Since 2014, Ethereum’s Ether has become the third largest cryptocurrency by market capitalization at $13 billion, behind Ripple (XRP) at $13.8 billion and Bitcoin (BTC) at $65 billion. In 2016, a flaw appeared in Ethereum’s decentralized autonomous organization (DAO), its small project software was hacked and $50 million worth of Ether was stolen.
The cryptocurrency was thereafter split into two separate blockchains known as the Ether Classic (ETC) and Ether (ETH) cryptocurrencies.
Overview: How to Buy Ethereum in the U.K.
Ethereum’s ETH can be widely sourced in the U.K., although you will need to buy ETH through a bitcoin ATM, a cryptocurrency exchange or a peer-to-peer cryptocurrency group that offers ETH.
You can choose between investing in ETH, which means you register at an exchange and acquire a crypto wallet, or you can trade it when you buy and sell contracts for difference (CFDs) on ETH without actually taking possession of the cryptocurrency.
Going the CFD route means you can up with an online cryptocurrency CFD broker such as XTB, for example, and does not require you to obtain a wallet or register with an exchange. Keep in mind that a CFD broker does not provide you with the currency, so you cannot use it to make purchases or hold in a wallet. Bitcoin currently continues to reign as the best cryptocurrency due to its market recognition and high liquidity.
Nevertheless, interest in the Ethereum blockchain and the ETH and ETC cryptocurrencies continues to grow, which makes it a great alternative to bitcoin for U.K. residents.
How to Buy Ethereum in the UK
- Open an Account at a Cryptocurrency Exchange
Before you begin trading, be fully aware of the financial risks involved and develop some knowledge on how to trade cryptocurrency. It could spell disaster if you’re unprepared to trade this highly volatile market once you’re faced with the cryptocurrency markets’ inherent price swings.
The first thing to consider before opening an account at an exchange involves how to finance your cryptocurrency purchase. To open an account with a cryptocurrency exchange in the U.K., you will need to have liquid funds (in GBP) in a bank account or another cryptocurrency like bitcoins in a wallet or stored on an exchange. Many U.K. exchanges that support the Ethereum blockchain accept bank transfers or SEPA credit transfers.
You can also buy ETH at a bitcoin ATM with cash, but this may not work for buying ETC. Once you have secured a source of funding, you can open an account with a cryptocurrency exchange, a peer-to-peer group, an online broker or a spread betting firm, with the latter two the best options for speculators. - Get a Cryptocurrency Wallet (optional)
Once you determine your source and open an account at a cryptocurrency exchange or peer-to-peer exchange, you need a crypto wallet to withdraw your currency from the exchange or another source where you purchased your ETH or ETC. A crypto wallet address is similar to an email address, except that you can pay for goods and services and receive payments and gifts with your wallet address.
The wallet contains two keys, a public and a private one. The public key, like an email address, can be shared with others. In contrast, the private key is like an email password and should be kept confidential, or you could lose all of your cryptocurrency if someone uses it. Once you download it, your crypto wallet can be accessed through your desktop, laptop, tablet or smart mobile device. You can also use a web-based wallet that does not require a download. - Withdraw ETH to your Crypto Wallet
The final step involves the withdrawal of your ETH or ETC into your personal crypto wallet. After you purchase the cryptocurrency, you may withdraw it to your Ethereum-specific or multi-asset wallet by using a QR code. Be aware that leaving your currency anywhere where you don’t have control of your private keys can mean risking your entire investment.
If you leave your ETH at the exchange where it was purchased, you run the risk of the exchange getting hacked. It makes sense to store your ETH or ETC in your own wallet controlled by your private keys.
Best Crypto Exchanges for Ethereum in the UK
- Best for Active and Global Traders: Interactive Brokers
- Best for Inexperienced Traders: CoinJar
- Best for a Fast Trading Experience: Uphold
Best for Active and Global Traders: Interactive Brokers
Interactive Brokers allows international investors, like those in the UK, to buy into the crypto market with ease. You get no added spreads, no markups, low commissions and no custody fees along with access to a range of other investments that will help you fill out your portfolio.
Listmaker of Benzinga's FinTech Awards for Best Day Trading Software, Best Broker for Short Selling & Winner for Best Paper Trading Platform.
Pros
- Without markups and commissions, you can pay spreads and keep your overhead costs very low
- You can begin to diversify your portfolio all in one place using IBKR
Cons
- This platform, while robust, may not prove to offer the experience you’re looking for, based on your personal needs
Best for Inexperienced Traders: CoinJar
CoinJar is a unique cryptocurrency exchange designed for digital asset management that is both simple and effective. You can get into the crypto space on this platform without feeling confused, and you can learn on the go while investing. There are low or no fees depending on whether you are trading as a maker or taker, and you can begin building your portfolio today.
Pros
- Because there are lower fees, you can save money or even invest more
- This platform is designed to make managing digital assets easier, especially if you’re new to the space
Cons
- Some investors might want more powerful investment options that CoinJar doesn’t have
Best for a Fast Trading Experience: Uphold
- Best For:A Fast Trading ExperienceVIEW PROS & CONS:securely through Uphold Crypto's website
Uphold offers access to 250 different digital assets along with more variety and other financial instruments that you can use to build a robust portfolio for now and the future. You can also stake your tokens, earn a passive income and continue to trade through the day on the desktop or in the app.
Pros
- Uphold allows you to make snap decisions and get trades done while prices are optimal
- You can use this platform to build a whole portfolio instead of opening several other accounts
Cons
- This platform may be fast, but you may find it too complex because there are so many other trading options that you could also try on the same site
Bitcoin ATM Automatic Tellers
In addition to cryptocurrency exchanges and peer-to-peer groups, Ether (ETH) can be obtained for cash at a bitcoin ATM. Currently, 214 bitcoin ATMs operate in the U.K. and 134 of them are located throughout the greater London area. Additional cryptocurrencies offered at these ATMs include Bitcoin (BTC), Bitcoin Cash (BTH), Dash (DASH), Litecoin (LTC), Zcash (ZEC), Monero (XMR) and Dogecoin (DOGE).
Best Crypto Wallets
Ledger Nano S
- Best For:ERC-20 tokensVIEW PROS & CONS:securely through Ledger Hardware Wallet's website
Ledger Nano S supports over 40 different cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP), to name just a few. The wallet was designed around a chip similar to those used in credit cards and passports for the highest security and it protects your assets with a PIN.
Coinomi
The Coinomi wallet comes in a mobile version for iOS and Android devices and a desktop version. The wallet’s single platform offers native support for 125 blockchains and 382 tokens, making a total of 507 digital assets it can store. The most important advantage to this wallet consists of its ability to exchange cryptocurrencies at no cost.
Coinpayments.net
Specifically designed for merchants or anyone doing business online, the Coinpayments.net wallet lets you accept 1,165 supported coins and tokens for payment. The wallet is also used by more than 230,000 vendors in 182 countries and it supports popular shopping carts used by many e-commerce stores such as Opencart, Magento and WooCommerce.
Trezor
The first hardware wallet designed for bitcoins, the Trezor One wallet consists of a small, key-sized peripheral that connects to your computer with a USB cable. The wallet stores your personal keys and can be used to sign transactions. The wallet is fully compatible with the Ethereum protocol and supports ETH, ETC and ERC20 private contracts. Other cryptocurrencies supported by Trezor include Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Dash (DASH) and Zcash (ZEC).
Final Thoughts
In the U.K., your options for purchasing Ethereum cryptocurrencies include bitcoin ATMs, cryptocurrency exchanges and peer-to-peer groups. Buying ETH or ETC in the U.K. seems really easy, but the exchange or broker you select is what really matters.
If you decide to just speculate on the movements of ETH or ETC, you have access to a wide array of online brokers that allow trading in cryptocurrency CFDs, as well as to many spread-betting firms that offer gambling on cryptocurrency movements.
Know how you intend to operate in the cryptocurrency market, whether as a speculator, gambler or investor, to determine if your best option involves opening a brokerage account with an online broker, placing a wager with a cryptocurrency gambling firm or buying a wallet and opening an account at a crypto exchange.
Related content: How to Buy Ethereum in Nigeria
About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.