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Best Places to Buy Ethereum

Review Updated
Emma Newbery
Author: Emma Newbery
Emma Newbery
Emma Newbery

Emma lives in Bogota, Colombia, where she owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to Motley Fool Money since the summer of 2019.

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Eric McWhinnie
Fact Checked: Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Ethereum (ETH) is the second-biggest cryptocurrency by market cap and is available from almost every crypto platform. There's no single best place to buy Ethereum, though. It all depends on your investment needs and how you plan to trade.

We've dug into the top cryptocurrency apps, exchanges, and brokerages to pick the best options.

Kraken
Open Account for Kraken

On Secure Website.

Top places to buy Ethereum

Ratings Methodology

Our Rating:

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

One of the oldest crypto exchanges on the block, with a wide range of features and trading tools. It has a strong mix of cryptocurrencies and places a strong emphasis on security.

Fees:

$10 purchase minimum, other fees charged on a per-service basis. 0.0% - 0.40% maker-taker fees on Kraken Pro

Account Minimum:

Varies by cryptocurrency

Open Account for Kraken

Our Rating:

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

Coinbase's easy-to-use platform and accessible resources make it a good choice for new traders. It could be more transparent about its fees, which are on the high side. Customers in some U.S. states can stake ETH on the network, which means tying it up to earn interest and contribute to network security.

Fees:

Variable fees (Coinbase), 0%-1.20% (Coinbase Advanced Trade), $29.99 monthly (Coinbase One)

Account Minimum:

$2

Open Account for Coinbase

Our Rating:

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

Gemini stands out for its commitment to security, crypto credit card, and solid cryptocurrency selection. The beginner-friendly platform is available throughout the U.S.

Fees:

$0.99-$2.99 orders under $200, 1.49% for orders over $200 (default), 0% - 0.40% (Gemini ActiveTrader)

Account Minimum:

$0

Open Account for Gemini Exchange

Our Rating:

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

Robinhood pioneered zero-commission trading in stocks and has brought the same ethos to its crypto offer. Its crypto wallet sets it apart from other crypto brokers. Overall, it's a great option for those who want to keep their stocks and crypto investments in one place.

Fees:

$0 for stocks, ETFs, options, and cryptocurrencies

Account Minimum:

$0

Open Account for Robinhood

Limitations Apply

Our Rating:

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

If you only want to buy Bitcoin, Ethereum, or Bitcoin Cash, the versatile trading platform makes it easy to add crypto to your portfolio alongside other investments. It stands out for its social trading tools, particularly the CopyTrader feature that allows you to copy your favorite investors.

Fees:

1% for trading crypto plus spread, $0 commission for stocks & ETFs

Account Minimum:

$10

Special Offer

Limited time offer: Deposit $100 and get a $10 bonus. Terms apply.

Open Account for eToro

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Bottom Line

Bitcoin IRA's tax-deferred crypto and gold investing is a simple way to diversify your retirement savings, but the fees are high, and volatility could also be an issue

Fees:

0.99%-2.99% deposit fee, 2% transaction fee, 0.08% monthly security fee

Account Minimum:

$1,000

Special Offer

Sign-Up Today and Earn a $150 Reward

Open Account for BitcoinIRA

Our Rating:

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

A user-friendly platform with a broad mix of coins and tokens. U.S. investors can only access Crypto.com's services through its mobile app, which is available in 49 U.S. states. Customers need to lock up Crypto.com's native coin (CRO) to make the most of the app's benefits.

Fees:

Variable spread

Account Minimum:

Varies based on cryptocurrency

Read Review
Crypto regulation

The SEC advises investor caution when it comes to crypto. It is pursuing charges against several major cryptocurrency platforms, claiming they are trading unregistered securities. If major cryptocurrencies are ruled to be securities, it could impact the way these and other cryptos are traded in the U.S. As a crypto investor, make sure you understand how the SEC cases and other proposed regulatory changes could impact your portfolio.

Reviews of our favorite places to buy Ethereum

Kraken

Our pick for: Advanced trading tools

Why we picked it: Kraken is a well-known cryptocurrency exchange that will appeal to both new and advanced investors. Not only does Kraken Pro boast low trading fees, the customizable views and other tools will simplify any technical analysis.

What you should know before choosing Kraken: Kraken's Instant Buy fees can add up, so try to switch to the Pro platform to reduce your costs. Kraken is another of the crypto exchanges that faces SEC charges.

Open a Kraken account

Coinbase

Our pick for: Broad cryptocurrency selection

Why we picked it: Coinbase is a popular cryptocurrency exchange with features that will suit investors of all levels. It has a competitive mix of cryptocurrencies, making it a great choice for anyone who wants to go beyond Ethereum and Bitcoin.

What you should know before choosing Coinbase: Coinbase fees can be quite steep, particularly if you are not using the Coinbase Advanced platform. Coinbase is one of several crypto exchanges that faces SEC charges.

Open a Coinbase account

Gemini

Our pick for: Security

Why we picked it: Gemini is a user-friendly crypto platform that prides itself on security. It is available in all U.S. states. It has all the products and features you'd expect from a top crypto exchange, including a crypto credit card.

What you should know before choosing Gemini: Gemini had difficulties when the company that was running its Earn program collapsed. However, it has made all investors who lost money whole and settled SEC charges related to the case.

Open a Gemini account

Robinhood

Our pick for: Broker with a crypto wallet

Why we picked it: It's unusual to find a crypto broker that allows users to deposit and withdraw their assets. Robinhood's crypto wallet stands out because it does exactly that. Plus, the broker applies its zero-commission ethos to crypto trading.

What you should know before choosing Robinhood: Robinhood has a limited selection of coins and tokens and less functionality than you'll find with a full crypto exchange. While it does not charge a commission, you will pay a spread when you trade crypto with Robinhood.

Open a Robinhood account

eToro

Our pick for: Socially-driven investing

Why we picked it: eToro's social trading functionality means you can interact with other investors and even copy successful traders. If you want to add Bitcoin or Ethereum to your portfolio alongside other securities, a crypto broker could be a good choice.

What you should know before choosing eToro: U.S. customers can only buy or sell a couple of cryptos on eToro after the brokerage reached an agreement with the SEC. Watch out for eToro's crypto fees as they are higher than other products on the market.

Open an eToro account

BitcoinIRA

Our pick for: Crypto retirement investing

Why we picked it: BitcoinIRA simplifies the process of tax-advantaged crypto investing. The platform will work with you to set up your IRA and start trading. It offers a solid mix of cryptos, including Bitcoin and Ethereum.

What you should know before choosing BitcoinIRA: Cryptocurrencies are volatile investments that might not fit with everybody's retirement plans. Ensure you're comfortable with the risks and costs before you sign up. You'll need to pay BitcoinIRA to set up your account as well as ongoing account and trading fees.

Open a BitcoinIRA account

Crypto.com

Our pick for: Mobile app

Why we picked it: Crypto.com's highly rated mobile app makes it easy to manage your crypto investments on the go. The platform has a competitive mix of cryptocurrencies and products. You can also earn rewards on your spending with Crypto.com's prepaid debit cards.

What you should know before choosing Crypto.com: You'll need Crypto.com's CRO token to unlock more benefits on the platform. A number of features are not available to U.S. users, including its web-based interface and staking functionality.

Read our full Crypto.com review

Compare the best platforms to buy Ethereum

Offer Best For Commissions Next Steps
Kraken Offer Image

Kraken

Best for advanced trading tools

$10 purchase minimum, other fees charged on a per-service basis. 0.0% - 0.40% maker-taker fees on Kraken Pro
Open Account for Kraken
Coinbase Offer Image

Coinbase

Best for broad cryptocurrency selection

Variable fees (Coinbase), 0%-1.20% (Coinbase Advanced Trade), $29.99 monthly (Coinbase One)
Open Account for Coinbase
Gemini Exchange Offer Image

Gemini Exchange

Best for security

$0.99-$2.99 orders under $200, 1.49% for orders over $200 (default), 0% - 0.40% (Gemini ActiveTrader)
Open Account for Gemini Exchange
Robinhood Offer Image

Robinhood

Best broker with a crypto wallet

$0 for stocks, ETFs, options, and cryptocurrencies
Open Account for Robinhood

Limitations Apply
eToro Offer Image

eToro

Best for socially-driven investing

1% for trading crypto plus spread, $0 commission for stocks & ETFs
Open Account for eToro

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
BitcoinIRA Offer Image

BitcoinIRA

Best for crypto retirement investing

0.99%-2.99% deposit fee, 2% transaction fee, 0.08% monthly security fee
Open Account for BitcoinIRA
Crypto.com Offer Image

Crypto.com

Best for mobile app

Variable spread
Read Review

What is Ethereum?

Ethereum was the first cryptocurrency to introduce smart contracts. A smart contract is a tiny piece of code that lives on the blockchain, and it's the technology behind the decentralized finance (DeFi) industry. A large proportion of decentralized applications are built on the Ethereum ecosystem, although Ethereum now has a lot of competitors that want to take some of its market share.

Where can you buy Ethereum?

You can buy Ethereum from almost all top cryptocurrency apps and exchanges. You can even buy Ethereum from some Bitcoin ATMs in the U.S. Let's look at the differences between apps, exchanges, and brokers.

  • Cryptocurrency exchanges: Plenty of exchanges offer lots of ways to deposit fiat currency (such as U.S. dollars), reasonable fees, and a sizable list of tradable coins. On the downside, these exchanges are not subject to the same regulations as stock brokers.
  • Cryptocurrency apps: Most cryptocurrency brokers and exchanges also have mobile apps to make it easy to trade on the go. You can also buy Ethereum using payment apps such as Venmo and PayPal.
  • Cryptocurrency brokers: Several traditional stock brokers offer a limited selection of cryptocurrencies alongside their other products. These are a great option for people who want to add Ethereum to their investment portfolio without opening a new crypto exchange account.
  • Stock brokers: The SEC has approved several spot Ethereum exchange traded funds (ETFs). This means you can get exposure to Ethereum without having an account with a crypto exchange or broker.

TIP

The right crypto investing mindset

Investing in crypto can be extremely risky. We think investors should approach these assets like any other technological investment — with a long-term mindset and the expectation of ups and downs. The Fool realizes there may be opportunities for investors. We do actively recommend select cryptocurrencies to our community. But we encourage everyone to be well versed prior to investing to understand the potential risks and rewards.

What to look for when buying Ethereum

Buying Ethereum for the first time can be a little daunting. But there are a lot of excellent products out there, it's just a question of finding the right platform 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?

Broadly speaking, there are three types of fees to watch out for:

  • Deposit fees
  • Trading fees
  • Withdrawal fees

We'll break these down in more detail below.

2. How will the platform secure your assets?

Cryptocurrency investment is an exciting world, but unfortunately it has attracted its fair share of bad actors. In addition to the risk of hacking, the collapse of FTX demonstrated that we don't always know what an exchange is doing with our money. Simply put, cryptocurrency exchanges don't have the same investor protections and security as you'd find in banks and other financial institutions.

If a crypto exchange or broker is not transparent about its security systems and reserve amounts, this should be a major red flag. Sometimes you'll read that a company doesn't want to disclose these details for security reasons, but that's misleading. There's plenty of information a trading platform can reveal without compromising its systems.

3. Are there any sign-up bonuses?

Some platforms offer sign-up bonuses for new investors. You might find a platform that gives you a small bonus when you make a certain amount of trades or deposit a certain amount of money.

While these are tempting, don't let them drive your decision-making. It may be a great tiebreaker, but there's no point in signing up for the wrong exchange just because you want the bonus.

4. Is it available in my country or state?

Some cryptocurrency exchanges can't operate in the U.S., and only a handful are licensed to operate in every state. For example, New York has some of the strictest crypto exchange regulation and will actively pursue rule breakers. As such, it's good to check that the exchange you want to use is allowed 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 want an easy-to-use platform with plenty of educational resources. If you prefer mobile apps to web browsers, look for an exchange with a good app.

Other useful features include:

  • The ability to set up automatic monthly transfers
  • Good customer service
  • An external wallet

We'll talk about wallets in more detail shortly. If you're an active Ethereum trader, you might also want advanced features such as limit orders and good charting tools.

6. Does it have a wide selection of cryptocurrencies?

If you only want to buy Ethereum or Bitcoin (BTC), you won't need an exchange with lots of tokens. However, if you see buying Ethereum as the first step on a longer crypto-trading journey, a long list of altcoins is a bonus. It's worth understanding an exchange's policy on adding new coins too -- does it try to filter out potential scams or is it looking to list as many coins as possible?

Check out our cryptocurrency exchange reviews for more options.

TIP

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What are the fees to buy Ethereum?

Sadly there isn't a lot of consistency in how different crypto platforms calculate their fees. With that in mind, watch out for the following.

1. Deposit fees

Fees vary depending on whether you want to deposit money by credit or debit card, bank transfer, or another method. Most platforms let you deposit money for free if you use a bank transfer. Fees for credit card payments are usually 3% to 5%. If you move existing crypto assets from another platform, you'll normally be able to deposit them for free.

2. Trading fees

Trading fees can eat into your profits and come in several guises. You may be charged a set fee, a spread, and/or a percentage of the trade. Several exchanges offer reduced fees if you pay using that exchange's native currency. Sometimes the fee is built into the rate you're offered, which is the least transparent -- it may look as if there is no trading fee, but you'll get less Ethereum for your dollars.

3. Withdrawal fees

The final fee to pay attention to is withdrawal fees. These vary from platform to platform and crypto to crypto. Find out how much you will have to pay to withdraw fiat money from your bank account. In terms of cryptocurrencies, the fee usually depends on what blockchain you are using. It's sometimes worth converting your assets into a cheaper crypto before you make a withdrawal.

Is Ethereum a security?

The crypto regulatory landscape is evolving throughout the world. It isn't yet clear what shape it will take in the U.S. where currently most cryptos are considered to be commodities. That brings them under the remit of the Commodities and Futures Trading Commission (CFTC). However, the Securities and Exchange Commission (SEC) argues that many cryptocurrencies are, in fact, unregistered securities.

If the SEC is correct, it would have significant implications for how cryptocurrencies are bought and sold in the U.S. There are strict rules around how securities report information and how they can be traded.

For Ethereum investors, a lot rides on how ETH is classified and what regulations the U.S. introduces. The SEC's approval of spot Ethereum ETFs suggests the regulator may consider ETH a commodity. There is still some uncertainty, and it is important to watch for SEC announcements as things unfold.

TIP

What is a proof-of-reserves audit?

When you deposit money with a bank, a brokerage, or a crypto platform, it's reasonable to expect it to look after your funds. Unfortunately, the cryptocurrency industry doesn't have the same controls and protections as banks and brokerages. This can make it difficult for investors to know who to trust.

One item to look for is an independent proof-of-reserves audit. This is essentially a third party check to see if the platform's on-chain balances match its clients assets. It isn't perfect, but given many exchanges don't even do that, it is a start.

Where is it safe to buy Ethereum?

It's safe to buy Ethereum from most major cryptocurrency exchanges. However, there are various potential risks to be aware of when you buy Ethereum. These include:

The cryptocurrency app, exchange, or brokerage itself

Cryptocurrency platforms can and do fail. They also present a target to hackers. Look for a platform that keeps the majority of assets in what's called "cold storage." This means it's offline and difficult to hack.

Unlike money in your bank account, your crypto assets aren't protected by FDIC insurance, so it's great if the platform has its own third-party insurance.

Also look for independent proof-of-reserve audits. These help to show the platform has enough funds to cover client deposits.

Your computer/phone security systems

Having an account with the most secure crypto platform in the world won't help if you have malware on your computer or use the same password for multiple accounts. Make sure your virus protection is up to date and enable two-factor authentication on your crypto accounts.

The risks involved in cryptocurrency investment

Ethereum may be one of the biggest cryptocurrencies out there, but these investments still carry a lot of risk. It is early days for this industry and there's a lot we don't know about how the industry will evolve. In addition to the volatility and regulatory risks, there's a chance Ethereum could fail completely or be overtaken by a newer product.

It's important to only invest money you can afford to lose and ensure your crypto investment only makes up a small percentage of your overall portfolio.

Where you store your crypto assets

Many long-term crypto investors use an external wallet -- often a hardware wallet that's kept offline -- to store their assets. This may not be the right option for beginner investors, but it's worth considering as the value of your crypto portfolio grows. A crypto wallet gives you complete control over your coins.

Safely buying and trading Ethereum has never been easier. There are many great brokers, exchanges, and apps out there to suit the needs of all kinds of investors. Once you've explored the options and picked a platform, it's just a matter of depositing money and converting it into ETH.

FAQs

  • There's no single best place to buy Ethereum as it depends on what type of an investor you are. If you already have an account with a stock broker that sells cryptocurrency and want to add Bitcoin or Ethereum to your portfolio, it may make sense to stick with your current brokerage.

    If you want to buy a mix of cryptocurrencies and plan to trade regularly, a cryptocurrency exchange may be a better fit. Either way, look for a platform with a reputation for security and transparency.

  • The IRS considers cryptocurrency as property. If you sell cryptocurrency for a profit, you will need to pay capital gains tax. It is important to keep careful records of your cryptocurrency transactions.

  • If you hold Ethereum on a cryptocurrency exchange that fails, you could lose some or all of your funds. Cryptocurrency investors are not protected in the same way as customers of banks and brokerages. A lot depends on how the platform fails and what gets decided in the bankruptcy courts.

    In some cases, customers might get some assets back, but even then, their assets may be frozen for a considerable amount of time. Consider moving your Ethereum off the platform where you bought it and keeping it in a non-custodial crypto wallet.