There are several ways to buy Ethereum (ETH). In this article we guide you through them, outlining the advantages and disadvantages of each method.

Platforms for Purchasing ETH

You can buy ETH through:

• Digital wallet providers
• Centralized exchanges (e.g. Coinbase)
• OTC desks (for high-net-worth individuals)
• Peer-to-peer marketplaces
• Payment apps like PayPal

Where Your ETH Goes After Purchase

After buying (ETH), you can store it:

1. In a self-custodial wallet, like the superex.com Wallet
2. In a custodial wallet (e.g., on an exchange or payment app)

Self-Custodial vs. Custodial Wallets

Self-custodial wallets offer full control without needing third-party approval for transactions. They allow customization of network fees and provide enhanced security, as long as you follow key management best practices. The superex.com Wallet, which supports Bitcoin (BTC), Ethereum (ETH), and the most popular cryptocurrencies and blockchain networks, is a recommended self-custodial wallet.

Custodial wallets might impose restrictions like address registration, withdrawal delays, or account freezing.

Taking possession of your ETH

The big difference between buying a cryptocurrency like ETH and buying a "traditional" financial asset like a share in Apple is that with crypto-assets, you have the option to take custody of the asset yourself - and this has some important implications.

With traditional financial assets, there's always a middleman standing as a 'custodian' between you and the asset - and having that third party adds risk and cost. The risk comes from opaque accounting practices and the chance of bankruptcy. The cost comes from the overhead associated with holding your assets on your behalf. Beyond risk and cost, custodians also make it more difficult for you to use your assets exactly as you wish. For example, in the custodial model, while you may "own" a share of Apple, what you actually have is a claim or an IOU. You can't send it to your friend and, when you want to trade it, you're must ask the platform (broker) for permission to do so.

By contrast, crypto-assets are built to be 'non-custodial' and 'permissionless.' This means that you can take true possession of your assets and use them however you like. This is similar to the way you hold cash notes, but since crypto-assets exist in the digital realm, you can interact at a global scale and at the speed of the Internet.

Surprisingly, the reality is that, even though it's possible to take true possession of your crypto-assets, most people don't! The majority of crypto-assets continue to be held by custodians on centralized exchange platforms. This is likely due to the fact that, until recently, there weren't easy-to-use tools for taking possession of your crypto. Luckily, that's all changed.

Now there are simple but powerful 'digital wallets' like the superex.com Wallet that make it easy to take control of your crypto-assets.

With the superex.com Wallet, not only can you quickly buy and sell ETH (and a range of other select cryptocurrencies), you can also securely hold your crypto-assets. In other words, you - and only you - will have access to your assets, and you can use them exactly how you want. That means you're free to send them, receive them, and trade them - 24/7, no questions asked. Even if superex.com ceases to exist, you'll always have full control over your crypto-assets.

Read more: How to create an Ethereum Wallet and why you need one.

Identity Verification (KYC/AML)

When buying ETH with government-issued currency via exchanges, KYC (Know-Your-Customer) and AML (Anti-Money-Laundering) regulations require identity verification.

Fees for Buying ETH

Fees depend on the payment method and platform. They are generally lower for larger purchases.

Detailed Buying Methods

Buying ETH with the superex.com Wallet

1. Open the app and select ETH.
2. Tap "Buy" and follow on-screen instructions.
3. Choose a wallet for depositing ETH.
4. For first-time buyers, enter credit card information and verify identity.
5. Complete the purchase.

Buying ETH from the superex.com Website

1. Visit the Buy page.
2. Select ETH and enter the amount.
3. Provide your ETH wallet address.
4. Complete the purchase process with payment details and, if asked, complete ID verification.

Buying ETH from a Centralized Exchange

1. Visit an exchange, like Coinbase, and create an account, including ID verification.
2. Buy ETH and it will appear in your exchange account.
3. To control your ETH, send it to a self-custodial wallet.

Buying ETH via Peer-to-Peer Platforms

1. Search for listings based on payment type, amount, and seller reputation.
2. Initiate a trade to lock ETH in escrow.
3. Send payment and wait for the seller to confirm.
4. ETH is released from escrow to your wallet.