You can usually connect a bank account or credit or debit card to fund your account. Some crypto exchanges, including Kraken, allow wire transfers from your bank, as well. You can also fund a crypto exchange account from another crypto exchange if you’ve decided you want to change exchanges.

Should You Invest in Ethereum?

This bureau safeguards the US financial system by working to prevent money laundering, terrorist-financing activity and other financial crimes. Everything running on Ethereum requires the native coin (ETH) to pay for network fees, similar to paying a toll for using the network. If you’re thinking about buying the dip how paypal fails fraud victims with Ethereum, keep in mind that its price didn’t just take a tumble in 2025. Over the last year, it’s down nearly 50% — underperforming market leader Bitcoin (BTC 0.52%), as well as Solana, Cardano (ADA 0.23%), and Tron (TRX -1.43%), which are three of its top competitors. Going further back, Ethereum has lost over 45% of its value over the last three years.

Deposit Currency

Bottom line, the ethereum futures growth story that emerged with President Trump’s election continues into 2025, with 11,819 contracts added last year and another 2,700 contracts year to date. You can buy as little as $1 worth of ETH on Paypal, but you’ll pay a 99-cent transaction fee for each purchase. These exchanges operate in most U.S. states and have low transaction fees. Whatever exchange you choose, you want to make sure it is reputable and holds insurance against fraud or cyber-attacks. With that in mind, you are probably wondering, “How can I purchase Ethereum?

For example, if the price of Ethereum is $2,000 and you invest $100, you will purchase 5% of an Ether coin. On top of that, large-scale token sell-offs by long-time holders have added constant pressure to ETH’s price. As per the data by LookOnChain, an “Ethereum OG” recently sold nearly 8,000 ETH (worth $11.8 million) after being inactive for three years. Get the latest news on investing, money, and more with our free newsletter.

Step 5: Secure Your Investment

Remember that malicious actors can use social engineering to figure out people’s passwords. Ensure you have a unique and difficult password to minimize the chances of falling victim to such methods. You will have to enter an email to continue and will shortly receive a confirmation email thereafter. To store your keys safely, they must be transferred from your internet-connected wallet to a cold wallet, which is a wallet without a connection. Regulated exchanges are required to gather client identification is what has become known as Know Your Client (KYC) procedures. This is usually for tax purposes and to discourage illicit behavior on the exchange.

Start Investing In Ethereum Today With Coinbase

Smart contracts also allow you to trade with confidence on the world’s leading social trading platform build software applications on Ethereum, and it was the first blockchain to bring this programmability to cryptocurrencies. A change in leadership could be a good move for Ethereum, as the current path wasn’t working. It’s still too early to know whether this will be a positive change, and a cryptocurrency with this kind of turmoil is a risky investment. In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers.

Ethereum’s blockchain has since laid the groundwork for thousands of decentralized applications (dapps) to build upon, including DeFi, social networks, games and more. These applications are similar to ones you would find on your computer or on the web, but instead, run on a blockchain to enable additional functionality and security that only blockchains can provide. The key innovation of the Ethereum blockchain is its use of smart contracts. Smart contracts are programmable, self-executing pieces of code that allow parties to reach a consensus without needing an intermediary.

In most cases, you’ll deposit money from a bank account, like your personal checking or savings account. You can also generally complete wire transfers, use a debit card or deposit money from PayPal. Ethereum price hasn’t budged much since March, so it stands to reason that institutional investors continue to think the time is ripe to buy ETH. Relative to bitcoin and many other crypto currencies eth has been in the dumps. Over the last three years bitcoin’s price, even at its current $82,244, has more than doubled while the price of ETH is down 32%. So if you’re trading Ethereum or other cryptocurrencies, it’s important to understand what your investment relies on.

How We Make Money

• As the basis for buying Ethereum, it is important to identify the best trading platform for your needs.
• Generally, you can open an account in under 15 minutes and then have a look inside the platform.
• If you’re working with a crypto exchange, you can often deposit funds using a debit card, albeit usually with a hefty charge.
• Keep in mind that these are suggestions and that the exchange that is best for you will depend on your individual needs.
• Once deposited money has cleared into your account, you’ll be able to buy Ethereum.
• “Risk tolerance is the amount of risk one is willing to take, and it will remain reasonably static throughout your lifetime,” Heather Winston, CFP at Principal Financial, previously told GOBankingRates.com.

At the moment, it makes more sense to invest in the faster, more efficient blockchains that have been cutting into Ethereum’s market share, like Solana and Tron. I’d say wait to see whether Ethereum can improve its efficiency and its reputation with investors before you buy any. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Therefore, the price of cryptocurrency depends entirely on what other people will pay for it.

You’ll find the spot market under a “Trade” or “Spot” heading on the site or app menu of the platform you’ve chosen to use. If you see colorful charts with a range of prices, you’re probably in the spot market. Most exchanges let you buy as little as $5 worth of ETH, if not less. Just type in how much you want to spend in USD and let the exchange work out the rest.

This nonprofit organization’s mission is to guide Ethereum’s growth through resource allocation, research and development, and developer support. But there has been increasing frustration with it for being slow to act on issues, including the network’s cash app down current problems and outages lackluster transaction speeds and declining popularity among developers. Ethereum’s poor returns compared to other major cryptocurrencies haven’t helped matters. Because Ethereum was the first blockchain with smart contract functionality, it became the default launching pad for blockchain projects. Five years ago, if you wanted to create your own crypto token or mint a non-fungible token (NFT), you were probably going to use Ethereum.

On a DEX platform, you would need to transfer your ETH to a CEX and then sell to cash out. The next step is to deposit currency into your account to make an Ethereum purchase. For centralized platforms, this can be relatively easy after verifying your payment information. Those looking to buy Ethereum have more options to do so than ever before, so it’s worthwhile to discover which broker or exchange works best for your needs. Since Ethereum is one of the most popular cryptocurrencies, traders can often buy it at a traditional broker and don’t need to open a specialty account to do so. Of course, it’s important to remember that cryptocurrency is incredibly risky and may not be suitable for all investors.

• Ethereum debuted in 2015, and it operates on a decentralized network using a technology called blockchain.
• So if you’re trading Ethereum or other cryptocurrencies, it’s important to understand what your investment relies on.
• You’ll need to provide some basic personal and financial information and answer a few questions.
• Money transferred from a bank through a traditional ACH deposit may take several days to arrive in your trading account.
• These applications are similar to ones you would find on your computer or on the web, but instead, run on a blockchain to enable additional functionality and security that only blockchains can provide.
• So while Ethereum used to be responsible for 96% of the TVL in DeFi protocols, that’s now down to 53%.

It’s worth noting that most stock and investment trading platforms do not allow crypto trades, but Robinhood is one that does. You also want to make sure your exchange includes a crypto wallet to store your investment. Ethereum could certainly bounce back, as it has the name value and a large user base. However, it’s not just about whether Ethereum gets into the green but how it performs compared to other cryptocurrency investments.

Can I buy ETH on Binance with a credit card?

“Top picks” are those we’ve evaluated to be best for certain product features or categories – you can read our full methodology here. If we show a “Promoted Pick”, it’s been chosen from among our commercial partners based on factors that include special features or offers and the commission we receive. The SEC has yet to approve specific fund managers to issue Ethereum ETFs, however.

Since crypto can be a volatile investment, you should never invest more than you are prepared to lose. However, if you’re willing to hold for the long haul, your investment could become extremely profitable. Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website. FinCEN-registered exchanges contribute to a more secure financial system in the US and provide you with better consumer protections compared to exchanges based in other countries. Crypto exchanges founded and based in the US are required to register with the Financial Crimes Enforcement Network (FinCEN), a division of the US Department of the Treasury.

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve. Once you’ve bought some ETH, think about your short and long-term goals. This will help you decide whether to keep it on an exchange or move it to your own wallet. Compare today’s price of Ethereum ($1,463.15 USD) against its all-time high (ATH) price of $4,878.26 USD on November 10, 2021. The closer the bar is to 100%, the closer ETH is to reaching its ATH again. Be prepared to pay a markup on ETH’s market rate in exchange for the convenience.