How to Buy Cryptocurrency in the UK

First, research the type of platform you’ll want to use - centralized exchange (CEX), decentralised exchange (DEX), or a broker. Centralized exchanges provide the best features for crypto buyers, so for the sake of simplicity, this step-by-step section will cover how to buy coins from cryptocurrency exchanges like Binance and Coinbase. Some things you can look out for in crypto exchanges when researching are liquidity, coins supported, fees, and methods accepted to deposit funds.

• Best crypto brokers in the UK

Once you’ve found a suitable cryptocurrency exchange, the next step is to create a crypto exchange account. You can find the sign-up button on the home page. Then provide your email address and create a strong password. Next, you'll receive a verification email from the crypto exchange you need to open.

Now you’ll have access to your dashboard, where you’ll need to navigate to the verification section. You’ll need to upload a government-issued document to prove your identity and comply with know your customer (KYC) laws. Also, this will lift account restrictions like withdrawal limits.

Now, set up a payment method for the platform that works for you. Established crypto exchanges accept many methods to deposit funds like PayPal, online banking, and debit cards. Also, you can set up recurring payments for convenience if you plan to implement a dollar-cost averaging (DCA) strategy.

Finally, open the spot cryptocurrency trading section and select the cryptocurrency you want to purchase. Also, ensure you have chosen the correct trading pair. For example, if you deposited pounds sterling and want to buy Bitcoin in the UK, select the GBP/BTC exchange pair.

Next, input how much GBP you want to exchange for the cryptocurrency and press the “buy” button. The order will execute, and you’ll see the coins in your crypto wallet.

Crypto brokers make it convenient to buy cryptocurrencies due to their beginner-friendly designs and trading software. The options listed underneath offer instant buy sections, spot cryptocurrency trading, and staking options.

eToro

eToro is perfect for beginners because its trading software is simplistic and doesn’t overcomplicate the process of investing in cryptocurrency in the UK. Moreover, this broker provides a cryptocurrency wallet or a bitcoin wallet where you can store your coins for better security.

Coinbase

Coinbase is a US-based cryptocurrency exchange that offers a wide range of cryptocurrencies with multiple trading pairs. The platform features user-friendly interfaces that are easy to navigate, making it great for beginners. Also, advanced traders can switch to Coinbase Pro, which comes with helpful and advanced trading tools. In addition, you can earn cryptocurrency for free by completing various courses that teach you about crypto.

Crypto.com

Crypto.com has its own unique visa card where you can spend coins to receive cash-back rewards. Furthermore, the cryptocurrency exchange has developed its own cryptocurrency called CRO, which gives discounts on trading fees. Also, this brand gives you access to multiple staking pools where you can earn interest on your crypto.

Once you’ve bought cryptocurrency, it will be stored within your exchange wallet. However, these crypto wallets are unsafe if you have a large portfolio, as your account or the cryptocurrency exchange can get hacked, and your coins may get stolen. Therefore, you’ll want to use a cryptocurrency wallet compatible with the coins you want to store. Below are some affordable options that provide exceptional levels of security. Not your keys, not your crypto.

Established crypto exchanges offer downloadable smartphone apps that let you trade, stake, and transfer coins without needing a physical location. Coinbase, Binance, and Kraken have apps that work on Android and iOS devices. If you would like to learn more, take a look at our guide on the best cryptocurrency apps in the UK.

The best way to reduce your trading fees is by using a platform with a native cryptocurrency, for example, Binance and Crypto.com. This is because spending the coin on trading fees results in discounts. Also, the crypto exchanges below use a tier system, which calculates trading fees based on your 30-day trading volume.

Decentralized exchanges (DEXs) are brilliant for swapping coins without providing ID. However, you’ll need a crypto wallet with coins already inside to trade on a DEX. Also, there are no fiat currency deposit methods available.

P2P platforms connect investors to facilitate trades without an intermediary like a crypto exchange or broker. Many people use these platforms to sell Bitcoin in the UK for example.

The seller will set the value of each coin, and you can either accept the price or move on to another seller.

Here you can analyze other trading platforms where you can buy cryptocurrencies in the United Kingdom, along with the starting trading fees. Moreover, if you’re interested in a particular crypto exchange, you can read our in-depth review for extra information.

Coinbase Pro is an excellent option as setting up deposits is straightforward. The platform will disclose its banking details for each fiat currency through bank transfers including GBP. The number of fiat currencies accepted is different on each platform and you may need to check which fiat currencies you would like to use.

PayPal allows users to purchase Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on their platform. Also, you can use it as a deposit method on popular crypto brokers like eToro and Binance.

• How to buy Ethereum in the UK

A credit or debit card is a convenient payment method on Crypto.com, which is an established crypto exchange with over 50 million users. You can use them in the instant buy section or as a deposit method. However, trading fees on credit or debit card purchases can be costly when buying digital currencies.

Prepaid cards aren’t accepted by the best crypto exchanges because there isn’t a physical address associated with the card. The top option for buying crypto with a prepaid card is Paxful.

The best way to buy crypto using Neteller, Skrill, or Venmo is via eToro as they are integrated payment methods.

Crypto ATMs work like their regular counterparts but allow you to insert money in exchange for cryptocurrency. They are excellent if you want to purchase Bitcoin or altcoins anonymously, as they can create a paper wallet. However, these machines have huge trading fees compared to a broker or crypto exchange.

• How to buy Bitcoin anonymously in the UK

You can buy crypto with cash via crypto ATMs, P2P services, or joining local crypto groups.

Here, you can learn which platforms are the best to use in certain countries.

Decentralized exchanges do not require creating an account or completing KYC. However, you must connect a crypto wallet to the platform to trade. The top DEXs are PancakeSwap, UniSwap, and 1inch Network.

You can avoid the verification process on KuCoin. However, you will only be able to deposit and trade cryptocurrency.

You can purchase coins like Bitcoin in an offline environment by utilizing paper wallets. Once you have a paper wallet, you are given a set of private and public keys. To receive coins in your paper wallet, provide the person or entity sending the cryptocurrency with your public key.

Some of the advantages of buying cryptocurrency are:

• Portfolio diversification

• Hedging against inflation and the stock market

• Almost instant cross-border payments

• You can potentially make a profit

The best time to buy cryptocurrency depends on your investment strategy. For example, DCA (Dollar Cost Averaging) is when you buy crypto weekly or monthly. This means you do not focus on the price and buy no matter if it goes up or down. On the other hand, you can buy your crypto in bulk after a dip in the crypto market.

You should invest in both to diversify your portfolio and minimize risk. Bitcoin has historically performed well during bull runs, making it great for crypto holdings. However, you can potentially earn more money with altcoins due to their much smaller market cap.

The main factors that can swing a cryptocurrency’s price are:

• Regulations: Thankfully, the UK is friendly with its crypto laws and regulations. However, other countries like China have banned them, which caused a momentary dip in the cryptocurrency market.

• Demand: Demand is essential to keep a coin’s price growing. More demand means people are willing to pay extra for each coin.

• Investments: Partnerships and investments usually boost a coin's value as more people start believing in the project and investing themselves.

• Marketing: Advertisements help establish a brand and gain a following. A clear example of this is Crypto.com, which now has advertisements deals with the LA Lakers and UFC.

• Market conditions: Perhaps the most important factor is how the overall market is performing. For example, during bull runs, prices reach new all-time highs as more money flows into Bitcoin and altcoins.

The best crypto exchanges like Binance, KuCoin, and Coinbase lets you stake cryptocurrencies to earn interest on your coins. By staking, you are validating transactions and helping secure the network. In return, you receive rewards based on the number of coins you’ve staked.

ETPs are securities traded on the traditional stock exchange. The best place for investing in ETPs is 21 shares.

Read more about the best ETFs

Cryptocurrency trusts hold digital currency, which allows investors to trade shares through retirement and brokerage accounts rather than a crypto exchange. Grayscale is a huge investment institution that offers various trust products.

A mutual fund is a pool of money collected by investors and traded by a company. Bitcoin Strategy ProFund is the best option for this type of investment strategy.

As well as you can buy and sell Bitcoin and other cryptocurrencies, you can do the same with NFTs.

NFTs (non-fungible tokens) allow users to have individual ownership over various digital assets like art, tickets, in-game content, and more. We recommend using OpenSea, the largest NFT marketplace with lots of content. Between 2022 and 2028, the NFT market in the UK is anticipated to expand at a 34.5% annual pace.

• How to buy NFTs in the UK

Some of the biggest companies that have invested in cryptocurrency are:

• Tesla

• MicroStrategy

• Block, Inc.

Cryptocurrency mining is the process of your GPU solving difficult cryptographic puzzles to validate transactions on the blockchain. Mining is exclusive to PoW (proof-of-work) cryptocurrencies like Bitcoin and Litecoin. In most cases, it’s not worth mining yourself as the cost of GPUs and energy is high.

Cryptocurrency faucets are rewards given by a crypto exchange for finishing a task or taking a course. Coinbase is the most beginner-friendly option that will showcase the rewards before starting.