Ethereum’s applications in the development of NFTs have likely brought it to your attention. You know it as the second most widely used crypto and want to get some. Ethereum, or Ether, is one of the two cryptocurrencies besides Bitcoin having greater stability and sector penetration. If cryptocurrencies should be a part of your investment portfolio and you want to purchase Ethereum, below is a step-by-step guide on how to do that.
What is Ethereum?
The Ethereum blockchain is the first programmable blockchain in history. Developers can use the Ethereum blockchain to create decentralised applications (DApps). To access that network, developers must buy Ethereum’s native ether (ETH) token. Similarly, users must pay in the ether if they wish to interact with a decentralised application.
What Is Ethereum’s Price?
The value of Ethereum, like that of other cryptocurrencies, is very volatile. Its price peaked at almost $4,800 in November 2021, then dropped steadily for the next several months, and now it hasn’t been above $2,000 since June. The bearish performance of Ethereum in 2022 may be attributed mainly to the crypto winter that has caused the value of various cryptocurrencies to drop.
Even with the recent decline, Ethereum is still the second most valuable cryptocurrency in the world, behind only Bitcoin. In September, the system underwent a significant change known as the Merge, which involved a switch from proof-of-work to proof-of-stake. To name just one of the many new features, it introduces the option for users to stake their Ether in exchange for interest-like returns.
How to Buy Ethereum in Australia?
Select a Crypto Exchange
There is currently no way to buy crypto through a traditional financial institution. Instead, you must use a cryptocurrency trading platform, such as CoinSpot, Coinbase, Gemini, or Kraken. A wide variety of bitcoin exchanges are available, from simple platforms to comprehensive trading dashboards for seasoned traders.
Due to Ethereum’s widespread use, you can purchase ether from most cryptocurrency marketplaces. You can also buy this coin via service providers such as Venmo or PayPal. Please do some research before signing up for a platform because they all have various prices, levels of security, and other features.
Create An Account
After deciding on an exchange, the next step is to sign up for an account and verify your identification. The specifics of necessary data will differ from transaction to transaction. Identifying information such as name, DOB, and address is typically required.
To confirm your identity and protect your account, you must provide a copy of your government-issued photo identification. In all, this procedure can be finished in a few minutes.
For instance, to create a CoinSpot account, you need to provide your email address, personal details (name, address, phone number. etc.), and driver’s licence for verification.
Fund Your Account
You can purchase digital assets with traditional fiat on some crypto exchanges. In most cases, it’s possible to deposit Australian Dollars (AUD) via bank transfer, debit card/credit card or payment provider. If you want a platform that offers a wide range of deposit methods, we recommend CoinSpot.
A few exchanges provide crypto-to-crypto trading. This is useful if you have another crypto, such as Bitcoin, whose value has surged, and you wish to diversify your holdings. If you swap one cryptocurrency for another, you may have to pay taxes (read more about Australia Crypto Tax Guide). Verify that the exchange you intend to use allows you to trade the cryptocurrency pair you have in mind and not simply ETH.
Purchase Ethereum
To buy Ethereum, enter the ticker symbol ETH in the “buy” field of your exchange and the quantity of Ethereum (ETH) you wish to acquire using Australian Dollars (AUD). After completing this step, confirm your “Buy” order and execute your trade.
If you do not wish to acquire a whole Ethereum token or do not have sufficient funds in your account, you can purchase a fraction of one. For example, if the price of Ethereum is AUD$2,000 and you spend AUD$100, you will get 5% of an Ether token.
After completing your transaction, you can check the ETH coins in your account.
Keep Your Ethereum
After purchasing Ether, you have two primary options for storing your cryptocurrency.
Some brokers or exchanges permit you to keep your cryptocurrency on their system, meaning they will have sole control/custody of your private keys. Most of them store their users’ assets offline to prevent huge theft, but historically, exchanges have been hacked.
If you want peace of mind, you can opt for two types of non-custodial wallets: hot wallets or cold wallets. This alternative needs the creation of a wallet and the transfer of previously acquired cryptocurrency.
Hot wallets store your cryptocurrency online and provide access via an app or a browser plugin. Meanwhile, “cold” wallets are physical devices, and you must manually connect them to the internet each time you access your crypto holdings. Cold wallets are safer than hot wallets but less convenient.
Where to Buy Ethereum in Australia?
CoinSpot– Overall Best Place to Buy Ethereum
After reviewing more than 50+ exchanges and brokers, we concluded that CoinSpot is the one-stop place in Australia for any need for cryptocurrencies. It’s suitable for both first-timers and seasoned traders and investors. It supports a wide range of deposit methods for buying ETH and over 270+ coins/tokens, supported with competitive fee structures for instant traders, OTC, and SMSF investors.
In addition to the in-platform NFT marketplace, staking services for you to stake ETH, and responsive 24/7 customer support, the platform is highly secured as it’s AUSTRAC-regulated and ISO-certified. It always leads the way in ensuring transparency in the sector. CoinSpot’s external financial report audit 2022 shows that it held all coins 1:1 and achieved the highest level of assurance under Australian Auditing Standards.
Currently, the platform supports AUD deposits via bank transfer, Debit/Credit, POLi, PayID/Osko, Cash, and BPAY. The CoinSpot deposit fees are zero for instant deposits via POLi, PayID/Osko. BPAY deposits incur a 0.9% deposit fee (charged by the third-party service provider, not CoinSpot), and a 2.5% deposit fee applies for cash deposits at Blueshyft.
As said before, to buy ETH on CoinSpot, you just need to register an account, complete the verification, fund your account and start trading. You then can store your Ethereum on CoinSpot’s flexible Multicoin Wallet to regularly trade it or stake it to earn high interest. You can also send your coins from your CoinSpot account to an external cold storage wallet if you want to hold Ethereum as a long-term investment.
Binance – Best Crypto Exchange for Experienced Traders
Binance is among the best places to purchase Ethereum if you have experience in the field. Binance’s advanced platform offers seasoned investors access to a range of tools. This provides everything from customisable charts, advanced orders, and technical indicators to sketching instruments.
Regarding how to purchase Ethereum on Binance, when using a debit or credit card, you will be charged 4.5% plus the usual buy fee of 0.5%, which is rather costly. In contrast, Binance accepts fee-free ACH and wire transfers, but you must wait for clearance before buying ETH.
Buying Ethereum on Binance is also possible via cryptocurrency deposits. This expedites the KYC verification process and also incurs no deposit costs. Binance provides many trading pairs denominated in Ethereum so that you can pay with USDT, Bitcoin, or BNB. And, if you select a crypto-to-Ethereum exchange, a 0.1% fee will be applied for each swap.
Crypto.com – Best Exchange to Buy Ethereum With MasterCard/Visa
Crypto.com provides a variety of other crypto-related goods and services. For instance, it supports crypto loans and more than 250 cryptocurrencies, with more tokens being added often. You can acquire NFTs using Ethereum on the platform’s NFT marketplace, receive interest on your cryptocurrency holdings, and even obtain a Visa debit card.
The quickest way to purchase Ethereum at Crypto.com is using a Visa or MasterCard, as your transaction will be executed immediately. However, be aware that Crypto.com imposes a flat 2.99% transaction fee for this payment method.
Crypto.com was created with novices in mind. On its primary website and iOS/Android mobile app, the user experience is uncluttered and simple. The account registration procedure is straightforward, and the KYC verification can be finished within a few minutes.
Coinbase – Best Crypto Exchange for First-Time Investors
Coinbase delivers the optimal blend of user-friendliness and security. Coinbase is frequently the platform of choice for first-time Ethereum buyers, not least since the platform was designed with novices in mind. Coinbase requires no prior knowledge of bitcoin trading, and opening a verified account takes less than a few minutes.
You will have access to various cryptocurrencies, including Ethereum, Bitcoin, Monero, and others. But note that if you use a debit card to purchase Ethereum in Australia, there are better options than Coinbase. Due to a 3.99% commission, this is the case.
Coinbase is also authorised by the Financial Conduct Authority. The platform employs top-tier security mechanisms, such as cold storage. In addition, Coinbase has a huge staff of skilled personnel and a fully functional risk management division.
eToro – Best Crypto Exchange to Buy Ethereum and Stocks
eToro permits the purchase of Bitcoin and 40+ other cryptocurrencies, such as Binance Coin, Polkadot, XRP, the Graph and Shiba Inu, and dozens of other marketplaces. Also included are ETFs, gold, energies, indexes, and currencies.
Additionally, eToro is renowned for its commission-free service, which makes it an incredibly user-friendly platform. In other words, there are no brokerage costs for purchasing Ethereum and no account maintenance costs. Thus, you can buy and hold your Ethereum investment for as long as you choose.
Regarding security, the eToro platform has a security licence from AISC, CySEC, and FCA. Moreover, the platform participates in the FSCS protection plan. But this scheme doesn’t cover digital assets such as Ethereum.
Should I Buy Ethereum?
Over 116 billion Ethereum tokens are presently held by investors, attesting to the cryptocurrency’s popularity. However, the fact that it is one of the most well-known cryptocurrencies does not suggest that you should invest in it. Only you can decide in consultation with your financial advisor.
Before purchasing any risky digital assets, you should research and ensure risk tolerance. It’s idealistic to have a sizable “rainy day” fund, be exposed to low debt, and have solid retirement plans. It is crucial to diversify your portfolio, so only a small amount of your assets should be in Ethereum or other cryptocurrencies.
Also, be aware that bad actors exist inside the crypto realm. The Federal Government’s Australian Competition and Consumer Commission (ACCC) reports that between 1 January and 1 May 2022, Australians lost over $205 million to scams, of which $113 million was tied to crypto. The ACCC says crypto also ranks first as the prevalent payment method for investment scams.
Conclusion
If you want to purchase Ethereum, you should compare crypto exchanges in Australia based on their features, fees, security, and general reputation to choose which platform best suits your needs. For Australian traders and investors, we recommend CoinSpot as the best overall crypto exchange to buy Ethereum.
Remember that owning and holding Ethereum is not risk-free. Consider investing in ETH as part of a larger strategy, and if you have any questions, consult with a financial professional.
Once you’ve acquired some ETH, consider your short- and long-term objectives. This can help you determine whether to keep the cryptocurrency on an exchange or transfer it to your wallet.
Disclaimers: This post does not advocate any particular cryptocurrency, exchange, or broker, nor does it recommend cryptocurrencies as an investment class.
