Key takeaways
- Crypto regulation varies by country, with the EU publishing the world’s first comprehensive framework.
- More regulation results in safer crypto investments, but at the cost of higher taxes.
- Buying Ethereum is easier than ever, but secure storage is vital.
Despite its mainstream presence, buying Ether can feel daunting for beginners. After all, crypto operates outside traditional finance with its rules and regulations, but the process is easier than you think. (If you still need the question “What is Ethereum?” answered, read here.)
This guide covers everything you need to know about buying ETH for beginners, including regulations, the various ways to buy Ethereum and the best ways to store it.
Let’s start with how to buy it on a centralized exchange (CEX).
How to make an Ethereum purchase step-by-step on a centralized crypto exchange
Buying Ethereum on a centralized exchange requires creating an account on a regulated platform, verifying your identity and entering a valid payment method. This article uses Coinbase crypto exchange for illustration purposes to help you understand the process:
Step 1: Choose an exchange
Choosing an exchange is the most essential part of buying Ether (ETH). You can buy the asset on a DEX or a CEX, with centralized exchanges generally offering a more user-friendly experience for newcomers.
It’s important to pick an exchange that abides by your country’s regulatory policies to avoid legal issues.
Step 2: Create an account
Sign up for an account using your email address. You’ll need to comply with the exchange’s KYC and AML policies, which require identity verification through an official ID submission. Most exchanges will limit your deposit and withdrawal amounts before you verify.
You’ll also want to set up two-factor authentication (2FA) for added security.
Step 3: Enter a payment method
Once your account is verified, add a payment method. You can usually start buying Ethereum with a credit card, PayPal, wire transfer or bank transfer.
Keep in mind that credit card purchases usually have an additional fee. Verifying your bank account can take a day or two, so plan for that.
PayPal’s crypto rules in the US, UK and EU
In the United States, PayPal allows users to buy, sell and hold select cryptocurrencies directly through its platform, with no major restrictions beyond standard compliance and verification requirements.
In contrast, in the United Kingdom, PayPal temporarily paused crypto purchases in October 2023 to comply with new Financial Conduct Authority (FCA) regulations, resuming in early 2024 with restrictions limiting new customer onboarding and certain services like staking or DeFi without FCA approval.
In the European Union, PayPal has partnered with platforms like MoonPay to enable crypto purchases in 24 member states (excluding Croatia, Hungary, and Iceland) as of mid-2024, with no significant restrictions beyond regional compliance. However, direct crypto services via PayPal’s platform remain limited compared to the US.
Step 4: Buy ETH
With your funding method set, purchase ETH via the exchange’s buy option. Enter the desired amount, choose your payment method and hit the buy button.
If you’re wondering how to sell Ethereum, it’s just as straightforward. Navigate to the exchange’s “Sell” menu and follow a similar process. Input the amount of ETH you want to sell, select your preferred payout method, review the transaction details and click the sell button to complete the process.
Other ways to buy Ethereum
Investing in ETH is easier than you might think. Below are alternative options:
- Decentralized exchanges: DEXs like Uniswap or SushiSwap let you trade ETH directly from your crypto wallet, with no intermediary needed. You connect your wallet, swap another token (like USDT) for ETH and confirm the transaction.
- Crypto ATMs: Crypto ATMs are available in many cities and allow you to buy ETH with cash or a card, ideal for quick, in-person purchases.
- PayPal: PayPal is widely available and offers crypto with little to no extra effort.
- Stock trading platforms: As of March 27, 2025, platforms like eToro remain active in the US, allowing users to trade stocks, ETFs, options and a limited selection of cryptocurrencies (currently BTC, BCH, and ETH, following a 2024 SEC settlement restricting other crypto assets).
- Peer-to-peer marketplaces: Peer-to-peer marketplaces represent the original vision of crypto, users to transact with one another.
- Fintech apps: Beyond traditional exchanges, apps like Cash App, Robinhood and Revolut let you purchase ETH directly through their platforms. The process is simple: Link your bank account or card, select Ethereum, enter the amount and confirm the purchase, all within a sleek, user-friendly interface.
- Ethereum exchange-traded funds (ETFs): Ethereum exchange-traded funds are available on many traditional stock platforms. ETFs track ETH’s price, allowing you to benefit from its price movements without buying it directly.
Did you know? Regulatory shifts in the US, like the SEC’s crackdown on unregistered crypto dealings, have pushed eToro to make changes. In September 2024, eToro paid a $1.5 million fine and scaled back its crypto offerings to comply. Despite this, you can still trade stocks and ETFs commission-free on the platform without major legal hurdles, though crypto trading isn’t available everywhere. For example, if you’re in New York, Nevada, Hawaii or Minnesota, you’re out of luck for crypto trades on eToro.
How to store Ethereum safely
Now that you know where to buy ETH safely, you must learn to store it securely in an Ethereum wallet. Let’s break down a few wallet types.
Mobile wallet
One of the most known crypto wallet types, mobile wallets, live on your phone as an app. They provide an easy way to check your wallet and are great for frequent traders on the move.
However, mobile wallets are constantly threatened by hackers and other cyber threats, and losing your phone is a constant possibility. You can always recover your mobile wallet with a recovery phrase, but you should generally use mobile wallets to manage only smaller amounts of crypto.
Exchange wallet
Buying crypto from an exchange can be convenient since your funds are stored in their custodial system — no need to manage a separate wallet. But you don’t control the private keys, and insurance won’t cover you if your account gets compromised or the exchange fails.
Like mobile wallets, exchange wallets are ideal for beginner traders or for holding smaller crypto amounts.
Hardware wallet
Hardware wallets are offline, physical devices similar to USB sticks. This makes them impossible to hack into via the internet, though there’s always the risk of physical theft.
These devices can be expensive, running anywhere from $50 to hundreds of dollars, but the security is worth it for bigger investments.
Ethereum buying and storage can vary based on your place of residence. Let’s explore crypto rules affecting ETH purchases worldwide.
Crypto regulations affecting ETH purchases
Investing is always risky, but the crypto market presents unique challenges.
The crypto market is open 24/7, meaning Ethereum’s price can change drastically overnight. You can lose your investment if you’re not prepared with the proper stop-loss tools and other automated preventions.
This isn’t to mention the asset’s inherent volatility. A news event, like a major Ethereum network upgrade (e.g., sharding or staking changes), can send its price soaring or crashing. It’s an asset class like no other, and governments are taking notice.
European Union
Cryptocurrency regulations evolve globally on a regular basis. For example, the EU introduced the world’s first attempt at a comprehensive regulatory framework, the Markets in Crypto-Assets Regulation (MiCA), in 2023.
It enforced the policy in phases, with the final phase going live in late 2024. Whether or not other countries, like the United States, will follow in the EU’s footsteps remains to be seen.
United States
As of 2025, CEXs and brokers must report all crypto trades, including ETH sales or staking rewards, to the Internal Revenue Service (IRS) for tax accuracy. Some investors dislike this, especially as it extends to DEXs.
DEXs, like Uniswap, dodge central control, but improved blockchain analytics (e.g., tracking ETH transactions) might tighten oversight. For now, the capital gains tax applies to ETH.
United Kingdom
The UK’s FCA mandates crypto businesses to register and follow Anti-Money Laundering (AML) rules. Strict ad regulations also apply, demanding clear risk warnings.
PayPal paused the crypto option in August 2023, resuming in 2024 after a lengthy process — and offering ETH amid compliance. You should buy ETH and other cryptocurrencies from FCA-approved platforms to stay legal.
Canada
Canada treats ETH as property, taxing it as capital gains (50%) or business income (100%) per the Canada Revenue Agency (CRA). Exchanges must report trades over $10,000 and track all users, though reporting isn’t always required. AML and Know Your Customer (KYC) rules apply, and some provinces cap crypto buys, including ETH.
All this to say, before investing in ETH or any other crypto asset, make sure to research your country’s regulatory stance. Ignoring regulations can be dire. For ETH specifically, consider how local laws treat its staking rewards, which some nations tax as income, or its use in decentralized finance (DeFi), which might face extra scrutiny.
You’ll also want to check if your preferred buying method — like exchanges, DEXs or PayPal — is fully compliant where you live. Falling afoul of regulations could mean fines, frozen funds or even legal trouble, especially as governments ramp up enforcement with tools like blockchain tracking. Stay informed and play it smart. ETH’s potential comes with a rulebook you can’t skip.