Ethereum-250x250

How to buy Ethereum (ETH) and how it works

A beginner’s guide to buying and trading Ether in India.

Ethereum is an altcoin with several features that allow it to do more than just be bought and sold.

Here, you can find a list of places to buy Ether and learn more about what makes it different. If you’re planning to purchase Ether, it’s worth knowing more about the coin’s unique features and its pros and cons.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Where to buy and trade Ether in India

The most straightforward way to get Ether (ETH) might be to buy it on an exchange or through a brokerage service.

Depending on the service, you might be able to make a bank transfer, pay by credit card or use PayPal.

Name Product Deposit methods Fiat Currencies Supported Cryptocurrencies
Credit card
Debit card
PayPal
Wire transfer
Local Online Banking
EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK, ZAR, JPY, SEK, CNH, TRY, RUB, HUF, MXN, PLN
BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ
Disclaimer: Highly volatile investment product. Your capital is at risk. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Copy the trades of leading cryptocurrency investors on this unique social investment platform.
Cryptocurrency
-
BTC, XRP, BCH, ETH, NEB, XVG, TRX, NEBL, ETH, NEO & 140+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: US-based users have been restricted from Binance since June 2019.
UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
Electronic Funds Transfer
Bank transfer (SEPA)
Wire transfer
USD, EUR, GBP, JPY, CAD, CHF
BTC, ETH, XRP, BCH, EOS, LTC, ADA, XLM, DASH, XMR & 15+ more
Buy, sell and trade a range of digital currencies on this high-liquidity exchange – suitable for beginners right through to advanced traders.

UK residents: In addition to normal crypto trading, Kraken offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
Cryptocurrency
Bank Wire
USD, EUR, GBP, JPY
BTC, BCH, BTG, IQ, TRX, GNT, AVT, DASH, DATA, EDO & 140+ more
Cryptocurrencies are a highly volatile investment product. Your capital is at risk.
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
Cryptocurrency
-
BTC, ETH, XRP, BCH, EOS, XVG, LTC, ADA, MIOTA, TRX, NEO, DASH, XMR, XEM, VET, ETC, ICX, QTUM, OMG, & 70+ more
Buy and trade 100+ cryptocurrencies on this global cryptocurrency exchange.
Credit card
Wire transfer
USD, EUR
BTC, ETH
A global exchange where users buy and sell cryptocurrency in exchange for USD or EUR.
Cash
Credit card
Debit card
Bank transfer (SEPA)
USD, EUR
BTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRP
Buy coins like Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash with credit card.
Bank transfer (ACH)
Credit card
Bank transfer (SEPA)
Faster Payments Service
USD, EUR, RUB, GBP & 125+ more
BTC, BTG, BCH, LTC, DASH, ETH, XRP, ZEC & 3+ more
Disclaimer: Highly volatile investment product. Your capital is at risk.
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
Indacoin Cryptocurrency Exchange
Credit card
Debit card
USD, EUR, RUB
BTC, BTG, BURST, BYC, CANN, CFI, CLAM, CLOAK, CLUB, COVAL, CPC, CRB, CRW, CURE, CVC, DASH, DCR, DCT, DGB, DMD, DNT, DOGE, OMG & 140+ more
Use your credit or debit card to buy bitcoin and other cryptocurrency without having to verify your identity.
Credit card
Cryptocurrency
USD
BTC, BCH, MIOTA, XVG, NEO, ADA, XRP, TRX, ONT, ZIL, GAS, LTC, ZRX, QTUM, ETH, ETC, VET, ICX & 300+ more
CoinSwitch allows you to compare and convert over 250 cryptocurrencies across all exchanges.

Compare up to 4 providers

Other ways to get ETH:

  • Get paid directly in ETH. You may be able to get paid directly over the Ethereum blockchain. For example, if you’re a content creator, you could request payment in ETH.
  • Trade another cryptocurrency for it. You could trade bitcoin or another cryptocurrency for Ethereum at an exchange.
  • Mine for it. You could mine for ETH by dedicating computing power to solving problems on the blockchain, executing smart contracts and carrying out transactions. However, you might need a lot of processing power to start earning worthwhile returns, and the Ethereum mining system is being reworked, which makes returns on mining less certain.
  • Other. There are other ways you might buy into the Ethereum blockchain, ranging from winning a bet online with ETH to participating in affiliate programs or buying into another system on the same blockchain. Ethereum’s features mean there might be more ways to find yourself holding ETH than other currencies such as bitcoin.

What are the special features of Ethereum and how do they work?

Ethereum’s aims to let users set up “smart contracts.” These can do almost anything a user wants, with anonymity, with no set point of failure and with complete trustworthiness and reliability.

This essentially lets you cut out the middleman in any kind of transaction, while still making the transaction with complete reliability, security and trustworthiness.

  • It’s transparent. All parties can see the details and conditions of the transfer. It’s a transparent program that’s set up to do exactly what it says.
  • It’s extremely flexible. You can program it to do almost anything you can imagine, such as making a transfer when specific conditions are met at a certain time in the future or dividing funds between different parties depending on other factors. There’s no real limit other than one’s need and imagination.
  • It has all the usual blockchain benefits. Like other cryptocurrencies, you can make transfers relatively cheaply and quickly compared to going through banks or other third-party services.

This makes it possible to do things that simply weren’t an option before.

You can read our full guide to Ethereum here.

Making the impossible possible

Imagine an international organisation that charges nominal membership fees, like an online fan club.

Ethereum’s blockchain and smart contracts system makes the impossible possible.

With smart contractsWithout smart contracts
  • Low-cost transfers mean you can charge very low membership fees that people might be willing to pay.
  • The costs and limitations of international transfers make it impossible to collect small amounts of money from individuals overseas. It needs to be pooled first.
  • No one person is “collecting” the money. Instead, it can be securely gathered without letting anyone in particular access it.
  • The money will be going to a bank account, which will typically be under the control of one person.
  • The money can be moved with group consensus. For example, a smart contract might automatically send the funds to a certain charity based on the results of a members’ vote.
  • The group treasurer has control. They might take the money and run, veto anything they don’t like or otherwise misbehave.
  • Everyone can see the exact conditions around where, when and how the funds will be moved.
  • No one has a choice but to trust whomever has control of the funds.

How its special features affect the price of Ether

The coin itself, Ether (ETH), is the fuel for smart contracts. In simple terms, it’s used to pay the miners who donate computing power to process transactions and execute smart contracts.

Traders will need to decide whether the value of Ether will increase as more people start using smart contracts and the Ethereum blockchain becomes more widely used.

Quick glossary

Definitions

Ethereum. The name of the blockchain. Often used to refer to “Ether” and the system in general.

Ether (ETH). The coin on the Ethereum blockchain. Sometimes referred to as “gas” because it fuels transactions.

Ethereum classic (ETC). A similar type of coin that came about due to a previous hard fork on the Ethereum blockchain.

Ethereum Virtual Machine (EVM). The network of miners whose computing power processes transactions and executes smart contracts

How to hold Ether

Like other cryptocurrencies, you hold ETH in a cryptocurrency wallet. However, not all wallets are compatible with it.

Some of the options include the following:

It’s worth taking the time to compare the various options and features of each wallet if you plan on holding ETH.

Things to consider with Ethereum

There are several problems that might stand in the way of Ether’s price increasing.

Smart contracts are easier said than done

The first problem is that writing a “bulletproof” smart contract is easier in theory than in practice. The hard fork that created Ethereum Classic (or Ether depending on how you look at it) came about as the result of a loophole in a contract, which led to the theft of about US$50 million worth of ETH.

A report from Microsoft pointed out that a large-scale analysis of published contracts on the Ethereum blockchain would most likely reveal a lot of vulnerabilities.

This is being addressed with the creation of publicly available “templates” of sorts, and users simply getting more experienced with time.

Performance issues

All smart contracts are stored publicly on every node of the blockchain. This helps drive transparency and security, but also but can also lead to performance issues.

As more users get involved and smart contracts become increasingly common and complex, performance issues might get worse.

Worse performance can lead to slower transaction times and increased transaction costs, which could undermine the point of it all.

There are several proposals in place to address these issues, but to date there’s no solid timeframe or detailed plan.

Ethereum price forecast

When forecasting the price of Ether and the value of the Ethereum blockchain, you might want to consider the following:

  • The potential applications of smart contracts and how likely they are to be widely used in the future.
  • Whether current issues are likely to be resolved and how long it might take.
  • Whether competition from other coins might impact the value of Ether.
  • How many other tokens and applications will take advantage of the Ethereum blockchain.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance 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 cryptocurrencies discussed.
Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy Policy and Terms.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site