How to Buy Ethereum in Three Easy Steps
Step 1: Get a Digital Wallet
As Ether is a digital currency, you’ll need somewhere to store it – a digital wallet. For Ethereum, you must use an Ethereum-compatible wallet. You can get web-based wallets (available on a browser), software wallets (that you download) or hardware wallets (a physical wallet that you buy and connect to your computer via USB).
This is the least safe option and it is not recommended if you’re storing an amount that means a lot to you. If you use one, MyEtherWallet, Mist and MetaMask are recommended.
When you go to MyEtherWallet, be sure to bookmark the website to your browser for extra security.
These are wallets that you download onto your computer, tablet or mobile phone. They offer better security than web wallets. Exodus and Jaxx are recommended.
Exodus isn’t available on mobile, but it has a fantastic design and is easy to use. Another good thing about Exodus and Jaxx is that you can use them to convert from one cryptocurrency to another. For example, you can convert Ether into Bitcoin.
The other option is to buy a hardware wallet. Hardware wallets are the most secure way of storing Ether and other cryptocurrencies.
They are small electronic devices that connect to your computer via USB. Your crypto will still be stored on the blockchain and in an online account, but you cannot access the account without your hardware wallet. As long as you keep your hardware wallet safe, you cannot be hacked! TREZOR and Ledger Nano are recommended.
Whichever wallet you choose, you’ll have an ETH address once you have created, downloaded or bought your wallet. When you buy Ethereum, this is the address to where you’ll send it.
Step 2: Buy Ethereum
Cryptocurrencies are an open marketplace, which means you can choose how you purchase Ether. This gives you more control and allows you to build your portfolio (collection of investments) in whichever way you prefer.
To know how to buy Ethereum, you first need to know where to buy Ethereum. You can buy Ether from many different exchanges (online platforms). You can also use ShapeShift to convert other cryptocurrencies into Ether, or buy from another person using LocalEthereum.
To buy Ether using fiat currencies (USD, GBP, EUR, JPY etc.), you’ll need to open an account on one of the following exchanges. On each of them, you can buy Ethereum with credit card and bank transfer.
First, open a Coinbase account. Just go to the Coinbase website, click ‘sign up’ and type your details into the required boxes.
Next, open your email inbox and find the email that Coinbase has sent you. Click the link in and log in to verify your email address.
Once you have logged in, you have to verify your phone number. Enter your phone number and click ‘send code’. Coinbase will send you an SMS with a code. Enter that code into the box on Coinbase.
Now that you have signed up, add your payment method. Choose from debit/credit card or bank transfer.
Select ‘Buy/Sell’ next to ‘Ether’ and select/enter the amount of Ether you want to buy. You can pay with USD, GBP or EUR.
Click “buy ETH”
Sign up for a CEX.IO account. Click ‘Register’ in the top right of CEX.io’s homepage.
Type your details into the required boxes or click ‘Login with Facebook’ if you would like to use Facebook to sign up.
Open your email inbox and find the email that CEX.IO has sent you. Click the link in the email to verify your email address.
Next, CEX.IO will ask you to enable two-factor authentication. This provides an extra layer of security to keep your account safe.
The next page will say ‘Buy BTC’ when you first land on it. Click ‘BTC’ and you will see a menu. From the menu, select ‘ETH’.
Next to ‘Buy ETH’, you will see ‘For USD’. If you want to use a different fiat currency, click ‘USD’ and you will see another menu. In the menu, choose EUR or GBP. These are currently the only fiat currencies you can use to buy Ether on CEX.io — maybe they will update this!
Choose/enter the amount of Ethereum you want and then click ‘BUY’.
Sign up to Coinmama. Go to the Coinmama homepage and you will see a form below ‘Register’ on the right-hand side of the page. Type/enter your details into the boxes on the form. Click ‘Register’.
Open your email inbox and find the email that Coinmama have sent you. Click the link in the email to verify your email address.
Now that you have signed up, you need to log in to your Coinmama account. Once logged in, click the ‘Verify your account’ tab and verify yourself:
Click ‘My Account’ then select ‘Verify my account’ on the left.
Fill out the form with your information and include your national identification.
On the next page, you will need to upload copies of the front and back of your passport or national identity card. Then, you will need to take a photo of yourself while holding a piece of paper with ‘Coinmama’ written on it with today’s date. Coinmama provides the below example so you can get this right.
Once you have taken your photos, attach them to the online form and click ‘Upload’. You will receive the following message.
Please note: You will have to verify your account every time you wish to invest in larger amounts of Ether. This first verification will allow you to buy up to US$10,000. The other amounts can be seen in this screenshot.
Click ‘ETHER’. It is in the menu at the top of the website.
Choose/enter the amount of Ether you want and click ‘buy now’.
Click ‘credit/debit card via Simplex’.
Type your wallet address (this is from the wallet you created in step 1) into the box below ‘Please insert your Ethereum wallet address’ and click ‘Complete payment’.
Type your payment details into the boxes on your screen and click ‘Pay now’.
Your Ether will be sent from Coinmama to your wallet. This can sometimes take seconds, but at other times — when the Ethereum network is busy — it can take up to an hour.This is an issue that Ethereum is working on.
Step 3: Store Your Ether
So, you’ve bought your Ether. Now, you’ll need to send your Ether to the wallet that you created in step 1. This is because it is much safer to store your Ether in your wallet than it is on an exchange.
Here will be shown how to send your Ether to your wallet from Coinbase and CEX.IO.
Sending ETH From Coinbase
- Select ‘Send/request’ from the menu at the top of the website.
- Type/enter the address for your wallet that you created in step 1.
- Type/enter the amount of Ether you want to send and click ‘send funds’.
- Coinbase will send you an SMS with a code. Enter that code into the box.
- Click ‘confirm’.
Sending ETH From CEX.io
- Click the ‘FINANCE’ tab in the top menu.
- Scroll down the page until you see ‘ETH’.
- Click the ‘withdraw’ button that is next to ‘ETH’.
- Type/enter the amount of Ether you want to send in the box on the right. It is below ‘Select currency and amount’.
- Type/enter the address for your wallet that you created in step 1 into the box in the center of the page. It is below ‘Enter the recipient’s address below’.
- Click ‘Withdraw’.
If you bought Ether on Coinmama, you don’t need to do anything — your Ether is sent straight to your wallet when you buy it.