DeutschAlthough Bitcoin is the best-known cryptocurrency, there are now a large number of other digital currencies, most of which people have also heard of. After Bitcoin, Ethereum is definitely one of the best-known and most important digital currencies on the market. In the following, we would like to inform you about how and where you can buy Ethereum and what you should consider if you want to buy Ethereum or trade Ethereum.
Where Can You Buy and Sell Ethereum?
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. Extra: 10 Euro bonus when registering via CoinPro.ch
Trade many different cryptocurrencies without a wallet with our CFD broker test winner Plus500 - 7 days a week.
Regulated provider from Austria - specializing in trading Bitcoin, Ethereum, stocks and many other assets.
CFDs and real stocks in a trading platform with free deposits and no conditions - that's XTB.
OKX is one of the largest crypto exchanges in the world and combines numerous functions such as a wallet, staking, futures, margin, and spot trading in a single platform.
With several hundred thousand customers worldwide, Binance is one of the top 10 largest and most well-known exchanges. The use of the exchange is free of charge, with fees only applying to the purchase and exchange of cryptocurrencies.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.
What is Ethereum?
Strictly speaking, the term Ethereum for the cryptocurrency is not entirely correct, because Ethereum is first and foremost a platform. This platform is used in particular to generate tokens, but other coins can also be created there. The actual currency that comes from the Ethereum platform is called Ether and exists in different variants (including Ether and Ether Classic). In general, however, Ethereum almost always refers to the digital currency. The digital currency was created at the end of 2013, with trading really taking off in 2015. In the following year (2016), Ethereum had already exceeded the market capitalization of more than 500 million US dollars for the first time. A comparison between Ethereum and the leading cryptocurrency, Bitcoin, is particularly interesting. Both cryptocurrencies are based on the blockchain and have numerous similarities, but there are also some differences.
Switzerland also plays an important role in the development of Ethereum. The Ethereum Foundation is based in the Crypto Valley in Zug.
With the increasingly important area of decentralized finance (so-called DeFi) and the possibility of building numerous financial services (such as lending or interest income models) on the basis of the Ethereum platform, Ethereum was finally able to position itself as one of the most important drivers.
Worth reading: DeFi – What is behind it and how does it work?
Trade many different cryptocurrencies without a wallet with our CFD broker test winner Plus500 - 7 days a week.
What should I Look out for when Buying (Selling) Ethereum?
Nowadays there are many trading venues where you can buy Ethereum or trade Ether. Therefore, there are some aspects that you should definitely consider before buying ETH:
- Am I buying (selling) real Ether or just Ethereum CFDs?
- How do I store Ethereum safely?
- What fees do I have to pay for Ethereum?
- Is the trading platform on which I want to buy (sell) Ethereum secure?
First of all, we can state that the crypto exchanges and brokers mentioned by us are all reputable. However, it is important that you store your coins in your own hardware wallet. Only then do you have full control over your coins. We will go into the other points in more detail in the following sections.
Buy and Sell Real Ether Coins or rather Ethereum CFDs?
Depending on the crypto trading platform, you can either buy and sell real Ether coins or only Ethereum CFDs. Both types of investments differ greatly from each other. If you buy (or sell) real Ether coins, you really own the cryptocurrency. You can transfer your Ether with it, transfer it to your own wallet and use it as a means of payment.
A CFD, on the other hand, is merely a certificate that reflects the price of an underlying product. With an Ethereum CFD, you are not buying (or selling) the cryptocurrency Ethereum, but are only speculating on the price of the cryptocurrency. If the Ethereum price rises, you make a profit. CFDs are often used in combination with leverage. This is an additional risk.
If you buy (sell) Ethereum CFDs, you participate in the price development in the same way as with the price development of real Ether coins, but you cannot transfer them. All the advantages of the cryptocurrency Ether are therefore lost if you buy (sell) Ethereum CFDs. The advantage of Ethereum CFDs is that you don’t have to worry about custody. You can also speculate on a falling price and thus earn money with Ethereum, even if the price falls. In addition, you can buy and sell Ethereum CFDs with PayPal on significantly more trading platforms than is the case with real Ether coins.
Buy and Sell Ethereum on a Crypto Exchange
A popular method for buying Ethereum is to use a crypto exchange. Classic crypto exchanges are, for example, Binance, Kraken or Coinbase. As a rule, you can trade over 100 different cryptocurrencies on crypto exchanges, so you can buy much more than just Ethereum. On a crypto exchange, you always trade with other users of the platform. We now want to discuss the advantages and disadvantages of crypto exchanges for trading Ethereum.
What are the Advantages of a Crypto Exchange?
As already described, crypto exchanges can score points above all with their wide range of products. A crypto exchange for Ethereum offers you numerous possibilities to place your order. You can also carry out trading with Ethereum with countless trading pairs. With a broker, you usually buy Ethereum with euros, dollars or Swiss francs. With a crypto exchange, you can directly exchange many different cryptocurrencies into Ethereum. This possibility makes crypto exchanges very flexible when it comes to trading with many cryptocurrencies. The fees for trading Ethereum are also very low and are significantly less than 0.5 percent at the best crypto exchanges such as Binance or Kraken.
With several hundred thousand customers worldwide, Binance is one of the top 10 largest and most well-known exchanges. The use of the exchange is free of charge, with fees only applying to the purchase and exchange of cryptocurrencies.
What are the Disadvantages of a Crypto Exchange?
Since crypto exchanges offer many functions in order to be flexible even for professional traders, it is often very difficult, especially for beginners, to find their way around the trading platform. Although the user interface of many crypto exchanges has already changed for the better, laypersons are often overwhelmed with the use and subsequent secure custody of cryptocurrencies on exchanges.
The bigger problem, however, is the fact that most crypto exchanges in German-speaking countries are not yet regulated. Although the exchanges are working hard to obtain the relevant licenses, it will still take a few years before users of crypto exchanges are also on the safe side from a regulatory perspective.
Buy and Sell Ethereum with a Crypto Broker
Alternatively, you can also trade Ethereum with a crypto broker. Well-known crypto brokers are XTB and bitvavo. Here you do not trade directly with other users, but always with the trading platform itself. This brings some advantages but also disadvantages.
What are the Advantages of a Crypto Broker?
Due to the fact that you do not trade with other users, but always with the trading platform itself, the user interface of a crypto broker is much clearer. This makes it easier to use, especially for crypto beginners who want to trade Ethereum.
Another particularly positive point is the existing regulation in German-speaking countries. This gives you a much safer way to buy (sell) Ethereum when trading with a crypto broker. The best crypto brokers also allow you to buy numerous other cryptocurrencies, stocks, ETFs and precious metals in addition to Ethereum. This allows you to build your entire portfolio in a diversified manner with a single crypto broker.
Trade many different cryptocurrencies without a wallet with our CFD broker test winner Plus500 - 7 days a week.
What are the Disadvantages of a Crypto Broker?
Crypto brokers usually cannot keep up with the large selection of different cryptocurrencies that crypto exchanges have on offer. However, the best brokers such as XTB and bitvavo have already been able to increase to over 50 cryptocurrency CFDs in their portfolio. Due to the particularly simple way to trade Ethereum, unfortunately higher fees are incurred than with a crypto exchange.
You should also note that you can only buy (sell) Ethereum CFDs with many brokers. With CFDs, you are only speculating on the price trend of the cryptocurrency, but you do not really own it. However, this can also be an advantage in terms of custody.
Conclusion: where is the Best Place to Buy and Sell Ethereum (ETH)?
In our opinion, bitvavo is currently ideal for buying Ethereum. You can buy Ethereum with PayPal, credit card or instant transfer at bitvavo. This cannot be surpassed as an overall package on the German-speaking market. However, if you already have experience in the crypto sector, Binance is also very well suited if you do not necessarily want to buy Ethereum via PayPal or instant transfer.
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. Extra: 10 Euro bonus when registering via CoinPro.ch
Frequently Asked Questions about Buying Ethereum (ETH)
To buy Ethereum with PayPal, you need an account with the crypto exchanges Bitvavo or Bitpanda. Deposits via PayPal are completely free.
Nowadays, brokers and exchanges offer numerous ways to make a deposit for the purchase of Ethereum. To buy (or sell) Ethereum without a credit card, you can use the crypto broker Plus500 or the crypto exchange Bitvavo or Bitpanda.
If you believe in a positive development of the crypto market, Ethereum will certainly experience a part of this development. Ultimately, you should buy Ethereum if you are convinced of the project and the Ethereum platform yourself. However, there is no 100% guarantee of a price increase.
