How to Buy and Sell Ethereum in the UK

Ether is the official name of the token that exists under the Ethereum network and it is the second-largest cryptocurrency – behind only Bitcoin.

So, as a result, it has attracted a lot of attention among investors in the UK, and if you are one of them who is new to the industry, you are at the right place!

Here, we will take a closer look at the Ether trading options in the UK, alongside its legal status.

What is Ethereum

Let’s start with the basics here. Ethereum is a decentralized network that allows users to communicate and make transactions with each other directly, without the need for intermediaries. The Ethereum ledger is maintained by the users, so there is on central authority that will keep account of your transactions.

Everyone who participates in the ERC-20 network has to stake their own ETH to get the chance to validate transactions and in return – get valuable amounts of Ether. The logic here is quite simple – the more ETH you stake, the bigger your chances of becoming a validator.

So, Is ETH Legal in the UK?

Ethereum and all other cryptocurrencies are legal in the UK, but note that they are not legal tender. Nothing stops you from buying or selling ETH and storing them in digital wallets, but they are subject to a taxation regime, so you must keep your books clean whenever you purchase ETH.

As for crypto exchange platforms, they are also legal in the UK – given that they are registered with the Financial Conduct Authority of the country. They also need to work within the Money Laundering and AML requirements, so a KYC process is a must for any exchange.

Buying ETH From a UK Crypto Exchange

Now that you know you can safely purchase ETH in the UK, it is time to walk you through your options.

First off, we have crypto exchange platforms that are widespread in the UK public as they allow seamless, secure and fast ETH transactions. You can get your hands on ETH by following the next few steps.

The Best Crypto Exchanges in the UK

Finding the right crypto exchange in the UK can be challenging for novices in the industry. Here, you need to rely only on platforms that are approved by the FCA, and to save you some time on research, here are the options you can choose from.

1. eToro

We start with eToro, a multi-asset platform that allows you to trade various cryptocurrencies, but also NFTs, stocks, ETFs, and so on.

All of the best cryptocurrencies are available for trading at eToro, with Ether being on that list, of course. It is free to open an eToro account and once you do, you will receive a £80,000 demo account for free – you can use it to practice around the platform.

Note that there is a 1% trading fee on all crypto positions that eToro users need to pay, and since all trading occurs in USD currency, UK traders will pay a transaction fee. Withdrawals also come with a fee of £4, with the minimum withdrawal being £23.

2. Coinbase

Everyone who is experienced in the crypto trading world will surely have heard of Coinbase – one of the leading exchange platforms in the world that allows you to buy and sell cryptocurrencies, NFTs and other DeFi products.

Ether is one of 240+ cryptocurrencies supported by Coinbase, and the platform also has an in-built wallet where you can store your Ether separately.

As for the fees, you need to know that there are several associated ones if you choose Coinbase. Fees vary depending on the payment method, the order and the market conditions surrounding the ETH assets.

3. CoinJar

CoinJar is another crypto app that is specially designed for the UK and Australian markets. By using it, you can trade or invest in over 50 cryptocurrencies, with Ether being also on that list.

In addition, a novelty that separates CoinJar from its competitors is its card that you can use to make crypto purchases anywhere where MasterCard is allowed.

Another unique feature CoinJar users can utilize is called Crypto Bundle. It works as a themed basket of cryptocurrencies, which is very similar to a crypto index fund or a stock portfolio that is ready-made. If you invest in Crypto Bundle, it means that you invest in every cryptocurrency available on CoinJar at once.

To open an account at CoinJar, you need to deposit at least £10, with all deposits being made with GBP. Note that there is also a trading fee of 1% on CoinJar’s app and website.

4. Uphold

Uphold is a great crypto exchange for all beginners in the UK. It allows you to trade over 250 cryptocurrencies, but you can also buy and sell 3 national ones – GBP, EUR, and USD.

Additionally, Uphold has a virtual card that you can use wherever MasterCard is allowed, and there are no transaction fees when using it. However, be aware that there are several fees attached to using Uphold.

In the UK, Uphold charges a market spread that can range from 0.9% to 1.2% on ETH. There is also a withdrawal fee of up to £3.15 for bank transfer withdrawals.

5. Kraken

The last exchange on our list is Kraken, a platform where you can trade with more than 200 cryptocurrencies. Kraken has a very simple user interface and a wide range of in-built educational materials – so newbies will easily fall in love with it.

As for experienced traders, they can always take full advantage of Kraken Pro, which includes access to spot, margin, futures trading and staking, risk management tools, etc.

Finally, it is free to open an account with Kraken, but your first trade must be worth at least £8, with the fees ranging on the assets you buy and how you trade.

Buying ETH From P2P Platforms

Another common option to buy Ether is through P2P platforms. Such platforms are completely decentralised as they allow traders to make transactions between themselves on conditions they agree upon.

Exchange platforms mentioned above are third parties when you execute trades, but P2P platforms allow you much greater flexibility. These platforms work similarly to a marketplace, meaning that you can browse through advertisements of decentralised products and negotiate over a price.

In addition, P2P exchanges secure transactions by providing escrow services and public ratings. You also don’t need to worry about KYC requirements when opening an account on such platforms, as they don’t fall under UK AML laws.

The downside of the lack of regulation is that you are not well-protected in case of fraud, so you need to be wary.

So, with all that in mind, you will be happy to know that you can start trading ETH at P2P platforms in no time – just by following the next few steps.

1. Step 1: Choose a P2P Platform: We will list the best names in the UK crypto world below in the article, so a good starting point would be to choose one of them.
2. Step 2: Sign Up: You can now sign up by providing minimum information – usually just an email and a new password. Some platforms may ask you to verify your email address, but no KYC requirements are needed.
3. Step 3: Filter Through Advertisers: Now, you can start your ETH trading journey. You can choose the “Buy” option on the homepage, choose ETH and enter the desired fiat amount and payment method to filter through the advertisers.
4. Step 4: Place Your Order: When you have decided on an advertiser, you should be able to choose another Buy option and you will be redirected to the order page.
5. Step 5: Make Your Payment: The P2P platform will send you the details on how you can make the payment, so follow the onscreen instructions and complete the transaction.
6. Step 6: Receive ETH: Once you send the payment, the assets that the platform held in escrow will be sent over to you, and that’s about it!

Popular P2P Platforms

Note that the UK Government offers limited protection against P2P platforms, so it is up to you to find a trustworthy and reliable one. Nonetheless, we are here to save you some time on research, so here are some good decentralised P2P platforms that you can use to buy Ether:

• BitMEX – launched in 2014, it allows you to buy ETH with fiat currencies. Additional functionalities include spot trading and crypto derivatives. BitMEX is a platform that has a high level of market liquidity so that itself speaks volumes about its reliability.
• OKX – a bit newer platform, launched in 2017. OKX offer a wide array of services like mining pools and NFTs, and you can also access over 400 crypto tokens.
• Bitfinex – over 180 cryptocurrencies are supported by Bitfinex, making it one of the most complete P2P exchanges in the UK.

Kucoin – finally, Kucoin is an exchange that offers trading on more than 1,000 tokens. In addition, you can take full advantage of its leveraged trading opportunities with futures and perpetual swaps.

ATMs – Legal Obstacles

You might have thought that crypto ATMs are a good way to buy ETH, but the reality is quite different in the UK. Just in 2023, the Financial Conduct Authority imposed a ban on all crypto ATMs and urged operators to shut them down immediately.

So, even if you happen to stumble across a crypto ATM in the UK, stay away from it, as it functions illegally!

Selling ETH in the UK

Selling ETH is a streamlined process, regardless of whether you choose to do so via centralised crypto exchanges or P2P platforms, and we are happy to walk you through the processes.

Let’s start with crypto exchange platforms. Here are the general steps you need to follow to sell ETH:

1. Log in to your account at the exchange – if you don’t have an account at the given exchange, you can sign up in no time
2. Deposit ETH – you will then need to initiate a wallet transfer from your personal ETH wallet
3. Execute the sale – now, head to the trading section of your account and choose ETH as the crypto you want to sell. Here, you will need to choose the fiat currency you would like to receive, and the amount of ETH you want to sell
4. Withdraw – after successfully selling ETH, you can now proceed with transferring the funds into your bank account. Head over to the withdrawal section of the platform and choose your bank account as your destination.

Note that the duration of the withdrawal may vary depending on the platform’s activity level. Also, different platforms charge different transaction fees, so that is something you must check before withdrawing.

On the other side of the spectrum, if you prefer P2P trading, then you can follow the next few steps to sell ETH:

1. Log in to your P2P account – once again, if you don’t have one, you can choose from the platforms mentioned above and sign up instantly
2. Create a sell order – head to the P2P trading section, choose ETH from the list of cryptocurrencies, and select the Sell option
3. Choose the price – as you trade on a P2P platform, you will have the freedom to choose the price you want to sell per unit of ETH as well as your preferred payment method.
4. Wait for buyers – once you create your order, keep an eye out, as buyers can initiate a trade at any time. You will need to communicate with them and agree on the payment method.
5. Send ETH – once you confirm the payment, you can release ETH to the buyer
6. Complete the transaction – finalise the transaction and take your time to rate the buyer.

The Crypto Future is Here

Overall, we can safely say that cryptocurrencies will continue to rise in popularity, so more and more people will be interested in investing. Therefore, it is crucial to be one step ahead, and hopefully, this guide has all the information you need to start an effective and hopefully profitable ETH trading experience!