How to Buy Ethereum (ETH)10-min read

Introduction to ETH – How to Buy Ethereum in India and Abroad in November 2024

Amongst the rise of the disruptive Blockchain industry as a whole, Ethereum has been one of the main ventures leading the charge on Mass Adoption. Ethereum and Bitcoin are generally recommended to new traders by experts as safe investments with respect to the crypto ecosystem as a whole. This is because both of them are quite established and therefore the risks are much lower compared to other new crypto coins. So, if you’re considering buying Ethereum in India, this guide has all the answers an interested investor may need.

Over the past few years, significant advancements have been made in increasing the speed of Ethereum by implementing Layer 2 blockchains. These blockchains enhance Ethereum’s scalability by conducting transactions on their own blockchain and later verifying them on Ethereum. Acting as a secondary layer to Ethereum, they provide users with the benefits of both worlds, including the high level of security and decentralization of Ethereum as well as fast processing speeds.

Let us guide you through the best platforms to buy Ethereum, its risk and under which circumstances investing in Ethereum would count as a wise choice. We will explore all of these questions among many others so let’s get to it right to it with a brief overview of which exchanges punch above the rest.

Where to Buy Ethereum in India – Best Ethereum Brokers for November 2024

Several of the best crypto trading platforms can be used to purchase Ethereum but only a select few have received excellent reviews and have unchallenged credibility. These include:

Featured Exchange: CEX.IO

CEX.IO is one of the most refined brokers on the market, offering more than 200 cryptocurrency marketplaces to pick from and catering to an affluent investment class. The platform has been operational since 2013 and has built a solid reputation as a reliable and trustworthy exchange. This platform allows taking advantage of some of the lowest market costs, which are regulated at only 0.25% of instant trades. CEX.IO has a good security record and is safe to use. The platform also complies with all the necessary KYC & AML regulations to ensure secure transactions. Furthermore, CEX.IO has implemented a personal account suspension feature that allows users to freeze their accounts if they suspect any suspicious activity.

Why Choosing a Good Exchange is Important

The above selection of market-leading brokers has been curated after careful consideration and the taking of a number of factors into account. Credibility was established by users’ reviews alongside an audit of the international standing of the platform. Furthermore, we have also taken other factors such as the withdrawal options, educational literature, UI/UX simplicity and broker fees into consideration as well in order to construct a holistic review of each one.

Binance has more than 90 million registered users and offers the lowest transaction charges in the market at under 0.10%. Meanwhile, Libertex provides the simplest yet most intuitive interface which makes it very convenient to sell and buy Ethereum.

What Is the Difference Between Ethereum and Bitcoin?

Being cryptocurrencies, Bitcoin and Ethereum are both powered by Blockchain technology but there are some key differences between the two. Ethereum is more sophisticated than Bitcoin in several aspects beyond just transaction and withdrawal speeds. The main fundamental difference between the two, and the one that allowed Ethereum to break ground where Bitcoin couldn’t, is the fact that Ethereum can store computer codes or applications which can execute several functions with the power of a CPU.

When you buy Ethereum, you essentially tap into the wide network of resources Ethereum has to offer to run your own application. The most popular type of application is the “smart contract”, which automates contracts when all the conditions for consensus are met. Experts have anticipated Ethereum to grow as the network becomes more established but as of now it still remains a volatile asset. Prices fluctuate quite often which warrants comprehensive education before you buy Ethereum.

Ethereum and NFTs

NFTs are the second-most popular digital assets after cryptocurrency and were initially created on the Ethereum Blockchain. Ethereum has also enabled smart contract networks as discussed earlier which makes it easier to govern and transfer the rights of NFTs. Moreover, a new token (referred to as ERC-721) which has become standard for NFTs was also developed by the Ethereum Foundation.

Ethereum laid the groundwork for NFTs and because of it practically founding the technology, most of the biggest NFT projects today are based on it. New crypto wallets that were developed afterwards had to be compatible with the Ethereum framework to support Ethereum-based NFTs. Hence, even despite the modern-day availability of new means to develop NFTs, Ethereum still holds by far the greatest stake in the best NFT marketplaces.

How to Buy Ethereum in India and Abroad

You can buy Ethereum in India through five simple and straightforward steps. The interfaces of brokers can vary but the steps remain the same and all of them are self-explanatory.

Select Appropriate Broker

Ethereum is not a traditional currency and hence cannot be purchased from your typical brick-and-mortar bank (or at least not yet). It requires special brokers that either offer or interface with an existing crypto exchange. The market offers plenty of options ranging from platforms that are equipped with advanced trading tools to exchanges that offer basic trading options. You can pick the platform based on experience and the platform’s ease of usage.

Create an Account

All of the brokers require users to create an account to buy Ethereum. You would have to provide them with credentials like email addresses and phone numbers in addition to some official documents to establish the authenticity of the profile. All of the platforms take some time to verify the information before activating the account.

Note: You should take the presence of KYC protocols, or the process by which an exchange uses official documents to establish your identity, as a green flag as to the exchange being a legitimate and legally compliant enterprise. If an exchange doesn’t make you verify, you should be suspicious as to the authenticity of the exchange.

Deposit Funds

The next step to buy Ethereum in India is to deposit funds into the account which can then be transferred via a digital wallet, direct deposit, debit card and credit card depending on the compatibility of the brokerage platform. Once the funds are transferred, they will appear on the dashboard of the brokerage application and can be used to buy Ethereum.

Search For Ethereum

Cryptocurrency brokers trade in several other currencies in addition to Ethereum. Hence, users will have to search for it to buy Ethereum in India. Most platforms have a search bar in their interface which can be used to search for Ethereum. However, there are some which require users to manually find it. This being said, it should not be too difficult as Ethereum is quite popular and is often at the top of the charts.

Start Trading

Users will see a graph which represents the price of Ethereum over a period of time. Some platforms even have specialised tools which anticipate the future price. Take all these factors into consideration and start trading. The price of each unit will be displayed with it. Upon making the trade the amount from the account will be deducted and a new asset will appear in the form of Ethereum.

Methods for buying Ethereum in India and Abroad

Buy Ethereum with Debit Cards

You can buy Ethereum with debit cards with most crypto brokers and it is probably the safest and most reliable means to deposit funds. You just have to enter the details of your debit card and fill in the purchase amount. Debit card providers will verify the transaction via text message or email and complete the transfer. You can buy Ethereum with debit cards without exposing yourself to cyber threats while maintaining the privacy of sensitive credentials.

Buy Ethereum With Credit Cards

You can buy Ethereum with credit cards as well and the process remains the same as with Debit cards. Users have to link their credit cards and enter the amount that has to be transferred. You can also use the balance to directly buy Ethereum in India without making a deposit to the brokerage platform first.

Buy Ethereum With PayPal

PayPal now supports cryptocurrency and can also be used to buy Ethereum with Paypal in India. You do not even need a third-party application to buy Ethereum with PayPal. Just log into the PayPal account, select Ethereum and enter the amount you want to purchase. PayPal will use the balance in the account in whichever currency it is to purchase the crypto for you. It is probably the most convenient and simplest method to buy Ethereum in India if you have a pre-existing Paypal account.

Choosing the Right Ethereum Exchange for You

A number of exchange services offer to trade Ethereum which can confuse novice investors who are anxious about choosing the right platform for their own specific needs and preferences. You can spare yourself the headache and narrow down the choices by considering the following factors into consideration.

Credibility of Platform

Establishing the credibility of the platform is crucial as users have to trust it with hard-earned money. You cannot use an exchange which has been compromised by hackers or one that does not offer a legitimate and legally compliant service. Furthermore, several scammers and bad actors are also present in the market which seek to lure their potential victims in with gimmicks and take all the savings when they’re least expecting it.

You can establish credibility by looking for the reviews about the specific exchange and by scrutinising the number of users and the address of the exchange. Investors should also look for the email address of the service and ensure the service complies with all the regulations. Avoid the platform if even a single red flag is spotted. Where your finances are concerned, it’s much better to be safe than to be sorry.

Invest Time in Research

Before signing up to a platform, do as much comprehensive research as you can. You should be aware of their charges, tools and the currencies they offer. Although almost all exchanges offer Ethereum, it must be checked before nonetheless. You should dig deep and read all of the negative reviews and seriously consider if the shortfalls of service can cause any inconvenience in future. The best path is to compare multiple platforms and pick the one which suits you the most

Search for Higher Security

The platform should employ advanced state-of-the-art security not just to protect the assets but also to prevent attacks on the credential library. It is not easy to understand technical terms that describe security but a search on the internet will tell everything there is to know in what hopefully amount to laymen’s terms.

Beware of Fee and Pairs

You should realise what you are getting yourself into before signing up with an exchange. Learn everything there is to know about it including their monthly charges, transaction fee and other charges which are hidden in the details. Furthermore, ensure that platform offers a pair for Ethereum that suits your region. For users in India, the exchange must provide an INR-ETH pair to conveniently sell and buy Ethereum.

Vetting the Recommended Brokers

The brokers we mentioned earlier in the guide have been thoroughly vetted by our team. We have tested each of them and found them to be suitable for users in India. Furthermore, our editorial teams also dove deep into reviews, especially the negative ones, aggregating a realistic score for Indian customers, so as to understand whether they will cause any inconvenience but most of them have been found to be quite reliable.

That said, each of them has its share of benefits and disadvantages but by and large most users will find them quite suitable. All of these are the best cryptocurrency trading platforms because they enjoy a decent reputation, excellent credibility, employ advanced security and most importantly, offer a reliable and secure trade of Ethereum. Furthermore, all of them comply with international and local regulations which will prevent the users from legal troubles.

How to Store Ethereum Safely?

The safest way to store Ethereum is to use a hardware wallet such as Ledger Wallet or Bitcoin wallet. It offers the most advanced security and private keys are stored in a tamper-proof chip inside a device after encryption. Furthermore, users access the wallet even if they lose the keys as long as they remember the secret code while setting it up. Bitcoin Wallets are an excellent option for users that are looking for hot options.

Hot Wallets

These wallets are connected to the internet, use advanced encryption and can be managed via mobile software or a desktop.

Cold Wallets

These wallets are physical usually in the form of pen drives and are the most secure way to store cryptocurrency.

The Price of Ethereum

The price of Ethereum is determined solely by the principle of supply and demand. It works exactly like buying stocks but because it does not have revenue or a formal balance sheet, the intrinsic price cannot be valued. Factors which play a role in determining the demand include media coverage, price of bitcoin, ERC-20 tokens, Eth 2.0 Staking and transaction volumes.

If media coverage around Ethereum is positive, it will lead to a rise in its value and vice versa. Ethereum also follows the track of bitcoin which can be used as an indicator to predict the future value. Other factors are also important but it requires an in-depth understanding of literature to identify their impact on the Ethereum price. You can learn about them from the educational content provided by the brokers.

Bull Runs

Bull Runs are the periods of time when the market is fueled by optimism and speculation. This drives more sales which consequently lead to a meteoric increase in value for Ethereum. You can make an instant profit by identifying these time windows and either buying or selling accordingly.

Bear Markets

Bear markets are periods when the market either loses interest or loses confidence in particular cryptocurrencies and starts selling them which negatively impacts the value of Ethereum. Identifying Bear Markets means you’ll know when to buy Ethereum on the cheap before the next Bull Run and walk away with a delightfully impressive profit margin.

Is Ethereum a Good Investment?

Ethereum is the second-largest blockchain platform and it is also backed with more sophisticated technologies which make it a relatively safer and more reliable cryptocurrency. It experiences regular fluctuations but experts have anticipated growth in the long-term future. You may not be able to make an instant profit but as a long-term investment, Ethereum remains a better option than stocks and other cryptocurrencies.

Is Ethereum Legal in India?

India does not have strict laws to regulate cryptocurrencies and it should not come as a surprise because the purpose of cryptocurrency is to have a decentralised payment system. So, while India does not accept Ethereum as a legal form of payment, it does not ban the holding or trading of Ethereum via brokers.

Taxation on Ethereum Earnings

India is yet to roll out regulations on cryptocurrencies and NFTs but it has implemented a tax regime in the interim. As per Income Tax Act, 1961, there is a 30% tax plus surcharge on the transfer of all digital assets including cryptocurrencies and NFTs. Furthermore, the loss in digital assets cannot be set off against other forms of income.

How to Sell Ethereum?

Ethereum can be sold in the same way as it is bought. You can use the same brokers to sell off Ethereum to buy another cryptocurrency or convert it back to traditional currencies like INR and USD. The process is simple but the steps might vary on different platforms.

What to Know Before Buying Ethereum?

You must understand that Ethereum is a volatile asset like all the other cryptocurrencies. The risks are there but there are strategies that can be used to mitigate loss and improve the chances of profit. As a new investor, familiarise yourself with the brokers and the tools they have to offer. Learn about how crypto works and what factors can influence its value. Take as much time as required but understand it comprehensively. Rushing into it will increase the chances of losses.

Investing Responsibly

Ethereum has the potential to make fortunes but it can wipe them out if the investor is not careful. Use the tools to understand the projections of digital assets and invest accordingly. Learn from the experts and go through the literature that is available on the internet. Understand how market trends affect the value of Ethereum and keep a close eye on them. It will prevent investing at the wrong time.

Recent Updates

Layer-2 blockchain protocols have been the focus of the Ethereum ecosystem, offering significant performance improvements to various platforms and services. This has been made possible by the use of Zero-knowledge (ZK) proofs, with Starknet being a pioneering decentralized scaling network in this area. StarkWare, the technology firm behind Starknet, has outlined its plans to improve its layer-2 network to accommodate the anticipated increase in users and developers throughout the year.

In an interview with Cointelegraph, Eli Ben-Sasson, President, and Co-founder of StarkWare, discussed the main objectives laid out in the 2023 roadmap for Starknet. The roadmap prioritizes performance improvements centered around enhancing the throughput and reducing the latency of Starknet’s network. Ben-Sasson explained that the focus on performance upgrades is aimed at delivering significantly higher transactions per second (TPS) at lower gas costs than those on Ethereum’s mainnet. This will enable builders and developers to have high throughput, empowering them to build more efficiently.

Starknet v0.12.0 is expected to be released in the next month, the culmination of a six-month sprint that involved transitioning Starknet’s development stack to a Rust-based Sequencer and an open-source project that built a Rust-Cairo virtual machine. The programming language compiler Cairo was also open-sourced earlier this year, with the language aimed at driving the development of ZK-rollup and validity-proof-powered decentralized applications (DApps).

In summary, StarkWare’s focus on improving the performance of Starknet’s layer-2 network is set to offer significant benefits to the Ethereum ecosystem. The anticipated upgrades, including higher throughput and reduced latency, will provide builders and developers with raw power to build more efficiently. The release of Starknet v0.12.0 and the open-sourcing of the programming language compiler Cairo signify a significant milestone in the development of ZK-rollup and validity-proof-powered DApps.

Conclusion

As a nascent market, all cryptocurrencies are volatile but established ones like Ethereum and Bitcoin are less likely to incur losses than some of the newer currencies. As a novice investor, one should look for the appropriate broker and become familiar with everything about the service to increase the chances of profit while also reducing risks as much as possible. Buying Ethereum in India is simple and straightforward but there are certain risks which must be kept in the account. You should invest only after extensive research and store it in the wallets that are safest.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.