- ABOUT US
- STARTER KIT
Ethereum (ETH) is the second-biggest cryptocurrency by market cap and is available from almost every crypto platform. There's no single best place to buy Ethereum for everyone, though. It all depends on your investment needs and how you plan to trade. We've dug into the top cryptocurrency apps, exchanges, and brokerages to pick the best options.
Coinbase's easy-to-use platform and accessible resources make it a good choice for new traders. It could be more transparent about its fees, which are on the high side. Customers can stake ETH on the network, which means tying it up to earn interest and contribute to network security.
A number of factors make Gemini stand out. First is its commitment to security and compliance. The second is that it allows a limited number of free withdrawals each month. Finally, it has a lend-earn product, so investors can earn passive income on their Ethereum assets.
Robinhood pioneered zero-commission trading in stocks and has brought the same ethos to its crypto offer. It doesn't yet have external wallet functionality, so users can't deposit or withdraw their crypto assets, but it promises this will come soon and it is a great option for those who want to keep their stocks and crypto investments in one place.
SoFi is also a cryptocurrency broker, meaning you can trade crypto alongside other investments like stocks and ETFs. However, there's a minimum trade of 0.01 ETH, and SoFi doesn't have external wallet functionality. SoFi is committed to security and is extremely transparent about its fees and product offerings.
Crypto.com's user-friendly mobile app is a separate product from its main exchange. The app is available in 49 U.S. states and allows users to earn interest on Ethereum assets. However, customers need to stake Crypto.com's native coin (CRO) to make the most of the app's benefits.
The Binance.US site has a good mix of essentials for crypto investors, including a solid list of available cryptos, low fees, and an easy-to-use app.
Buying Ethereum for the first time can be a little daunting. But there are a lot of excellent products out there, it's just a question of finding the right platform for you.
Here are some key questions to help you find the best place to buy Ethereum.
Broadly speaking, there are three types of fees to watch out for:
1. Deposit fees
2. Trading fees
3. Withdrawal fees
We'll break these down in more detail below. Just be aware that fees are rarely standard across the various trading platforms. For example, you might find a cryptocurrency exchange that offers free trading but charges you a lot of money to withdraw your funds.
Don't be afraid to open a couple of accounts and experiment. But don't deposit any money until you're comfortable with the fee structure.
Cryptocurrency investment is an exciting world, but unfortunately it has attracted its fair share of bad actors. And as it's a pretty new industry, it's taken a while -- and some high profile hacks -- for major cryptocurrency exchanges to implement the levels of security you find in banks and other financial institutions.
If a crypto exchange or broker is not transparent about its security systems, this should be a major red flag. Sometimes you'll read that a company doesn't want to disclose these details for security reasons, but that's misleading. There's plenty of information a trading platform can reveal without compromising its systems.
Various platforms offer sign-up bonuses for new investors. You might find a platform that gives you a small bonus when you start, or one that offers a bonus when you make a certain amount of trades or deposit a certain amount of money. While these are tempting, don't let them drive your decision-making. It may be a great tie breaker, but there's no point in signing up for the wrong exchange just because you want the bonus.
Some cryptocurrency exchanges can't operate in the U.S., and only a handful are licensed to operate in every state. For example, New York has some of the strictest crypto exchange regulation and will actively pursue rule breakers. As such, it's good to check that the exchange you want to use is allowed to operate where you live.
If you're buying Ethereum for the first time, you'll want an easy-to-use platform with plenty of educational resources. If you prefer mobile apps to web browsers, look for an exchange with a good app.
Other useful features include:
1. The ability to set up automatic monthly transfers
2. Good customer service
3. An external wallet
We'll talk about wallets in more detail shortly. If you're an active Ethereum trader, you might also want advanced features such as limit orders and good charting tools.
Ethereum is currently in the process of a major upgrade to a new system to make it more scalable, more sustainable, and more secure. One part of the upgrade is to change the way it validates transactions. Without going into technical detail, it will move from an energy-intensive proof-of-work model to what's called a proof-of-stake system.
This means that people can stake their ETH tokens to earn rewards -- and you can already support the transition to the new network if you're willing to tie up your ETH tokens. As a long-term investor, this is a great way to earn passive income from your Ethereum investment.
Another way to earn interest on your crypto assets is to participate in a lend-earn program. Essentially, a platform will lend out your Ethereum and pay you some of the interest on the loan. Both staking and crypto lend-earn products carry risk, but if you want to earn passive income on your ETH, look for platforms with these functions.
If you only want to buy Ethereum or Bitcoin (BTC), you won't need an exchange with lots of tokens. However, if you see buying Ethereum as the first step on a longer crypto-trading journey, a long list of altcoins is a bonus. It's worth understanding an exchange's policy on adding new coins too -- does it try to filter out potential scams or is it looking to list as many coins as possible?
Share On social Media 👇