Ethereum (ETH) is the second-largest cryptocurrency by market cap and the foundation of the DeFi and NFT ecosystems. To buy ETH, sign up for Binance, then download the Binance APP and follow the steps below.
How Ethereum Differs from Bitcoin
Bitcoin is primarily viewed as "digital gold," valued for its scarcity and store-of-value properties. Ethereum is a programmable blockchain platform that runs smart contracts and decentralized applications.
Simply put, Bitcoin is like gold, while Ethereum is like a decentralized world computer.
Steps to Buy ETH on Binance
Quick Purchase
- Open the Binance APP home screen
- Tap "Buy Crypto"
- Select "P2P Trading," choose ETH
- Enter the purchase amount
- Select a merchant and pay
- Wait to receive your ETH
Spot Trading
- Buy USDT via P2P first
- Go to the "Trade" page
- Search for "ETH/USDT"
- Select "Buy," choose "Market" order type
- Enter USDT amount to spend
- Confirm the order for instant execution
Things to Know About ETH
Gas Fees
Ethereum network gas fees fluctuate. If you plan to use ETH on-chain, gas fees can be significant. However, trading within Binance doesn't involve gas fees.
ETH Staking
ETH has completed its transition from Proof of Work (PoW) to Proof of Stake (PoS). You can now stake ETH for yield, adding an extra value proposition.
Hold or Trade?
Ethereum's ecosystem continues to expand, and long-term holders believe its utility value will grow. Short-term traders can profit from price volatility. Both strategies have their merits.
What Can ETH Be Used For?
- DeFi: Participate in lending, swapping, and liquidity mining
- NFTs: Buy and create digital art
- Staking rewards: Earn passive income through Binance or on-chain staking
- Gas fees: Required for any operation on the Ethereum network
Where Does Purchased ETH Go?
Like Bitcoin, purchased ETH goes to your Binance spot account. You can:
- Keep it on Binance for trading
- Stake it for yield through Binance
- Withdraw to MetaMask for DeFi usage
- Store long-term in a cold wallet
Summary
Buying ETH on Binance follows a similar process to buying BTC — via direct P2P purchase or spot trading. Beyond its investment value, ETH offers rich on-chain applications.