How to Buy Bitcoin in the UK: A Simple Guide for First-Time Investors

If you live in the United Kingdom and want to buy and sell Bitcoin, this article is for you. Investing in Bitcoin for the first time can be overwhelming, especially when you encounter new terms like exchanges, wallets, and decentralization. However, with the right platform, you can enter the market in just a few minutes. Many providers accept popular payment methods, such as debit cards and bank transfers, making the process seamless and secure.

With over 680 ETFs, more than 5,500 stocks, over 100 cryptocurrencies, and robust security features, eToro offers one of the most diverse selections of assets for investors.

This guide is designed to help beginners buy Bitcoin without any prior experience. I will cover everything you need to know about purchasing Bitcoin in the UK, including the best places to invest, tips for saving on fees, and advice for keeping your coins safe.

Read on to learn how to buy Bitcoin in the UK.

Key Takeaways

Crypto enthusiasts in the UK can buy and sell Bitcoin on centralized crypto exchanges, decentralized exchanges, and peer-to-peer marketplaces.
eToro is a crypto exchange platform registered with the FCA, which ensures extra safety for users.
Centralized exchanges are known for their user-friendly interface, convenient payment options, and rich features.
Decentralized crypto exchanges (DEX) allow permissionless crypto trading. Users can find newly-launched tokens and exotic cryptocurrencies on DEXs.
Crypto wallets allow users to maintain complete control and ownership over their cryptos.

How to Buy Bitcoin: Quick Guide for UK Investors

These steps will show you how to buy Bitcoin in the UK in under 10 minutes.

Pick a Safe Bitcoin Platform
First, pick a Bitcoin platform, preferably one that’s on the FCA register. The best option for beginners is eToro. This FCA-regulated platform is trusted by over 35 million users. It offers a user-friendly and safe experience and accepts multiple UK payment methods. eToro now also supports deposits, withdrawals, and trading in EUR. This eliminates unnecessary conversion fees to ensure a relatively seamless trading experience.
Open an Account
Now visit the eToro website to open an account. Provide your full name, home address, mobile number, and any other information required.
Upload ID
Complete the account opening process by uploading some ID. eToro accepts passports and driving licenses.
Deposit Funds
You need to deposit some money before buying Bitcoin. The minimum deposit is $100 (about £76). Opt for a debit card, PayPal, Skrill, or Neteller to benefit from instant payment. To deposit funds, use a currency matching your bank’s (EUR, GBP, or USD) to avoid conversion charges. Additionally, eToro offers zero withdrawal fees for GBP and EUR accounts.
Choose an Investment Amount
Now take a step back and understand your budget and risk tolerance. Consider how much Bitcoin to buy, ensuring you only risk money you can afford to lose. Please note that eToro also offers 4.8% interest on unused capital, allowing investors to earn passive income while waiting for the right trading opportunities.
Complete Bitcoin Investment
Now search for ‘BTC’ and click ‘Trade’. Type the investment size (in USD) and click ‘Buy’ to complete the investment.
Decide How to Store Bitcoin
You’ve bought Bitcoin, so can now withdraw the coins to a private wallet. You can also leave them on eToro for added convenience.

Buying Bitcoin in the UK has never been easier, especially with a secure and beginner-friendly platform like eToro. Follow these steps to get started in under 10 minutes.

Where to Invest in Bitcoin: Best Places in the UK

Bitcoin is an immensely popular asset, not only in the UK but around the world. As a result, purchasing Bitcoin has become easier than ever. However, the more challenging aspect is deciding where to buy cryptocurrency and invest. Brokers, exchanges, and wallets are the most common options for buying Bitcoin, especially for those using GBP. Thorough research is important to understand factors such as fees, minimum purchase amounts, accepted payment methods, and overall accessibility. This research will help you select the best provider for your needs.

Continue reading to discover the top places to buy Bitcoin in the UK.

Bitcoin Brokers

The easiest option for beginners is to buy Bitcoin from a licensed broker. The process is almost identical to purchasing stocks from a share dealing platform.

Here’s why:

You open an account with a Bitcoin broker and deposit funds
You search for Bitcoin, choose an investment amount, and place the order
The funds are instantly deducted from your balance, and Bitcoin is added to the account portfolio

Bitcoin brokers not only accept convenient payment methods (e.g. UK debit cards) but they process transactions in GBP. Moreover, unlike Bitcoin exchanges, you won’t need to deal with other market participants. Instead, you’re buying Bitcoin directly from the broker, which sources coins from liquidity providers.

I found that eToro is the best option when using a Bitcoin broker. I explain why in the section below.

eToro – FCA-Regulated Broker With Instant and Free GBP Payments

eToro was launched in 2007, making it more established than Bitcoin itself. It’s an FCA-regulated broker with a solid reputation; over 35 million people use eToro to trade. UK residents can deposit GBP instantly and without paying fees. This includes debit cards and e-wallets like Skrill and PayPal. The minimum deposit of $100 (about £76) is on the high side, as is the trading commission of 1%.

However, safety and security are assured, so it’s worth paying a premium for peace of mind. eToro also offers other popular crypto coins, including Dogecoin, Solana, and Ethereum. A copy trading feature is also available. This means you can replicate a successful eToro investor automatically. eToro is simple to use, even for beginners. No prior experience of buying and selling cryptocurrencies is needed; just search for Bitcoin, choose an amount, and confirm. Note that eToro’s features helped it end up at the top of the list of how to buy Ethereum in the UK as well.

Pros

FCA‑regulated and trusted by millions of traders.
Instant GBP deposits using PayPal, credit cards, and bank transfers.
Offers access to 100+ cryptocurrencies and stocks.
Free custodial Bitcoin wallet included.

Cons

Higher trading fees compared to dedicated crypto exchanges.
Limited advanced charting tools for experienced traders.

Visit eToro

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

Crypto Exchanges

Crypto exchanges are another popular way to buy Bitcoin. In general, these exchanges specialize in ‘spot trading’. This simply means you’re exchanging one asset for another via orders. If you’re looking for how to buy digital currencies in the UK don’t worry, there are tons of options.

You’ll be trading directly with other market participants, where orders are matched based on demand and supply.

That said, most crypto exchanges also support GBP payments.
This means you can buy Bitcoin instantly with a debit card.
Payments are handled by ‘fiat on-ramps’, which are third-party processors.
This means debit card fees are often high.

Moreover, unlike brokers, most cryptocurrency exchanges are located outside the UK. They don’t have FCA approval, so caution is advised. However, with less regulatory demands, crypto exchanges offer lower trading commissions, more available markets, and often don’t require KYC.

Let’s take a closer look at the best crypto exchanges in the UK.

CoinFutures – Bitcoin Futures Trading Platform

CoinFutures is a gamified crypto futures platform that lets users trade BTC without owning the underlying asset. It’s ideal for speculating on short-term price movements, whether you’re betting that Bitcoin will rise or fall. The platform offers up to 1000x leverage, allowing traders to open large positions with minimal cash. The use of leverage opens up opportunities to make larger gains with limited capital; however, it also exposes users to the risk of unlimited losses. CoinFutures is best suited for short-term BTC investors. You can use BTC futures trading for speculation and hedging.

What sets CoinFutures apart is its easy-to-use interface and no-KYC registration process, enabling UK traders to start trading Bitcoin quickly without needing to verify a bank account. Whether you’re completing your first trade or already have a trading history, the platform offers a frictionless experience you can rely on.

For those looking to pay with crypto and avoid identity checks, CoinFutures provides an ideal solution. While you can’t deposit fiat directly, the platform also supports onchain crypto deposits to proceed with futures trades.CoinFutures emphasizes security, with risk management features such as stop-loss and take-profit orders designed to safeguard your positions.

Learn more about this 1000x leverage BTC trading platform in our CoinFutures Review.

Pros

No KYC. CoinFutures does not require you to verify your account, allowing you to start trading as soon as you create an account.
Use leverage to take large positions with limited capital.
Gamified experience on CoinFutures makes crypto futures trading easy to understand.
You can use risk management tools to manage your trades better.
BTC traders can take short and long positions on CoinFutures.

Cons

CoinFutures is not a real BTC derivatives platform. It provides a real-time simulated market experience that mimics crypto volatility.
The app is not currently available on iPhone.

Visit CoinFutures

Margex – Minimum Bitcoin Purchase of £4 and Staking APYs of 4%

Margex is a great option for buying Bitcoin in small amounts. You can use Visa and MasterCard to invest instantly and the minimum purchase requirement is just £4. Based on current price quotes, a £4 investment will get you 0.00004803 BTC. Margex is also ideal for investing quickly without cumbersome KYC processes.

All that’s needed is an email address or mobile number when joining. Margex is also popular with long-term investors seeking regular interest payments. It offers 4% on Bitcoin deposits without any lock-up terms. Margex also offers Bitcoin futures with 100x leverage. Other supported coins include Ethereum, XRP, and Dogecoin.

Pros

Buy BTC instantly with Visa and MasterCard.
Get started with just £4.
Earn 4% interest without lock-up terms.
Register with an email or mobile number only.
Available on desktop browsers and a mobile app.

Cons

Isn’t approved by the FCA.
Doesn’t offer spot trading markets.

Visit Margex

MEXC – A Great Option for Buying Bitcoin and Diversifying Into Other Crypto Markets

MEXC is one of the most popular crypto exchanges globally. It boasts high liquidity, millions of active traders, and some of the lowest commissions available. MEXC charges just 0.02% per slide, so you’ll pay just £0.20 for every £1,000 traded. And, if you place limit orders (meaning you’re a ‘market maker), the commission is reduced to 0%.

Another benefit is that MEXC supports thousands of crypto coins, making it a great place to invest in crypto in the UK. This means you can buy Bitcoin and then diversify into other markets, such as meme coins and utility tokens. MEXC also supports instant purchases via Visa and MasterCard. Fees average 3-5% and they’re built into the quoted exchange rate.

Pros

One of the best options for building a diversified crypto portfolio.
Buy BTC and thousands of other coins using easy payment methods such as credit card and bank account transfers.
Commissions range from 0% to 0.02%.
Supports instant payments in GBP.
Also offers Bitcoin futures with 200x leverage.

Cons

Based offshore, so no UK protections.
Doesn’t hold any tier-one licenses.

Bitcoin Wallets

You might also consider wallets when exploring where to buy BTC. Crypto wallets enable investors to store BTC and other crypto assets away from exchanges and onto their own crypto wallets on the Bitcoin blockchain. They provide more control over crypto assets, allowing investors to send and receive funds.

Most wallets are non-custodial, meaning investors control their ‘private keys’ and ‘backup passphrases’. Put otherwise, investors control their BTC without centralized oversight. Self custody crypto wallets allow users to store their own BTC in their own wallet on the Bitcoin blockchain with no intermediaries.

That said, some wallets are custodial, which means the provider is responsible for securing the funds. The private keys and backup passphrases aren’t shared with the investor, meaning an element of trust exists.

Either way, many wallets allow UK investors to buy BTC with GBP, ensuring a convenient experience.

Private Keys and Backup Passphrases Explained

Here’s what you need to know about wallet private keys and backup passphrases:

Wallets are protected by private keys – a long and complex password phrase.
Anyone with access to the private keys can control the wallet, meaning they’re highly sought-after by hackers.
Wallets also come with backup passphrases, which are usually 12 randomly generated words, which must be entered in the correct order.
The backup passphrase is needed if you forget the wallet’s PIN/password, or you lose the device it’s installed on.
Just private keys, and backup passphrases provide access to wallets remotely, so should never be shared.
Crucially, when using a non-custodial wallet. you’re responsible for keeping these credentials safe.

Below, I cover the best wallet options for both custodial and non-custodial storage.

eToro Money Wallet – All-in-One Custodial Storage Aimed at Beginners

eToro Money Wallet is the best option for those preferring custodial storage, meaning you won’t need to worry about safeguarding private keys. After all, if you misplace the private keys, access to the wallet is often not possible. This isn’t an issue when using eToro. It keeps client-owned coins in cold storage, so the private keys aren’t exposed to online hacking attempts.

This is in addition to institutional-grade security, including machine learning algorithms. The eToro Money Wallet comes as a free mobile app and it enables users to store multiple crypto coins. Users can send and receive funds to and from other wallets and also purchase Bitcoin with GBP. Ultimately, it’s a user-friendly option that’s ideal for first-time investors.

Pros

The best custodial wallet for beginners.
No requirement to personally safeguard the private keys.
Ideal for storing multiple crypto coins in one safe place.
Also enables investors to buy Bitcoin with GBP.

Cons

Outgoing wallet transfers require approval.
You’re trusting a third-party custodian to keep your funds secure.

Visit eToro Money Wallet

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Best Wallet – The Best Non-Custodial Bitcoin Wallet in the Market

An alternative option is Best Wallet , which I regard as the best non-custodial crypto wallet for 2025. Unlike the eToro Money Wallet, nobody but the user has access to the private keys and backup passphrases. Users take full control of the crypto coins via a mobile app, browser extension, or desktop software.

Not only does Best Wallet allow you to hold and trade Bitcoin, but it is also compatible with many other cryptocurrencies, which means it could be an all in one stop for all of your crypto needs. Best Wallet features very liquid markets for thousands of tokens on over 60 blockchains, including Bitcoin, Ethereum, Solana, Sui, Dogecoin, Uniswap, and many others.

When it comes to trading fees, Best Wallet charges none. The only fees you may encounter are blockchain fees. It’s important to note that Best Wallet is a non-custodial wallet, meaning your crypto will remain safe and in your hands.

Pros

Highly liquid markets for thousands of cryptocurrencies.
Non-custodial.
Large ecosystem that supports DeFi.
Early access to exclusive presales.
No inherent fees when buying or selling crypto.

Cons

Best Wallet is only available as a smartphone application. It does not have a desktop app or browser extension.
The platform may have limited customer support.
Users are responsible for securing the cryptocurrencies stored in their non-custodial crypto digital wallet.

Visit Best Wallet

Crypto Exchange

Let’s take a look at another popular cryptocurrency exchange offering low fees and leverage up to 150x.

BloFin – Trade Bitcoin and Altcoin Futures With Leverage of 150x

BloFin is one of the best crypto futures trading platforms. It’s a good option for traders with a higher risk tolerance. Bitcoin futures can be traded with 150x leverage. So, a £200 account balance could be amplified to £30,000. However, liquidation – meaning the trade is automatically closed, can happen if the futures position declines by a certain percentage.

That said, BloFin also offers spot trading markets. Hundreds of coins are available, including Dogecoin, Shiba Inu, Solana, and Ethereum. Users can also buy Bitcoin instantly with a debit card. BloFin is another no-KYC exchange on this list, meaning you can trade without providing personal data or a government-issued ID.

Pros

One of the best options for trading Bitcoin futures
Get leverage of up to 150x
Also offers spot trading markets
Supports hundreds of crypto coins
Trade without providing a government-issued ID

Cons

Futures aren’t suitable for complete novices
Minimum GBP deposits depend on the on-ramp providers

Visit BloFin

Peer-to-Peer Exchanges

Peer-to-peer (P2P) exchanges connect buyers and sellers via escrow wallets. They’re a great way to buy Bitcoin with local payment methods directly from sellers.

Here’s how the investment process works:

You choose the investment requirements. For example, you want to buy £500 worth of Bitcoin via a UK bank transfer.
The P2P exchange lists sellers that meet these requirements.
You choose a seller, which transfers £500 worth of Bitcoin to the escrow wallet.
You transfer £500 to the seller’s UK bank account.
The seller releases the Bitcoin from escrow.
You withdraw the Bitcoin from the P2P exchange to a private wallet

I found that Bybit is one of the best P2P crypto exchanges, and I explain why in the following section:

Bybit – Buy Bitcoin From UK Sellers Without Paying Additional Fees

Bybit is best known for its spot trading and crypto derivative markets, with over 1,500 coins supported. However, it’s also a solid choice for P2P trading; no fees are charged and multiple GBP payment types are accepted. This includes UK bank transfers, Revolut, Skrill, and Wise.

Buyers are protected by Bybit’s escrow wallet. This means the Bitcoin is funded and locked before the buyer sends funds. In addition to Bitcoin, the P2P service also supports Ethereum, Tether, and USD Coin. Any of these coins can be used to trade on the main Bybit exchange. What’s more, Bybit also supports Visa and MasterCard purchases via partnered fiat on-ramps.

Pros

Buy Bitcoin directly from UK sellers
Popular payment methods include bank transfers and Revolut
No P2P commissions are charged
Also offers over 1,500 spot trading markets
Futures with 200x leverage are also available

Cons

Coins are only released once the seller confirms payment
Sellers select their own rates, which are often unfavorable

Visit Bybit

Beginner-Friendly Walkthrough on How to Buy Bitcoins in the UK (Full Guide)

I’ll now provide a comprehensive walkthrough on how to Bitcoin in the UK. I explain every step required, meaning my guide is ideal for first-time investors. This includes opening an account, completing KYC, depositing funds, and placing a Bitcoin order.

Do note that I’m using eToro for this tutorial. In my view, it’s the best place to buy Bitcoin, as it’s authorized and regulated by the FCA. What’s more, eToro was designed with newbies in mind, so the investment process takes minutes.

Step 1: Open an eToro Account

So, the first step is to visit the eToro website. Click ‘Sign Up’ and complete the account opening form.

This is similar to joining a stock broker; eToro requires:

Full name
Nationality
Home address
Date of birth
National insurance number
Email address
Phone number

You’ll also be asked some basic questions about your investing experience (this is an FCA requirement).

Step 2: Complete KYC

The next step is to complete the KYC process. This simply requires two documents:

Passport or driver’s license
A document with your name and home address (e.g. electricity/internet bill or bank statement)

Unlike traditional brokers, you won’t need to wait days or even hours for the documents to be verified. In most cases, eToro verifies them almost instantly.

Step 3: Deposit GBP

So, you’ve opened an eToro account and completed the KYC verification process. Next, you’ll need to make a deposit. eToro accepts everything from Visa and MasterCard to Skrill and PayPal. The minimum deposit is just $100 (about £76).

However, those opting for a bank transfer must deposit at least $500 (about £380). Nevertheless, GBP payments are processed fee-free.

Simply choose your preferred payment method, type in the deposit size, and confirm.

Step 4: Choose an Investment Amount and Research Bitcoin

eToro offers a range of analysis features; these are ideal for conducting independent research. My suggestion is to spend some time exploring Bitcoin metrics, such as pricing charts, past performance, recent trends, and volume.

It also offers social trading features. This means other eToro users share their investment thesis, which you can ‘like’ or reply to. This is a great way to evaluate broader market sentiment. eToro’s advanced filtering tools let you sort assets based on criteria like dividend yield, price changes, and sectors. The platform also integrates AI to provide insights into the top investors, daily movers, and trending stocks.

Once you’ve conducted research, assess how much you want to risk on Bitcoin. Do note that you can invest any amount from $10 (about £7). It’s wise to invest small amounts regularly rather than using your entire balance in one go.

Step 5: Buy Bitcoin

Now you can proceed to buy Bitcoin. If you’re on the Bitcoin research page, just like ‘Buy’. Otherwise, search for ‘BTC’ and click the ‘Trade’ button.

Either way, you’ll now see the Bitcoin investment form. It’s simple to use; just type the investment amount (in USD). In my example, I’m meeting the $10 minimum.

Finally, click the ‘Buy’ button to complete your Bitcoin investment.

Step 6: Decide How to Store Bitcoin

Now click the ‘Portfolio’ button from the left-hand dashboard. You’ll see the Bitcoin you just purchased, alongside the current market value.

Currently, the Bitcoin is being held in eToro’s custodial wallet, ensuring safety. If you’re happy keeping the coins there, nothing else needs to be done until you cash out.

But, if you want more control of your Bitcoin, you can withdraw the funds to a private wallet:

eToro Money Wallet: The best option for beginners preferring custodial storage
Exodus: The best option for those seeking full custody and control over their funds

You can request a withdrawal via your eToro account.

What is Bitcoin?

Bitcoin is a cryptocurrency, also known as a digital asset. It’s backed by blockchain technology, which enables users to send and receive Bitcoin without centralized intermediaries. This is in contrast to traditional money, which must be transferred via banks, financial institutions, and other third parties.

This is why Bitcoin is called a decentralized asset and network, as no single authority has control. This means that when you buy Bitcoin and hold it in a non-custodial wallet, you have full ownership of the funds. Bitcoin transactions take about 10 minutes to confirm and fees amount to a couple of pounds at most.

While Bitcoin’s technology, decentralization, and limited supply are innovative, it’s largely used as an investment product. Anyone can buy Bitcoin and if its value increases, holders make money. This is no different from buying shares and other financial securities. The El Salvador government has even made Bitcoin legal tender.

What to Know Before Investing in Bitcoin

The checklist below is a must-read before buying Bitcoin in the UK:

Volatility and Risk: All assets carry investment risks, whether that’s shares, funds, gold, or crypto assets. However, Bitcoin is considered one of the most volatile assets around, with extreme pricing swings often the norm. Importantly, the Bitcoin price could decline after you invest and never recover. This would mean a financial loss. Other crypto assets are even more volatile.
Buy Fractional Bitcoin: Bitcoin’s all-time high is approximately $74,000 (about £57,000). It can, however, be divided into tiny units, so you don’t need to buy 1 full Bitcoin. For example, based on current prices, a £100 purchase would get you about 0.0017 BTC.
24/7 Trading: Bitcoin, like all crypto assets, trades 24 hours per day, 7 days per week. This is a huge benefit, as you can buy and sell Bitcoin around the clock. You will, however, need a broker or exchange that supports GBP payments. Otherwise, you can only sell Bitcoin for another crypto.
Profits Over £3,000 are Taxed: UK residents get an annual tax allowance of £3,000. Any Bitcoin profits above this amount will be taxed for capital gains. The tax rate is either 10% or 20% depending on your income band. Keeping track of buy and sell orders will avoid issues with HMRC.

Bitcoin’s Thesis: Investment Potential and Risks

I’ll now take a deeper dive into Bitcoin’s investment thesis. I’ll start with the investment potential and then move on to the key risks. Then, I’ll summarize the benefits and drawbacks, ensuring you can make an informed decision.

Benefits of Buying Bitcoin in the UK

Investment and Store of Value: Bitcoin is often referred to as “digital gold” because of its limited supply of 21 million coins, which some investors see as a hedge against inflation and a long-term store of value. Many traders are attracted to Bitcoin’s potential for significant returns, although it’s crucial to acknowledge the high risk and volatility of the market.
Decentralization: Bitcoin operates on a decentralized network, meaning it is not controlled by any single central authority, such as a government or bank. This feature makes it resistant to censorship and government intervention, which can be appealing to those who want an alternative to traditional financial systems.
Accessibility: Buying and selling Bitcoin has become increasingly accessible in the UK. Many platforms and exchanges are available, some of which are regulated by the Financial Conduct Authority (FCA) for anti-money laundering and counter-terrorist financing purposes.
Portfolio Diversification: For some investors, adding Bitcoin to their portfolio can be a way to diversify beyond traditional assets like stocks, bonds, and property.

Risks of Buying Bitcoin in the UK

High Volatility: Bitcoin’s price is highly volatile and can fluctuate dramatically, meaning you could lose your entire investment.
Lack of Consumer Protection: Most cryptocurrency investments are not covered by the Financial Services Compensation Scheme (FSCS). If an exchange fails or is hacked, you are not protected.
Evolving Regulation: The UK’s crypto regulations are still developing. While the FCA registers crypto firms for anti-money laundering purposes, it does not regulate the market itself or protect consumers from financial loss.
Security Risks: Digital wallets and exchanges are vulnerable to hacking and scams. Losing your private keys means losing access to your Bitcoin forever.
Tax Obligations: You may be liable for Capital Gains Tax or Income Tax on profits from Bitcoin. It is your responsibility to keep detailed records and report these to HMRC.

Pros and Cons of Buying Bitcoin in the UK

Now let’s summarize Bitcoin’s benefits and drawbacks with some pros and cons:

Pros

The Bitcoin price has increased by 120 million percent since inception.
Some experts predict that Bitcoin will surpass $1 million by the end of the decade
1 Bitcoin can be split into 100 million units, meaning micro-investment minimum
Bitcoin can be bought easily with GBP via regulated brokers
Bitcoin trades on global exchanges 24/7
No single authority controls Bitcoin, ensuring decentralization
Only 21 million Bitcoins will ever exist

Cons

Bitcoin is a highly volatile and speculative investment
Many Bitcoin exchanges are unlicensed and based offshore
Bitcoin’s technology can be intimidating for beginners
UK ISAs don’t support digital assets
Profits over £3,000 will be taxed by HMRC
Hacks and fraud are prevalent in the Bitcoin industry

How to Buy Bitcoin in the UK Safely

These three tips will ensure a safe Bitcoin investing experience:

Avoid Platforms Without FCA-Approval: Offshore exchanges typically offer lower fees and a wider selection of markets. However, they’re not licensed by the FCA. UK investors should avoid using platforms without FCA approval to ensure a safe experience.
Only Use Excess Funds: You should only use funds that you can afford to lose when investing in crypto. This means excess money that you won’t need in the future. And most importantly, never use credit cards or loans to buy Bitcoin, or any asset for that matter.
Be a Long-Term Holder: Bitcoin’s volatility risks can be reduced when investing long-term. Similar to shares, short-term pricing swings become less relevant. Holding for several years will provide the best chance of making investment returns, although never assume this is a certainty.

Other Methods to Invest in Bitcoin

I’ve explained how to invest in Bitcoin in the UK via brokers, exchanges, wallets, and P2P marketplaces. There are, however, other ways to access this market:

Bitcoin Futures

Many offshore exchanges offer Bitcoin futures. These track the Bitcoin price in real-time and they support leverage, meaning you can trade with a lot more than you originally deposited.

PrimeXBT is a popular choice; it offers low trading commissions and leverage of up to 200x.

For example, suppose you deposit £100 and trade Bitcoin futures with 200x leverage.
This means the Bitcoin position is worth £20,000.
If the Bitcoin price increases by 4%, you’d make an £800 profit (4% of £20,000)

However, Bitcoin futures are high risk. Depending on how much leverage is used, the trade can be liquidated. For instance, 200x leverage only requires a 0.5% margin upfront (e.g. £100 > £20,000 = 0.5%). So, if the futures trade declines by 0.5%, it’s closed automatically. This means PrimeXBT keeps the original £100 margin.

Visit PrimeXBT

Bitcoin ETFs

Bitcoin exchange-traded funds (ETFs) are ideal for complete beginners. ETFs, which trade on stock exchanges, are offered by traditional brokers. We have previously fully explored the best Crypto ETF brokers in the UK.

This means you can gain exposure to Bitcoin without using exchanges and wallets. The best Bitcoin ETFs are actually backed by Bitcoin. This ensures the ETF closely aligns with the Bitcoin spot price.

One of the most popular Bitcoin ETFs is the iShares Bitcoin Trust. You can invest in this ETF on eToro without paying any commissions.

Visit eToro

Conclusion

In summary, buying Bitcoin in the UK doesn’t have to be daunting when you use the right platform. One of the top choices of crypto exchanges for beginners is eToro, which has a user-friendly website, low account minimums, and top-notch customer support. eToro also ensures safety; it’s authorized and regulated by the FCA. Of course there are quite a few other options for crypto exchanges for users in the UK, so make sure to choose the one that feels like the right fit for you.

However, it’s important to consider the risks before investing in Bitcoin or other crypto assets. They are highly volatile assets, so ensure you only risk amounts you’re comfortable losing. You might also consider diversifying your crypto holdings into other markets, with eToro also offering stocks, commodities, and ETFs. Not to mention over 100 other crypto assets.