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How to Invest in Ethereum

Ethereum is a popular coin in the cryptocurrency space and continues to gain investors’ attention due to its high volatility and benefits. Being the second leading cryptocurrency after Ethereum, it is an excellent asset for investment, especially for beginners. Note that the Ethereum network is powered by Ether (ETH) digital currency. The fact that the cryptocurrency is in a decentralized finance movement makes it a fast mover in the advancing of the financial landscape.

If you are trying to invest in Ethereum, we take you through all the procedures you need to successfully complete the purchase. As a beginner in the cryptocurrency market, it is advisable to start by understanding the asset you want to invest in to maximize your experience. In this regard, we also list the top brokers for Ethereum investments and other additional information that will help you decide whether this investment is worth trying. 

Top Three Brokers For Investing in Ethereum

Kicking off your Ethereum investments requires a solid plan and strategy to increase your chances of earning profits. In addition, you need a broker with extensive offerings for portfolio diversification. Most importantly, it should host Ethereum asset and be authorized to operate in the UK market by the Financial Conduct Authority (FCA).

Note that the UK market offers many cryptocurrency brokers to choose from. However, not all of them will allow you to invest or trade Ethereum using multiple methods. In this regard, choose a broker that offers trading methods that work best for you, whether CFDs, share trading, or purchasing the cryptocurrency as a physical asset. That being said, take a look below at our handpicked brokers for investing in Ethereum based on multiple tests and comparisons. 

1.eToro

Etoro index page
Etoro screen
Etoro
Etoro mobile
Etoro broker
Etoro index page
Etoro screen
Etoro
Etoro mobile
Etoro broker

eToro has been offering one of the best trading and investing services since 2007 when it was launched. Besides Ethereum, you get to access other popular cryptocurrencies, including Bitcoin, Litecoin, Bitcoin Cash, Ripple, Litecoin, etc. Note that eToro is the best when it comes to social trading. On this platform, you get to connect with other Ethereum investors and traders to share ideas that could potentially help you succeed in your activities. On top of that, it features copy trading, whereby you get to follow and mirror expert investors’ positions and earn profits when they do. 

To invest with eToro, you need to create an investment account and make a minimum deposit of £50. Making deposits are free of charge and you get to pay low fees for Bitcoin investment. If you are a newbie, eToro is known to host a plethora of learning resources to improve your skills. Also, there is a demo account funded with £100,000 virtual funds to test your investment skills before making your first significant investment. 

TradingGuides Rating:
✔Copy/Social trading
✔Low minimum to fund an account and begin investing
4.0 rating
4.0
Risk Warning
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

2. Plus500

Plus500 index page
Plus500
Plus500 mobile
Plus500 broker
Plus500 index page
Plus500
Plus500 mobile
Plus500 broker

Plus500 is one of the most cost-effective Ethereum trading brokers in the UK market. Unfortunately, you cannot buy Ethereum as a physical asset using Plus500 since it only allows CFD trading. The best element about this broker is that you get access to additional +2,000 assets, which you can use to diversify your investment portfolio. In addition, the broker offers quality learning and research resources to maximize your investment experience. 

After you have created your investment account with Plus500, a minimum deposit of £100 will be required. Plus500 doesn’t charge commissions but spreads, which are also low and there are no transaction fees. However, there are inactivity charges that kicks in should you fail to log into your investment account for three months. This means that you must be an active trader or investor to enjoy Plus500.

TradingGuides Rating:
✔ Most practical CFD platforms
✔ Regulated in many countries
3.2 rating
3.2
Risk Warning
77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3. IG Markets

IG Markets official site
IG Markets desktop
IG Markets broker
IG Markets mobile
IG Markets
IG Markets official site
IG Markets desktop
IG Markets broker
IG Markets mobile
IG Markets

IG Markets has been around for more than four decades and it is among the top brokers for Ethereum CFD trading. Although it has a high minimum deposit of £300, it offers one of the best trading platforms in the cryptocurrency trading space. Depending on your skills level, you can choose between the standard, ProRealTime, L-2 Dealer, and MT4 platforms

Note that IG markets hosts a gazillion quality research materials. Moreover, its IG Academy is loaded with learning resources to improve your skills. On top of that, the broker has a social trading platform that connects like-minded traders. On the flipside, Ethereum trading attracts high charges. For this reason, we advise that you start out using its demo account and decide whether it is worth investing with. 

TradingGuides Rating:
✔ Extensive range of offerings
✔ Leading broker with low fees
4.1 rating
4.1
Risk Warning
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

How to Buy Ethereum With eToro

Many investors wonder how they can get started with investing in Ethereum using online brokers. Below, we use eToro as an example to guide you through the step by step procedures of investing in this crypto.

Step 1: Visit eToro’s Website
Step 2: Complete Your Investment Account Registration
Step 3: Verify Your Investment Account
Step 4: Deposit Funds
Step 5: Invest in Ethereum

Investing with eToro requires an investment account that you can easily create by visiting the broker’s website. This guide shares links to give you direct access to the site and complete your account registration. Alternatively, simply google eToro and access the website.

Remember, eToro features various elements that you must confirm if they suit your investment needs before considering it for Ethereum investment. In addition, it has terms and conditions that we highly advice you to go through before signing up for membership. On top of that, the broker has a mobile app, and for you to maximize your experience, ensure you install it on your mobile device.

visit etoro website

Once you read and understand eToro’s terms and conditions, you will be required to complete your account registration. During this procedure, the broker will require you to provide your personal information, including full names, email address, location, phone number, source of income, etc. Note that your account will be verified once you have completed this procedure. Therefore, ensure all the information you provide is accurate. Also, members are required to create usernames and passwords that will help secure their accounts and investment activities.

complete your invest account registration

The FCA requires all brokers it regulates to verify the identities and location of their clients before fully approving their accounts. In this regard, eToro will request proof of your identity, including a copy of your ID card or driving license. In addition, you will share a copy of recent utility bill or bank statement to verify your location.

verify your investment account

eToro will send you an email notification once your account is fully approved. At this point, you are free to make the required minimum deposit of £50 and access Ethereum to complete your purchase or trade. Note that making deposits at eToro is free and all you need to do is identify a suitable payment method. You can transact with either credit cards/debit cards, e-wallets like PayPal, bank transfers, etc.

deposit funds

Once you make the deposit, eToro will confirm and give you access to the exchanges that list the crypto to complete your purchase. If you intend to trade the asset without taking ownership, eToro let’s you trade it as CFD, where you only speculate on its price movements. Whichever way you invest in Ethereum, ensure you fully understand how it works and conduct thorough analysis for the best strategy. This way, you get to enjoy your experience and boost your profit potential. For investors purchasing the cryptocurrency, ensure you own a crypto wallet to store the asset.

invest in ethereum

Tips on Choosing the Best Ethereum Investment Broker

The market is dominated by many Ethereum brokers and identifying the best can be an uphill climb for most investors, especially newbies. This guide recommends the top three brokers that you can trade or invest with if they suit your requirements. However, if you decide to overlook our recommendations, it is important that you have a critical eye when choosing a broker for Ethereum investment. 

Below, we guide you on factors to consider in your choices so that you can have a worthwhile experience while maximizing your profitability. With these elements, you also get to streamline the research process and meet the best Ethereum investment broker fast. 

With many online brokers dominating the market, identifying legitimate ones should be of utmost importance for any investor. If you choose a broker randomly without verifying their credibility, the chances are that you may end up getting scammed. Therefore, go for brokers that are licenced and regulated by the Financial Conduct Authority (FCA). Besides, using such brokers is the only legal way to invest in the UK and the last thing you want is getting into encounters with the law.

Since you are investing in Ethereum, consider a broker that hosts this asset and allow you to invest in it using methods that work best for you. Moreover, ensure the broker offers additional assets that you can diversify your portfolio with and reduce your chances of incurring massive losses.

Any broker you choose to invest Ethereum with must be reliable in terms of platform performance and availability of investment tools. For instance, find a broker with a user-friendly and intuitive design platform. Trades should also be executed fast, especially if you are taking short-term positions. Also, you should be able to access the right tools for research and skills development and easily access customer service for help regarding any challenges. Most importantly, ensure the broker has a trading app that enables you to trade or manage your investments on the go.

If you are trying your luck in the crypto market using Ethereum, we advise you to start small while you get familiar with hoe the market works. In this regard, have a budget so that you do not dig into your nest egg and end up emotionally traumatized. You can then use your budget to choose an affordable broker by confirming its minimum deposit requirement, commissions/spreads, funding costs, transaction fees, etc.

Based on this guide, choosing a broker for Ethereum investment should be based on your investment needs. However, we advise you to also consider other traders’ recommendations, especially those with extensive experience. With their comments and ratings on brokers regarding their experience, it will be easier for you to decide whether a broker is worth investing with. For honest user reviews and recommendations, visit Google Play, Trustpilot, and the App Store.

Ethereum Stock Price Today

As mentioned earlier, Ethereum is the second popular cryptocurrency after Bitcoin. Being among the most highly volatile assets in the financial market, its price fluctuates due to certain conditions, including demand and supply, mining costs, etc. This makes it challenging for investor to figure out its specific price and invest. For this reason, we have prepared below a live chart with Ethereum’s current share price. This is so that you can easily strategize on the best entry and exit points. With this live chart, you can also access the crypto’s historical data and create the best investment strategy

Top Ethereum Stocks For 2022

The stock market is large and it is essential for investors to identify the best Ethereum stocks to buy in 2022. This means that you need to conduct the necessary due diligence and choose the best. Note that market analysis can be challenging. Therefore we took it upon ourselves to do all the legwork and recommend top Ethereum stocks for 2022 to get you started. 

1. Coinbase Global

Coinbase Global

Coinbase is one of the largest cryptocurrency exchanges located in the US. This means that traders can use Coinbase to access Ethereum to complete their purchases. In addition, you can invest in the company shares through online brokers with access to the NASDAQ exchanges where it is listed under the ticker COIN. Remember this company’s share price keep fluctuating and to maximize your profitability, you must conduct thorough research using resources offered by the best brokers. 

Besides being an investment company for Ethereum and other cryptocurrencies, Coinbase sponsors a debit card that allows users to spend from their digital wallet balances. On top of that, the company asset loans to its members. To get the loan, you will be required to send an application and use your cryptocurrencies as collateral. All in all, Coinbase Global is one of the best Ethereum stocks to invest in 2022 since its always taking measures to remain afloat. 

2. Robinhood Markets

Robinhood Markets

Robinhood is a popular US-based cryptocurrency broker that is known to offer the best discounts to traders. For instance, trading with Robinhood is commission free and Besides Ethereum, you also get access to other world-renowned cryptocurrencies. To access this company’s shares, you need a broker with access to the NASDAQ exchange. It is listed under the ticker symbol HOOD and the best element about it is that you can purchase it in fractional shares. It started offering Ethereum and Bitcoin trading services in 2018 and with excellent measures in place, the company has growth potential in 2022. 

3. Hive Blockchain Technologies

Hive Blockchain Technologies

Founded in 1987, Hive Blockchain Technologies is the first publicly traded cryptocurrency mainer. It is listed on the Canadian Venture Exchange under the ticker HIVE and todate, its stocks have shown growth to upto 2000%. It focuses on mining Ethereum and Bitcoin using green energy with a committed ESG strategy. This increases its sustainability in the market, making it a considerable choice for long-term investment. 

FAQs

How do I trade Ethereum?

New investors trying to venture in Ethereum should understand that they need to be familiar with how this market works before making their first significant investment. In addition, you need the best broker like the ones we recommend in our mini-reviews above for maximum profitability. Once you choose a reliable broker and make your deposit, you will access Ethereum to complete your purchase. Note that some brokers offer share and CFD trading, so ensure you go for the best investment method based on your skill level.

Is it safe to buy Ethereum online?

Yes. Buying Ethereum online is safe as long as you are using brokers that are licensed and regulated by the FCA. Risking your funds with unregulated brokers puts you in a vulnerable position of getting scammed. We recommend the best brokers for buying Ethereum online in our mini-reviews above. However, if they dont suit your investment requirements, use our tips above to identify the best broker.

How do I store Ethereum once I make a purchase?

You will need a crypto digital wallet to store your Ethereum once you make a purchase. Note that online brokers like eToro that support purchasing of the physical asset have crypto wallets for storing your Ethereums.

Is Ethereum worth investing in 2022?

Absolutely. 2022 looks promising for many Ethereum companies, especially those that were hit hard by the 2020 COVID-19. Good examples of top Ethereum stocks to invest in are listed above. However, ensure you conduct additional research on the companies to ensure that you are making the right investment.

Is Ethereum taxed in the UK?

Yes. Ethereum trading in the UK is considered a business activity. Therefore, all the profits you earn from this investment must be subjected to capital gains tax.

Can Ethereum be hacked?

Yes. Ethereum investments can easily be hacked if you are using an Ethereum exchange or unregulated brokers. For this reason, ensure you consider licensed and regulated brokers by the FCA. Investing with such brokers is not only safe but you get to enjoy the best conditions for maximum profitability. Also, using licensed and regulated brokers is legal, thus giving you the opportunity to take legal action against the brokers if need be.

How do I trade Ethereum?
Is it safe to buy Ethereum online?
How do I store Ethereum once I make a purchase?
Is Ethereum worth investing in 2022?
Is Ethereum taxed in the UK?
Can Ethereum be hacked?

Conclusion

While investing in Ethereum is risky, it could be lucrative with solid strategies and plans. The cryptocurrency has many benefits in the financial space, making it an excellent investment asset. Whatever investment method you choose, keep in mind that Ethereum is highly volatile, and you must conduct thorough market analysis to maximize your profitability. To help you kickstart your investments, always buy this asset when the prices are low to earn profits later one when the prices rise. Remember, there is no guarantee that your investment will generate profits. Therefore, make use of risk management tools that brokers offer to mitigate losses in case your investment goes against your strategy.

Adam Jarfjord
Adam Jarfjord

is our leading content maker and head of the content department. For Adam, trading is not only a job but also a passion for more than 5 years. He has many years of experience in the financial sector and honestly admits that he is in love with his job.

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