How to Buy Ethereum on CEX, DEX, and P2P Marketplaces

Owning Ether (ETH) opens the door to the Ethereum ecosystem, which consists of NFTs, dApps, DeFi, and staking. The quickest way to get ETH is to buy it, but the buying process can seem complex at first. This guide outlines the process of buying ETH in three entry routes: centralized exchanges (CEXs), decentralized exchanges (DEXs), and peer-to-peer (P2P) marketplaces.

Buying ETH on a centralized exchange (CEX)

Centralized exchanges, such as Coinbase, Kraken, and Binance, manage order matching, asset custody, and tax reporting, making them the most straightforward option for newcomers. They deliver fast execution, user-friendly interfaces, fiat gateways, and dedicated customer support. However, traders must complete Know Your Customer (KYC) checks, respect withdrawal limits, and accept the custodial risk associated with leaving funds on the platform.

A step-by-step walkthrough (example: Coinbase)

1. Open an account & verify your ID: Upload a government-issued ID or proof of residence; approval usually takes minutes.
2. Add a payment method: Link your bank account or credit/debit card. ACH wires avoid card cash-advance fees but settle more slowly.
3. Enter how much ETH you want to buy: Coinbase shows a live quote, network fee, and spread depending on how much you want to buy.
4. Confirm & store: Tap “Preview buy” to see details of your purchase. Press “Buy now” and ETH will appear in your portfolio once the order is processed.

Buying ETH on decentralized exchanges (DEX)

Uniswap and other decentralized exchanges allow users to buy crypto and conduct wallet-to-wallet token swaps with just a signature, provided you have used the provider before. You hold the private keys to your ETH and get access to global liquidity. As a tradeoff, you must set gas and slippage parameters yourself, stay vigilant against phishing sites, and rely on a separate service to convert between crypto and traditional money.

What you need first:

• A self-custody wallet (e.g., MetaMask, Coinbase) loaded with a funding coin, such as USDC or USDT.
• ETH for gas to pay miners/validators.
• A reputable DEX front-end.

Quick walk-through to buy ETH (example: Uniswap Wallet)

1. Press the buy icon and choose “ETH”.
2. Enter the amount you wish to buy and press “Continue”.
3. Select the provider you would like to buy crypto with. The providers listed and the payment methods offered will depend on the region in which you are located.
4. After picking a provider, you’ll be securely redirected to the provider’s app or website to complete the purchase.
   1. When you use a provider for the first time, you are expected to undergo KYC by confirming your email, phone number, and identity, with exact requirements varying by country.
5. Once completed, your crypto will be deposited into your crypto wallet.
   

Buying ETH on P2P marketplaces

Peer-to-peer exchanges connect buyers and sellers directly, eliminating the need for intermediaries. For safety, crypto is held in escrow until the fiat payment clears. P2P marketplaces offer a wide range of local payment options and flexible ETH prices. The downsides include the risk of being defrauded and slower transaction times.

Listed below are some of the P2P marketplaces available today:

Quick guide to buying ETH on P2P marketplaces (example: Paxful)

1. Create and verify your Paxful account in a few minutes by providing your email address, government-issued ID, and phone number. 
2. Return to the marketplace page after account verification, choose a payment method, enter the amount you plan to spend, choose your currency, and click “Find Offers”. 
3. Review the list of ETH sellers and give preference to sellers with high positive feedback for smoother trades. 
4. Click the “Buy” button beside a seller’s offer to read their specific terms.
5. If the terms suit you, set the amount of ETH you want to purchase and click “Buy Now.”
6. Transfer funds to the seller’s account, click “Paid” to confirm, and wait while the ETH is held in escrow. 
7. Once the seller acknowledges receipt, your ETH will be released from escrow to your Paxful account.