannot be replicated. They can represent anything from virtual goods in video games to real-world collectables such as art or baseball cards.

One of the most popular applications for NFTs is within the Ethereum blockchain network. Ethereum is in demand because it provides several features perfect for NFTs, including smart contracts and an open-source platform.

NFTs have been used to create digital assets that represent a wide variety of items, including:

The popularity of NFTs is growing, and there are many different applications for their exchange. Essentially, when buying an NFT, you’re paying for the link to that specific file. So, while anyone can screenshot your NFT, you are the only owner holding its value. This is one of the main reasons NFTs are trending, and no signs indicate that traders will stop paying attention to this market trend in the near future. 

The nature of NFTs has led to the development of exchanges designed explicitly for these digital assets. These exchanges allow users to buy, sell, and trade NFTs similarly to how they would buy, sell, and trade traditional assets such as stocks or commodities.

Wrap Up

Buying ETH crypto is a new concept for many people. But, now that you know how to buy and trade Ethereum in the UK, it will be easier to find suitable platforms that support Ethereum dealing and try your luck with this widely-popular coin. 

This article has provided you with all you need to know about what this cryptocurrency does, how it can be used as payment for online goods or services, its benefits and disadvantages, and more. We hope this information will help give you an overview so that when someone asks, what is Ethereum, you’ll have all the information needed to answer them confidently!