How to Buy Ethereum in the UK: A Simple Guide for First-Time Investors

Launched in 2015, Ethereum (ETH) is the second-most popular cryptocurrency to buy. It has produced unprecedented returns since its inception and remains the leading blockchain for smart contracts.

This guide explains how to buy Ethereum in the UK, covering the best exchanges, available payment methods, and expected fees.

We also explore the Ethereum investment thesis, allowing UK investors to consider the risks and potential rewards.

Where to Buy Ethereum: Top Methods for UK Investors

Ethereum can be purchased from various places, including FCA-regulated platforms, no-KYC exchanges, and cryptocurrency wallets.

Read on for more information on each method. This will help you determine the best place for Ethereum investing in the UK.

Cryptocurrency Exchanges

The first, and most common way to buy Ethereum in the UK is via cryptocurrency exchanges.

In a nutshell:

• Exchanges are like share dealing platforms, but they offer cryptocurrencies rather than stocks.
• Investors open an account and deposit funds. Often with a credit or debit card or another convenient payment method.
• Finally, investors search for ‘Ethereum’, type in the investment size, and confirm.

The investment process rarely takes more than a few minutes.

One of the main benefits of exchanges is that they often support hundreds of different coins. This means you can buy Ethereum, Bitcoin, Litecoin, and many other popular cryptocurrencies. This is ideal for diversification. Some of the best cryptocurrency exchanges are regulated by FCA, meaning a safe investing experience.

Let’s take a closer look at the top reputable exchanges in this investing category:

1. eToro – The Overall Best Place to Invest in Ethereum in the UK

eToro is the go-to exchange for first-time investors in the UK. It holds multiple licenses, including approval and regulation from the FCA. It’s also covered by the FSCS, although this doesn’t apply to digital assets like Ethereum (this applies to your fiat currency balance). Nonetheless, eToro’s safe and licensed environment is why it’s used by over 35 million clients. It takes less than five minutes to register and get verified.

UK investors can deposit GBP without paying fees. Visa, MasterCard, PayPal, Skrill, and other common payment types are accepted. The minimum deposit is on the high side at $100 (about £77). That said, you only need to risk $10 (about £7) when buying Ethereum. The balance can be used on other markets. eToro supports over 100 cryptocurrencies, plus thousands of UK and international shares.

It also offers commodities, indices, and forex. It’s also possible to invest passively; eToro’s copy trading service allows users to replicate experienced pros. We should note that eToro fees are higher than most exchanges, with a 1% commission being charged on cryptocurrency trades. Additionally, eToro’s customer support team only operates Monday to Friday during standard working hours.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re 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 2 mins to learn more

2. MEXC – Buy and Sell Thousands of Cryptocurrencies at 0% Commission  

MEXC is another popular option when buying Ethereum in the UK. It supports almost 3,000 cryptocurrencies, including Ethereum, Bitcoin, and Solana. MEXC offers an instant buy feature that’s ideal for first-time buyers. Just type in the investment amount and debit/credit card details and Ethereum will be added to the account immediately.

The minimum purchase requirement is £22. Fees average 3-5% when using this feature. MEXC is also a great choice when investing in meme coins. It supports everything from Mochi, Dogecoin, and Pepe to Shiba Inu and dogwifhat. MEXC also offers copy trading tools, with thousands of investors and strategies to pick from.

MEXC’s spot trading exchange offers super-low competitive fees. Market orders cost 0.02% per slide, so you’ll pay just 20p for every £1,000 traded. Commissions are reduced to 0% when placing limit orders. MEXC also offers savings accounts, meaning you can earn interest on cryptocurrency investments. It currently offers a 4.8% APR on Ethereum without minimum holding requirements.

No KYC Exchanges

No KYC exchanges also enable UK investors to buy Ethereum. These platforms operate offshore, meaning they don’t hold an FCA license. While no regulatory protections are in place, the best no KYC exchanges typically attract millions of active users, and billions of pounds in daily trading volume.

What’s more, you can open an account and deposit funds without uploading ID verification documents. You won’t be asked for your country of residence, meaning you can access Ethereum derivatives with high leverage.

Let’s take a closer look at the top options.

1. Margex – Trade Ethereum Perpetual Futures With 100x Leverage     

Margex is suitable for those looking to trade on margin. You can trade Ethereum with leverage of up to 100x. This means a £50 account balance can be amplified to £5,000 in trading capital. Margex also supports other popular cryptocurrencies, ranging from Dogecoin and XRP to Bitcoin and Solana. Trading fees are competitive too.

Limit orders are charged 0.019% per slide. This means a 19p commission for every £1,000 traded. Market orders cost slightly more at 0.06%. Margex also accepts debit/credit card payments as well as Google Pay and Apple Pay, meaning you can buy Ethereum instantly. This option is more suitable for beginners, considering the high risks of leverage trading.

Margex fees average 3-5% when using Visa and MasterCard. Another feature of Margex is staking, where investors can earn 5% interest on Ethereum balances. However, Margex isn’t approved or licensed by the FCA. It’s also located offshore, so UK consumer laws don’t apply. Therefore, you should consider these risks before proceeding.

2. BloFin – Buy Ethereum With a Debit/Credit Card and Trade Hundreds of Other Coins

BloFin is another low-cost exchange that offers a wide range of markets. You can buy Ethereum with a debit/credit card instantly. The minimum deposit is about £8 and fees average 3-5%. The purchased coins can be withdrawn to a private wallet. No KYC is needed, meaning a seamless and anonymous investing process.

Alternatively, you might consider trading Ethereum on BloFin’s spot exchange. It supports hundreds of coins, ranging from Bitcoin, Pepe, and Arbitrum to BNB, XRP, and Litecoin. Spot trading commissions start at 0.1% per slide. That’s just 10p for every £1,000 traded. BloFin is also a futures platform with leverage of up to 150x.

However, these markets are better suited for experienced traders. BloFin also offers Ethereum savings accounts. The current interest rate is 4% but this requires a 360-day lock-up period. Flexible accounts are also available, though these pay just 0.1%. BloFin is available online or via an Android/iOS app. Both options provide a smooth trading experience.

Ethereum Wallets

Ethereum wallets are required to store ETH privately, typically on a mobile app or browser extension. Some wallet providers also support GBP payments, meaning you can buy and sell Ethereum with ease. This also comes with added convenience; Ethereum will be added to the wallet balance straightaway.

Wallets are also a great option for swapping cryptocurrencies. For instance, suppose you’re holding Ethereum but want to buy Bitcoin. You can instantly exchange Ethereum for Bitcoin without leaving the wallet interface.

Let’s explore the best options for UK investors.

1. eToro Money Wallet – User-Friendly Ethereum Wallet With Fee-Free Payments

eToro Money Wallet offers everything an Ethereum investor needs. First, it enables users to store Ethereum in a safe environment. eToro provides a custodial service, so beginners don’t need to learn about private keys and other wallet functions. It keeps the majority of client-owned Ethereum in offline wallets – known as ‘cold storage’.

This makes online hacks almost impossible. Another security feature is two-factor authentication. This requires an SMS code whenever core wallet features are used.  Additionally, the eToro Money Wallet supports transfers. This means you can send and receive Ethereum to and from other locations. The wallet also supports GBP payments.

Crucially, you can buy Ethereum instantly with a debit/credit card. No deposit fees are charged on GBP payments. A potential drawback is that approval is needed when transacting. This is unlike non-custodial wallets, which provide full autonomy. What’s more, the wallet comes with fewer features when compared to the primary eToro platform.

eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs. Don’t invest unless you’re 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 2 mins to learn more

2. Exodus – Non-Custodial Ethereum Wallet for Browsers, Mobiles, and Desktops 

Exodus is a non-custodial Ethereum wallet that launched in 2015. This means investors can store ETH without trusting a centralized provider. Only the wallet owner can access their private keys, offering complete autonomy and privacy. What’s more, Exodus is available on multiple devices.

This includes a browser extension for Chrome, an Android and iOS app, and desktop software for Mac and Windows. Exodus is free to download and the user experience is suitable for beginners. However, learning how wallet security works is crucial, as you’re 100% responsible for keeping it safe.

Exodus also enables UK investors to buy Ethereum with Visa or MasterCard. The transaction is settled instantly but expect fees of about 3-5%, depending on the partnered processor. Exodus also accepts Bitcoin, XRP, Litecoin, Solana, and thousands of other popular cryptocurrencies.

Comprehensive Walkthrough on How to Buy Ethereum UK

It takes less than five minutes to buy Ethereum in the UK, especially when using a debit/credit card or e-wallet. Read on for the complete step-by-step walkthrough.

Step 1: Choose a Cryptocurrency Exchange

Choosing the right cryptocurrency exchange is the first step. Our top pick is eToro. It’s an established platform with FCA approval and regulation.

It offers fee-free payments when using GBP, covering Visa, MasterCard, PayPal, and Skrill. eToro is also user-friendly and the minimum Ethereum trade requirement is just $10 (about £7).

Step 2: Open an Account

The next requirement is to open an eToro account (or whichever exchange you’ve chosen). Simply complete the registration form by entering your name, home address, date of birth, email, mobile number, and national insurance number.

Next, complete the KYC process. This requires a copy of your passport or driver’s license, plus proof of address. This can be a utility bill or bank/credit credit statement, but the document must have been issued in the past three months.

Step 3: Make a Deposit

The eToro account can now be funded in GBP. Instant deposit methods include debit/credit cards and e-wallets. You’ll need to deposit at least $100 (about £77). No deposit fees apply.

Bank transfers are accepted too but take several days to clear. Plus, the minimum increases to $500 (about £380).

Step 5: Search for Ethereum

Use the eToro search bar to find Ethereum. Click the ‘Trade’ button to be taken to the investing page.

eToro also provides analysis and research insights, allowing you to explore Ethereum’s performance before investing.

Step 6: Buy Ethereum

You can now complete the investment form to buy Ethereum. Just type in the investment size in US dollars.

Click the ‘Buy’ button to confirm. You’ll find the purchased Ethereum in your eToro portfolio.

Step 7: Decide How to Store Ethereum

Most eToro clients keep their cryptocurrency investments on the platform. This means eToro is the custodian, so it’s responsible for keeping the coins secure. What’s more, this makes it easy to sell Ethereum for cash, as it’s just a case of clicking the ‘Close’ button.

That said, eToro also enables clients to withdraw Ethereum to an external wallet, such as Exodus or MetaMask. This will appeal to long-term investors who want to avoid counterparty risks.

What is Ethereum?

Ethereum is both a decentralized blockchain and a cryptocurrency. Its native digital coin is called ‘Ether’, although Ethereum and ETH are used interchangeably.

Unlike Bitcoin, Ethereum offers more than just peer-to-peer transactions. It enables third parties to deploy ‘smart contracts’, providing decentralized products and services. This includes metaverses like the Sandbox and Decentraland, play-to-earn games like Axie Infinity and Gala, and decentralized exchanges like Uniswap.

Ethereum is also home to some of the best meme coins, including Shiba Inu, Pepe, and FLOKI. Crucially, projects operating on Ethereum pay transaction fees in ETH, ensuring demand isn’t exclusive to speculative investors.

That said, most people buy Ethereum to make money, considering its unprecedented performance since its inception. While Ethereum launched in 2015, it held an initial coin offering (ICO) a year earlier. The ICO sold ETH for just $0.31. At its peak in 2021, ETH was trading at almost $5,000. This translates to growth of over 1.6 million percent.

Market volatility has seen Ethereum decline in recent years, but has still outperformed the traditional investment markets. For instance, the Ethereum price has increased by 71% in the past year. The FTSE 100 has risen by just 13% over the same period. Today, investors can buy Ethereum 43% below its all-time high. This provides an enticing entry point for first-time buyers.

Key Considerations Before Investing in Ethereum

First-time investors should make the following considerations before buying Ethereum:

• Ethereum Prices are quoted in USD: Most exchanges list Ethereum against USD, similar to gold, oil, and other commodities. USD is also used by analysts when discussing its performance and future potential. Therefore, UK investors should get comfortable with ETH/USD prices, rather than constantly converting back to GBP.
• Making a profit: Investors will make a profit when selling Ethereum for a higher price than was originally paid. This is the same concept as investing in shares. For example, suppose you buy 0.5 ETH when it trades at $2,000. You sell that 0.5 ETH when the price is $3,000. This means you’ve made a $500 profit ($3,000 – $2,000 * 0.5).
• Prepare for volatility: Ethereum is a volatile investment, with wild price movements being a regular occurrence. Historically, Ethereum has declined by over 70% from its peak on multiple occasions. First-time investors should be aware of the risks involved and prepare for enhanced volatility; rapid increases or decreases can happen at any time.
• Selling Ethereum for cash: Ethereum can be sold for cash at any time. Unlike shares, you don’t need to wait for the markets to open in the crypto world, meaning 24/7 trading. Crucially, Ethereum has a market cap of over $330 billion, so liquidity will never be an issue.
• Capital gains tax: Tax could be due if you make money from an Ethereum investment. This will depend on the overall returns, with UK investors getting a capital gains tax-free allowance of £3,000. For instance, suppose you make an £8,000 profit. This would leave £5,000 liable for tax.

Buying Ethereum in the UK: Risks and Rewards

Like any investment, it’s important to consider the risks and potential rewards before buying Ethereum. Read on to determine whether this digital asset is right for you.

Potential Rewards When Buying Ethereum

Some analysts believe that Ethereum is worth just a small fraction of its true potential. After all, thousands of projects operate on the Ethereum blockchain; each one pays fees ETH when transacting. This means Ethereum has a proven use case, which will likely only increase over time.

For example, ARK Invest’s Cathie Wood believes that Ethereum’s market capitalization could reach $20 trillion by 2032. This would mean a 60x upside from current valuations, amplifying a £100 investment to £6,000.

While Wood’s projections are speculative, Ethereum has already produced substantial returns. For example, you could have bought Ethereum for just $140 in late 2019. Peaking at under $5,000 two years later, this would have returned over 3,200%.

More recently, Ethereum was trading at about $1,500 in September 2023. It surpassed $4,000 in March 2024, meaning gains of over 160% in just six months.

Risk When Buying Ethereum

Ethereum’s past performance doesn’t guarantee future returns. Nobody can predict the markets with conviction, especially in the volatile and speculative cryptocurrency sector.

The best practice is to only invest money you can afford to lose. After all, Ethereum’s price history shows multiple bearish cycles, where its value has declined by significant amounts.

• For example, suppose you bought 1 ETH when it peaked in late 2021. You would have paid just under $5,000. It declined to about $1,000 the following year. Had you sold, you would have made an 80% loss.
• Similarly, Ethereum peaked at about $1,200 in early 2018, only to drop to lows of under $100 a year later. That’s an even greater decline of over 90%. 

This is why risk-averse investors should consider dollar-cost averaging when investing in digital currency. You can avoid these wild pricing swings by investing small amounts at regular intervals. For example, investing £50 every month, consistently for several years.

Conclusion

You now know how to invest in Ethereum in the UK safely. The best practice is to use an FCA-regulated platform; this will provide a secure environment to invest. Diversification and dollar cost-averaging are also important when mitigating risk.

eToro is worth considering when investing for the first time. Its regulated and beginner-friendly platform is used by over 35 million people. While commissions are more expensive than other platforms, eToro ensures UK investors can trade safely.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re 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 2 mins to learn more

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