How to Buy Bitcoin in the UK: The Ultimate Guide
Share
If you want to learn everything you need to to know about how to buy Bitcoin in the UK, the process is actually much simpler than you might think. All you need is to open a trading account with a trusted online broker or Bitcoin exchange and start trading. However, there are lots of different providers out there, so finding the best one for you isn’t always easy.
To help you out, we’ve reviewed the best UK platforms on which you can obtain the Satoshi Nakamoto digital currency, Bitcoin. We’ve also provided a step-by-step guide that walks you through how to purchase Bitcoin in the UK. Let’s get to it!
In a hurry and no time to read this guide? No problem! Simply follow the steps below and click the link to start investing Bitcoin. Opening a Bitcoin trading account in the UK is fast and easy with the best Bitcoin brokers. Let’s take a look at the top platforms on which you can buy and sell Bitcoin. eToro is one of the largest brokers in Europe, boasting over 12 million users. It offers a full crypto offering, including Bitcoin and most major other coins, and a wide variety of crypto pairs to buy directly or via CFDs. In total, you can trade 17 major cryptocurrencies, 64 currency crosses, 16 crypto crosses and even a Gold/BTC cross. You can also trade thousands of other instruments including stocks, forex, funds and commodities at no commission. eToro's web and mobile platforms are super easy to use and provide fast and straightforward Bitcoin trading. If you want to acquire Bitcoin directly, eToro offers a built-in Bitcoin wallet with a private key so you can transact in Bitcoin The Bitcoin wallet, which is available as a mobile app, also provides a secure place to store your coins. Alternatively, you can trade Bitcoin CFDs with 1:2 leverage. Trading on eToro is commission-free, its spreads are super competitive and all other fees are extremely transparent. Beginners will also enjoy eToro's free demo account to trade up to $100,000 in virtual money to get a feel for the platform. Lastly, one of the best features of eToro is the social trading experience. The CopyTrader system allows you to copy the entire portfolio of top traders! This is a great tool for both beginners and more experienced traders alike. eToro is also one of the few platforms on which you can acquire Bitcoin that is FCA-regulated, so it's very safe and secure. Our Rating Changelly is a relatively new cryptocurrency exchange set up in 2015 and that allows users to buy, sell and exchange over 50 cryptocurrencies against over 20 currencies. Changelly offers a great and intuitive exchange platform and remarkably low fees (0.5% per trade) vs. peers, although fees to buy and sell Bitcoin can be higher given the below-market exchange rates. Users can pay via debit and credit cards, and Changelly closes transactions usually in under 30 minutes, depending on the nature of the trade. One of the main features of the Changelly user experience is the intuitiveness of the platform and its anonymity. Users who want to buy or exchange cryptocurrencies quickly and anonymously will find that the platform offers just that, with very few unnecessary thrills. Our Rating Coinmama is a Tel Aviv-based cryptocurrency exchange that started in 2013. It offers a wide range of cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin, that can be bought against major fiat currencies like USD, EUR, GBP, CAD and AUD. Coinmama does not provide a platform for trading cryptocurrencies; its primary function is to allow users to purchase cryptocurencies with a debit or credit card. However, it is one of the fastest exchanges to get your hands on Bitcoin quickly Users will need their own Bitcoin wallets to invest in Bitcoin on Coinmama, but several layers of safety will ensure that your Bitcoins arrive in your digital wallet safe and sound. Last, while Coinmama's fees are quite high compared to the competition (around 5.5% fees for BTC or ETH), it has very high purchasing limits, with verified users able to purchase up to $5,000 per day (maximum of $30,000 per month). Our Rating Binance is a Malta-based cryptocurrency exchange that has become of of the largest and most trusted exchanges in the world. With millions of users around the world, Binance offers all the most popular cryptocurrencies and a wide variety of crypto pairs (BTC can be traded against over 30 cryptocurrencies). Binance charges very low fees compared to its peers, with an average fee of 0.1% per trade. There are no limits on the number of coins you can deposit, but you cannot withdraw large sums unless you verify your account. Users can select two different trading accounts, Basic and Advanced, which differ in terms of the number of analysis and charting tools you can use. Either way, the Binance platform offers a multitude of great tools to make crypto trading a seamless experience Our Rating Launched in San Francisco in 2012, Coinbase is a cryptocurrency exchange that boasts over 10 million customers worldwide and that has facilitated over $40 billion in crypto transactions. As one of the largest crypto exchanges, Coinbase commerce allows users to buy and sell almost all of the most popular cryptocurrencies. Users can acquire Bitcoin and other currencies with fiat currency via credit cards, debit cards and PayPal. In the UK, users can connect their bank account to Coinbase commerce for even faster transactions. Last, Coinbase offers Bitcoin wallets via the great Coinbase Wallet mobile app, which allows users to easily manage most of the top cryptocurrencies. Our Rating Before you learn how to acquire Bitcoin online, it’s a good idea to have an understanding of how the market works. Here’s some background information to get you up and running. Bitcoin is a form of decentralized, digital currency that is exchanged on a p2p exchanges known as the Blockchain technology. Bitcoin transactions are tracked on a public ledger with Bitcoin “miners” verifying each transaction and updating the ledger for everyone. While the maximum number of Bitcoin that can exist is 21 million, it is possible to trade Bitcoin in fractions, down to 0.00000001 BTC, known as a Satoshi. You can buy and sell Bitcoin directly via a Bitcoin wallet, where you exchange BTC or fractions that you own. This is done either via an online broker or cryptocurrency exchange. Alternatively, you can trade Bitcoin CFDs (contracts for difference), meaning you speculate on the price volatility without owning the underlying assets. This is exclusive to online brokers. To make money investing in Bitcoin in the UK, you have to respect the old adage to “buy low, sell high”. Unless you have a really advanced setup on your hands to allow you to mine Bitcoin, the way to make money via Bitcoin is through buying and selling the asset Bitcoin is highly volatile, so there are plenty of opportunities to trade it profitably. However, it also means there’s a significant risk of losing money when you trade Bitcoin. Bitcoin is of interest to both day traders who look to make small profits due to its volatility, as well as investors who acquire Bitcoin with a longer-term outlook. As well as buying and selling Bitcoin, you can trade it against fiat currencies, such as GBP and USD, as well as against other cryptocurrencies, like Ethereum and Litecoin. Like many other countries, the UK does not yet have cryptocurrency-specific laws. Nevertheless, there are several trading platforms that are regulated by the Financial Conduct Authority (FCA) and allow users to buy Bitcoin in the UK. Many unregulated, offshore crypto businesses are also accessible from the UK. We always recommended buying Bitcoin with a regulated Bitcoin exchange, as it ensures your bank account and funds will be protected and you’ll be entitled to compensation should your chosen broker ever cease trading. A key point to note is that in the UK, realized gains from Bitcoin trading must be reported and are subject to capital gains tax. Before buying Bitcoin in the UK, there are a few risks you need to know: The value of Bitcoin can rise and fall spectacularly in a short period of time. The spectacular swings of Bitcoin in 2017 and 2018 showed that buying and holding Bitcoin can be very risky, but also extremely profitable if the timing is right. Consequently, buying Bitcoin can be very risky. The nature of the blockchain is such that once a transaction takes place, it no longer can be changed. Consequently, if you trade Bitcoin via a digital wallet, make sure to double-check before buying or selling. You may have read about hacks on cryptocurrency exchanges and other spectacular thefts of Bitcoin. Since Bitcoin is valuable and anonymous, it is an excellent target for hackers. As a result, choose a regulated broker and make sure to never communicate your private keys with anyone. If you believe that Bitcoin will continue gaining in value in the long-run, your profile fits more that of an “investor”. As such, you may prefer to order Bitcoin directly, store it in your Bitcoin wallet and hold it for the long run. While you assume the risk of your predictions not materializing when you invest in this way, there are no costs to holding BTC. Furthermore, you will not pay capital gains tax so long as you do not sell. However, if your strategy is to use Bitcoin’s volatility to your advantage, then you match the profile of a trader. In this case, you will find it more suited to trade Bitcoin via CFDs so as to avoid holding BTC physically. CFD trading will allow you to short Bitcoin, meaning you speculate on prices going down, and use leverage, meaning you borrow capital from your broker to make larger trades. There are many ways to obtain Bitcoin in the UK, and most of them are easy. Let’s review a few main ones. Many of the best Bitcoin brokers and exchanges in the UK allow you to acquire Bitcoin with debit card. Debit cards are one of the most convenient ways to acquire Bitcoin in the UK directly from your bank account. Simply create an account with a top digital currency broker (any of the ones reviewed above) and fund your account via debit card to get started. You’ll often be able to do this free-of-charge, and debit card deposits are typically processed instantly so you get Bitcoin straight away. Buying Bitcoin with credit cards is not fundamentally different from buying with a debit card, albeit with a few caveats. The first is that it is not uncommon to see brokers ask for proof of ID to buy Bitcoin via credit, particularly since Bitcoin trades cannot be cancelled. Some trading platforms also charge you fees when you deposit with credit card, which may be a percentage of the transaction or a fixed amount. PayPal is one of the most popular methods to fund your account with a Bitcoin broker, as it’s fast, cheap and super secure. Many of the top regulated Bitcoin brokers in the UK, such as eToro, accept PayPal as a form of payment, but it’s not as widely accepted as bank cards. Many brokers in the UK require ID in order to verify your account before you begin trading. However, if you wish to acquire Bitcoin anonymously, you still have a few payment options. The first and simplest is to find a broker that does not require ID. Platforms like Changelly, Shapeshift or CryptoRocket allow you to obtain Bitcoin directly (or via CFDs) anonymously. Another option is to use Bitcoin ATMs and deposit cash anonymously in exchange for Bitcoin in your digital wallet. While this option can be attractive, it is often hard to find Bitcoin ATMs and is rather time-consuming. Lastly, you may also choose to get Bitcoin directly without a regulated Bitcoin exchange, for example via peer-to-peer platforms like LocalBitcoins. Nonetheless, this is definitely a riskier proposition, particularly as fraud is rife in the Bitcoin space. Now that you understand how to acquire Bitcoin in the UK, let’s review how to open an account on our recommended Bitcoin broker, eToro. The first step is to sign up. Opening an account is quick & easy, but you will have to provide basic information and a valid phone number. The next step is to fill a short questionnaire about your sources of funds and investment style. First, you will have to provide your address, occupation and answer questions about your sources of income. You will then be asked a series of questions about your risk tolerance, investment horizon and trading experience. Once you finish the questionnaire, you can start trading, albeit with a limited amount. To access all the features of the platform, you will still have to submit a few more identity documents to verify your account. Before you can obtain Bitcoin, you need to fund your account. eToro offers a range of payment methods, including a bank account debit card, PayPal and bank transfer, so you simply need to select your preferred payment method, enter your details and the desired amount, then hit confirm. Using the search function, look up Bitcoin and click “Trade”. You then need to choose whether you want to acquire the underlying asset or trade a CFD. Specify the dollar amount or number of units you want to purchase and a stop loss limit if you want. The default order type is a market order, but you can opt for a limit order instead. Before pulling the trigger, take a minute to review the exposure the trade entails. Once you’re happy, hit ‘Buy Button’ and you’ll have bought some Bitcoin! Now we’ve taken you through how to buy Bitcoin in the UK, you can put your knowledge into practice. All you need to do is sign up with one of the best Bitcoin brokers and you can then buy Bitcoin with PayPal, a debit card or credit card. If you do want to acquire Bitcoin, we advise you to research the market and understand the risks of trading this volatile cryptocurrency before you put your money on the line. If you’re looking for the best UK Bitcoin broker, we suggest going with eToro. With 0% commission, a range of payment methods and a Bitcoin wallet, this broker ticks all the boxes. Simply click the link below , sign up and you’re ready to obtain Bitcoin. eToro: Best Platform to Buy Bitcoin in the UK Our Rating test Alan is a content writer and editor who has experience covering a wide range of topics, from finance to gambling. If you’re looking for a low-cost share dealing platform that makes it super easy to buy and sell stocks, ETFs, and funds, it might be worth considering Halifax. You don’t need to have a current account with the provider, and getting started takes just minutes. In this article, we review the ins and outs of... The United Kingdom’s high street banks approved close to a million mortgages in 2019. Data gathered by LearnBonds.com indicates that 982,286 mortgages were approved in 2019, an increase of 7.4% from 2018’s 909,597. The mortgage approval entails loans for home purchase, remortgaging and other loans. Compared to 2018, the number of mortgages approved for home... WARNING: The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision. The information on this website is general in nature, so you must consider the information in light of your objectives, financial situation and needs. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site. Copyright © 2022 | Learnbonds.com
How to Buy Bitcoin in the UK in 3 Simple Steps
How to Open a Bitcoin Trading Account in the UK
1. eToro: Best All-Around Cryptocurrency Broker
2. Changelly: Great Up-And-Coming Cryptocurrency Exchange
3. Coinmama: Best Bitcoin Exchange for Instant Delivery
4. Binance: One of the Most Trusted Cryptocurrency Exchanges
5. Coinbase: The World's Best-Known Crypto Exchange
Learn How the Bitcoin Market Works in the UK
What is Bitcoin and how do you trade it?
Bitcoin was created by Satoshi Nakamoto and is the world’s most famous cryptocurrency which gained worldwide fame in 2017 and 2018 during its spectacular rise and fall, peaking at close to £20,000 in December 2017 before crashing to below $4,000 in November the following year. The value of Bitcoin has since returned to more reasonable levels with it sitting at just over $9,300 at the time of writing.How to earn from buying Bitcoin in the UK
What regulations are in place for buying bitcoin in the UK?
What Risks are Involved with Buying Bitcoin in the UK?
What’s the Difference between Trading and Investing in Bitcoin?
Learn How to Buy Bitcoin in the UK
Buy Bitcoin with a Debit Card
Buy Bitcoin with a Credit Card
Buy Bitcoin with PayPal
Buy Bitcoin without ID
Open an Account to Buy Bitcoin in the UK
Step 1: Sign Up
Step 2: Deposit
Step 3: Buy Bitcoin
Conclusion
FAQs
What are the main ways to trade Bitcoin?
How volatile is Bitcoin?
Do I need a crypto wallet to trade Bitcoin?
Are there laws on trading Bitcoin in the UK?
How much money do I need to buy Bitcoin in the UK?
Alan Draper Lewis
Alan Draper Lewis
Latest News
View all
Halifax Share Dealing Review
UK Banks Approved Nearly 1 Million Mortgages in 2019, 7.4% More than a Year Ago
