Over the years, there has been an increasing demand for cryptocurrencies and a proportionate boost in the number of platforms where you can buy Bitcoin in the UK and worldwide. Several cryptocurrency brokers and exchanges facilitate the buying, selling, holding and trading of Bitcoin. They are important and play a pivotal role in ensuring the circulation and distribution of the asset using fast and secure protocols. But, choosing the best platform to buy Bitcoin and knowing what to look out for is never easy. This guide explains the ins and outs of what Bitcoin is, how the network works and the best places to buy the digital asset. Best UK Bitcoin Exchange in January 2022 InvestInvest£=BitcoinRefreshMore FiltersSort ByRating6 Providers that match your filtersPayment methodsCredit CardGiropayNetellerPaypalSepa TransferSkrillSofortFeaturesInstant VerificationFor BeginnersWallet ServiceMobile AppUsabilityVery GoodGoodAverageBadSupportVery GoodGoodAverageBadFees1 or betterSafety1 or betterCoin selection1 or betterRating1 or betterClear Filter Ratingfor £ 1000 you get0.0292BTCWhat we likeEasiest to depositMost regulatedCopytrade winning investorsFeesSafetyCoin selectionFeaturesPayment methodsfor £1000 you get0.0292 BTCRead ReviewBuy CryptoRead Review68% of retail CFD accounts lose money.Load more + Below is a top list of places to buy Bitcoin in the UK, these brokers and exchanges are well-established, regulated and accept UK customers: 1. eToro – United Kingdom based, regulated by UK regulatory body the FCA 2. Uphold – Instant in-browser conversion 3. Coinbase – Largest exchange by number of users 4. Binance – Widest range of altcoins and DeFi tokens 5. Revolut – A banking and crypto wallet mobile app 7. Cryptorocket – Best broker for derivatives BTC trading 8. Changelly – Fast trades without requiring limit orders 9. Gemini – Founded by the Winklevoss twins 10. Kraken – Noted for privacy Best Brokers to Buy Bitcoin UK – Reviews This review of our best brokers for buying Bitcoin in the UK was carefully selected by our panel of in-house researchers. We considered exchanges based on their ease of use, security, fees and the services offered. 1. eToro – Overall Best Broker to Buy Bitcoin eToro is a private investment management and brokerage firm founded in 2007 by Yoni Assia, Ronen Assia and David Ring, with its first office being in the United Kingdom. Its head office is based in Canary Wharf, London. The online broker offers financial investment services, online investments and Bitcoin exchange. Due to its advancement in CopyTrade and CopyPortfolio, it has garnered over 20 million users worldwide. eToro’s CopyTrader technology enables users to imitate the trade moves of an experienced investor and automatically trade as the investor does. The technology also controls drawdowns to avoid excessive profit losses. eToro charges considerably low fees and allows users to trade Bitcoin UK with low spreads of 0.75 %. The platform is regulated and licensed by the UK’s top tier regulation bodies such as the FCA, and worldwide by CySEC, ASIC, and FINRA. eToro is regulated in the US by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA). It is considered the best place to buy Bitcoin because it supports standard crypto trading pairs that take in a high volume of profits in the general market. eToro is an intuitive and easy to use platform that provides users with access to cryptocurrency exchange and wallets. In addition to buying Bitcoin, eToro supports other cryptocurrencies including Ethereum, Tron, Shiba Inu, Dogecoin and XRP. It is also considered the best because it has a wide range of payment methods, enabling more users to have access to its features in almost every part of the world. eToro supports instant payment methods with Paypal, credit/debit cards, Netellar, Bank Transfer and Online Banking options with limited currencies such as USD, GBP, AUD and EUR, and other European currencies, making it very accessible for potential users to buy bitcoin. The social trading platform currently has a trading volume of $1.5trillion and is valued at $10billion. eToro is safe and secure as it backs up clients’ funds in top tier banks and ensures the protection of personal information with SSL encryption. Pros User-friendly Affordable transaction fees Over 2,400 global shares and 250 ETFs CFD markets available Social and copy trading Regulated by the FCA, ASIC, and CySEC Approved by the SEC and FINRA Cons: $5 withdrawal fee Visit eToro Your capital is at risk. 2. Uphold – Most Affordable Broker to Buy Bitcoin Uphold is a financial and technology company founded by Halsey Minor in 2013. It is a multi-asset digital platform that trades directly between asset classes such as fiat currencies and cryptocurrencies with embedded payments with 1.7million users globally and $6billion in transactions to date. Uphold is regulated by the United States Treasury Department regulator, FinCEN, and is also an Electronic Money Directive (EMD) agent of Optimus Cards UK Limited, which is authorised and regulated by the Financial Conduct Authority to issue e-money. Uphold allows for the buying and selling of 60 cryptocurrencies, including the ability to sell and buy bitcoin. Uphold is considered the cheapest way to buy Bitcoin because, unlike other platforms, prices of assets are locked in pre-trade, and as such, the price before trade is typically the same price after trade. While processing transactions, no hidden charges are added between the Preview and Transact phases of a transaction. Transactions are ultimately free when buying funds via an external Bitcoin wallet, a bank transfer, and another uphold account. Deposit, withdrawals and profits on trades are at 0% as well. Uphold wallet addresses, and payment methods include bank transfers, debit/credit cards. The Bitcoin exchange is also noted to be quite secure as it adheres to the Payment Card Industry Data Security Standard (PCI DSS), one of the most stringent security standards in the industry. Pros An inclusive pricing plan devoid of hidden charges No minimums on investments. Beginner-friendly Cons Minimal educational content on website. Fewer crypto purchase options Visit Uphold 3. Coinbase – Best for Beginners to Buy Bitcoin Coinbase is a secure crypto broker platform that provides holding, buying, and crypto selling services. Brian Armstrong founded it in 2012, and it has since accrued a total of 43million verified users and with a net revenue of $1.14 billion as of 2020. Coinbase’ E-Money Services are regulated by the UK Financial Conduct Authority (FCA). The platform supports over 50 different cryptocurrencies, including bank transfers, apple pay, and credit and debit cards as payment methods. Coinbase is considered the best for beginners due to its extremely simple user interface that is easily accessible. Coinbase is perhaps one of the easiest on-ramps to crypto investing as it makes signing up and buying cryptocurrencies possible within a matter of minutes. The platform aims to familiarise beginners with the crypto space by providing a learning program that pays users cryptocurrency to learn more about how cryptocurrency works and how to make money with bitcoin. Coinbase offers 2-factor authentication, biometric fingerprint authentication and insurance in case of a security breach ( not due to negligence on the user’s part). Pros Offers access to over 50 cryptocurrencies. Low minimum funding amount of $2. Insurance in the event of a security breach Cons High transaction fees Visit Coinbase 4. Binance – Most Diverse Cryptocurrency Exchange Binance exchange is the largest crypto exchange by trade volume and one of the fastest in the world. The platform was founded by Changpeng Zhao in 2017. The cryptocurrency exchange provides security for its users by guarding their portfolio through address whitelisting, device management and the ability to restrict user device access. Binance is considered the most diverse in terms of crypto-assets as it offers a wide range of crypto pairs for trading and diverse means to buy bitcoin. Several crypto profit generation options are available on Binance, such as DeFi, staking, arbitrage and exchanges. The availability of these protocols on the platform makes it possible to trade cryptocurrencies with low liquidity pools. Binance offers access to the buying and selling of over 50 cryptocurrencies and supports bank deposits, credit/debit cards, peer-to-peer trading by bank transfer and other alternative options and third party payment by Banxa and Simplex as payment methods. Pros Low trading fees. Crypto asset diversity Wide array of educational content. Cons High credit card fees Regulatory issues Visit Binance 5. Revolut – Most Inclusive Platform for Assets Revolut is a financial technology company that offers peer-to-peer payments and currency exchange services to its users. It was founded by Nikolay Storonsky and Vladyslav Yatsenko in 2015. Revolut is an authorised representative of Resolution Compliance Ltd and is licensed and regulated by the Financial Conduct Authority in the UK. The online broker is the most inclusive platform for assets as it allows its users to manage all their physical and virtual assets. Virtual cards are made available for users who need them for easy physical transactions. Revolut does not support any crypto holding wallets; however, it is in partnership with the Paxos Trist Company LLC who legally owns any cryptocurrency bought on the Revolut app. Users who buy Bitcoin UK on the Revolut app have their assets pooled and stored in a virtual currency account called cold storage. The platform is seen as a digital bank that has been optimised for foreign exchange of fiat and virtual currencies. To buy Bitcoin UK on Revolut App, users only need a debit/credit card as a standard means of payment. However, the company pledged to include more payment methods soon. Revolut secures users’ assets by activating fingerprint identification and making use of disposable virtual cards. Pros Virtual cards for online transactions Account options Extensive Premium features Cons Limited withdrawals No Bitcoin trading available Visit Revolut 6. PayPal – Most Secure Platform for Crypto Assets PayPal is a financial technology company that supports mobile transfers and serves as an electronic alternative to traditional payment options. Paypal processes payments for vendors, auction sites and other commercial users for a fee. It was founded by Elon Musk, Peter Thiel, Luke Nosek, Max Levchin and Yu Pan in December 1998. PayPal currently has 403 million active users as of Q2 2021. PayPal is considered the most secure platform to buy Bitcoin because it is backed with one of the best end-to-end encryption available in the industry. The platform does not condone any form of illicit behaviour as their KYC protocol searches for loopholes in every user’s submitted documents and cross-checks for any mismatches. The firm is regulated and is subject to some of the rules and regulations governing the financial industry, including Regulation E consumer protections and the USA PATRIOT Act. It is also authorised by the Financial Conduct Authority (FCA). PayPal acts as a crypto holding wallet as it allows for the receipt and withdrawal of crypto assets. Customers can also sell and buy Bitcoin with PayPal. It currently supports only four cryptocurrencies which include Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Users can buy Bitcoin UK with a debit/credit card, bank accounts, PayPal Credit and the rewards balance. Pros Easy to use Sensitive information encrypted It is secure Cons Very strict Charges 1% fee for instant access to assets Visit PayPal 7. CryptoRocket – Best Broker for BTC Trading CryptoRocket is an online trading platform that grants users access to trade in cryptocurrencies, commodities and forex. The company was founded in 2018. It is known as the best broker for trading because it utilises MetaTrader4, the popular trading platform, which grants users access to a wide range of instruments. The platform possesses one of the most extensive forex pairs, commodities and stocks to trade on with a list of 35 cryptocurrencies 34 cryptocurrency pairs. It also lists over 55 fiat currencies, 64 stocks and 11 indices for trade. It was awarded the best cryptocurrency broker of the year at the Forex Broker Awards in 2020. CryptoRocket uses Straight Through Processing (STP) execution. Users do not need to worry about desk manipulation or re-quotes when a trade is placed on its platform. CryptoRocket allows for deposits and withdrawals from other independent crypto brokers and encourages users to buy Bitcoin UK with a credit/debit card as a third party payment method. Pros The platform has a good range of assets. Low minimum deposits No deposit or withdrawal fees 24/7 customer service support Cons No regulation Incompatible with MetaTrader5 Minimal educational content offering Visit CryptoRocket 8. Changelly- Best For Fast Transaction Speed Since its launch in 2015, Changelly has remained one of the best brokers to buy Bitcoin in the UK. The company enjoys monthly traffic of over two million users to its websites and over 50,000 followers on Twitter. It is well known for the speed with which it processes transactions. You can buy Bitcoin UK with a bank card or exchange other cryptocurrencies for it. It has over 350 Application Programming interfaces (APIs) onboarded. Changelly integrates and partners with some of the biggest crypto exchanges like Binance, Exodus and Coinomi. It makes bids on these platforms before suggesting the best rate available to its clients. Pros Effective and responsive support team Fast and reliable Aside from Bitcoin, it has over 170 crypto assets listed It offers competitive prices Easy user interface Cons Expensive to purchase crypto with fiat Accepts only three fiat currencies for buying crypto Visit Changelly 9. Gemini – Best For All Class Of Users Gemini platform was created by the Winklevoss twins (Tyler and Cameron) in 2015. The platform is easy for investors of all brackets (beginners, intermediate, or professionals). It has educational resources for beginners to learn about Bitcoin trading. Gemini prides itself as one of the exchanges that has never been hacked. Customer funds are stored in offline cold storage, making it even more difficult for hackers to penetrate. The FDIC insures the firm to the tune of $250,000 per customer. It has a unique feature known as Gemini earn, where users can earn up to 8.05% Annual Percentage Yield (APY) on their Bitcoin balance. It charges both a convenience fee and a transaction fee every time you buy Bitcoin or any crypto-asset on the platform. Gemini also charges a transaction fee of 1.49% for transactions above $200, but $0.99 is charged for orders in the $10 range. Pros It is very secure. It pays interest for holding Bitcoin. $0 minimum account balance Cons Popular cryptocurrencies not listed Trading with lower fees attracts high charges Visit Gemini 10. Kraken – Best For Security And Privacy Kraken exchange was founded about ten years ago in 2011. Its number one objective is to provide security and privacy for all its customers. With a team of world-class security experts, it has put different measures to ensure the safeguarding of users’ assets. It also boasts of full reserves and legal compliance that are of very high standards. Kraken has both mobile and desktop apps that are very easy to use to buy Bitcoin on the go. The platform also has great customer service available around the clock to attend to customers and their inquiries. Pros Well known for top-notch security of assets Low fees on its over 70 crypto pairs It offers dark pool trading Cons Does not have an ios or android app No option for simulated trading Visit Kraken What is Bitcoin? Bitcoin (BTC) is a decentralised digital currency that allows secure transactions from peer-peer on the internet. A person or group of people created Bitcoin under the name Satoshi Nakamoto in 2008. Their idea was to have a digital currency free from the stringent regulations accompanying fiat currencies. Thus, BTC uses peer-peer technology in its operation, with no central controlling authority or bank. It is the first cryptocurrency and remains the prime digital cryptocurrency today, with over 40% dominance in the crypto market. The value of Bitcoin has continued to soar over the years, resulting in massive profits for those who have kept faith in BTC. The asset rose from being valued at just 10 cents in October 2009 to a new all-time high (ATH) of $69,044.77 in November 2021. Thus, a $100 investment in Bitcoin back in 2009 would be worth about $69 million with this new ATH, provided the holder did not sell. Because of its propensity to continue to rise in price value, many organisations have begun to accept it as a form of payment or legal tender. How Does Bitcoin Work? Bitcoin makes use of Blockchain, a decentralised technology to power its operations. This serves as a digital record, where you can find the details and addresses of every transaction that has ever taken place on the network. The information is so detailed that it includes the date, time, total value, and a unique code known as keys to identify every exchange. These entries are put together in such an orderly manner, forming a block. Every block added to the blockchain can be accessed by anyone and at any time. The network does not have any central controlling agency, making it easily accessible by anyone. New Bitcoin is added to the blockchain through a process called mining. It is a process of confirming transactions before they are added to the network ledger. Miners compete against each other, and the fastest gets rewarded for solving complex mathematical puzzles on the network. Mining is a process that consumes much power and requires high-capacity computers, and that is why many who want to mine Bitcoin invest heavily in computer hardware. Users can store Bitcoin in hardware wallets that have both private and public keys. Both keys allow the owner to initiate and authorise transactions, thus serving as a form of digital signature. Other types of wallets that can be used in storing Bitcoin are cold wallets, hot wallets, and paper wallets. How Is Bitcoin Value Determined? Bitcoin has value because it is a digital currency and just like any form of paper money (fiat), its worth is dependent on the supply and demand for it. Whenever there is an increase in the acceptance and demand for BTC, its value will continue to rise. As many people continue to embrace it as a medium of exchange, the value will keep on rising. This is because investors will have confidence and thus invest more in it. However, when the reverse now becomes the case, its prices will fall just like it happened when China placed a ban on cryptocurrencies, and its values fell well below $32,000 in June 2021. Another factor that gives BTC its value is its scarcity. The total amount of Bitcoin that will ever be mined is limited, and it is capped at 21 million. Like in basic economics, the more scarce a commodity is, the more price it will command in the market. Moreover, the use case of Bitcoin is another thing that gives it its value. It is the number one cryptocurrency, and it is useful as a store of value, and it is even accepted by a lot of people and also in many regions as a means of payment. The cost incurred in the process of mining also contributes to how BTC is valued. Miners only add new blocks to the blockchain because they are adequately compensated for the activity. The price of other alternative currencies also affects the value of BTC because whenever investors move their money into altcoins, the value of BTC drops. Is Bitcoin Legal In The UK? As of November 2021, there is no known ruling or regulation against Bitcoin trading in the United Kingdom (UK). In a document released by the Financial Conduct Authority (FCA), the agency stressed that it doesn’t regulate the operation of Bitcoin or Ethereum but regulates crypto-asset derivatives such as futures contracts and other crypto-assets that it considers as securities. The UK allows the operation of crypto exchanges; however, they must be registered, and they have to abide by the law that mandates them to put anti-money laundering measures in place. But in June 2021, the FCA banned Binance, the world’s largest cryptocurrency exchange, from carrying out any form of operations in the UK. A statement from the market regulatory body warned citizens to be wary of adverts on social media of digital assets and crypto-related products that promise high returns. This warning is most likely due to the high volatility associated with cryptocurrencies whose values are subject to fluctuations depending on prevailing market forces. Although there has been a series of clampdowns of Bitcoin trading in some parts of the world, with China leading the line, residents of the UK continue to trade cryptocurrencies without any form of fear or harassment. Users of the digital payment platform PayPal in Britain can buy, sell, or hold BTC directly using the platform. If you happen to be in the UK, you have absolutely no problem with trading Bitcoin. How to Buy Bitcoin on eToro Bitcoin has remained the centre-piece for the larger crypto ecosystem. Given its growing use case and institutional adoption, several investors are looking for the best platforms to buy Bitcoin. If you are on the lookout for such a platform, we recommend using eToro due to its super-low fees, user-friendly interface, and safety. In this article, we will discuss the step-by-step on how to buy Bitcoin on eToro. Step 1: Create an account on eToro To get started, you will need to register on eToro. To do this, head over to eToro and click on ‘Join Now’ to access the registration portal. Input your full name, email address, mobile number, username, and password. You can also sidestep this process by signing up with your Google or Facebook account. Step 2: Upload ID Visit eToro eToro requires you to complete the know-your-customer (KYC) process. This process can be completed online; all you need to do is upload a copy of your driver’s license or a government-issued ID card. You will also need to submit a snapshot of your recent utility bill or bank statement to verify your proof of address. Step 3: Deposit The next step is to make a deposit. You can complete this process by clicking on the action tab and the ‘Deposit Funds’ button. Select through a slew of payment methods between bank wire transfer, PayPal, Skrill, credit/debit card, Neteller, and several others to fund your account. eToro has a minimum deposit bar of $50 (about 37.34 GBP) to buy any crypto assets. Step 4: Buy Bitcoin Once the deposit is complete, you can now buy Bitcoin. To do this, type ‘BTC’ into the search bar and click ‘Trade’ on the first result that pops up. You will be taken to the order page, where you can insert the number of Bitcoins you want to buy, then click on ‘Open Trade’ to complete the process. How to Choose the Best Broker to Buy Bitcoin Compared to three years ago, cryptocurrencies, most especially Bitcoin, have come a long way. With price surges regularly, more investors and platforms now offer exposure to the volatile asset class. However, choosing the best platform to buy Bitcoin can be hectic due to several exchanges and brokers available. To address this, we have highlighted some of the features you should look out for before selecting a broker to use: 1. Regulation Though the crypto market is largely unregulated, endeavour to use only regulated brokers to avoid being scammed by fraudulent platforms. We recommend brokers who are regulated by global bodies like the UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC). This ensures that your funds and details are safe. One of the best brokers with heavy regulatory oversight is eToro. 2. Fees Trading fees are another crucial factor you should consider when selecting a Bitcoin broker. While a platform may be user-friendly and easy to use, it may charge high fees. We recommend finding out all related fees you will need to pay beforehand to erode your initial investment. For instance, top US crypto exchange Coinbase charges a 4% standard debit card fee for crypto purchases, while you can complete this same transaction on eToro for 0.5% on any of your preferred payment methods. 3. Security Aside from the regulatory oversight, you also need to research a platform’s user safety history. If a crypto exchange or broker has a history of getting breached by malicious actors or users losing money, you should avoid them. 4. Customer Support Cryptocurrencies are new to several investors, and this means there will be instances where you may find it challenging to initiate a transaction. Using a platform with poor customer support means you may find it difficult to buy, sell, or hold your Bitcoin. Crypto brokers like eToro are known for their top-notch customer support services to provide you with prompt assistance. 5. Account Opening Process Creating a new functional account on eToro takes roughly 5 minutes, enabling you to start trading cryptocurrencies in a short period. While some other platforms may require you to complete a facial recognition process, eToro only takes a screenshot of your driver’s license or official ID card and processes it. This makes the onboarding process on eToro seamless and hassle-free. 6. Social Trading Capability Another major plus of using the eToro platform is its social trading capability. eToro works more like a social networking platform for traders than a traditional financial investment provider. You can easily learn about an asset and know what other investors feel about it. This makes it easy for you to identify promising projects with well-backed communities. 7. CopyTrade One other useful feature on eToro is the CopyTrade functionality. With CopyTrade activated, you will be able to copy successful trades of more advanced traders without risking too much of your capital. This is ideal if you are a beginner and are just learning the ropes on crypto. You can mitigate potential losses while also making substantial profits on your invested capital. Best UK Bitcoin Brokers If you are looking for the best places to buy Bitcoin UK, we have listed some of the best Bitcoin brokers in the UK where you can purchase the asset. 1. eToro eToro is a popular social trading leader that has over 20 million users from 150 countries. Its appeal largely lies in its user-friendly, competitive fees and its slew of functionalities that make the trading experience super-easy for beginners and advanced investors. It is also a regulated crypto broker and is supervised by the FCA, CySEC, ASIC, and FINRA. If you reside in the UK, you can easily buy Bitcoin for as low as 37.34 GBP. You also get to enjoy multiple payment methods, including bank wire transfer, credit/debit cards, PayPal, Skrill, Neteller, and several others. Trading fees are super-low, and you will only pay a flat 0.5% fee for all deposit methods. Visit eToro Your capital is at risk. 2. Uphold Uphold is one of the best places to buy Bitcoin. Operating as a unique desktop and mobile trading platform, Uphold enables users to buy, sell, trade, hold, and complete limit orders on their crypto holdings. Uphold is a popular choice for many, largely due to its rapid speed of executing transactions. It cuts down on the processes needed to buy and sell your favourite cryptocurrencies by limiting transactions to only one step. That means you can buy or sell Bitcoin by just initiating the buy or sell order. This makes Uphold easy to use and also cost-effective for many investors. Uphold has no deposit bar to buy Bitcoin UK, allowing you to buy Bitcoin fractionally. It charges a variable spread of 0.8 to 1.2% for crypto transactions with 0% fees for deposits or withdrawals. Visit Uphold 3. Coinbase Coinbase is a popular destination for many crypto newbies due to its user-friendly platform. At the core, Coinbase serves as a launchpad or a gradual crypto educational platform that offers exposure to volatile digital assets. Founded in the United States in 2012, Coinbase has recently expanded its crypto-related activities to other regions and supports UK investors. Minimum deposits are pretty low on the crypto exchange, and you can get started with as little as 2 EUR. However, if you select SWIFT as your preferred payment method, you will have to meet up to the deposit threshold of £1,000, and withdrawals must be up to £500. Visit Coinbase 4. Binance Binance is the world’s largest Bitcoin exchange by trading volume due to its low fees and the large ecosystem of products. Like all cryptocurrency exchanges, you can buy, sell, hold, and set limit orders on the Binance platform. Boasting a global reach, Binance is available in several countries, including the UK. You can buy Bitcoin UK on the Binance platform for as low as £15 through your bank account, credit/debit cards, peer-to-peer (P2P) exchanges, and all other supported payment mediums. However, you can’t trade derivatives products on Binance if you live in the UK. Visit Binance 5. Revolut Revolut has a strong appeal to UK users due to its ease of use and the large array of supported fiat currencies. The platform focuses on the UK and European financial space and allows the seamless and low-cost exchange and transfer of currencies between users. Aside from fiat, Revolut also offers exchange of cryptocurrencies to any of its 30 supported currencies. You can also make purchases of your favourite cryptocurrencies with your Revolut balance. Regarding the minimum deposit for UK investors, there is no set bar. You can easily fund your account using bank transfer, credit/debit card, Apple Pay, and Google Pay. Visit Revolut Demographics of Bitcoin Trading in the UK Cryptocurrencies have become popular in the UK. In 2018, only 1.5 million people in the UK owned cryptocurrencies, with Bitcoin taking a large share of the pool. Fast-track three years later, and this figure has surged to 9.8 million people. The unprecedented change lies in the fact that cryptocurrencies have now filtered into mainstream media houses. Many crypto converts admit that they first heard about digital currencies from online news. A Gemini Crypto Status Report further breaks this down to 41.6% women and 56.5% showing a strong crypto penetration in the UK. Bitcoin Trading has also picked up with over £850 billion worth of Bitcoin in circulation in the UK. Coupled with Bitcoin IRAs now picking steam, this figure is expected to inflate even further by the end of the year. How to Make Money with Bitcoin If you are looking at the possible ways you can make money and earn free Bitcoins, then this section should come in handy. Here are a few ways to make money with BTC. Buy and wait for Bitcoin’s value to increase and then sell for a profit. You can earn Bitcoins by mining them, but this is an expensive endeavour for most small-time investors. You can also grow your Bitcoin holdings by accepting Bitcoin as a payment method for goods and services. You can also make money by lending your BTC funds to credit agencies in exchange for interest or more BTC. Trading Bitcoin is also another popular choice for many. However, this will require some technical expertise to make a profit. You can also get tipped in Bitcoin. Twitter now offers this feature, and it is rapidly gaining steam among content creators. Completing mini-surveys and playing Bitcoin-centered games will also net your free money. Buying Bitcoin vs Trading The two most popular options investors are familiar with is either buying for the long term or actively trading the price differences in Bitcoin. These two options largely depend on the investor’s preference and technical expertise. We recommend buying and holding for the long-term if you are just starting. For this, we will show the major differences between short-term and long-term investments in Bitcoin. Source: TradingView | Bitcoin 5-Years Price Chart Short Term Investments Short term investments primarily fall within a year and do not necessarily exceed six months. This means you are only buying Bitcoin to make quick gains. Although this has been known to pay off, especially in this bullish year for crypto, it may see you miss out on a large chunk of gains if you sell too quickly. Also, short term investments are much more heavily taxed than long-term investments. Long Term Investments This investment preference usually exceeds a year and is one we highly recommend if you intend to ride the Bitcoin waves in the nearest future. For one, Bitcoin has been known to grow more than 9,000,000% since launching in 2009 at a base price of $0.08. This means if you invested £100 in 2009, you would be worth more than £70 million today. This goes to show the power of compound interests. We highly recommend this investment style primarily because Bitcoin is seeing growing adoption across national borders, financial terrains, and even in individual circles. With more adoption, Bitcoin will only become more valuable with time. Automated Bitcoin Trading Robots Trading cryptocurrencies like Bitcoin is seen by many as a high-risk endeavour. The reason is that Bitcoin is known for its huge price swings, which can see it climb 20% and fall within the same trading window. This has made more mainstream investors steer clear of the crypto market. However, automated Bitcoin trading robots are gaining recognition due to several reasons. Firstly, automated software can gather, organise, and interpret market data better than individuals or entire teams of professionals. Hardwired into its system are artificial intelligence (AI) and natural language processing (NLP) technologies that give them speed, the ability to read the market right, and minimise losses. Taking the duty of investing or trading off the shoulders of humans, Bitcoin Robots are becoming a popular choice given their capability to appeal to both beginners and established investors. Their winning trades are also phenomenal, with the minimum bar set at 60% and the maximum at over 90%. If you are looking for a risk-free means to explore the crypto market or buy Bitcoin, we recommend using any of these automated Bitcoin trading bots. Bitcoin ETFs Bitcoin ETFs Exchange-traded funds or ETFs were normally considered outside of the scope of cryptocurrencies. However, in the past two years, interests from institutional investors have led to calls for a Bitcoin ETF. An ETF operates like a basket of securities that tracks an underlying index, sector, commodity, or asset. This way, an investor can diversify their investment and not own the underlying asset. This is a win-win situation for many institutional investors as an ETF mimics the performance of the digital asset. Bitcoin ETFs are becoming popular, with a few recently launched in the US and Canada recently. It provides a much simpler alternative than going through the rigours of learning what cryptocurrencies are and how to store them. Although Bitcoin ETFs are still in their infant stages, the phenomenon has been a huge success so far. An instance is Proshares Bitcoin ETF which hit $1 billion in assets under management (AUM) in one week. If you do not want to own Bitcoin directly, you can explore the idea of going through an ETF. Buying Bitcoin as a CFD Product Aside from investing for the long-term or actively trading Bitcoin, you can also buy Bitcoin as a CFD product. CFD stands for contract for difference which is essentially an agreement to exchange the difference between the price of an asset at the moment of purchase and when the contract expires. Hugely popular in mainstream financial trading, CFD is a derivatives product that allows investors to speculate on an asset’s price without directly owning the asset. That way, a trader only estimates the price of an underlying asset without worrying about storage or how to trade cryptocurrencies. CFD is also gradually seeping into the crypto space, and one of the best crypto brokers offering this service is eToro. If you are an experienced CFD trader and want to trade Bitcoin, using eToro will give you the needed edge to trade small price changes. Minimising Risk on Bitcoin Investment While Bitcoin is a profit-yielding digital asset, it also comes with a few risks. In this section, we point out the dos and don’ts when investing in Bitcoin. 1. Always Do Your Research Success in the crypto market depends on your research prowess. If you are interested in any virtual currency like Bitcoin, we recommend doing due diligence to ensure you have all the details to assume the right strategy. To help with this, social media channels targeted on Bitcoin, review websites like Inside Bitcoins, analyst reviews will go a long way in pointing the right direction for you. 2. Don’t FOMO When a bullish run is ongoing in the crypto market, it is not ideal to buy Bitcoin. Savvy investors wait for a downtrend before entering the market. If you suffer from fear of missing out (FOMO), we recommend setting up a plan and sticking to it to help you curtail your emotions. 3. Start With Little Buying Bitcoin is pricey as it sits at nearly £50,000 at the moment of writing. However, you can still buy Bitcoin fractionally from crypto brokers like eToro. Despite this, we recommend putting in a small chunk of your funds, and this will help you easily cope if you suffer losses. Taxation on Bitcoin Earnings While cryptocurrencies have not been properly defined in several regions, tax obligations still exist for them. This is true for the UK, which taxes crypto earnings as capital gains and as income tax. These are the instances when you will pay Capital Gains Tax on your crypto earnings: Sales of digital tokens Exchanging your token for another crypto asset Settling transactions or paying for services with crypto Giving away your to another person except it is a gift to your partner Instances that count as Income Tax: Crypto received from mining unless it is below £1,000 If you get your paycheck in crypto On the Capital Gains Tax, you can still use losses to save on your gains. Also, you can sidestep your Capital Gains Tax if you earn less than £12,300 from your crypto dealings (individuals) and £6,150 for trusts. This is called the Capital Gains tax-free allowance. Cheapest Way to Buy Bitcoin Crypto brokers like eToro allow you to buy fractional parts of the Bitcoin asset for as little as £18.66. All you need to do is create an account with eToro and fill in the required documents. Then you can buy fractional bits of Bitcoin without spending too much. Payment Options for Buying BTC While digital currencies may still be a new idea for many, several simple payment solutions are already offering a window to access this new ecosystem. We examine some of the most popular payment solutions available to buy cryptocurrencies like Bitcoin below: How to Buy Bitcoin with PayPal PayPal is a well-known payment processing company that has embraced cryptocurrencies. Recently, users can now buy Bitcoin with PayPal and Ethereum, Litecoin, and Bitcoin Cash. However, PayPal does not operate as a conventional crypto exchange, meaning you only have limited assets. You can use crypto brokers like eToro that support PayPal deposits, to buy Bitcoin and other cryptocurrencies. Meanwhile, if you want to buy Bitcoin with your PayPal balance, you will need to have a linked debit card and a linked bank account. Head over to the crypto section and choose Bitcoin to buy the asset. How to Buy Bitcoin with Credit Card Although many crypto exchanges and brokers allow you to buy Bitcoin with credit card deposit solutions, the deal-breaker for many investors might be the fees you will pay. We recommend that you look at the broker fees to know if using this option will be smart. You also have to deal with the charges from your credit card issuer, and this usually ranges between 3 to 5%. However, if you insist on using this option, you can easily select it as your preferred mode of payment on a broker’s deposit page. Insert the amount you would like to use in funding your account and click on the ‘Open Trade’ button to complete the transaction. How to Buy Bitcoin with a Debit Card Investors in the UK can buy Bitcoin with debit cards. They are popular and are often one of the most favoured payment methods available online. For one, it is easier to complete transactions, and they are also far cheaper than their credit card counterpart. To buy Bitcoin with a debit card, you would have to select it as a deposit option. Most Bitcoin brokers UK offer this option, so you should not have a problem with it. Link your debit card and insert the amount you want to be deducted. How to Buy Bitcoin with Bank Account Another popular choice is using your normal bank account to buy Bitcoin. To do this, select it as a payment option and input your account details. Follow the on-screen prompts and complete the transaction. However, this process often takes time, with some crypto brokers using up to seven days to clear your deposit. How to Buy Bitcoin with a Western Union Transfer Western Union is a remittance services company that enables users to send money online or in-store and receive cash through pick-ups, bank account, or mobile wallet. It boasts over 150 million customers, making it one of the largest transfer companies in the world. Alongside enabling fiat transfers, you can use Western Union to buy Bitcoin. To do this, you will need to create an account with an exchange that supports Western Union transactions, locate the offers page and input how much Bitcoin you want to buy and the currency you wish to pay with. Click on the ‘find offers’ and choose the one that suits your needs. Responsible Investment in Bitcoin Trading Bitcoin can be profitable, but there are risks involved. Before taking the plunge, we recommend keeping the following tips at the back of your mind. 1. Study crypto assets before making investment decisions Cryptocurrencies are relatively new, and there are aspects of the crypto market you may not understand unless you take your time to study and learn how they work. Even though they promise great wealth, they come with a lot of loopholes. For instance, interfacing directly with cryptocurrencies can lead to loss of funds, especially if you do not understand how P2P transactions work, private keys, wallet addresses and backup phrases. Update yourself with the requisite knowledge before committing funds. Several people have lost fortunes because they did not properly store their backup phrases. 2. Allocate only 1 to 10% of your Investment to Crypto Cryptocurrencies like Bitcoin are high-risk investments, and any financial investment planner will advise you to be careful around them. However, the nascent space has outperformed the general market for a few years now, but this still does not make it a safe investment for you. We recommend allocating between 1 to 10% of your investment portfolio to cryptocurrencies if you are so keen. This way, you are not over-exposed and can easily cut your losses if they hit a major snag. 3. Stay Updated Just like you listen for the quarterly performances of tech companies like Apple, Alphabet, and Tesla, you will also need to channel the same energy into crypto. But you will need to do it often because cryptocurrencies are fast-paced and volatile. To stay in the loop on all market happenings, we recommend subscribing to review websites like Inside Bitcoins for the latest news on the crypto market. Inside Bitcoins has dedicated market research experts who are always on the market to get the latest technical and fundamental action. This will help you assess your portfolio composition properly and know whether to cut down on a particular asset or buy more of it. Compare UK Bitcoin Brokers Buy Ethereum68% of retail CFD accounts lose money.Buy EthereumThe price and value of any investment in digital asset products can fluctuate.Buy EthereumAs with any asset, the values of digital currencies may fluctuate significantly.Buy EthereumThe traded price of digital tokens can fluctuate greatly within a short period of time.Buy EthereumThe value of digital currencies can go up or down frequently.Buy EthereumMarket prices for digital tokens can be volatile and highly unpredictable.Rating5.04.54.44.34.24.1Mobile App Rating10/109/109/108/109/108/10FeaturesMobile AppWalletNumber of Coins1282236335011FeesTrading FeesSpreads0.1%0.1%0.1%0.50%0.1%Deposit FeesN/AN/AN/AN/AN/AN/AWithdrawal Fees$50.0005 BTCN/AN/AN/AN/AExtrasRegulatedASIC, CySEC, FCAN/AFCAN/AFCAN/AMin. Deposit$50N/A$10N/A$2$10Leveraged TradingN/A1 - 100x1 - 100x1 - 100xN/A1 - 10xLatest Prices (per Coin)Bitcoin£28486.92£28505.43£28383.96£28341.90£28365.16£28359.94Ethereum£2140.62£2102.28£2092.54£2093.76£2093.05£2091.07XRP£0.52N/A£0.51£0.17£0.22N/ATether£0.74£0.74N/A£0.74£0.74N/ALitecoin£92.05N/A£90.24£90.50£90.28N/ABitcoin Cash£255.42N/A£250.50£372.62£250.29N/AChainlink£14.17N/A£14.14£14.31£14.13N/ACardano£0.92N/A£0.89£0.89£0.89N/AIOTA£0.74£0.70£0.70N/A£0.70£0.70Binance Coin£318.73£311.34£311.11N/AN/AN/AStellar£0.17N/A£0.16£0.16£0.16£0.06Bitcoin SV£74.85N/AN/A£134.28N/AN/AUSD Coin£0.74N/AN/A£0.74N/AN/AEOS£1.93£1.88£1.87£1.88£1.87£1.87Monero£136.17£134.92N/AN/AN/AN/APayment methodsCredit CardGiropayNetellerPaypalSepa TransferSkrillSofort Bitcoin vs Other Cryptocurrencies Bitcoin is the crypto leader, but it only controls about 45% of the entire market. In this section, we compare Bitcoin with other digital assets. 1. Bitcoin vs Ethereum Ethereum is a top crypto dog and is the foremost altcoin in the crypto ecosystem. Also, it offers what Bitcoin lacks, s a robust network that facilitates the use of self-executing codes called smart contracts. Controlling about 97% of the decentralised finance (DeFi) and non-fungible token (NFT) ecosystems, Ethereum is a top destination for any blockchain-based services. It is also planning to move to a proof-of-stake (PoS) protocol from PoW, and this is expected to shoot the value of ETH higher further. 2. Bitcoin vs Binance Coin Binance Coin (or BNB) is the utility token for the Binance crypto exchange. It primarily works as a discount token for traders who want to execute transactions on the platform. Aside from this, BNB has other uses in the Binance Smart Chain (BSC), Binance Chain, and Binance DEX aside from more mundane use cases. BNB’s strong fundamentals of limited coins and use cases have largely put it in the world’s top three most valuable crypto assets. 3. Bitcoin vs Cardano Cardano is a peer-reviewed PoS protocol that describes itself as a third-generation blockchain network. The protocol aims to tap into all the existing strengths of the older blockchains (Bitcoin and Ethereum) without any of their weaknesses. Cardano is still under development but is seen as a blockchain for innovators, given its penchant for scientific research. The Cardano network also interfaces with DeFi and NFTs and aims to offer speed, interoperability without sacrificing security. 4. Bitcoin vs Solana Solana is a high-speed hybrid blockchain protocol that has largely taken the world by storm. Looking to move the frontiers of DeFi and NFT further, Solana offers one of the fastest, cheapest, eco-friendly solutions in the market. The protocol has become a major competitor to Ethereum and has shot up the crypto ranks to the number five spot. Many view it as a strong competitor in the DeFi race. Is Bitcoin Halal? Bitcoin is a controversial topic in the Islamic community due to the general concept surrounding the currency. The real issue is that Bitcoin does not easily fall into the two categories of money recognised by the Islamic faith. It cannot be said to be natural ‘money’ like gold and silver, neither can it be viewed as ‘customary money’ like fiat. This makes it difficult for Muslims to step into the crypto space easily. Some Muslim scholars have openly come against the idea of the Islamic community stepping into the crypto arena. However, there is a growing awareness among the Islamic faithful as some scholars have openly termed cryptocurrencies like Bitcoin ‘halal.’ A notable instance is in 2018 when the Shacklewell Lane Mosque in Hackney solicited donations in crypto primarily through Bitcoin and Ethereum. According to the Independent report, the initiative was geared towards giving back to the community – a social responsibility Islam holds sacrosanct. A subsequent report by former Shariah Advisor to Blossom Finance Mufit Muhammad Abu-Bakar showed that all currencies were speculative as they are driven by the market forces of demand and supply. This makes Bitcoin a ‘halal’ and permissible for Muslims. A strong push for Bitcoin adoption could convert the Muslim community, potentially tapping into 1.6 billion Muslims globally. Conclusion Bitcoin has come a long way since 2008, and there is so much potential for the foremost digital currency to break through into mainstream use. With its hard-cap limit of only 21 million and more institutional investors using it as a hedge against recurrent inflation and monetary volatility, Bitcoin is here to make a sizable impact. Also, the changing tide in finance is a good sign of things to come. The current financial landscape is deemed outdated, and as more solutions come to the fore, a decentralised economy is viewed as the future way of doing business. If you are looking for the best platform to buy Bitcoin UK wise, we recommend eToro for its safety, low fees, and social trading experience. eToro: Our Recommended UK Bitcoin Exchange Our Rating Financial Conduct Authority (FCA) regulated in the UK Buy with Bank transfer, Credit card, Neteller, Paypal, Skrill, Sofort Free Demo Account, Social Trading Community - 20 Million Users Free Bitcoin Wallet - Unlosable Private Key Copytrade Winning Bitcoin Traders - 83.7% Average Yearly Profit Buy Bitcoin Cryptoassets are unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk. FAQs How do you Buy Bitcoin? There are many ways in which you can buy Bitcoin, albeit, the safest and most convenient is to use an online broker. For example, by using eToro - you have the backing of several reputable financial bodies. All you need to do is open an account, make a deposit with a debit/credit card or e-wallet, and decide how much you wish to invest in Bitcoin. Should I Buy Bitcoin? Whether or not you should buy Bitcoin is your decision. On the one hand, Bitcoin is super volatile and can experience rapid price shifts on a day-to-day basis. But, Bitcoin is one of the best performing asset classes in recent years. With that in mind, if you do have an interest in Bitcoin but have a low tolerance for risk - just make sure you keep your stakes conservative. What is the Best Way to Buy Bitcoin? If you're wondering where to buy Bitcoin - the best option is to use a regulated online broker - such as eToro. eToro has a platform designed for beginners and professional traders alike. Their fees are quite low and they offer multiple funding options like credit/debit cards, PayPal and bank transfers. How does Bitcoin Work? Bitcoin is a digital currency that is not backed by a central bank or government. The network is decentralized - so no single entity has control over Bitcoin. In terms of what governs Bitcoin's price, it's a bit similar to the traditional stocks. The value of Bitcoin rises and falls based on market sentiment. If you sell Bitcoin for a higher price than you originally paid - you will make money. Don't forget to consider where to buy Bitcoin - as commissions and fees can vary wildly. Is it Safe to Buy Bitcoin? Bitcoin is a relatively safe investment in 2021. Of course, all investments carry risk - including Bitcoin. However, for someone who has done enough research and is confident, Bitcoin is very safe. How Do I Make Money with Bitcoin? Usually, you make money with Bitcoin by trading or investing it in the long term. However, you can also mine Bitcoin if you have enough resources. What are the Benefits of Buying Bitcoin? Bitcoin is a good investment for those who know their research. It also provides a want to hedge your health against inflation, and its sizable returns provide the opportunity to maximize your earnings. What are the Best Payment Methods to Buy Bitcoin with? The best payment method to use is your debit card. However, if you have funds in your PayPal or Square account, you could also use them, as long as your chosen broker enables it. What are the Best Bitcoin Brokers? Several qualified and registered brokers allow their customers to buy Bitcoin. However, we recommend eToro and Binance. Both platforms are regulated and secure, and they have high liquidity levels - allowing you to make a sale or purchase in a snap. How Can I Buy Bitcoin Instantly? If you would like to make an instant purchase, you will need to have an account with a registered broker. Once you register and verify your account, you will be able to make quick Bitcoin purchases whenever and wherever you like. How can I Buy Bitcoin with USD? The best way to buy Bitcoin with USD is through an exchange or a brokerage service like eToro. What are the Taxes on Trading Bitcoin? There are different tax rates on Bitcoin trading. However, it primarily depends on your region and the applicable tax laws there. How Much is Bitcoin Worth? Bitcoin's value changes often. At the time of writing this guide on May 18th, 2021, Bitcoin is trading at $45,000. Just a few weeks earlier, the digital currency was worth over $62,000. How Do You Mine Bitcoin? The days of being able to mine Bitcoin from the comfort of your home are long gone. Instead, this industry is dominated by large-scale mining farms that have vast technological resources. The only way to mine Bitcoin as an Average Joe is to join a cloud mining farm. However, there are many scam artists in this space, so do tread with caution. What is Bitcoin Cash? Much like Bitcoin, Bitcoin Cash is a cryptocurrency that can be bought and sold with ease. The Bitcoin Cash blockchain was actually copied from the original Bitcoin code in 2017. If you're wondering where to buy Bitcoin Cash, the digital currency is supported by eToro.