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By
James Edwards&
Frank CorvaUpdated
Great for copy trading
Great for beginners
Advanced crypto trading
Ethereum (ETH) redefined cryptocurrency and the internet by introducing Web3 technology to the world through smart contracts, dapps and tokenization, which helped ETH reach an all-time-high price of $4,946.05 in October 2015.
While this has helped make ETH the #2 crypto by market cap, Ethereum is still a highly volatile asset capable of major price swings in a single day.
Just take a look at today's ETH price of $2,436.54, which is showcasing a double-digit loss of -50.73757 compared to yesterday, when it was trading for $1,616.41. Ethereum's seen an increase of 29% over the past year.
So before you buy Ethereum, make sure you understand these unique risks as well as its legal, regulatory and tax status here in the US.
If you're ready to get started, read on for step-by-step instructions and a list of platforms you can use to buy Ethereum in the US.
To buy ETH, all you'll need is a smartphone or computer, an internet connection, photo identification and a way to pay.
If this is your first time buying cryptocurrency look for a platform that accepts US dollars, like Public or SoFi.
Don't worry too much about extra features or coins for now – you can always sign up with another exchange later.
Use the table to choose a platform that meets your needs and click the Go to site button to get started.
Launched in 2015, Ethereum (ETH) is one of the oldest cryptocurrencies and has long been the second largest by market cap. It was initially developed by a team of software engineers to build on Bitcoin's innovative use of blockchain technology while adding new and advanced use cases beyond digital payments.
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. Smart contracts also allow you to build software applications on Ethereum, and it was the first blockchain to bring this programmability to cryptocurrencies.
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.
Everything running on Ethereum requires the native coin (ETH) to pay for network fees, similar to paying a toll for using the network.
Read our beginner's guide to how Ethereum worksTo create an account with your chosen crypto platform, you only need an email address or mobile number. This will usually allow you to deposit cryptocurrency, but not USD.
If you want to buy Ethereum %} with US dollars, you'll need to pass a Know Your Customer (KYC) check.
This is a standard security procedure for most exchanges in the US and requires you to upload some photo ID, and in some cases a selfie with today's date.
KYC is usually approved instantly, but in rare cases, you may have to wait a few hours or days.
Once you've set up your account, you'll need to deposit funds to buy Ethereum %} with. We've listed some popular ways to buy ETH and what you should know about each payment method.
Many exchanges support free and instant bank transfers in the US.
Some offer other options like bank transfers and wire transfers, but make sure you check if you'll be charged a deposit fee first.
How you transact with a debit card will depend on the platform.
Lots of exchanges accept credit cards as an instant purchase method. But you should think very carefully before buying Ethereum %} with a credit card, because:
Only a handful of platforms in the US offer PayPal deposits to buy ETH, including Public and SoFi.
Because of the high risk of scammers taking advantage of PayPal's chargeback feature, PayPal purchases often attract high fees.
If you want to purchase Ethereum %} from PayPal directly, US residents can now do so with the PayPal app.
Read our guide to buying Ethereum %} with PayPal to learn more.
Buying Ethereum %} with cash isn't common in the US, but it can still be done.
There are a few ways to buy ETH with cash:
You can swap any cryptocurrency you already own for ETH using the "swap" or "convert" service on some platforms. This lets you instantly exchange one crypto for another, even if there is no trading pair on the spot market.
First things first – you don't have to buy a whole Ethereum.
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.
Some platforms only offer 1 way to buy Ethereum, while others provide several choices. The 2 most common ways to buy ETH are on the spot market or with an "instant buy" feature.
If it's your first time buying Ethereum, this will be the fastest method – but also the least cost-effective.
The instant buy section is usually located under a "Buy now" heading on the platform you've chosen.
It should feature a simple interface that lets you enter the amount of Ethereum you want to buy or US dollars you want to spend.
This is usually the only option available for credit or debit card purchases, but you may also be able to make an instant buy if you've pre-funded your account with a bank transfer.
Be prepared to pay a markup on ETH's market rate in exchange for the convenience.
If you see colorful charts with a range of prices, you're probably in the spot market.
The spot market is where buyers and sellers come together to place bids for ETH on the open market. It's usually the cheapest way to buy Ethereum because it lets traders set their own prices.
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.
There are several different order types that you can make on the spot market.
There are dozens of different trading platforms to choose from when buying Ethereum in the US, so to help you find your best option, keep these factors in mind:
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. This bureau safeguards the US financial system by working to prevent money laundering, terrorist-financing activity and other financial crimes.
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.
Other reasons for using a FinCEN-registered exchange may include the following:
You shouldn't invest in any asset, including ETH, without doing plenty of research first. Before you buy Ethereum, make sure you understand and weigh up these risks:
ETH is expected to close out 2023 at $2,342, according to the average prediction provided by Finder's panel of fintech specialists.
In 2022, Finder's panel predicted what price Ethereum would reach at the end of the year. The panel had big predictions in January and April of $6,500 and $5,783 with price predictions dropping off a cliff in July. The panel predicted Ethereum would be worth just $1,711 at the end of the year on average, not far off Ethereum's actual end-of-year price of $1,757.
At the start of 2021 Ethereum was worth just over $1,000 but Finder's panel predicted massive growth for the cryptocurrency. In April and July the panel predicted an end-of-year price of over $4,500 and this jumped to more than $5,000 in October. The panel's end-of-year price prediction ended up being pretty accurate – something that doesn't happen a lot in cryptocurrency - with ETH ending the year valued at $5,183.
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Compare today's price of Ethereum ($2,436.54 USD) against its all-time high (ATH) price of $4,946.05 USD on October 19, 2015. The closer the bar is to 100%, the closer ETH is to reaching its ATH again.
If you hold Ethereum as an investment, you'll be taxed on any capital gains you make when you sell it — which includes spending it on goods and/or services. In the US, tax obligations also apply to mining, professional Ethereum trading and in a range of other scenarios, so make sure you're fully aware of what you need to report to the IRS.
Use our round-up of the best crypto tax software to make tax reporting easier.
If you want to buy Ethereum, start by comparing a range of crypto brokers and exchanges available in the US. Look at their features, fees, security and overall reputation to decide which platform is right for you. Use an exchange registered with FinCEN for added peace of mind.
Remember that owning and using Ethereum is not without its risks. Carefully consider investing in ETH as part of a wider strategy, and talk to a financial advisor if you have any questions.
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.
Unfortunately, there's no easy way of knowing for certain whether any asset is worth buying. A good place to start your evaluation is by considering the asset's utility.
ETH is the gas used for the Ethereum blockchain, so anyone that wants to use it must own ETH. As a result, mass adoption of Ethereum could see demand for ETH rise as well.
The best place to buy Ethereum will depend on your needs, but a common thing to look for is a platform that supports USD, which you can do using our table.
You should also consider these things when choosing where to buy Ethereum:
Find out more with our guide to some of the best crypto exchanges in the US.
Yes, lots of crypto trading platforms can help you buy Ethereum with fiat currencies. Use our table to look for an exchange that supports USD deposits to get started.
Keep in mind that unless the exchange supports direct trading between USD and ETH, you may have to convert your USD to BTC first.
There are a handful of ways to earn small amounts of free ETH, including playing online games or using a crypto rewards credit card.
A much more common approach is to stake ETH you already own or lend it to a platform such as Nexo to earn a yield.
Read our guide on how to earn free crypto for other potential ways to earn some free Ethereum.
Disclaimer: Cryptocurrencies, including Ethereum, are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance of ETH is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the Ethereum or any other cryptocurrency discussed.
James Edwards was the global cryptocurrency editor at Finder. He coordinates a distributed team of journalists to help further Finder's mission of helping people make better financial decisions. He has been using Bitcoin since 2013 and began working in the industry in 2017. He takes pride in boiling down complex topics into language his parents can understand. His expertise has seen him called on to report at events such as TechCrunch Disrupt, CoinDesk Consensus and IBM Think and has coordinated a vast number of high-profile interviews with the industry's brightest minds. He is a regular contributor to Nasdaq, The Street and is frequently called upon for market commentary in Australia and abroad. See full bio
Frank Corva is business-to-business (B2B) correspondent for Bitcoin Magazine and formerly the cryptocurrency writer and analyst for digital assets at Finder. Frank has turned his hobby of studying and writing about crypto into a career with a mission of educating the world about this burgeoning sector of finance. He worked in Ghana and Venezuela before earning a degree in applied linguistics at Teachers College, Columbia University. He also taught writing and entertainment business courses in Japan and worked with UNICEF in Namibia before returning to the US to teach at universities in New York City. Earlier in his career, he spent years working as a publicist and graphic designer for record labels like Warner Music Group and Triple Crown Records. During that time, he was also a music journalist whose writing and photography was in published in Alternative Press, Spin and other outlets. See full bio
Read our guide to explore 5 ways to get started investing in Ethereum.
Credit cards are a popular way for buying Ethereum (ETH). Learn how you can do the same by reading this guide.
Have you made an investment in ETH that you would now like to take profits from? Follow our step-by-step guide on how to sell your ETH holdings.
Learn more about Ethereum’s history and technology and its potential for growth.
Find out which are the best Ethereum wallets currently available on the market.
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What do you say about acquiring ETH and other cryptocurrencies using changenow.io? I found VISA and Mastercard support here, and I do not need to register, and I can buy coins for any amount. I think you should consider this exchange.
Hi Brian,
Thank you for leaving a question.
I have already forwarded this request to our publishers and will get feedback once we have word on creating a review page for this. Thanks for the information.
Cheers,
Reggie