Buy Ethereum Experience & Results 2021

Ethereum (ETH) is the second largest cryptocurrency by market capitalisation after Bitcoin. But how can you buy Ethereum? In this article we explain how you can easily buy Ethereum online.

For those in a hurry: Ethereum CFD trading in three steps

First step: Open an account

Before you can buy Ethereum, you first have to create an account with a trading platform that supports the currency. Our choice is eToro. Here, opening an account is particularly easy and does not even require verification for a trade of up to €2,000. In addition, the provider is state-regulated and therefore subject to deposit protection.

To open an account, you simply have to enter your personal data in the registration form on the homepage.

Second step: Deposit

Now you will receive an email from eToro with a link that you have to confirm. Then you can start trading.

In order to load the trading account with real money, you have to click on the "Deposit money" button at the bottom left. This opens a window in which you can select the desired payment method, e.g. instant bank transfer.

Depending on the method selected, the payment can now be made and the trading account topped up.

Third step: Purchase

If the deposit was successful, the new account balance is now displayed at the bottom of the screen.

This can now be used to buy the desired currency, in this case real Ethereum or Ethereum CFDs. The easiest way to find the currency is to enter it in the search field. Now the desired adjustments can be made in the purchase field. Here you can also specify how many euros you want to buy Ethereum for.

If you do not want to trade real Ethereum, but rather Ethereum CFDs, these can also be found via the search field. But here's a hint: CFDs are rather something for experienced investors, as the risk of loss is significantly higher here.

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With a market capitalisation of over 250 billion euros, Bitcoin also clearly stands out from all other cryptocurrencies (Ethereum - 23 billion, Ripple - 8 billion). Thus, there is more money in Bitcoin than the whole of Austria generates in one year (2019).

The price developments of the cryptocurrency are also unique. For example, the Bitcoin had a price increase of 1062% in 2017! This means that if you bought a Bitcoin for €930 on 01.01.2017, you could sell it for €11,237 on 01.01.2018. For a short time, there was even an increase to 16,892€. Even in 2020, the price was able to climb from €6,414 to €9,157 on 1 January to 1 June. Buying Bitcoin thus offers enormous potential for anyone willing to take risks.

What is Ethereum? What is Ether?

What is Ethereum

Ethereum is a blockchain protocol founded in 2014 by Vitalik Buterin, which has its own cryptocurrency: Ether. Ether is therefore the cryptocurrency of the Ethereum blockchain. It has some similarities with Bitcoin, in particular the fact that it is run by a network of miners. These miners are paid for providing computing power with the network's own cryptocurrency: Ether. However, Ethereum also has its own characteristics that distinguish it from Bitcoin. The Ethereum blockchain is called a "second-generation blockchain" because it offers many more possibilities. It has its own programming language (Solidity), through which automatically executable contract terms (so-called smart contracts) can be programmed and executed on the Ethereum blockchain. In addition, entire applications that run decentrally - decentralised apps - "dApps" - can be written for the Ethereum blockchain. This feature was revolutionary when it was first introduced because it offers a wide variety of exciting uses. As for the cryptocurrency Ether, transactions here are verified by the network's miners through complex computational processes ("mining"), just as with Bitcoin. These calculation procedures also verify transactions within the Bitcoin network.

Investing in Ether - a good idea?

Before asking yourself whether an investment in Ether is worthwhile, you should first think carefully about a few other aspects. In principle, you should be clear about what goal you are pursuing with an investment in Ether. The possibility of getting rich quickly with Ether is probably not (any longer) given. But we can reassure you. Experienced traders can still make good profits with Ether. A long-term investment in Ether can also make sense. However, you have to be hardened enough to be able to endure the sometimes high price volatility. Numerous experts forecast rising prices, especially in the longer term.
It is therefore essential that you first clarify how much risk you want to take and what you want to achieve with your investment, and that you keep a close eye on the market (for example by following our news). This way you can make a decision that is right for you.

How to buy Ether easily, quickly and safely

There are already numerous options for buying Ether and other cryptocurrencies. If you want to use the safest and most user-friendly option, you should choose between brokers and exchanges.

Find out how these two options differ in the following section so that you are well prepared to invest in Ether.
Differences between Ether CFD brokers and Ether exchanges

Ether CFD Broker

Pros

  •    Broker is state-supervised
  •     Deposits secured by the state
        Purchase of an Ether Wallet not required
  •     Option to trade with leverage
  •     Numerous options for deposits and withdrawals
  •     Mobile trading: possible thanks to apps for Android & iOS
  •     Free demo account to simulate trades

Cons

  •    Trader does not buy Ether but only a certificate
  •     Obligation to make additional payments may arise
  •     Investment with a certain risk

Brokers, on the other hand, enable the purchase of so-called contracts for difference (CFDs), which are also known as contracts for difference. With these instruments, the trader opts for a highly speculative derivative. For this reason, CFDs are only suitable for extensively informed investors.

Therefore, we would like to point out once again how they work: If you buy from a CFD broker, you do not acquire ownership of real Ether, instead you acquire a certificate (CFD) from the CFD broker. ). In a contract for difference, an agreement is made between the buyer and the provider that an underlying asset (in this case Ether) will be exchanged. There are two different types of CFD - a "long" CFD and a "short" CFD. By purchasing a "long" CFD, the buyer receives an Ether CFD at the time of the trade, while the provider receives collateral in the form of cash. When the Ether CFD expires (or at the time it is sold), it is effectively "sold" back to the buyer, and the CFD goes back to the provider. Now the selling price minus the purchase price must be calculated to determine the profit or loss of the investment. The buyer has made a profitable investment with a "long" CFD if the CFD price has risen in the past period. With a "short" CFD, of course, it is the other way round. . The buyer has traded profitably (i.e. made a profit) if the CFD price falls between the time of purchase and the time of sale.

The obligation to make additional margin must also be taken into account: Although the BaFin made a decision in 2017 according to which an obligation to make additional margin for private customers is excluded, it is still possible that individual CFDs are subject to an obligation to make additional margin. Nevertheless, it is possible that individual providers may be subject to a margin call.

Ether exchanges

Pros

  •    Buyer acquires real ownership of Ether
  •     Buyer can gain experience in managing and storing cryptocurrencies
  •     Numerous cryptocurrencies available for purchase
  •     (possibly) trading via leverage possible
  •     (possibly) Mobile trading: apps for Android & iOS
  •     Risk of loss limited to the amount of the purchase price, as there is no obligation to make additional payments

Cons

  •    Neither regulation nor protection of deposits by the state
  •     Ether exchanges are often targeted by hackers, the danger of hacks cannot be completely ruled out.
  •     Investment associated with risk

Ether exchanges give you the opportunity to buy Ether - the underlying asset - directly. The advantage is that you actually come into possession of Ether. However, this also entails full responsibility for their safekeeping. That is why it is essential that you have a secure Ether wallet! Under no circumstances should the Ether you have acquired be stored in your account with the exchange. Because hackers are always targeting Ether exchanges - whether small or large providers. No wonder, because if there is a hack, hackers can steal large amounts of Ether from the wallets of the users or the exchange and transfer them irretrievably. How high this risk is has been shown again and again in recent years. According to statistics, in 2018 alone, more than 800 million US dollars were stolen through the hacking of Ether exchanges.

So please note: if you store your Ether (or other cryptocurrencies) on an exchange, you may suffer a total loss. In other words, if the Ether is not in your wallet, it is not yours. And Ether in the wallet on an exchange are not "kept" by you, but by the exchange. That's why we recommend that you read up on And ethers in the wallet on an exchange are not "kept" by you, but by the exchange. That's why we recommend that you read up on Ether wallets here and purchase one of the secure wallets.

Furthermore, please note the risk: cryptocurrencies are high-risk and speculative assets. In extreme cases, a total loss is possible if the price falls to zero. The past has taught us that heavy price losses are not unusual. This has happened to Ether time and time again, so take this risk into account. You are at no time immune to such price drops, which can happen again at any time. With cryptocurrencies, a total loss can occur at any time and can never be completely ruled out. However, your loss on the actual purchase of cryptocurrencies cannot exceed the amount of your purchase. However, this is only the case if you trade real Ether and do not purchase derivatives (or certificates as with CFDs).

In other words, there is no margin call when purchasing real Ether.

The difference between real ETH and Ether CFDs

So far, brokers and exchanges differ. From the differences outlined, it naturally follows that you can choose two different forms of investing in Ether:

    With Ether exchanges, you trade "real" Ether.
    Ether brokers trade in Ether CFDs. These are financial instruments that use the Ether price as the underlying asset.

Let's summarise the advantages and disadvantages of real Ether and Ether CFDs in a clear presentation:

Ether CFD

Pros

  •    Trading at lower fees
  •     State regulates and secures deposits with the broker. In the unfortunate event of a hack, you are therefore on the safe side here
  •     Investor is protected from hacks (technically possible, but deposit protection is given)
  •     The investor is spared the inconvenience of setting up a wallet.
  •     Investor can trade with leverage if desired

Cons

  •    No "real" Ether
  •     High fees are disadvantageous for long-term investments
  •     Risky investment when trading with leverage, as there is an obligation to make subsequent payments

Genuine ETH

Pros

  •    Investor comes into actual possession of real Ether, the management and custody of which is his responsibility
  •     Learning how to handle cryptocurrencies
  •     Lower fees for long-term holding of Ether with this option

Cons

  •    Risk of hacks and internet attacks, as ETH is stored in the wallet at the exchange.
  •     The investor is responsible for the safe management and storage of the wallet keys. If the investor loses them, it is impossible to recover the ETH.
  •     For truly secure storage of ETH, the investor must purchase either a paper or a hardware wallet.
Buy Bitcoin

Buy Ethereum CFD: Step by step guide for eToro

The premium partner of Eintracht Frankfurt and sponsor of many other companies is the regulated and licensed trading platform eToro. This well-known provider is ideal for buying Ethereum CFDs. Moreover, eToro offers a nice additional feature with social trading.

Create an account with eToro

Our buttons will take you to the eToro platform, which you may need to change to German. Then click on "Register now" to enter your personal details in the next window. Use a secure password and finally accept the terms and conditions to create an account with eToro.

Deposit money

You will be taken to eToro's homepage. From here, select the "Deposit money" option - you can deposit up to €2,000 without verification. However, sooner or later you should still verify yourself in order to be able to use all functions to the full extent.

Now all you have to do is select your desired method from the payment methods and make the payment afterwards. Your money should then be available.

Bitcoin ready for epic breakout

Buy Ethereum CFD

After you have successfully deposited money, you can start buying Ethereum CFD at eToro. Click on "Markets" in the navigation menu and then on "Crypto". Here you will be shown a number of cryptocurrencies and all the necessary details about each currency.

To buy the desired Ethereum CFD, you need to click on "Buy" and then on "Open Trade".

You have just bought your first Ethereum CFD on eToro. We wish you every success with it!

Still haven't opened an account with eToro?

Buy Ethereum CFD: Guide to 24/7 Crypto Currencies

A popular option for buying Ethereum CFDs is the provider 24/7 Crypto Currencies. This is a broker that specialises in cryptocurrencies. Accordingly, there are many digital currencies on offer here.

Opening an account

The link provided leads directly to the short registration mask of 24/7 Crypto Currencies, where name, telephone number and email address have to be entered.

The next step is to be redirected to an experienced trading provider.

The deposit

Depending on which provider you were redirected to and where an account was created, a demo account and various deposit methods, such as credit card or Bitcoin transfer, are now available.

If you want to start trading for real, you first have to load your account with real money. To do this, go to the menu item "Deposit". Here you select the desired payment method and make the payment. The minimum deposit amount is normally 200€.
Bullish Bloomberg report shows

Buy CFD

When paying by credit card, the money is usually immediately on the trading account and you can start immediately. With some brokers, the personal data must first be verified. This is usually done quite quickly by uploading proof of address and ID.

You can then select your preferred currency, in our case Ethereum, in the trading area. Now all that remains is to set the desired purchase amount and click on "Buy" or "Buy".

Congratulations! With this, the first Ethereum CFDs are bought at 24/7 Crypto Currencies!

Buy/Sell Ethereum CFD: Step by step guide for Plus500

Buy Ethereum CFD

Plus500 is a well-known, government-regulated and licensed CFD platform. This makes this provider perfect for trading Ethereum CFD.

76.4% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Set up an account with Plus500

One of the buttons will take you to Plus500's platform, which you may need to change to "German". After that, you need to click on "Start trading now" and then enter your email address and choose a strong password.

76.4% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Deposit money

You will then be taken to the Plus500 overview page. From here, navigate to the "Deposit" option at the top left of the menu.

Select your preferred payment method, which in our example is Sofortüberweisung. Depending on the method selected, the transaction can be carried out directly afterwards and you can wait for the payment to be received.

Note: Before trading, the identity and residential address must first be verified. For this purpose, the corresponding documents must be uploaded in the account area.

Trade Ethereum CFD

Once your payment has been received, you can use it to buy Ethereum CFD at Plus500. To do this, click on "Trade" on the left and then "Crypto". Alternatively, you can search for the currency you want using the search bar.

You will now be shown a screen on the right that provides you with information on prices. To buy Ethereum CFD now as in our example, make the desired settings and click "Buy".

After the purchase

So, now you've bought your Ether. But what now? You face two important challenges to make the most of your investment First, of course, you need to keep your Ether safe. At a later point in time, you will want to sell your Ether - ideally, of course, with a nice profit - and we will show you how best to do that right here below.

Store Ethereum safely

Store Ethereum safely

As with all other cryptocurrencies, you need a so-called wallet (a kind of digital wallet) in which you can hold your Ether.

So the exchange does this for you, which is quite convenient and comfortable. However, this also comes with two important disadvantages. The exchange then also controls the private key of your wallet, which is required to initiate and carry out transactions from the wallet. Unfortunately, the biggest disadvantage of having a wallet at an exchange is that they are not very secure. Of course, reputable exchanges will take all possible measures to protect their members' keys.

At the same time, however, a certain residual risk unfortunately cannot be ruled out. And as the past years have unfortunately shown time and again, there are also black sheep in the industry.

Perhaps you have heard of the case of the exchange MtGox. It happened back in 2014, when investors were robbed of bitcoin worth several billion dollars. Simply because the operator of the site had made off with the keys of the members.

    It is therefore highly recommended to avoid such dangers. The best way to do this is to transfer your Ether to your own wallet, for which only you manage the keys and additionally secure it.

Selling Ethereum

Selling Ethereum

So, you want to sell your Ether again? That's easy and ultimately works in exactly the opposite way to the buying process.

In order to start the selling process, you need to have the Ether back in your Ether wallet at the broker. However, you should not have kept them here but transferred them to your own secure wallet.
If you have done this (hopefully?!), then the first step is to transfer the Ether from your wallet back to the broker's wallet.
You can also sell your Ether on a different exchange than the one where you bought the ETH. You have the choice between a variety of providers, and because the transaction costs can vary here - it pays to compare fees.

If you want to sell Ethereum later on, you will find detailed instructions under the link.

FAQ

What is Ethereum?

Ethereum is a type of cryptocurrency. After Bitcoin, Ethereum is the second largest cryptocurrency on the market. However, it is basically a network that uses the blockchain to securely encrypt all transactions within it.

What is the difference between Ether and Ethereum?

Ether is the native token of the Ethereum Blockchain and serves as the network's means of payment, as Etherum is basically a network.

How can you store Ethereum safely?

At this point, you need a kind of digital wallet (Ethereum Wallet).

How can you buy Ethereum?

First you need to create an account with a trading platform. Then you have to deposit money and then you can already buy Ethereum.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.