This content is for educational purposes only and is not financial advice. bunq doesn't give trading advice. Always do your own research or consult a qualified financial advisor before making any investment decisions. Cryptocurrency investments come with risks, including the potential loss of the principal invested. Prices can fluctuate significantly. bunq Crypto is powered by our partner Kraken.

Ethereum is a blockchain platform built for more than payments. Its native currency, ETH, powers a network where developers build apps, financial tools, and digital assets using smart contracts, programs that run automatically when conditions are met. That flexibility is why Ethereum sits alongside Bitcoin as one of the most widely used blockchains in the world.

What is Ethereum?

Launched in 2015, Ethereum extended what blockchain technology could do. Where Bitcoin focuses on transferring value, Ethereum is a programmable platform. Anyone can deploy smart contracts and decentralized applications (dApps) on top of it, from lending protocols to NFT marketplaces.

ETH is used to pay for transactions on the network, including fees known as gas fees, and to participate in staking, where holders help secure the network and may earn rewards.

How Ethereum works

Ethereum records every transaction on a public ledger, like other blockchains. Smart contracts live on that ledger too: once deployed, they execute exactly as written, without a middleman.

The network moved to Proof of Stake in 2022, replacing the energy-intensive Proof of Work model. Validators stake ETH to confirm transactions, which reduced energy use significantly compared with the earlier design.

Ethereum vs Bitcoin

Bitcoin is primarily digital money with a fixed supply of 21 million coins. Ethereum is a platform for building on-chain applications, with ETH as its fuel. Many people hold both for different reasons, Bitcoin as a long-term store of value, Ethereum for exposure to a broader ecosystem of apps and DeFi.

Buying Ethereum with bunq

You can buy, sell, and track ETH in the bunq app, starting from as little as €1. Your crypto sits alongside your everyday accounts, held securely through our partner Kraken. Set Price Alerts to stay informed when the market moves, and explore other investment options in the same app if you want to diversify beyond crypto.

Frequently asked questions

What is ETH used for?

ETH pays transaction fees on Ethereum, funds staking, and acts as the base asset for apps built on the network. When you buy ETH, you hold the token that powers that entire ecosystem.

Is Ethereum the same as Ether?

People often use "Ethereum" and "Ether" interchangeably. Technically, Ethereum is the network; Ether (ETH) is the cryptocurrency. In everyday conversation and investing, both terms usually mean the token.

Why do Ethereum fees change?

Gas fees rise when network demand is high and fall when it's quiet. You're paying for the computing work required to process your transaction, not a fee set by bunq or any single company.