What's in This Guide?
- Buying Ethereum in the UK: A Step-by-Step Guide
- How to Sell Ether
- Which wallets are best for buying Ether?
- How does Ether function?
- What to think about before buying ETH
- Key Points
Have you been thinking about buying Ethereum but not how to get started? Well, you’ve come to the right place.
Buying and selling Ether (ETH) in the UK has never been easier. There are endless resources and exchange platforms available online where you can buy Ethereum.
Read our step-by-step guide on how to buy and sell the world’s second-largest cryptocurrency in the UK.
Buying Ethereum in the UK: A Step-by-Step Guide
You have two options to follow when it comes to buying Ethereum in the UK. You can either:
- Purchase ETH using fiat money, such as GBP
- Purchase ETH using another cryptocurrency, such as Bitcoin (BTC) or Ripple (XRP)
Using Fiat Money to Buy ETH
If you want to buy ETH by using fiat money such as GBP, these are the steps to follow:
1. Sign up with a regulated cryptocurrency exchange
Compare the features of a number of exchanges that list ETH before deciding which platform best suits your needs. eToro - one of the most trustworthy sites in the world - allows you to purchase ETH in the United Kingdom.
To sign up for an eToro account, go to the eToro homepage and press “Join Now”. Then you must complete the registration form by entering your full name, email address, password, and phone number.
You can also log in using Facebook or a Google account, which eToro provides as additional options.
After registering, you’ll be asked to validate your account by submitting proof of identity (POI) and a proof of address (POA).
2. Fund your account
Once you have registered, you will need to fund your account. To do so, go to the lower-left side of the screen and click on “Deposit Funds”, which is highlighted in blue.
Bear in mind that eToro has a minimum deposit of just $200. eToro also accepts a variety of payment methods, including PayPal, credit/debit cards, and UnionPay.
3. Choose Ethereum
To purchase Ether on eToro, click on the search bar and choose “Crypto” from the “Trade Markets” section of the navigation bar.
This page will show a list of all the cryptocurrencies available on eToro. Select Ethereum.
4. Buy Ethereum
You’ll have the opportunity to adjust the trade’s conditions after clicking “Buy”. In the top right corner, you can choose between “Trade” and “Order”.
To put a business order, click “Trade” (settling at the best deal available).
Or, if “Order” is selected, you’ll be able to choose the price you want to pay. If and when you’re happy with the settings, click “Open Trade” to continue with your purchase.
Read Also: Is Ethereum Worth Buying in 2021?
How to Sell Ethereum?
If you’re looking to sell your ETH on eToro, you’ll need to follow similar steps to those described in phase three above. You’ll have to:
- Log into your eToro account.
- Go to “Portfolio” under the “Watchlist”.
- Select “ETH” (Ethereum).
- Click the “Sell” button in red.
Which Wallets are Best to Hold Ether (ETH)?
Some people want to keep their ETH in a cryptocurrency exchange. This is an easy way to guarantee fast access to your cryptocurrency for future transactions, but can also be very risky.
Since cryptocurrency exchanges are frequently attacked by hackers, it’s important that you store your ETH in a secure wallet that allows you to keep control of your private key.
eToro and its own wallet, eToroX, are unique and user-friendly ways to buy and store ETH.
When looking for a digital wallet, many people aim for secure and trustworthy options. Luckily, eToro is monitored and regulated by the FCA and CySEC, ensuring a level of security any new investor would be ideally seeking.
How Does Ethereum Function?
- Smart contracts.
In blockchain technology, smart contracts are a series of coded nodes and protocols that instantly execute various contract arrangements.
Although almost any blockchain network allows for the creation of smart contracts, their versatility is severely restricted.
Businesses can build virtually any number of smart contracts using Ethereum. Smart contracts through Ethereum can be applied to various industries such as construction, real estate, and banking.
On the other hand, decentralized digital applications, otherwise known as dApps, allow users to make agreements and interact directly with one another to purchase, sell, and share products or services without the use of any interference from external parties.
Ethereum apps are driven by Ether, a platform-specific cryptographic token, and are open source software that rewards miners with a small cryptographic token for each block they mine.
The idea of ‘Ethereum Blockchain as a Service’, or EBaaS, has been implemented as a result of the collaboration between Microsoft and ConsenSys, among many other large partnerships.
What to Consider Before Buying ETH?
Cryptocurrencies are notorious for being unpredictable and volatile, so any crypto investment could be risky. With this in mind, you should think of all the factors that might influence the price of a cryptocurrency before buying it.
Security is always a must when assessing different coins, and Ethereum’s transition from a proof of work (PoW) algorithm to proof of stake (PoS), could improve its security significantly.
The shift to PoS is being labelled as ‘Ethereum 2.0’, and is projected to reduce the annual issuance rate of Ether from about 5% to less than 1%, according to CoinDesk.
Partnerships are also good indicators of whether or not to invest in a particular cryptocurrency.
Ethereum is well-known for its multiple partnerships with major corporations that use Ethereum’s technology for their own operations. All of Ethereum’s partners belong to its Enterprise Ethereum Alliance (EEA). Partners include Microsoft, JPMorgan, and Accenture, among others.
When determining the worth of Ethereum, circulating supply is one of the first things investors will look at.
The production of coins has a major effect on the price of the Ether due to the fundamental theory of supply and demand.
Ethereum uniquely doesn’t have a fixed supply. At the time of writing, in April 2021, the circulating supply of Ether was approximately 115,435,992, according to CoinMarketCap.
While there’s no set cap on the overall availability and supply of Ether, lowering the inflation rate is an important method for ensuring scarcity.
Indeed, if you assess the history of ETH ventures, you’ll notice that Ethereum was created with the goal of lowering ETH inflation over time.
In fact, Ethereum increases its supply each year. As a result, inflation is lowered year after year as annual issuance is limited.
Ethereum’s toughest challenge in the months and years ahead will be if it can achieve widespread approval.
Before determining whether or not to purchase any ETH, make sure you know everything there is to know about the Ethereum network, its technology, and its goals.
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eToro – The Best Platform to Buy Ethereum in the UK
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
Ethereum asset is no doubt one of the most popular cryptocurrencies in the world right now. It has grown to unimaginable levels since it was developed. The market for the token is booming and many investors are looking to have a share of the entire Ethereum market.
If you are new to cryptocurrency market, the guide will help you get started on the right way to buy Ethereum in the UK.
- Ethereum is an open-sourced application that incorporates blockchain technology to develop and operate decentralized digital applications.
- You have two options with how to purchase Ether - either with fiat currency, such as GBP, or with other cryptocurrencies you may already have.
- In order to purchase ETH with fiat money, follow these four steps: 1) register with a crypto brokerage such as eToro, 2) fund your account, 3) select Ethereum and 4) buy ETH.
- The four steps to sell ETH on eToro: 1) log into your eToro account, 2) go to “Portfolio” under the “Watchlist”, 3) select “ETH” (Ether), 4) click the “Sell” button in red.
- eToroX is one of the most reputable and trustworthy digital wallets for new ETH investors.
- All of Ethereum’s partners belong to its Enterprise Ethereum Alliance (EEA). Partners include Microsoft, JPMorgan, and Accenture, among others.
- Ethereum is in the process of transitioning to proof of stake (PoS). This version of Ethereum will be called Ethereum 2.0.
How will Ethereum 2.0 affect Ethereum?
Ethereum 2.0 is an update of the Ethereum blockchain. Its goal is to improve the Ethereum network speed, reliability, and scalability, allowing it to solve bottlenecks and increase transaction volume.
What companies use Ethereum?
Ethereum is the most used blockchain by businesses to research and implement blockchain technology into their daily operations.
The Ethereum blockchain is used by 24 of the top $50 billion companies pursuing blockchain initiatives, including Google and JPMorgan, according to ConsenSys.
Can I buy things with Ethereum?
Ethereum is a blockchain ecosystem, not just a digital currency. It can be traded for other currencies or used to purchase a variety of goods and services.
Is it too late to buy Ethereum in 2021?
Certainly not yet! Many new ventures, technological developments, and digital innovations are based on the Ethereum blockchain.
There’s a lot of capital coming into DeFi and this may definitely support a substantial increase in the price of Ethereum in the near future.