Ethereum
Best Places to Buy Ethereum for 2024
What to look for when buying Ethereum
Buying Ethereum for the first time can be a little intimidating. But there are plenty of great products out there, it’s just a matter of finding the platform that’s right for you.
Here are some key questions to help you find the best place to buy Ethereum.
1. What fees will you have to pay?
Generally speaking, there are three types of fees to watch out for:
- Filing Fees
- Trading Fees
- Withdrawal fee
We will detail these in more detail below. Just be aware that fees are rarely standard across different trading platforms. For example, you might find a cryptocurrency exchange that offers free trading but charges you a lot of money to withdraw your funds.
Don’t be afraid to open a few accounts and experiment. But don’t deposit money until you are comfortable with the pricing structure.
2. How will the platform secure your assets?
Cryptocurrency investment is an exciting world, but unfortunately it has attracted its share of bad actors. Aside from the risk of hacks, the FTX collapse also demonstrated that it’s not always clear what an exchange is doing with your money. Simply put, cryptocurrency exchanges do not offer the same protections and security for investors found at banks and other financial institutions.
If a crypto exchange or broker is not transparent about their security systems and reserve amounts, this should be a major red flag. Sometimes you’ll read that a company doesn’t want to release this information for security reasons, but that’s misleading. A trading platform can reveal a lot of information without compromising its systems.
3. Are there any signup bonuses?
Some platforms offer sign-up bonuses for new investors. You may find a platform that gives you a small bonus when you start, or one that gives you a bonus when you make a certain number of transactions or deposit a certain amount of money. Although these options are tempting, don’t let them influence your decision-making. This can be a great way to decide between investors, but there’s no point signing up on the wrong platform just because you want the bonus.
4. Is it available in my country or state?
Some cryptocurrency exchanges cannot operate in the United States, and only a few are allowed to operate in each state. For example, New York has some of the strictest crypto exchange regulations and will actively pursue rule violators. As such, it’s good to check that the exchange you want to use is licensed to operate where you live.
5. Does it have all the features you need?
If you’re buying Ethereum for the first time, you’ll need an easy-to-use platform with plenty of educational resources. If you prefer mobile apps over web browsers, look for an exchange with a good app.
Other useful features include:
- The possibility of setting up automatic monthly transfers
- Good customer service
- An external wallet
We’ll talk about wallets in more detail shortly. If you are an active Ethereum trader, you may also want to benefit from advanced features such as limit orders and good charting tools.
6. Can I stake or earn interest on my Ethereum?
Last year, Ethereum moved to what’s called a proof-of-stake system, changing the way it validates transactions. This is part of a broader upgrade aimed at making the popular blockchain more scalable, more sustainable and more secure.
Without going into technical details, one of the impacts is that investors can stake their ETH tokens to earn rewards. Proof-of-stake cryptos pay rewards to holders who are willing to stake their tokens to help keep the network secure. As a long-term investor, this is a great way to earn passive income of your Ethereum investment.
Some crypto platforms have restrictions on staking, particularly in the United States. Also be aware that there is a difference between staking and crypto loan-to-earn products offered by certain platforms. When a cryptocurrency exchange uses loans and offers high interest rates, you don’t know what risks they are taking with your assets. And if it collapses, you could lose your crypto completely.
7. Does it offer a wide selection of cryptocurrencies?
If you only want to buy Ethereum or Bitcoin (BTC), you won’t need an exchange with a lot of tokens. However, if you view buying Ethereum as the first step in a long crypto trading journey, a long list of altcoins is a bonus. It’s also helpful to understand an exchange’s policy on adding new coins: are they trying to filter out potential scams or are they looking to list as many coins as possible?
Check out our cryptocurrency exchange reviews for more options.