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How to Buy Cryptocurrency in the UK – Complete Beginner’s Guide

If you want to buy cryptocurrency but don't know how to go about it, you've come to the right place. In this guide we list the best platforms to buy crypto, and how to make your purchase step-by-step.
Buy Cryptocurrency
Buy Cryptocurrency

Cryptocurrencies have come a long way – reaching a total market cap of $3 trillion in 2021 – and the nascent industry is now enjoying a bull market. Both retail and institutional investors are paying close attention to the virtual assets category as blockchain tech continues to grow in mainstream use.

Wondering how to buy cryptocurrency in the UK? In this how-to guide we’ll review a regulated crypto exchange and the best app to buy cryptocurrency.

Contents [show]

    Where to Buy Cryptocurrency In The UK

    1. eToro – regulated in the UK by the FCA
    2. Evonax
    3. Binance
    4. Coinbase
    5. Uphold

    Best UK Crypto Exchanges in December 2021

    £
    =
    BitcoinBitcoin
    Sort By

    6 Providers that match your filters

    Payment methods

    Features

    Usability

    Support

    Fees

    1 or better

    Safety

    1 or better

    Coin selection

    1 or better

    Rating

    1 or better

    Rating

    for £ 1000 you get
    0.0210BTC
    What we like
    • Easiest to deposit
    • Most regulated
    • Copytrade winning investors
    Fees
    Safety
    Coin selection
    Features
    Instant VerificationFor BeginnersWallet ServiceMobile App
    Payment methods
    Credit CardGiropayNetellerPaypalSepa TransferSkrillSofort
    for £1000 you get
    0.0210 BTC

    68% of retail CFD accounts lose money.

    Compare UK Crypto Brokers & Exchanges

    eToro
    Visit Site

    68% of retail CFD accounts lose money.

    Bybit
    Visit Site

    The price and value of any investment in digital asset products can fluctuate.

    Binance
    Visit Site

    As with any asset, the values of digital currencies may fluctuate significantly.

    KuCoin
    Visit Site

    The traded price of digital tokens can fluctuate greatly within a short period of time.

    Coinbase
    Visit Site

    The value of digital currencies can go up or down frequently.

    Bitfinex
    Visit Site

    Market prices for digital tokens can be volatile and highly unpredictable.

    Rating
    5.0
    4.5
    4.4
    4.3
    4.2
    4.1
    Mobile App Rating
    10/10
    9/10
    9/10
    8/10
    9/10
    8/10
    Mobile App
    Wallet
    Number of Coins
    1282234335010
    Trading Fees
    Spreads0.1%0.1%0.1%0.50%0.1%
    Deposit Fees
    N/AN/AN/AN/AN/AN/A
    Withdrawal Fees
    $50.0005 BTCN/AN/AN/AN/A
    Regulated
    ASIC, CySEC, FCAN/AFCAN/AFCAN/A
    Min. Deposit
    $50N/A$10N/A$2$10
    Leveraged Trading
    N/A1 - 100x1 - 100x1 - 100xN/A1 - 10x
    Bitcoin
    £40719.28£40745.74£40629.17£40628.12£40615.12£40541.79
    Ethereum
    £3275.74£3217.07£3194.43£3192.24£3187.47£3179.69
    XRP
    £0.71N/A£0.70£0.18£0.23N/A
    Tether
    £0.76£0.76N/A£0.76£0.76N/A
    Litecoin
    £145.15N/A£142.23£141.88£142.16N/A
    Bitcoin Cash
    £410.84N/A£402.52£383.05£402.81N/A
    Chainlink
    £17.66N/A£17.66£17.65£17.66N/A
    Cardano
    £1.21N/A£1.18£1.17£1.18N/A
    IOTA
    £1.06£1.01£1.01N/A£1.01£1.06
    Binance Coin
    £461.27£450.58£450.24N/AN/AN/A
    Stellar
    £0.25N/A£0.25£0.05£0.25£0.06
    Bitcoin SV
    £107.55N/AN/A£138.04N/AN/A
    USD Coin
    £0.76N/AN/A£0.76N/AN/A
    EOS
    £2.95£2.87£2.87£2.88£2.87£2.86
    Monero
    £170.74£169.17N/AN/AN/AN/A
    Credit Card
    Giropay
    Neteller
    Paypal
    Sepa Transfer
    Skrill
    Sofort

    If you are looking for the best place to buy cryptocurrency in the UK, the list of brokers above have been selected because of what they offer – low fees, a reasonable minimum deposit, regulatory oversight, user-friendliness, and high liquidity.

    They can also be used to buy Ethereum (ETH) which can then be used to buy NFTs (non-fungible tokens), a popular new emerging market alongside cryptocurrencies.

    How to Buy Cryptocurrency UK – Quick Guide

    If you do not have the time to go through the guide and quickly want to know how to buy cryptocurrency in the UK, these quick-fire steps should set you on the right path.

    eToro is our recommended crypto broker, and we will be showing you how to buy any cryptocurrency you want on the social trading platform.

    1. Sign-up on eToro: Navigate to the eToro website and click on ‘Join Now’ to provide your full name, email address, mobile number, username, and password. You can also register with your Facebook or Google account.
    2. Verify ID: You will need to provide some form of identification to verify your account. You can do this by uploading a snapshot of your driver’s license or government-issued ID card and a recent copy of your utility bill or bank statement to show proof of address.
    3. Fund: eToro has a minimum deposit of $50 (about 37.05 GBP), and you can fund your account with your bank account, credit/debit card, PayPal, Skrill, and several others.
    4. Buy Crypto: To buy the cryptocurrency of your choice, type in the digital asset’s ticker symbol and click ‘Trade’ on the applicable result. Insert the amount of the asset you want to buy and click on ‘Open Trade’ to complete the transaction.

    eToro Tutorial – Step by Step

    Investors are flocking into the crypto space and this has largely been due to the phenomenal growth the nascent industry has seen so far. For one, the crypto market has outperformed the wider financial market following a dismal 2020 exacerbated by the global financial meltdown occasioned by the Covid-19 pandemic.

    Cryptocurrencies like Bitcoin and Ethereum have been the crypto flagbearers, and both have seen explosive growth this year with more uptrend anticipated. Given this, you may be searching for the best place to buy cryptocurrency in the UK.

    We recommend using eToro, given its highly intuitive yet simple user interface, super-low fees, and strong regulatory oversight. The platform ticks answer the question of where to buy cryptocurrency UK. In this section, we will give you detailed steps to get started in as little as 5 minutes.

    Step 1: Open an Account with eToro

    Sign up eToro

    The first step will be to sign-up on the eToro website. To do this, click on ‘Join Now’ on the top right-hand corner and provide a few details. This usually entails your full name, mobile number, username, email address, and password. You can also choose to skip this typing process by registering with either your Facebook or Google account.

    Step 2: Verify your Identity

    eToro is regulated by top-tier global bodies, which means you will need to complete the know-your-customer (KYC) process to unlock the full potential of your new account. This process can also be completed online. What is required here is to take a snapshot of your driver’s license or official ID card. Then upload a snapshot of a recent utility bill or financial statement reflecting your proof of address. eToro will set about verifying your account within minutes.

    Step 3: Fund your Account

    Fund-your-eToro-Account-1-1536x890

    The next step is to make a deposit. This can be done easily by clicking on the action tab and tapping the ‘Deposit Fund’ button. Fill in the amount you want to fund your account with (minimum is 37.05 GBP) and select the payment method you want to use. eToro supports a healthy stock of payment processors and you can make deposits through:

    • Bank wire transfer
    • Credit/debit cards
    • PayPal
    • Skrill
    • Neteller
    • Trusly
    • Sofort

    Step 4: Buy Cryptocurrency

    Buy cryptocurrency

    The final step will be to buy the cryptocurrency you want to invest in. Given that eToro is user-focused, you can easily complete this process by typing into the search bar the ticker symbol of the virtual currency you want to buy.

    For instance, if you’re going to buy Bitcoin on eToro, type ‘BTC’ into the search tool and click on ‘Trade’ to be taken to the order page. Here, you can insert how much BTC you want to buy and click on ‘Open Trade’ to complete the transaction.

    Step 5: Download The eToro Mobile App (Optional)

    eToro-Mobile-App-768x638

    This step is entirely optional and you can choose to sidestep it. However, if you want to keep track of your investment while on the move, we recommend downloading the eToro Mobile App. It comes with the exact functionalities as the web platform and you can also easily store your cryptocurrencies here. It is also complete with the required set of security protocols to ensure that no other person besides yourself have access to your account.

    The eToro Mobile App is available on both Android and iOS devices and you can download it on the applicable mobile app stores.

    Where To Buy Cryptocurrency In The UK

    If you are searching for the best place to buy cryptocurrency in the UK, these mini-reviews should give you an insight into which broker or exchange to use.

    1. eToro – Overall Best Platform to Buy Cryptocurrency UK eToro

    Established in 2007, the social trading platform eToro is the best place to buy cryptocurrency in the UK. Its main office is in Canary Wharf, London.

    The popular crypto trading platform is licensed by the British Financial Conduct Authority (FCA). Alongside this, it is supervised by the Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) and Financial Industry Authority (FINRA).

    etoro homepage

    In the aspect of fees, eToro offers competitive prices and it has no hidden fees. On eToro, you can buy most of the popular digital currencies including Bitcoin (BTC) and Ethereum (ETH).

    You can also make payments on eToro through a variety of payment methods like credit/debit cards. Some of the cards the social trading network supports include Visa, MasterCard, Visa Electron and Maestro.

    Aside from this, you can fund your account through a local/international bank wire transfer, PayPal, Skrill, Neteller, and several others.

    All transactions are communicated using Secure Socket Layer (SSL) technology ensuring that your details and funds are safe. You can start your trading journey with eToro with just a minimum deposit of $50 (about 37.04 GBP).

    eToro is famous for its CopyTrade feature that allows new users to mirror the successful trades of more advanced investors. This feature has proven successful for many as it allows new users to learn how the crypto market works while not risking their capital. eToro offers customers the advantage and experience of trading on a cutting-edge trading platform that allows anyone to trade financial assets online.

    • Social trading: Yes
    • Minimum deposit: 37.04 GBP for UK clients
    • Security: Very secure
    • WebTrader: Yes
    • Demo Account: Yes
    • Customer Base: 20 million registered users worldwide

    Pros

    • Regulated by the FCA and several other top-tier bodies
    • Competitive fees
    • Multiple payment methods
    • Reputable crypto broker
    • Low minimum deposit
    • Fast execution and low latency platform
    • User -friendly
    • CopyTrade functionality

    Cons

    • Withdrawal fee of $5

    Visit eToro

    Your capital is at risk.

    2. Evonax – Best Crypto Exchange For Trader Anonymity evonax logo_600x123

    Evonax was founded in 2016 and is one of the best crypto exchanges in the UK. One of the main selling points of Evonax is its trading fees.

    You do not have to worry about fees because Evonax charges zero fees. It enjoys the trust and patronage of customers in more than 100 countries worldwide.

    The crypto exchange platform is user-friendly and comes with top-notch security. They do not require users to provide any Know Your Customer (KYC) information and only require this when contacting customer support.

    evonax-exchange-cryptocurrency

    The exchange focuses on four crucial areas namely speed, ease, anonymity, and security. The highly secure platform supported cryptos include Bitcoin, Ethereum, Chainlink, Dogecoin, Litecoin, and 11 others.

    • Minimum deposit: Nil
    • Security: Very secure
    • Demo Account: Nil
    • Customer Base: Unknown
    • Regulation: Nil

    Pros

    • User-friendly interface
    • Over 15 different cryptocurrencies
    • Anonymous exchange services
    • Highly secure
    • User-friendly

    Cons

    • Delayed response from support

    Visit Evonax

    3. Coinbase – Top Crypto Exchange For Multiple Altcoin Offerings Coinbase

    Coinbase operates as a one-stop crypto platform. The Bitcoin exchange, which was established in 2012, operates a crypto wallet and an exchange.

    Coinbase also offers legacy-based services. It has approximately 73 million verified users and it is operational in over 100 countries. You can choose to make deposits with your UK account or SWIFT account, but it does not currently support PayPal.

    coinbase home

    Coinbase is also secure. The bulk of cryptos on the platform are stored in offline storage and have two-factor authentication (2FA) enabled for extra security. The platform is also insured. They may charge fees when you buy, sell, or convert cryptocurrencies.

    Coinbase supports several altcoins with over 100 currently traded on the easy-to-use platform. It is regulated as a money services business by the Financial Crimes Enforcement Network (FinCEN).

    • Minimum deposit: 37.04 GBP
    • Security: Secure
    • Demo Account: No
    • Customer Base: 73 million
    • Analytical tools: Yes
    • Regulation: FinCEN

    Pros

    • Easy to use for beginners
    • Opportunities to earn cryptocurrency
    • Lower fees for Pro users

    Cons

    • High transaction fees
    • Reported cases of account hacks

    Visit Coinbase

    4. Binance – World’s Leading Bitcoin Exchange Binance

    Binance is a crypto company that was founded in 2017. In just four years of service delivery, it has grown in leaps and bounds to become the foremost crypto exchange platform by trading volume with a daily minimum just north of $40 billion.

    There are no fees charged for deposits on Binance but every trade carried attracts a standard service fee of 0.1%, while those who make use of BNB get a whopping 25% off.

    Binance-homepage-XRP-trading-1536x886

    The exchange has a healthy customer base of about 101 million users as ofthe  third quarter (Q3) 2020. A series of initiatives to ensure their operations comply with as many applicable regulatory requirements as possible have been launched by the crypto exchange.

    Their international compliance team has grown by 500%, as part of our ongoing efforts to offer fully compliant and licensed services in all regions where they operate.

    Binance offers one of the largest libraries of digital assets with over 350 virtual assets currently changing hands on the platform.

    • Minimum trade: 7.44 GBP
    • Security: Very Secure
    • WebTrader: No
    • Demo Account: No
    • Customer Base: 101 million
    • Analytical tools: Yes

    Pros

    • Most liquid crypto exchange
    • Supports over 300 altcoins
    • Has low trading fees of 0.10%
    • Low minimum deposit of 7.44 GBP
    • Large customer base

    Cons

    • Not ideal for beginners
    • No tier-1 regulatory license

    Visit Binance

    Volatility Of Crypto Assets

    The volatility of cryptocurrencies has been a major concern for many mainstream investors. Blockchain-based assets are especially weak in this aspect as they post several price actions within a particular trading window making them a high-risk investment.

    However, the nascent industry has always rebounded time after time making it easy for investorsto recoup their losses easilys. Premier digital asset Bitcoin has been a notable volatile asset that has posted several record highs after seeing a large price drop.

    To mitigate or combat the risk that comes with the volatility of crypto assets, retail investors are always advised to operate a diversified investment portfolio within an asset class.

    This can be done by investing in a basket of crypto stocks or choosing crypto assets that have a large market capitalization.

    Factors like positive or negative news can influence the volatility of an asset. While positive news has the tendency to push up the price of an asset, negative news will make the price of the asset fall.

    Storing Cryptocurrencies – Best Crypto Wallets

    Much like any asset, cryptocurrencies need to be stored. However, they don’t need a physical location as these assets are basically lines of computer codes. To store your crypto funds, you will need dedicated software wallets – also see our best UK Bitcoin wallets guide.

    While there are several platforms that offer to store cryptocurrencies, there are only a few trusted crypto wallets. One of such is eToro Mobile Wallet which is available on both Android and iOS devices.

    eToro Mobile Wallet

    A crypto wallet is a piece of hardware or software that interacts with blockchains and allows users to store or trade cryptocurrencies of different types such as Bitcoin and Ethereum.

    While there are several crypto wallets in the crypto space, eToro wallet remains one of the best. The digital asset wallet supports over 120 cryptocurrencies and contains an in-app feature that offers conversion functionality that supports over 500 crypto pairs.

    eToro Wallet

    It also provides high security powered by an on-chain private key service that basically ensures that you do not lose your backup phrase. It is also regulated by the Guernsey Financial Sector Commission (GFSC).

    The wallet is provided by eToroX Limited, a limited liability company incorporated in Gibraltar. eToro wallet charges a conversion fee of 1% and the minimum transaction stands at $125.

    Choosing The Right Cryptocurrency Broker

    Of the various requirements the crypto space demands, a cryptocurrency broker is at the top of the list. A cryptocurrency broker is a firm that acts as a middleman between the crypto markets and a trader. They help to facilitate the buying and selling of crypto assets on the market.

    Crypto brokers offer a wide range of services which include a suitable trading environment for new and more advanced traders alike. While it may be tempting to randomly pick a crypto broker, we recommend using this set of factors to filter out the best FCA Brokers in the UK.

    1. Fees

    When choosing a cryptocurrency broker, you need to consider the fees and other hidden charges required for each transaction. Depending on the value of the cryptocurrency being traded, the percentage of the fees that are applicable could, to a large extent, determine your potential profit on a particular crypto trade.

    Crypto broker platforms such as eToro offer minimal fee rates when processing transactions. The platform offers a low 0.5% deposit fee, requires no maintenance fees and withdrawal fees are a measly £4.

    2. Payment methods

    You can’t talk about the best way to buy cryptocurrency UK without touching on the payment methods offered. The best cryptocurrency exchange list a variety of everyday payment solutions to enable easy and affordable ways to fund their account. Some of the best crypto brokers offer payment options like bank wire transfer, debit and credit cards, PayPal, and other e-wallet solutions.

    Our recommended crypto broker offers a wide variety of payment methods to aid international users to make payments and conduct transactions, seamlessly. eToro Payment methods include Debit/Credit cards, Neteller, Skrill, PayPal, iDeal, Bank transfer, Klarna/Sofort Banking and Rapid Transfer.

    3. Crypto Offerings

    The number of cryptocurrencies and fiat currency pairings a crypto broker supports establishes just how competent and inclusive the broker is. A wide range of cryptocurrencies listed on the platform provides the users with opportunities to trade different cryptocurrencies and maximizes their chances of making profits.

    4. Security and UK Regulation

    Brokers with regulatory bodies such as the Financial Crimes Enforcement Network (FinCEN), Financial Industry Regulatory Authority (FINRA) and the Financial Conduct Authority (FCA) in the UK are choice options when choosing a cryptocurrency broker.

    The licenses from these regulatory bodies act as proof of the optimal security measures that have been put in place to protect the users from financial fraud and other related practices. Some of the best cryptocurrency brokers also offer insurance for users to ensure the security of their assets should the platform suffer a security breach.

    UK FCA

    eToro is a worthy pick when considering security and regulations as it is regulated by FCA which is a tier-1 regulatory body and by FINRA. It also has licenses from CySEC and ASIC. The social trading platform has never suffered a security breach compared to other brokers such as Binance, which suffered a security breach in 2018.

    5. Minimum Deposit

    Brokers who offer a low minimum deposit amount are usually considered as one of the best as they empower retail investors with little capital to trade the markets. An example of such brokers that offer a low minimum deposit of about £8 is eToro. A deposit minimum such as this can help new users stake as little funds as they can afford to maximize profits and minimize risks.

    6. Social Trading

    Social trading is a form of investing by observing and implementing the trading behaviours of user peers and expert traders. This feature enables new traders on the market to imitate and learn intuitively with the trading patterns of expert traders. This is an assurance of maximized output with minimal risks as most new traders are prone to losing assets during the course of learning the ropes.

    eToro is a renowned social trading platform and offers one of the best CopyTrade functionality in the industry. Through this functionality, new users are able to mirror experts’ successful trades thereby cutting down on their risks while swelling their investment portfolio alongside.

    7. Support

    Users need brokers that can offer full time support to technical and educational problems when using the platforms. The presence of a good support channel on the broker platform builds trust between the broker and the users as disputes can easily be resolved in a short period of time.
    eToro offers 24/7 support to its users which makes it one of the best broker platforms available today.

    8. Usability

    An easily accessible broker platform is a factor that should not be compromised on. Most technical errors and losses incurred by new traders are due to the complex nature of certain broker platforms. A broker with a user-friendly interface that can be intuitively navigated is a good choice when considering a cryptocurrency broker.

    9. Analytical Tools

    Analytical tools are a set of research tools which helps users make more informed decisions about a particular trading pair by providing information on the trends and price action of various currencies. These analytical tools help users maximize profits by giving insight into the most likely price projections of a crypto asset, enabling them to gain insight on the asset’s future price. Brokers with this sort of feature are most suitable for advanced level traders.

    Which Cryptocurrency to Buy in 2021

    At the moment of writing this article, there are over 12,500 cryptocurrencies in the market with more coming on board almost on a daily basis. This presents a huge problem especially if you are just starting out and find it difficult to choose which cryptocurrency to buy.

    Best-Cryptocurrency-To-Buy-768x512

    To address this challenge, we have listed some of the top-performing and most popular cryptocurrencies in the crypto market. These three top dogs are taken from the foremost virtual asset, foremost altcoin, and the foremost joke cryptocurrency in the nascent industry.

    1. Bitcoin (BTC)

    Bitcoin price chart 12 Months

    Are you looking to buy Bitcoin? You should. As expected, Bitcoin remains the top cryptocurrency to buy in 2021. Despite posting less explosive growth than the broader altcoin community of digital currencies, Bitcoin has been able to hold its own and currently controls over 43.1% of the global decentralized economy. This makes it the foremost crypto asset in the nascent financial space.

    Bitcoin’s stronghold on the market has not been due to a slew of upgrades like other crypto protocols but it has been able to retain its price dominance largely due to its deflationary tendencies.

    At launch, only 21 million Bitcoins have been programmed to ever be mined by pseudonymous creator Satoshi Nakamoto. This makes Bitcoin a scarce commodity and has led several institutional investors to term the benchmark crypto as ‘digital gold.’ With such strong fundamentals, Bitcoin has hit record highs in an overall bullish trend for the crypto market this year.

    The premier digital asset surged to an all-time high (ATH) of $69,044.70 after previously retesting its former record value of $65,000. This has seen BTC rally more than 9 million percent from its paltry launch price of $0.08 in 2009.

    With institutional and national adoption through the roof, Bitcoin remains one of the best cryptocurrencies to buy now.

    2. Ethereum (ETH)

    Ethereum price charts 12 Months

    Ethereum is currently the second most valuable cryptocurrency by market cap with over $500 billion in total value locked (TVL). With a 19.1% market dominance, Ethereum is considered the foremost alternative currency (altcoin) by many and this is for a good reason.

    Using the ancient proof-of-work (PoW) consensus algorithm, the Ethereum network powers much of the new-generation financial tools currently gaining traction. The smart contract-enabled platform is home to over 3,000 top-performing decentralized applications (dApps) which sees it control over 97% of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.

    Coupled with this is the protocol’s plans to transition to a proof-of-stake (PoS) consensus algorithm from PoW which will make it more environmentally sustainable, more scalable, faster, and cost-efficient.

    Following this expected migration, the Ethereum price has surged in value and has grown more than 481.83% year-to-date (YTD) with a higher surge of 809.22% year-over-year (YoY). With a growing use case, Ethereum is one of the top cryptocurrency to buy now.

    3. Dogecoin (DOGE)

    Dogecoin price chart

    The origin of Dogecoin is as humorous as its mission. Founded four years after Bitcoin’s official launch in 2009 in December 2013 by Billy Markus and Jackson Palmer, Dogecoin is a sort of Bitcoin knock-off. At its core, Dogecoin is a fork of a fork as it is a fork of the Litecoin network which is also a fork of Bitcoin.

    According to founders Markus and Palmer, Dogecoin is a comic take on the sudden explosion of altcoin following Bitcoin’s growing prominence. The crypto asset was created to mock the love affair with blockchain tech and finance.

    However, the crypto project has gone through a series of changes over the years. Leaving the project in 2015, Dogecoin has since grown to become the public face of the meme coin niche with the Shiba-themed crypto seen as a fun cryptocurrency.

    The parody coin has now been designated the people’s coin given the low mining entry bar and the ease of completing transactions on the network. The fun and playful side of the meme coin has since attracted a drove of admirers with Tesla and SpaceX boss Elon Musk being one of the most outspoken.

    In a crypto market that has seen more bullish activities than bearish trends, Dogecoin surged to an ATH of 74 cents in early May largely due to Musk’s tweets and not due to its real-world use case. The premier memecoin has not hit the $1 mark since inception but it has surged 8,015.45% YoY. YTD figure of 4,950.42% shows that the memecoin is one of the best cryptocurrency to buy now.

    Alternatives to Bitcoin

    While Bitcoin has been the public face of the crypto market, several others have performed admirably as well. In this section, we highlight some of the top-performing altcoins at the moment and alternatives to Bitcoin you can also invest in.

    4. Aave (AAVE)

    Aave is one of the top decentralized finance (DeFi) borrowing and lending protocols that has taken the crypto market by storm. Started in 2017 as ETHLend, Aave is currently the third most valuable DeFi protocol with $13.34 billion in total value locked (TVL).

    The protocol is unique for its flash loan feature which allows DeFi users to borrow over 20 digital assets and repay within the space of a transaction. This has seen Aave termed the first ‘uncollateralized loan option’ in the DeFi space.

    Aave has been one of the top performers in a market principally controlled by Bitcoin and Ethereum. The Ethereum-based protocol has surged 209.56% year-to-date (YTD) after hitting a record value of 661.69 in mid-May.

    5. Polkadot (DOT)

    Polkadot is a heterogeneous network that aims to resolve the scalability issues plaguing older blockchains like Bitcoin and Ethereum. It uses sharded technology to enable seamless transfer of different asset types across different blockchains. Polkadot is seen as an Ethereum competitor as it also features a robust network usable in the development of decentralized applications (dApps) network which is needed for DeFi and NFTs.

    Polkadot is currently launching its parachain auctions which represent the final steps towards a full public launch.

    6. Cardano (ADA)

    Cardano is another popular alternative to Bitcoin. The governance token of the Cardano network, ADA is one of the top cryptocurrencies and has seen exponential growth so far.

    Like Polkadot, the Ouroboros protocol aims to revolutionize the blockchain space. It is also building out the network and launching periodic upgrades. Cardano is headed by one of Ethereum’s early founders Charles Hoskinson and is the only peer-reviewed blockchain. This has seen many admirers call Cardano ‘the blockchain for innovators.’

    7. Binance Coin (BNB)

    Binance Coin is the utility token for the world’s largest Bitcoin exchange Binance. BNB is used as a discount token for trading fees by users trading on the Binance platform. The BEP-20 token has since acquired new use cases and is a popular feature across most of Binance’s crypto products and services.

    BNB has remained one of the top digital assets in the past year and is the third most valuable behind only Bitcoin and Ethereum on the crypto ranks.

    8. Solana (SOL)

    Solana, like Polkadot and Cardano, is an Ethereum rival. It uses a combination of proof-of-stake (PoS) and proof-of-history (PoH) consensus mechanisms to offer a highly scalable, clean, cost-efficient blockchain protocol. Averaging over 50,000 throughputs, Solana has become a popular alternative to Ethereum.

    SOL has been positively impacted by this blockchain interest and the governance token surged to an ATH of $259.96 earlier this month. SOL has continued to average over $200 despite a strong bearish trend in the market.

    Cryptocurrency Trading Robots

    Cryptocurrencies are generally high-risk investments which mean traders can suffer substantial losses. However, a growing wave of sophisticated trading software is currently used to mitigate these potential losses.

    cryptocurrency trading robot

    Bitcoin trading robots are automated software that is powered by artificial intelligence (AI). These complex lines of code are emotionless and require human supervision in placing buying and selling orders. Processing thousands of market data simultaneously, they are better able to get the full picture of how the crypto market is performing and easily denote the best strategy to employ.

    Crypto trading bots have high success rates which will go a long way in reducing your risks in the long term. They also ensure that you profit from a large chunk of your trades.

    However, Bitcoin trading robots are largely unregulated which presents an opportunity for fake crypto trading bots to deceive investors. Our list of reviewed Bitcoin bots are genuine and post good returns.

    Taxing Crypto Gains in the UK

    With the widespread adoption of cryptocurrencies, the UK has publicly declared crypto assets as property and as such are liable to taxation in the country.

    Crypto taxation uk

    Her Majesty’s Revenue and Customs (HMRC) issued guidelines that outline what stands as taxable events and non-taxable crypto events. Duly stated in the guideline are the conditions which warrant the Capital Gains Tax on crypto assets. They include:

    • When crypto assets are sold.
    • When crypto assets are received as a means of payment from employment or mining.
    • When gains from selling a particular asset goes above the tax-free allowance.
    • When exchanges are made from one cryptocurrency to another.
    • When crypto assets are used to buy goods and services.
    • When the crypto assets are given away to another individual except in the event of the token being a gift to a spouse of a civil partner.

    Calculating Your Capital Gains Tax

    The HMRC module on crypto assets is also a guide to enable taxpayers to know just how much they owe in taxes. To pay Capital Gains Tax on your crypto assets, you must calculate your gains on each transaction.

    When calculating CGT, a certain allowance cost may be deducted which includes a proportion of the pooled cost of the token while calculating gains. One can also make use of capital losses to reduce gains when calculating CGT, however, those losses must be reported to the HMRC first. Certain costs are termed allowance costs which can be deducted from CGT, they are:

    • Transaction fees which are paid before the transaction is added to the blockchain
    • Valuations when working out gains for a particular transaction
    • Drawn up contracts for a transaction
    • Advertisements of a buyer or seller.

    Short-term Capital Gains

    Short-term capital gains are profits accrued from selling a particular asset that was held for less than a year. The taxes placed on crypto assets are in the same tax bracket as ordinary income. It is worthy of note that losses incurred during the course of holding the crypto asset can be deducted from the total taxable income generated by the asset and these losses can be carried over into the following year.

    Long-term Capital Gains

    Long-term capital gains are the profits that are accrued from selling assets that have been held for longer than a year. Long-term gains from such crypto assets are usually taxed at a more favourable rate using a percentage system. To reduce capital gains tax on crypto assets, holding such assets for over a year is advisable.

    Why You Need to Invest In Crypto Responsibly

    Crypto gains may be mind-blowing, but you still need to be careful when buying or trading digital assets. We recommend carrying out your due diligence as a first-time investor who plans to buy cryptocurrency in the UK. Cut out the loud noise and don’t allow the fear of missing out (FOMO) to drive you to invest without doing the necessary research.

    Also, remember to limit your level of exposure. Do not stake too much of your capital into cryptocurrencies. Instead, you can allocate between 1 to 10% of your portfolio to crypto-assets and put the rest in more stable assets.

    Should You Buy or Trade Cryptocurrencies?

    The answer to this question largely lies in what your preferences are. If you are new to the crypto market or do not have the time to trade, you should buy cryptocurrencies to hold for the long term.

    However, if you have the technical expertise and time, you should consider trading the volatile asset class. You can use crypto brokers like ByBit, KuCoin, and Bitfinex to apply leverage and increase your potential profits on each trade. Those platforms support margin trading of crypto for UK users.

    Conclusion

    Cryptocurrencies are here to stay, as evidenced by the growing institutional investment in virtual assets. Even investment banks that in previous years were skeptical of crypto such as Goldman Sachs have now stated in reports that it is a smart investment strategy to allocate a portion of your portfolio to these blockchain-based assets.

    Despite being volatile by nature, cryptocurrencies have outperformed the general financial market and have seen exponential growth. Decentralized finance (DeFi) has a compelling use case and potential for adoption.

    For beginning investors learning how to buy cryptocurrency in the UK; we recommend using social trading leader eToro. The UK regulated online broker is popular for its copy trading capabilities that allow you to network with professional traders and replicate their trading decisions.

    eToro: Our Recommended UK Cryptocurrency Platform

    Our Rating

    eToro exchange
    • FCA, ASIC and CySEC regulated - 20 Million Users
    • Buy with Bank transfer, Credit card, Neteller, Paypal, Skrill, Sofort
    • Free Demo Account, Social Trading Community
    • Free Secure Wallet - Unlosable Private Key
    • Staking Rewards for holding ETH, ADA or TRX
    • Copytrade Winning Crypto Traders - 83.7% Average Yearly Profit
    eToro exchange
    Cryptoassets are unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

    FAQs

    How Can I Buy Cryptocurrency?

    Cryptocurrencies can be purchased from several crypto exchanges and brokers in the industry. We recommend using crypto broker eToro, which will enable you to enjoy low fees, user-friendly interface, as well as a secure platform.

    How Can I Sell Cryptocurrency?

    You can cash in on your crypto profits by clicking on the ‘Sell’ button on eToro and selecting a withdrawal method. The funds will be transferred directly to your account.

    Where To Buy Cryptocurrency?

    You can buy cryptocurrencies from several platforms presently. However, we recommend using reputable and regulated crypto brokers and exchanges to forestall against stolen funds.

    What are the Best Brokers To Buy Cryptocurrencies From?

    While there is no perfect crypto broker, a few like eToro, Binance and Coinbase are popular destinations for many. These exchanges have high trading liquidity and are usually secure.

    What Payment Methods Can I Use To Buy Cryptocurrencies?

    Cryptocurrencies can be purchased with everyday payment methods. You can easily buy crypto in the UK with a bank wire transfer, credit/debit card, PayPal, Skrill, Neteller, Sofort, and several others.

    What Is A Cryptocurrency Exchange?

    A cryptocurrency exchange is a trading platform that enables the buying and selling of digital assets. Like the regular stock exchange, you can set limit orders, trade future perpetual, as well as long or short digital assets on it.

    What is a Bitcoin Exchange?

    A Bitcoin exchange is another word for a cryptocurrency exchange. It performs similar functions by enabling users to buy and sell cryptocurrencies.

    How Does A Bitcoin Exchange Work?

    A Bitcoin exchange operates much like a regular stock exchange. It allows traders to set their entry and exit prices. Traders can also use leverage to increase their potential profit and use stop-loss (SL) to mitigate potential losses.

    Is Buying Cryptocurrency Safe?

    Cryptocurrencies are considered high-risk investments and this is because they are highly volatile. Bitcoin, for instance, is known to surge astronomically and also dip in value. However, cryptocurrencies are known to always recover their gains with time. This makes them a safe investment for many.

    Do I Have To Pay Taxes When Buying Or Selling Cryptocurrencies?

    There are tax obligations you will have to meet when you buy or sell cryptocurrencies. We recommend seeing our section on the subject to gain more insight.

    Which Cryptocurrency Should I Buy?

    This largely depends on you. However, you should always consider a crypto asset’s value proposition foremost before making a decision. If it has a real-world use case, then there is a possibility of it being a success. However, several investors choose Bitcoin as their first crypto of choice.

    What Are The Safest Cryptocurrencies To Buy?

    Although cryptocurrencies are not safe by nature, a few of them can be considered safe. These include Bitcoin, Ethereum, Binance Coin, Polkadot, Solana, and the generality of the top 10 most valuable assets.

    What Are The Most Popular Cryptocurrencies To Buy?

    The most well-known digital currencies are Bitcoin and Ethereum.

    X

    eToro - UK Crypto Broker

    eToro - UK Crypto Broker

    eToro - UK Crypto Broker

    Visit eToro

    Cryptoassets are unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

    eToro - UK Crypto Broker
    Visit eToro

    Cryptoassets are unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

    X

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