Compare the best Ethereum exchanges
Where can I find the best ETH exchanges?
Right here. We’ve compared all the exchanges out there to find the most reliable and recommendable platforms, and reviewed them all for you.
What is an Ethereum exchange?
An Ethereum exchange is a marketplace where ether can be bought and sold. Commonly this is done through exchanging other cryptocurrencies for ether, although some exchanges allow you to trade fiat currency such as GBP and USD for bitcoin, which you can then exchange for Ethereum and other cryptocurrencies.
How do exchanges work?
Exchanges offer two ways through which you can trade Ethereum. These are:
- Market orders. With this order, you get the current best available price at the time of purchase or sale of your ether, and the order is executed instantly, making it the quickest way to buy and sell Ethereum.
- Limit Orders. A limit order allows you to buy or sell Ethereum at a fixed price. As soon as another user is willing to sell or buy at your specified price, your order will be executed.
How do I use an Ethereum exchange?
It’s simple. You start by setting up an account, and going through the necessary verification steps (like uploading documents to prove your identity and address). You can then make a deposit using your preferred payment method, or deposit cryptocurrency through the exchange’s wallet address to exchange for Ethereum.
Your payment method will dictate how fast the funds may arrive on your account. For example, funds deposited via bank transfer might take up to 5 days to show up on your account, whilst deposits made via credit card will usually appear in an instant.
What should I look for in an exchange?
There are a number of factors to consider when choosing which Ethereum exchanges to use, these include:
Payment methods accepted
Ethereum exchanges usually accept different forms of payment. For example, exchanges like Binance do not accept fiat currency deposits at present, so you can only deposit cryptocurrencies. Furthermore, most exchanges do not accept PayPal due to the risks of chargeback scams. Make sure you find an exchange with the right payment methods for you.
This is probably the most important factor. Most exchanges will charge a trading fee, between the range of 1-2% on top of every transaction you have. The listed market buy and sell prices usually do not include this, so be diligent and compare the different trading fees offered by different platforms.
Not all exchanges are freely available in all countries. A brokerage like Coinbase only supports 32 countries, whereas an exchange like Binance supports all countries. Check that the Ethereum exchange you want to use is available where you are.
There might be depositing and withdrawal fees that vary from exchange to exchange. They will often also depend on your payment method. Make sure your profits aren’t being too dented by the fees charged by the exchange.
Design and ease of use
An important consideration when choosing an exchange is how well designed the site is. You want to be able to focus on buying Ether, not figuring out how the site functions.
Do I have to verify my account on an exchange?
Yes and no. If you are starting with FIAT currency, you’ll have to verify your identity, and sometimes your address when signing up to an exchange. Exchanges are regulated and so need to know who is using them. You will usually be asked to provide a range of documents that show proof these two things, and often a selfie of yourself with the same documents for further verification.
However, if you already have some Bitcoin, Ethereum or other cryptocurrency and you simply want to sell/buy more. Then, because cryptocurrency is anonymous the exchanges have no need to gain your personal details. Therefore, no verification is required when buying, selling, sending and receiving ONLY in cryptocurrency.
Are Ethereum exchanges secure?
Ethereum exchanges have many security features, but are also a big target for online attacks. It is not recommended to store anything other than what you’re intending to trade. Then, let’s say you don’t want to trade and simply want to sit on your investment for 6 months – it is advised that you transfer your ether to a personal cold storage wallet (hardware or paper wallet) to keep your funds safer.
Furthermore, ETH exchanges do get hacked from time to time. However, most users are unaffected and those that are will usually be compensated fully by the exchange – assuming you’re using a reputable one!
What if I forget my password?
Exchanges will often provide for steps to reset a forgotten password through the email address/security questions you registered with when setting up your account. If there are extra security features on the website, you might be given a ‘recovery seed’, a collection of words that you can subsequently use to recover an account.
How fast are transactions on Ethereum exchanges?
Transactions on an Ethereum exchanges are usually instant. It also depends on the type of order you have made. However, once an order is executed, funds will usually travel within a matter of seconds. This is not necessarily the case when transferring between exchanges, which will take slightly longer, as such transactions have to be verified on the blockchain.
What payment methods can I use to buy Ethereum on exchanges?
This depends on the exchange. Typically, most exchanges allow you to trade cryptocurrencies between each other, allowing you to use bitcoin or other altcoins to buy Ether on exchanges. In regards to fiat currency, if they allow you to buy cryptos with fiat currency then most exchanges only allow for bank transfers, and some also allow debit or credit card payments. It’s not often that exchanges allow deposits from electronic wallets like PayPal.
Do exchanges charge fees for buying and selling Ethereum?
Yes, exchanges will usually charge fees for making transactions, by way of additional trading fees. These typically range between 1-2%, and are not included in the buying/selling price of ether. It is advised to compare trading fees between exchanges to ensure you are trading with competitive fees. Exchanges might also further charge deposit or withdrawal fees, but these are largely uncommon. They also largely depend on your payment method. For example, deposits made with bank transfer usually do not come with an additional service fee, but with credit cards there’s often an additional charge.
And do they charge fees for transferring in and out of my account?
Typically, no. But some do. When transferring coins to another wallet or exchange, you will only be charged transaction fees associated with the Ethereum blockchain (known as ‘gas’). This often varies, but the transaction fee is often negligible, and will usually be less than £1 worth of ether. However, some exchanges are known for having a small withdrawal fee, such as Binance with their 0.01 ether withdrawal fee.
Do I need an Ethereum wallet to use an exchange?
No, usually you will have an online wallet provided by the exchange that holds your ether and other cryptocurrencies. However, it is strongly recommended that you do get your own personal wallet to transfer your ether from the exchange wallet for maximum control and security of your own funds.
What are the other platforms that I can use to buy and sell ether?
The other commonly used platforms are CFD trading brokers. Broker platforms are more focused on making quick trades to take advantage of market fluctuations on the price of Ethereum, without actually having to own or manage the ether.
Should I use an Ethereum exchange?
Frankly, it’s up to you. If you want to trade ether for other cryptocurrencies, and don’t mind the extra complexity in comparison to brokers, an exchange is the best option. Exchanges are the most common way to buy and trade ether and other cryptocurrencies, but there is a learning curve. Here are some added pros and cons:
- Enable you to spend Ethereum easily all around the world
- Easy to accept Ethereum payments from other people
- Can trade many other cryptocurrencies in the same exchange
- Risk that the exchange could be mismanaged
- Learning curve to know the ins and outs of exchange trading
Yes, you can. Many exchanges have apps available for both iOS and Android. The apps will be available for download on the Google Play Store or the App Store.
Not usually. Most exchanges require you to verify your identity when you register for an account. However, platforms such as LocalBitcoins work through peer-to-peer transactions, which means that users have the option of remaining anonymous.
Yes. Exchanges usually provide you with a detailed historical list of all the transactions you have made, including both completed and pending trades.
This will depend on a variety of factors, such as the platform you use, your account age, method of payment used, verification level, and transaction history. For example, on Binance, you will enjoy higher deposit or withdrawal limits if your account has been verified.
This will depend on various factors. If a platform has a minimum limit it’s likely to be very low, usually £1 – £10 worth of ether. You can commonly expect the top limit to be much lower if buying directly from a card (around £500 worth of ether). If you top up your account with a bank transfer and buy ether using those funds, the limit will be much higher (usually £10,000s worth of ether). If you are using cryptocurrencies to transact, there will usually be no buying limits.
Most exchanges will support the buying and selling of a range of different cryptocurrencies, but there isn’t an exchange that supports all 3,000+ of them. If you’re looking to trade for specific coins then check our reviews to see full lists of coins supported by an exchange.
Yes and no. In the UK, Ethereum exchanges are legal. This is always the case in every country, so be sure to check your local legislation/s be sure you are not operating against the law.
This depends on the exchange. As the popularity of cryptocurrencies grows, regulation has become a more pressing question. For instance, Coinbase (a brokerage) attained an e-commerce license from the Financial Conduct Authority in March 2018. Check with your respective exchange for its current regulatory status.
In the UK, any profit you make from buying and selling Ethereum is liable for capital gains tax. If you make higher than £11,700 profit over the course of the financial year you will owe between 10% – 20% of your profits. In other countries, the tax status of cryptocurrencies are different, so be sure to have a look at your own local legislation/s.
If you send your ether to the wrong wallet address, there is no way to recover them. Cryptocurrency transactions are irreversible, so be very sure you’re entering the correct wallet address when moving ether.
This is a risk with exchanges, as they’re a very attractive prospect for hackers. One of the most famous incidents was the closure of the Mt Gox exchange in 2014, where millions of pounds worth of cryptocurrency was stolen. If this were to happen again to an exchange today, the exchange usually honours and repays the users. Though, this is why it’s recommended for users to store funds in a personal cold storage wallet if they are not being actively used for trades.
Usually, no. PayPal is not commonly supported by exchanges because of the risk of chargebacks, but you can find some platforms that might allow you to use it. However, exchanges will always allow you to withdraw your ether into a personal wallet address. But if you want to withdraw your funds into fiat currency, you could potentially exchange your ether on the exchange into fiat currency and withdraw it via a bank transfer.
If the trade hasn’t been executed yet, you can cancel it. This could be the case when you make a limit order. Ethereum transactions cannot be reversed once they have been made.
An Ethereum wallet is an address/piece of software that stores your ether. Meanwhile, an exchange is a platform that allows you to buy and sell ether itself. To give a real life example, an exchange is almost like a betting website, whilst a wallet is your bank account.
This is explained fully on our page about buying ethereum, so for detailed information it’s good to head there. But to give a quick summary: an exchange enables you to buy and trade a range of cryptocurrencies, an online marketplace. A CFD broker works the same as an exchange, however you to trade against the value of an asset without actually owning it.
Yes, there are Ethereum debit card providers like Wirex who offer users with the ability to exchange between multiple crypto and fiat currencies within their accounts (just like you can have a GBP and USD account within a singular online banking account). These are not yet commonplace, but they are fast-growing.
Exchanges are a marketplace in which people agree to buy and sell ether at certain prices. Like any other asset, the price fluctuates as people are willing to part with more or less fiat currency to buy ether.
No single person or company decides the price.
- 1. Compare the best Ethereum exchanges
- 2. Where can I find the best ETH exchanges?
- 3. What is an Ethereum exchange?
- 4. How do exchanges work?
- 5. How do I use an Ethereum exchange?
- 6. What should I look for in an exchange?
- 7. Do I have to verify my account on an exchange?
- 8. Are Ethereum exchanges secure?
- 9. What if I forget my password?
- 10. How fast are transactions on Ethereum exchanges?
- 11. What payment methods can I use to buy Ethereum on exchanges?
- 12. Do exchanges charge fees for buying and selling Ethereum?
- 13. And do they charge fees for transferring in and out of my account?
- 14. Do I need an Ethereum wallet to use an exchange?
- 15. What are the other platforms that I can use to buy and sell ether?
- 16. Should I use an Ethereum exchange?
- 17. FAQs