Over the last decade 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. Many UK cryptocurrency brokers and exchanges facilitate buying, selling, holding and trading Bitcoin. They 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 UK wise can be confusing for beginners. This guide explains the ins and outs of what Bitcoin is, how the network works and the best places to buy BTC in the United Kingdom. Best UK Bitcoin Exchange in October 2023 Invertir Invest $ = Bitcoin Actualizar More Filters Close Filters Sort By Rating Price 6 Provider that matches your filters Providers that match your filters Payment methods Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill Sofort Features Instant Verification For Beginners Wallet Service Mobile App Usability Very Good Good Average Bad Support Very Good Good Average Bad Rates 1or more Security 1or more Selection of Coins 1or more Classification 1or more Remove Filter Apply Filter No results found Trying adjusting the filter to see some results. Rating with £ 1000 you receive 0.0402 BTC What we like Easiest to deposit Most regulated Copytrade winning investors Rates Security Selection of Coins Features Payment methods with £ 1000 you receive 0.0402 BTC Read Review Buy Crypto Read Review 68% of retail CFD accounts lose money. Rating with £ 1000 you receive 0.0406 BTC What we like Maker rebate on limit orders DeFi mining Margin and spot trading Rates Security Selection of Coins Features Payment methods with £ 1000 you receive 0.0406 BTC Read Review Buy Crypto Read Review The price and value of any investment in digital asset products can fluctuate. Rating with £ 1000 you receive 0.0325 BTC What we like Most altcoins supported 75+ staking coins Low maker / taker fees Rates Security Selection of Coins Features Payment methods with £ 1000 you receive 0.0325 BTC Read Review Buy Crypto Read Review As with any asset, the values of digital currencies may fluctuate significantly. Rating with £ 1000 you receive 0.0325 BTC What we like Low marketcap altcoins 500 USDT Welcome Gift Spot and margin trading Rates Security Selection of Coins Features Payment methods with £ 1000 you receive 0.0325 BTC Read Review Buy Crypto Read Review The traded price of digital tokens can fluctuate greatly within a short period of time. Rating with £ 1000 you receive 0.0325 BTC What we like Most registered users Free $10 when you buy $100 Coinbase Earn - Free Crypto Rates Security Selection of Coins Features Payment methods with £ 1000 you receive 0.0325 BTC Read Review Buy Crypto Read Review The value of digital currencies can go up or down frequently. Rating with £ 1000 you receive 0.0325 BTC What we like Solana staking Around since 2012 High Liquidity Rates Security Selection of Coins Features Payment methods with £ 1000 you receive 0.0325 BTC Read Review Buy Crypto Read Review Market prices for digital tokens can be volatile and highly unpredictable. Below is a top three list of best places to buy Bitcoin in the UK, these brokers and exchanges are well-established, regulated and accept UK customers: eToro – United Kingdom-based, regulated by UK regulatory body the FCA OKX – A Flexible Way to Buy Bitcoin Bybit – Buy and Sell Bitcoin Through Fiat and Crypto We’ll review those UK Bitcoin exchanges and more Bitcoin trading platforms in full in this guide. How to Buy Bitcoin in the UK with eToro – FCA Regulated Broker 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 which the Economic Times recently rated the top UK crypto platform to buy Bitcoin. Step 1: Create an account on eToro To get started, you will need to register on eToro. To do this, visit eToro.com and click any of the sign-up links. 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. Note: Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. Step 2: Upload ID Visit eToro Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 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, debit card, or various e-wallets and digital wallets 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. Question: Is eToro safe? Answer: Yes. eToro is safe, fair, and reliable exchange that is fully regulated in the UK, so is an ideal platform to buy Bitcoin in the United Kingdom for peace of mind and security. The eToro website states: “In the UK, eToro (UK) Ltd. (“eToro UK”), company registration no. 7973792 is authorised and regulated by the Financial Conduct Authority (FCA), under firm reference number 583263. eToro Europe and eToro UK both operate under and comply with the Markets in Financial Instruments Directive (MiFID).” Furthermore, online reviews, as well as our personal experience confirm that eToro is an excellent online trading platform that is both secure and fair. Coinbase and Binance may sometimes offer better spreads, but eToro usually has lower fees and it is well worth your time and money. Additionally, unlike some other major exchanges (Huobi, etc.), eToro has never been hacked. How to Choose the Best Broker to Buy Bitcoin in the UK 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: 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 full regulatory oversight is eToro. 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. 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. 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. 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. 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. 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 Brokers to Buy Bitcoin UK Traders Can Use – Full 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 in the UK 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 (the British Financial Conduct Authority), and worldwide by CySEC, ASIC, and FINRA. eToro USA LLC is a registered Money Services Business with the Financial Crimes Enforcement Network (FinCEN) in the United States. It is considered the best place to buy Bitcoin in the UK and globally because it supports standard crypto trading pairs (trade against currencies like USD, GBP, EUR) 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 debit cards, bank transfer and other online banking and wallet 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 Cons: $5 withdrawal fee Visit eToro Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 2. OKX – A Flexible Way to Buy Bitcoin OKX is the sixth biggest cryptocurrency exchange, as per the latest information available on CoinMarketCap. It is one of the most flexible cryptocurrency exchanges to buy Bitcoin from because, unlike other exchanges that only have a single mode – OKX features OKX CEX and OKX DEX. OKX CEX is the centralized exchange, which has all the perks of a standard cryptocurrency exchange – and more. Users can buy and sell crypto via spot trading, margin trading, and derivatives trading. Directly buying cryptocurrencies using a debit or credit card is also possible. Along with trading Bitcoin, users can also use the OKX CEX to induct into the Earn program and earn passive income through staking and saving. The centralized variant of the exchange also gives developers access to the OKB chain and the OKT Chain. Institutional users can use OKX CEX to get access to Liquidity Marketplace, VIP loans, and other facilities. However, OKX CEX is only available in certain regions and not in the US. US traders can interact with the platform through OKX DEX to buy and sell Bitcoin by swapping their assets. Pros User-friendly platform Has a maker/taker transaction fee model The fee can be reduced by holding OKB tokens Offers a DEX and a CEX Social and copy trading Cons: Not available in the US Visit OKX 3. Bybit – Buy and Sell Bitcoin Through Fiat and Crypto Bybit is an inclusive cryptocurrency exchange that has earned renown recently for supporting altcoins with major potential. We consider this platform one of the best places to buy Bitcoin because of the sheer number of positive facilities it has. For one, it supports both spot and margin trading – which is fit for veteran traders. Furthermore, the fee structure that Bybit has implemented is divided into tiers for VIP and non-VIP traders. And in addition to buying and selling Bitcoin and over 100 other altcoins, Bybit also offers access to a market overview. The market overview consists of articles and graphical studies of the current conditions of the market. Among the tools available on Bybit is Copy Trading. Trading bot, and more. And for those looking for more than just trading crypto, Bybit also offers an Earn program as well as crypto loans. Bybit card is also offered here, which allows users to spend Bitcoin and other cryptos on 90 million merchants across the globe. Bybit possesses audited proof of reserves that users can verify whenever they want. Fiat payments and crypto payments are supported on Bybit. Pros Beginner-friendly platform Offers an audited proof of reserves Low trading fee Features Copy Trading Has its own trading bot Cons: Not available in the US Visit Bybit 4. Crypto.com – UK Bitcoin Exchange & Crypto Debit Card Crypto.com is a relatively new cryptocurrency exchange and mobile app with a metal VISA prepaid card, that users can store Bitcoin on and make everyday purchases with Bitcoin and earn up to 8% cashback. Users can also earn up to 14.5% interest on their stablecoin crypto holdings – for holding Bitcoin the Crypto.com interest rate is up to 8.5%. Currently USA investors can access the app, VISA card and wallet but not the website exchange platform, although they may be accepted in the future. Crypto.com has listed over 250 cryptocurrencies and also supports DeFi farming, staking and Bitcoin loans. It has its own attached non-fungible token marketplace where you can create, showcase, sell and buy NFTs, some cheap NFTs on the site start from just $10 or in auctions from $1. Founded in 2016, Crypto.com is relatively new to the crypto markets and sponsors the UFC, several sports teams, F1 and has Matt Damon in its commercials. Its slogan is ‘fortune favours the brave’. Over 10 million users are on the platform. Pros Up to 8.5% p.a. interest on Bitcoin Staking and interest on other cryptos DeFi farming Bitcoin debit card and wallet Cons U.S. investors partially restricted High spread fees Visit Crypto.com 5. BitDD – UK Crypto Exchange with Excellent User Experience You will be surprised to learn that over 80% of trading platforms operate without a certification. However, not many users are aware of the risks of investing in an unregulated crypto exchange. The next platform we recommend for buying Bitcoin in the UK is BitDD, a crypto exchange known for its high security and compliance standards. BitDD has a Money Service Business – Money Service Provider (MSB) financial license by the United States Treasury Department, making it one of the fastest-growing crypto exchanges in the world. BitDD is home to over 500,000 users now. The project has introduced some compelling features and reward programs to surpass 2M users globally by 2023. BitDD offers advanced currency and derivatives transaction services for cryptocurrencies like BTC, ETH, and USDT. However, the key highlight of the platform is exclusive “Fast Trades,” which provides a set of analytic tools that helps you step up your crypto investment strategy and improve your profitability. You can start trading and earning on BitDD as soon as you’ve signed up on the platform and made deposits. And you can earn interest up to 14.5% p.a on your crypto deposits with BitDD. New users also stand a chance to win up to 500 USDT on crypto deposits. The more you deposit, the more you earn. Since BitDD offers free trading for the first 90 days, new users have the time and flexibility to find out whether the platform works for them. BitDD has also launched a welcome reward program worth 8888 USDT as part of expanding its user base. BitDD’s is led by a team with an excellent track record in financial investments and blockchain technology. Furthermore, the project is actively joining forces with traditional regulators and bank partners to strengthen its credibility. Pros Certified crypto exchange Impressive user experience Free trading for 90 days Attractive reward schemes Cons Limited trading pairs Limited tools and functionalities Visit BitDD 6. Margex – Trade Bitcoin in the UK Margex is mainly a derivatives exchange that you can use to trade Bitcoin on 100x leverage or lower, to increase your Bitcoin holdings. For example, if you want to long Bitcoin or short Bitcoin on 5x leverage, a one percent move in the Bitcoin price would result in 5% profit rather than 1%. Margex combines the liquidity of 12 exchanges onto one platform to reduce the chance of wicks and slippage that affect other low liquidity platforms in the crypto trading industry. It is also possible to buy Bitcoin on Margex as it is integrated with Changelly, although you might prefer to buy Bitcoin on a platform like eToro and then transfer the amount you want to allocate to a trading portfolio, over to Margex. Most pro traders split their funds up into an investment portfolio that they hold for the long-term, and a trading portfolio they use for swing trades to grow their Bitcoin. Visit the Margex site to use a free leverage calculator to calculate how you could increase your ROI by day trading Bitcoin and watch a video tutorial. Margin trading is more recommended for experienced traders who have shown a profit paper trading first, to avoid the risk of liquidation. It provides a demo account for you to practice. Pros $50 bonus for free trading – fee discount An additional bonus for deposits of 0.004 BTC or more Up to 100x leverage Low minimum trade amount – start from just $10 Cons Not available in the US Less options to buy BTC than other exchanges Visit Margex 7. Uphold – Simple Broker to Buy Bitcoin in the UK 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 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 8. Coinbase – Buy Bitcoin UK, US, and Internationally 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 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 generate pounds 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 9. 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 UK wise as well as internationally. There’s also a USA client, Binance US although fewer altcoins are available on that site – Bitcoin is still available. 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, 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 debit card fees Not yet fully regulated Visit Binance 10. Revolut – Buy Bitcoin in the UK with GBP In-Wallet 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 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 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. 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 using crypto savings accounts to earn interest in the form of 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. Bitcoin price chart mid 2017 – 2023 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. 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 UK 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 Our recommended UK Bitcoin and crypto broker eToro has a minimum deposit of £7 ($10 in GBP). 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 in the UK 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 a UK 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. 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 a UK 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 in the UK 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 etoro Sell Crypto 68% of retail CFD accounts lose money.... Bybit Sell Crypto The price and value of any investment in digital asset products can fluctuate.... Binance Sell Crypto As with any asset, the values of digital currencies may fluctuate significantly.... KuCoin Sell Crypto The traded price of digital tokens can fluctuate greatly within a short period of time.... Coinbase Sell Crypto The value of digital currencies can go up or down frequently.... Bitfinex Sell Crypto Market prices for digital tokens can be volatile and highly unpredictable.... Rating126.96.36.199.54.5 For Beginners Instant Verification Mobile App Wallet Service Coin Selection 74 22 59 36 65 17 Rates 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 Additional features Regulated ASIC, CySEC, FCAN/AFCAN/AFCAN/A Min.Deposit $50N/A$10N/A$2$10 Leverage N/A1 - 100x1 - 100x1 - 100xN/A1 - 10x Latest prices by currency Bitcoin $27620$27620$27620$27620$27620$27620 Ethereum $1650.85$1650.85$1650.85$1650.85$1650.85$1650.85 XRP $0.533933$0.533933$0.533933$0.533933$0.533933$0.533933 Tether $1$1$1$1$1$1 Litecoin $64.55$64.55$64.55$64.55$64.55$64.55 Bitcoin Cash $232.1$232.1$232.1$232.1$232.1$232.1 Chainlink $7.58$7.58$7.58$7.58$7.58$7.58 Cardano $0.25814$0.25814$0.25814$0.25814$0.25814$0.25814 IOTA $0.150748$0.150748$0.150748$0.150748$0.150748$0.150748 Binance Coin $212.83$212.83$212.83$212.83$212.83$212.83 Stellar $0.113412$0.113412$0.113412$0.113412$0.113412$0.113412 Bitcoin SV $38$38$38$38$38$38 Payment methods Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill Sofort 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 in 2023. 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. Read thirty quotes from ten billionaires buying Bitcoin here – including Elon Musk, Mark Cuban and George Soros. 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 Platform Our Rating Financial Conduct Authority (FCA) regulated in the UK Buy Bitcoin with Bank transfer, Debit card, Paypal, eWallets 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 highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. FAQs on Buying Bitcoin in the UK How do you invest in Bitcoin? There are many ways in which you can buy Bitcoin in UK, 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 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 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. Can I still buy Bitcoin in the UK? Yes, interest in Bitcoin among United Kingdom investors remains at a high level and many exchanges such as eToro were unaffected by the 'crypto winter' of 2022. While some US facing platforms like FTX and Gemini faced issues, UK regulated platforms we reviewed above are still operating and it is still possible to buy Bitcoin in the UK. Our top recommendation in the UK is eToro.