Buy Ethereum

Ethereum is a decentralised blockchain network that runs programs called smart contracts, and Ether (ETH) is the cryptocurrency that powers it. ETH is the second-largest cryptocurrency by market capitalisation after Bitcoin, and it is the asset you use to pay for transactions, secure the network through staking, and interact with thousands of applications built on Ethereum.

Australians can buy Ethereum with Australian dollars on CoinJar, an Australian-built platform operating since 2013 and registered with AUSTRAC as a digital currency exchange.

What is the Ethereum blockchain?

Ethereum is a public blockchain designed to run code, not just record payments. It launched in July 2015, based on a white paper written by Vitalik Buterin in 2013 and developed with co-founders including Gavin Wood and Joseph Lubin. No company owns it. It is maintained by an open community of developers and thousands of independent validators around the world.

Bitcoin proved a blockchain could track ownership of money without a bank. Ethereum extended that idea to anything a contract can describe, which is why it is often called a programmable blockchain. Lending markets, stablecoins, digital collectibles, exchanges, games, and tokenised real-world assets all run on it. If you want a deeper explainer before you buy, read our guide to what Ethereum is and how it works.

What is ETH used for?

Ether has four main jobs on the network.

• Paying gas fees. Every action on Ethereum, from sending ETH to trading on a decentralised exchange, costs a fee denominated in ETH.
• Securing the network. Validators lock up ETH to confirm transactions and earn rewards for doing so honestly.
• Acting as collateral. ETH is the most widely used collateral asset in decentralised finance, backing loans and stablecoins.
• Settling value between applications. ETH is the common unit of account across Ethereum apps and the Layer 2 networks built on top of it.

How does Ethereum work?

Ethereum runs on a Proof-of-Stake consensus mechanism. Instead of miners competing with computing power, validators deposit 32 ETH each and are selected to propose and verify blocks. Honest validators earn newly issued ETH. Validators that go offline or act maliciously lose part of their stake, a penalty known as slashing.

This design change happened in September 2022 in an upgrade called The Merge, which cut Ethereum's energy use by up to 99.95% according to the Ethereum Foundation's energy consumption analysis. It is the reason Ethereum's environmental footprint is now closer to that of a large web service than a mining industry.

Gas fees and the ETH burn

Gas fees rise and fall with demand for block space. Each transaction pays a base fee that is permanently destroyed, or burned, and a priority fee that goes to the validator. Because ETH is burned with every transaction while new ETH is issued to validators at a low rate, total supply can shrink during periods of heavy use. There are around 120 million ETH in circulation, and unlike Bitcoin there is no fixed maximum supply, just a balance between issuance and burning that shifts with network activity.

Layer 2 networks

Most everyday Ethereum activity now happens on Layer 2 networks such as Arbitrum, Optimism, and Base. These are separate chains that process transactions cheaply and then post compressed data back to Ethereum for final settlement, inheriting its security. The Dencun upgrade in March 2024 introduced a dedicated cheap data format called blobs, which cut Layer 2 fees by more than 95%, and later upgrades including Pectra in May 2025 and Fusaka in December 2025 expanded that capacity further. Layer 2 fees are still paid in ETH, so this activity feeds back into demand for the asset. Our explainer on blockchain layers breaks down how L1, L2, and L3 fit together.

Ethereum vs Bitcoin: what is the difference?

	Bitcoin (BTC)	Ethereum (ETH)
Primary purpose	Store and transfer value	Run programs and settle value
Consensus	Proof of Work (mining)	Proof of Stake (staking)
Supply	Capped at 21 million	No cap, with a fee burn offsetting issuance
Launched	2009	2015
Built on top	Limited	Stablecoins, DeFi, NFTs, Layer 2 networks

Bitcoin and Ethereum are often held together rather than treated as competitors, since they solve different problems.

Why do people buy Ethereum?

Investors generally buy ETH for one of three reasons. Some want exposure to the infrastructure layer of the digital asset economy rather than a single application, on the view that fees and settlement demand flow to ETH as usage grows. Some want to use the network itself, which requires ETH to pay for anything from swapping tokens to minting an NFT. Others hold it for staking, where locked ETH earns protocol rewards, with rates that vary depending on how much ETH is staked in total.

Institutional access has also widened. Spot Ethereum exchange-traded funds began trading in the United States in July 2024, staking-enabled versions followed from late 2025, and a growing number of listed companies now hold ETH on their balance sheets.

None of this makes ETH a low-risk asset. Price swings of 30% or more in a month are common, other smart contract platforms compete directly with Ethereum, applications built on it can be exploited, and regulatory treatment of staking and tokens continues to change across jurisdictions. Only invest what you can afford to lose.

Buying Ethereum in Australia

You can buy Ethereum on CoinJar via multiple payment methods. If you would rather build a position gradually than time an entry, you can set up a Recurring Buy to purchase ETH automatically on a daily, weekly, fortnightly, or monthly schedule.

Frequently asked questions

Can I buy Ethereum with Australian dollars?

Yes. You can deposit AUD to CoinJar using PayID or bank transfer and buy ETH directly, with no need to convert to US dollars or another cryptocurrency first. Deposits and withdrawals are made in Australian dollars to and from an Australian bank account in your name.

Can I buy less than one Ethereum?

Yes. ETH is divisible to 18 decimal places, so you buy by dollar value rather than by whole coins. A purchase of say $50 simply buys whatever fraction of an ETH that amount is worth at the time. The smallest unit is called a wei, and one quintillion wei make up one ETH.

Is Ether the same thing as Ethereum?

Not quite. Ethereum is the blockchain network, and Ether, ticker ETH, is the cryptocurrency used to pay for activity on it. In everyday use most people say "buying Ethereum" when they mean buying ETH, and exchanges list the asset under the ETH ticker.

Do I pay tax on Ethereum in Australia?

Generally yes. The Australian Taxation Office treats cryptocurrency as property, so selling ETH, swapping it for another cryptocurrency, or spending it can trigger a capital gains tax event, and staking rewards are usually treated as ordinary income when received. Our guide to crypto tax in Australia covers the detail, and a registered tax agent can advise on your circumstances.

How long does it take to send Ethereum?

An Ethereum transaction is usually confirmed within seconds to a couple of minutes, and is considered final after roughly 13 minutes on the network. Transfers cost a gas fee paid in ETH, which rises when the network is busy. Sending on a Layer 2 network such as Arbitrum, Optimism, or Base is typically faster and much cheaper.