How to Buy Ethereum


Ethereum is the second-most valuable cryptocurrency in the world by market capitalization, currently valued at more than $370 billion.1 Starting from humble beginnings in 2015, Ethereum was born out of discussions in a meet-up group in Toronto, Ontario. Russian-Canadian Vitalik Buterin is often credited as the founder of the project, but there are actually seven other co-founders, many of whom are still innovating in the crypto space today. They include the founders of Cardano (Charles Hoskinson) and Polkadot (Gavin Wood), which are two direct competitors of Ethereum.2 Today, most of the trading volume that filters through the worlds of decentralized finance (DeFi), non-fungible tokens (NFTs), and the metaverse go through the Ethereum blockchain.3 This is true even though the project faces a long road toward achieving its full 2.0 upgrade. Some of Ethereum’s pain points, including costly smart contract transaction fees, may dissipate after the upgrade is complete.

What is Ethereum?

Ethereum4 was built to be the world’s largest and most powerful decentralized world computer. Although it’s a peer-to-peer payment system that lives on top of a blockchain just like Bitcoin, Ethereum is also the first-ever smart contract platform. It provides developers with a way to raise funds to build decentralized applications. This means a couple of things for developers. First, they no longer need to rely on centralized marketplaces like The Apple Store or Google Play to publish their applications. Secondly, developers can raise money for their ideas by launching initial coin offerings (ICOs) instead of going the traditional venture capital route.

How to buy Ethereum at TradeStation Crypto

Background on Ethereum

Ethereum is moving toward a more efficient and environmentally friendly consensus algorithm that differs from Bitcoin’s proof-of-work (PoW) approach. When the Ethereum 2.0 upgrade is complete, potentially in 2023, a proof-of-stake (PoS) consensus algorithm will validate transactions. In a proof-of-stake environment, transactions are confirmed by nodes (computers) that act as validators.5 Validators secure the Ethereum blockchain and earn tokens for doing so. The difference with Bitcoin’s proof-of-work approach is that in a PoW system, validators, known as miners, need more and more computing power to solve cryptographic puzzles to validate transactions. This uses an incredible amount of energy and electricity.

Ethereum’s proof-of-stake approach, on the other hand, allows any node to participate as a validator if they’re willing to stake tokens to the network as collateral. Validating transactions correctly means earning a reward. Incorrectly validating transactions means losing your stake. Once the Ethereum 2.0 upgrade is complete, validating transactions may become more environmentally friendly. Transaction fees will also likely get cheaper, and the blockchain’s ability to handle more transactions may increase.6 Add to that the fact that Ethereum already dominates many facets of the crypto world, and it’s easy to see why some people want to own it.

How to Buy Ethereum with TradeStation

It’s easy to figure out how to invest in Ethereum using TradeStation. [i] If you don’t have an account already, simply click here to open an account.


1. Ethereum price and total market value as of April 13, 2022.

2. Who are Ethereum’s Cofounders and where are they now? Accessed on April 18, 2022. 

3. Ethereum. Accessed on April 18, 2022.

4. Ethereum Whitepaper. Accessed on April 18, 2022.

5. Proof-of-Stake. Accessed on April 18, 2022. mechanisms/pos/

6. Eth2 upgrades. Accessed on April 18, 2022.


[i] Equities, equity options, and commodity futures products and services are offered by TradeStation Securities, Inc. (Member NYSE, FINRA, CME and SIPC). Cryptocurrency and digital asset products and services are offered by TradeStation Crypto, Inc. The assets in your TradeStation IRA account are assets of a custodial IRA account established with a third-party IRA custodian selected by you.

Any potential tax advantages or benefits will depend on your circumstances. The information provided here is for information purposes only. It is not intended to constitute tax advice that may be relied upon to avoid penalties under any federal, state, local, or other tax statutes or regulations and does not resolve any tax issues in your favor. Refer to IRS Publication 590, Individual Retirement Accounts, for additional information on IRAs in general and consult your tax professional about your individual tax situation.

[ii] TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly-owned subsidiaries of TradeStation Group, Inc., all operating and providing products and services under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly-owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for or purchasing accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.

[iii] Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.

[iv] Investing in securities also involves risks. Past performance is no guarantee of future results. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: Information.

Trade in milliseconds

Explore the most actively traded options

Trade 600+ futures products on an advanced platform