How to Buy Ethereum in 2024 – Beginners Guide

Ethereum (ETH) is the second-largest cryptocurrency by market capitalization. Its blockchain network is used by thousands of projects, ensuring demand for ETH increases over time.

This beginner’s guide explains how to buy Ethereum from a crypto exchange. It also assesses Ethereum’s potential as a long-term investment and what risks need consideration.

Key Points

  • Ethereum is a decentralized blockchain network and cryptocurrency launched in 2015
  • Its native crypto token is called Ether (ETH) and is currently priced at around $1,600
  • Ethereum’s network enables developers to build decentralized apps and issue new tokens
  • Demand for ETH comes from gas fees needed to power Ethereum transactions
  • ETH hit an all-time high price of $4,891 in November 2021 but is 65% cheaper now
  • Exchanges like eToro allow buying fractional ETH from just $10 for beginners

How to Buy Ethereum in 5 Steps

Here is a quick overview of how to buy Ethereum in 2024:

  1. Open an account with a crypto exchange like eToro that accepts small investments
  2. Verify your account by uploading ID and proof of address documents
  3. Decide investment amount based on risk appetite and budget
  4. Make a deposit via debit card, bank transfer or e-wallet
  5. Buy Ethereum – just enter the amount and confirm the order

Where to Buy Ethereum – Best Exchanges

Hundreds of crypto exchanges support Ethereum but most are unregulated. Fees, security, ease of use also vary. The best platforms for beginners are:

  • eToro – user-friendly, fractional ETH from $10, smart portfolios
  • Coinbase – popular, debit cards accepted, robust security
  • Kraken – low fees, margin trading, 200+ cryptos
  • Binance – world’s largest exchange but recent hacks
  • Bitstamp – around since 2011, great for small traders

eToro is best for beginners with small budgets. It has simple sign-up, accepts debit cards, and lets you mimic pro traders.

Step-by-Step Tutorial

Follow this walkthrough to buy Ethereum on eToro in under 5 minutes:

  1. Visit eToro and click Sign Up to create your account
  2. Upload ID such as passport and proof of address documents
  3. Deposit $10+ via debit card or PayPal
  4. Search for “Ethereum”, click Trade, enter your amount
  5. Click Open Trade to buy fractional ETH tokens
  6. When selling, just choose Close Trade – cash settles in your account

What is Ethereum?

Ethereum is a decentralized blockchain network launched by Vitalik Buterin in 2015. It introduced the ability to create smart contracts and decentralized applications (dApps) on top of its platform.

The native crypto asset is called Ether (ETH). This is required to power transactions and interact with smart contracts on the Ethereum network. The terms Ethereum and Ether are often used interchangeably when referring to the cryptocurrency.

Hundreds of crypto projects have launched as ERC-20 tokens on top of Ethereum. These all need ETH to pay network gas fees, creating continual demand. Ethereum is also the most popular blockchain for non-fungible tokens (NFTs) and crypto gaming apps.

Why Invest in Ethereum?

Here are some of the key reasons why Ethereum is considered a top investment:

  • Huge 15,779x growth from ICO price of $0.31 to $4,891 all-time high
  • Currently 65% cheaper than its peak price
  • Network effects from thousands of dApps needing ETH for gas fees
  • Dominates market for NFTs which surpassed $11.8 billion in 2022 sales
  • Upgrades have made Ethereum more scalable and energy-efficient
  • Can buy fractional ETH so no need for full coin purchase

Ethereum has risks too. Its unregulated nature means no investor protection. It’s also highly volatile, often moving +10% a day, so gains aren’t guaranteed long-term.

Price Predictions

In 2020, a leaked report from major US bank JPMorgan predicted Ethereum reaching a staggering price of $20,000 per ETH by 2025 on the back of strong development activity and DeFi growth.

More recently, analysts at crypto investment firm Fundstrat have issued a 2030 price forecast of $11,500 per ETH token.

If achieved, these prices represent substantial returns on current levels near $1,600. However past performance does not guarantee future gains though.

Is Ethereum a Safe Investment?

Cryptocurrency investments are generally considered high-risk assets. They remain largely unregulated by financial watchdogs and are prone to volatility.

However Ethereum is now a battle-tested network having operated securely for over 7 years since 2015. Major upgrades have also enhanced decentralization and energy efficiency.

You can reduce risks by:

  • Investing only what you can afford to lose
  • Using regulated brokers like eToro that offer protection schemes
  • Storing ETH tokens yourself in cold hardware storage

For beginners, keeping ETH at a secure platform like eToro may be the best approach.

Conclusion

Ethereum presents a high-upside investment opportunity but carries risks too. This beginner’s guide has explained the need-to-knows about buying Ethereum safely in 2024.

Key takeaways:

  • Ethereum growth potential is still substantial from today’s prices 65% below its all time high
  • Smart contract platform allows ERC-20 projects to be built on top requiring ETH for gas fees
  • eToro offers the easiest way to start investing in fractional ETH from just $10
  • Consider using stop losses to protect your capital from excessive volatility

Hopefully this provides a solid starting point for researching this megacap cryptocurrency!

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