In the space of just over 12 years – Bitcoin has gone from a developer’s pipedream to a global marketplace that is now worth over £1 trillion. And as such, you can now invest in thousands of different cryptocurrencies from the comfort of home.
If you’re thinking about entering this marketplace today – this beginner’s guide will explain how to buy cryptocurrency in the UK in under five minutes with an FCA-regulated broker.
How to Buy Cryptocurrency UK – Quick Guide
To get the ball rolling, the quickfire walkthrough below will show you the basics of how to buy crypto in the UK via FCA-broker eToro.
- ✅Step 1: Open an eToro Account – eToro is an FCA-regulated broker that allows you to open an account in less than two minutes. All you need to do is provide some personal information, alongside your national insurance number and email address.
- 💳Step 2: Deposit Funds – The minimum deposit at eToro is $10 for UK clients – which amounts to about £7. If you want to deposit funds instantly – choose from a debit card, Skrill, or PayPal.
- 🔎Step 3: Search for Cryptocurrency – eToro offers over 40+ cryptocurrencies that you can buy instantly. Use the search box to find the digital asset that you wish to invest in or click on ‘Discover’ to view all supported markets.
- 🛒Step 4: Buy Cryptocurrency UK – After clicking on the ‘Trade’ button next to your chosen cryptocurrency, an order box will appear. In the ‘Amount’ field, enter your desired investment size – which needs to be at least $10. To complete the process, click on the ‘Open Trade’ button.
If the above quickfire guide is a bit too brief for your skillset – you will find a more comprehensive walkthrough further down in this article.
Where to Buy Cryptocurrency in the UK
Where can I buy cryptocurrency? A question that runs through most crypto-hungry investors. With so many UK crypto exchanges out there, choosing the right one for your needs can be like trying to find a needle in a haystack.
Some of the key metrics to consider before making a decision include, payment methods, fees, supported cryptocurrencies, and customer service.
If you need pointing in the right direction – below you will find a list of pre-vetted brokers and exchanges that allow you to buy cryptocurrency in the UK.
Note: Brokers allow you to buy cryptocurrency in the UK directly from the provider, while exchanges offer a platform for you to trade with other market participants.
1. eToro – Best Place to Buy Cryptocurrency UK (FCA Regulated)
In terms of regulation, fees, supported markets, and many other important metrics – eToro stands out as the best place to buy cryptocurrency in the UK and the best Bitcoin broker. The platform was first launched in 2017 and is largely favored by inexperienced investors. You can open an account in under two minutes here and instantly deposit funds with a UK debit card or an e-wallet like PayPal.
When you have completed the registration and deposit process – you will then have access to over 50+ cryptocurrencies. Some of the most popular tokens hosted at eToro include Ethereum, Ripple, Cardano, Dogecoin, and of course – Bitcoin. All of the digital currencies available at eToro can be traded from just $10 – and all orders are executed on a spread-only basis. For example, you can buy Shiba Inu with tight spreads and low fees.
In simple terms, this means that you only need to cover the difference between the ‘bid’ and ‘ask’ price of the respective cryptocurrency. In addition to digital assets, eToro also offers thousands of commission-free shares and ETFs, as well as forex and commodity markets. Best of all, eToro allows you to invest passively through its CopyPortfolio and Copy Trading tools.
The former allows you to gain exposure to diversified portfolios that are managed by the eToro team. The CryptoPortfolio, for example, covers more than a dozen leading digital assets – which you can invest in through a single trade. The Copy Trading tool, on the other hand, allows you to copy the portfolio of an experienced trader. Finally, eToro is regulated and authorized by the FCA.
For more details on key metrics such as fees and features, read our eToro UK review for more information.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
2. Huobi – Buy Cryptocurrency UK With MasterCard
Another cryptocurrency exchange to consider is Huobi – which is home to hundreds of tradable markets. This platform is arguably more suited to MasterCard holders – as Huobi does not support Visa.
You can, however, also deposit funds with digital currency. Either way, once your Huobi account is funded and ready to go – you can trade cryptocurrencies from just 0.20% per slide. For large-scale traders, this commission is reduced once you surpass certain 30-day volume thresholds.
At Huobi, you can also deposit your crypto assets into a savings account – which allows you to earn interest.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
3. Margex – Best Platform to Trade Crypto Derivatives Markets
Margex is another of our recommended cryptocurrency brokers, offering a wide selection of derivatives markets to trade on. Featuring an order book depth of $40 million and over 12 liquidity providers, Margex prides itself on executing trades faster than anyone else – averaging only eight milliseconds per order. In addition, Margex provides up to 100x leverage on the platform’s six trading pairs, significantly increasing the potential profits that investors can attain.
In terms of security, Margex ensures users’ holdings are as safe as possible by storing 100% of customer assets in multi-signature cold wallets. The platform also employs two-factor authentication and SLL encryption to greatly reduce the chance of cyberattacks occurring. Aside from the platform’s high security, Margex will also appeal to users who wish to trade anonymously, as there is no need to complete KYC checks when setting up a trading account.
Although Margex currently only offers six trading pairs, including BTC/USD, ETH/USD, and XRP/USD, the platform’s fees are very low. Margex employs a maker/taker model, which will cost 0.06% in maker fees and 0.019% in taker fees. Finally, the trading experience at Margex is incredibly user-friendly, with the web-based platform featuring real-time price charts from TradingView and in-depth order book information.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
4. Crypto.com – Best Platform to Buy Cryptocurrency on Mobile
If you’re looking to buy cryptocurrency on your smartphone, then Crypto.com is an appealing option. Crypto.com is one of the fastest-growing crypto exchanges globally, boasting over 10 million registered users. Much of the platform’s appeal is due to its user-friendly nature, as Crypto.com allows traders to invest on the browser-based platform or the mobile app.
The latter features a sleek design, complete with price charts, real-time data, and price alerts. Users can invest in cryptocurrencies from only 0.4% per position, which can be reduced by 10% if these trading fees are paid in CRO – Crypto.com’s native token. Alternatively, Crypto.com also allows users to buy cryptocurrencies using a credit or debit card. This removes the need to deposit and is completely free for the first 30 days of using the platform.
Crypto.com users can add to their trading balance easily via crypto or FIAT – with both options accruing no fees whatsoever. Notably, UK-based traders can fund their accounts in GBP instantly using Faster Payments. In terms of features, Crypto.com offers a free DeFi wallet app and a dedicated ‘University’ section, complete with educational materials for beginners.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
5. Coinbase – Popular Place for Beginners to Buy Cryptocurrency UK
In a similar nature to eToro, Coinbase is a popular place for beginners to buy cryptocurrency in the UK. The Coinbase website is simple and free of complex jargon – and you can typically open an account in less than 15 minutes.
However, many UK users have reported that the verification process can be challenging – as Coinbase will often state that it cannot validate uploaded documents. Nevertheless, once your account is verified, you can proceed to buy cryptocurrency in the UK with your Visa or MasterCard.
The transaction will be processed instantly at a rather high fee of 3.99%. UK bank transfers are an alternative option – as this deposit method is fee-free. But, once the money arrives, you will still need to cover the 1.49% standard commission.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
6. Binance – Largest Exchange to Trade Cryptocurrency in the UK
With more than 100 million using this popular cryptocurrency exchange, Binance is a market leader in this industry. The platform offers huge levels of liquidity too – not least because it facilitates trading volumes in the billions of pounds – each day.
Furthermore, UK residents can buy and sell cryptocurrency here at a commission of just 0.10%. Another benefit of using Binance is that you will have access to over 1,000 digital currency markets. However – there are also drawbacks with Binance.
At the forefront of this is the FCA’s ongoing investigation into the exchange – which has resulted in Binance being unable to directly accept UK debit/credit cards or bank transfers. Instead, you need to go through a third-party processor – which can…
Read More: How to Buy Cryptocurrency UK – Beginners Guide for 2022
