How to Buy Bitcoin in the UK?

Buy Bitcoin in the UK — Four Simple Steps

Before going into more detail, here are the four simple steps that you will need to take to buy Bitcoin in the UK.

Where to Buy Bitcoin in the UK?

The first step in buying Bitcoin is choosing a cryptocurrency exchange platform. Similarly to how you need to sign up to a stock trading platform to invest in the stock market, signing up to one of these platforms will enable you to buy, sell, and hold cryptocurrencies.

Out of the many crypto exchange platforms, there are a few that stand out for their low fees, strong regulatory frameworks, and safety features, so we’ve compiled a list of them below. 

eToro is a crypto trading platform with over 20 crypto-assets available, including Bitcoin, Ethereum, Litecoin, as well as various fiat currencies. The platform allows both crypto-to-crypto and fiat-to-crypto trading, making it an excellent option for those buying Bitcoin for the first time.

eToro is not just a Bitcoin trading platform, but it also supports UK and international stocks and NFTs.

eToro is also very easy to navigate and beginner-friendly. All you will need to do to open your account is provide the platform with some personal information and verify your identity. You can then instantly fund your account with credit/debit cards, an e-wallet, or a UK bank transfer. 

In addition, each new eToro user gets a crypto wallet by default. 

The platform also has a demo trading account that you can use to practice your trading skills risk-free. Plus, it has a copy trading tool that will allow you to copy the methods of other top-performing investors.

Setting up an eToro account is free, and the platform charges no trading fees. All GBP deposits of eToro cost just 0.5%, while its spread on Bitcoin is set at 0.75%. eToro is also fully regulated by the Finacial Conduct Authority (FCA), so this platform will allow you to buy Bitcoin in a safe, secure and regulated environment.

Coinbase is the go-to platform for people who are just now getting into the world of cryptocurrencies, thanks to its intuitive interface and the wealth of educational resources it offers. The platform supports several payment methods, including bank transfers, credit/debit cards, and Paypal.

Using a credit/debit card, you can buy Bitcoin on Coinbase instantly, but keep in mind that Coinbase charges a 3.99% commission on credit/debit card purchases. So, if you are looking to save on fees, you can use a UK bank transfer instead, which is free. 

The spread on Bitcoin equals about 0.50%, but that can fluctuate based on the market. On top of that, Coinbase charges a standard commission of 1.49%, meaning that you will need to pay 1.49% when you buy Bitcoin, and again if you decide to sell it.

Coinbase users can also set up recurring buys by arranging daily, weekly, or monthly Bitcoin purchases. 

While beginners will appreciate the simplicity of Coinbase, more seasoned investors may prefer Coinbase Pro, an additional service offered by the platform. Coinbase Pro users will benefit from advanced charting features and crypto-to-crypto trading. 

At the time of writing, Binance is the largest crypto exchange platform in terms of daily trading volume worldwide. The platform offers an impressive selection of market charts and trading options, so non-experienced investors may find it challenging to use at first. 

Still, what Binance lacks in user-friendliness makes up for with its low trading fees. The highest commission the platform charges for buying and selling Bitcoin is 0.10% per slide. Plus, you can reduce this fee even further if you trade large amounts or if you keep some Binance coins, the native currency of Binance’s own blockchain, in your account.

There are several ways to purchase Bitcoin with Binance, including credit/debit cards, Cash Balance, and P2P. Users can link their debit/credit card or bank account to Binance or buy Bitcoin directly from other users on Binance P2P. 

Crypto.com is a one-stop, all-in-one crypto trading platform that has an extensive list of crypto assets to invest in. The platform has a lot of unique perks, beginning with its own native token CRO and its well-known prepaid VISA card that you can use to spend cryptocurrency and get up to 8% crypto back.

Although it is not yet regulated by the FCA, Crypto.com has industry-leading security features, such as multi-factor authentication and cold storage for users’ crypto assets. 

What makes Crypto.com a good choice for UK users is its Faster Payment Service which allows for fast and easy GBP deposits and withdrawals.

Crypto.com also charges relatively low fees, with a 0.4% maker/taker fee on all trades up to $25,000. You can reduce this fee even more by using Crypto.com’s native token CRO to pay for any of the charges. In addition, you can take advantage of 0% fees for buying Bitcoin with a credit/debit card during the first 30 days of using the platform, which is subsequently charged at 2.99%.

How Much Does Bitcoin Currently Cost?

Bitcoin’s price has experienced lots of ups and downs over the years. When it first came out in 2009, Bitcoin was valued at almost nothing. Then, in July of 2010, its value suddenly jumped to 0.09 USD and continued to rise slowly over the years, reaching its all-time peak in November of 2021 at £50,000. 

Then, its price unexpectedly plummeted, and it lost almost half its value by the start of 2022. 

The price of Bitcoin at the time of writing is around £28,000. The most hardcore crypto sceptics predict that its price will continue to fall gradually, but many expect it to conclude 2022 with an all-time high of over £70,000. Given Bitcoin’s volatile nature, though, it is impossible to predict anything for sure, and it only remains to be seen how the coin performs in the future.

Safest Ways to Buy Bitcoin UK

Investing in the world’s largest cryptocurrency can be risky, so it is best to be familiar with all the risks associated with it before making the final plunge. So here are some safety tips to keep in mind when buying Bitcoin.

The price of Bitcoin and all other cryptocurrencies is incredibly volatile, meaning it can rise and fall within days and sometimes even minutes. Typically, when the demand for Bitcoin exceeds the supply, prices start to go up. Conversely, when Bitcoin’s supply exceeds the demand, prices tend to go down. 

While its price volatility is what makes Bitcoin so appealing to investors, it is also what makes it a pretty risky investment. That is because it is difficult for investors who want to hold Bitcoin to predict its future performance. 

As we’ve already mentioned, the Bitcoin price hit an all-time high in November of 2021, only to lose almost half of its value at the start of 2022. So the bottom line is – you should always invest only as much as you can afford to lose.

You may have already heard the horror stories about people getting locked out of their Bitcoin fortunes due to lost private keys. When you own Bitcoins, you don’t actually own a physical asset but a string of letters and numbers known as a private key. 

Your private key is what gives you access to the virtual vault that holds your cryptocurrency. To prevent your private key from getting stolen, you should never store it on a device or app that is connected to the internet. Instead, use a software wallet or a cold storage option such as a paper wallet, a USB drive, or a hardware wallet.

A hardware wallet is a physical device that stores your private key offline and is considered by far the safest way to keep the private key to your Bitcoin safe. Unlike software wallets, hardware wallets are not connected to the internet, making them immune to security holes and cyberattacks. 

When buying Bitcoin in the UK, always stick to FCA registered exchange platforms. To become officially FCA registered, companies need to undergo a lengthy and complex process that proves they are operating legally and not misusing any funds. That makes FCA registered exchanges much more secure for UK-based Bitcoin traders. 

An essential part of cryptocurrency investment is deciding where to store the cryptocurrency you’ve bought. A cryptocurrency wallet is a specially designed piece of software that stores the public and private keys that allow you to execute your cryptocurrency transactions. 

Cryptocurrency wallets can be broadly divided into two main categories: hot wallets (connected to the internet) and cold wallets (an offline storage device). 

Take a look at the list of the best Bitcoin wallets that you can currently use to store your Bitcoin and other cryptocurrencies.

Supported Payment Options

There are several payment methods you can use to buy Bitcoin online. You will find a list of options below, so you can decide which one suits you best. 

Not too long ago, the options to buy Bitcoin with PayPal were quite limited for UK users. However, PayPal has recently launched a new crypto service that allows UK users to buy, hold, and sell Bitcoin and other cryptocurrencies directly from the platform for as little as £1. 

The service also allows users to track crypto prices in real-time, view their crypto balance directly from the app or web, and find educational content about investing in cryptocurrency.

Credit and debit cards are a simple and convenient method to make purchases online. Once you’ve set up your account with your platform of choice, you can buy Bitcoin with a credit card in just a few clicks, making this payment method ideal for first-time buyers. You can also buy Bitcoin directly in GBP. 

That said, there are a few reasons why buying Bitcoin with a credit or debit card may be inadvisable. 

Firstly, most exchange platforms and brokers charge high transaction fees when purchasing Bitcoin with a credit or debit card, making this a more expensive payment method. For instance, Coinbase charges a 3.99% fee for credit and debit card Bitcoin purchases. 

In addition, some credit cards have maximum purchase limits due to the risks involved with buying cryptocurrency. Also, keep in mind that using a credit or a debit card to buy Bitcoin will link your identity to the purchase, so it is not your best option if you want to trade anonymously. 

While a direct bank transfer is not the fastest way to buy Bitcoin UK, it is still one of the most convenient solutions if you want to buy Bitcoin in GBP. It is usually cheaper than buying Bitcoin with a credit card and is very suitable for beginners. Still, keep in mind that bank transfers can take up to a few days to process.

E-wallets like Neteller or Skrill are also a popular payment method for buying Bitcoin in the UK. You can use it on a number of crypto exchange platforms, including eToro, Coinbase, and Binance. This payment method has many benefits, such as instant deposits, fast withdrawals, and low fees. 

Buying Bitcoin in the UK: Detailed Guide

If you’ve already decided which crypto exchange platform and payment method you want to use, we will give you a more detailed guide on how to buy Bitcoin UK with eToro below. 

Wrap Up

Bitcoin is the world’s largest cryptocurrency, and it doesn’t seem like that will change anytime soon. So, despite its volatile nature, now is as good a time as any to start your crypto journey and buy some Bitcoin. Now that you’ve learned how to buy Bitcoin in the UK, all that is left for you to do is wait for the best time to cash out your Bitcoin investment.