Bitcoin's popularity is soaring in the UK, with the number of UK adults owning Bitcoin doubling. With reports of people who bought just a few hundred dollars’ worth of Bitcoin years ago and recently sold it for millions showing up almost daily, it’s no wonder more and more people are curious about how to invest in Bitcoin in the UK. But for many, learning how to invest in Bitcoin can be intimidating. In this guide, we’ll break down everything you need to know to confidently invest in Bitcoin in the UK, secure steady long-term profits, and achieve financial independence without unnecessary risks.
One way to ease learning how to invest in Bitcoin in the UK is by utilizing resources like Bitcoin Magazine Pro’s Bitcoin analysis. This valuable tool can help you achieve your Bitcoin annual returns objective, including building confidence to invest in Bitcoin in the UK, securing steady long-term profits, and achieving financial independence without unnecessary risks.
How to Invest in Bitcoin UK
Bitcoin is a popular investment choice in the UK. When he was Chancellor, Rishi Sunak, like George Osborne before him, even gave it the big one about turning the UK into a hub for Bitcoin and future industries. While the UK government talks a good game, the Financial Conduct Authority (FCA) has made it difficult for retail investors to get involved with Bitcoin.
The FCA has banned the sale of Bitcoin derivatives and exchange-traded notes to retail investors, which means traditional brokers are out. The regulator has also made sending money from a bank to a Bitcoin exchange problematic. This guide will explain all you need to know to get started.
Ways to Invest in Bitcoin UK
You can invest in Bitcoin differently, depending on your needs and aims. We’ll discuss these ways below.
Buy and Hold Bitcoin
The buy-and-hold strategy is self-explanatory. You just buy some BTC and hold onto it for the long term. You don’t need particular skills to succeed with this strategy, so it is potentially an easy way to profit. You could even put your long-term Bitcoin holdings into a savings account to increase your earnings.
Trade Bitcoin
Alternatively, you could trade Bitcoin by buying and selling it more regularly. Traders often use charts and indicators to decide when to buy and sell. Depending on their trading frequency, it might constitute swing trading, day trading, or scalping.
Trading Bitcoin derivatives, like futures, options, or CFDs, has been banned by the FCA, so regulated platforms no longer offer these products to retail traders.
Mine Bitcoin
You can also earn BTC through Bitcoin mining. This involves providing computational power to validate transactions and help secure the network in return for block rewards.
You will need some specialized hardware, which can be expensive, and to join a mining pool. A simpler and cheaper way to profit from mining is to buy a contract from a cloud mining company like CCG Mining.
Buying Bitcoin on an Exchange
The easiest way to invest in Bitcoin in the UK is to purchase it online from an exchange. Exchanges make buying and selling Bitcoin from your smartphone, tablet, or computer easy. Check out our recommended platforms below and follow the steps to invest in Bitcoin in the UK safely.
Steps to Buying Bitcoin in the UK
1. Choose a Platform
Choose a platform that provides the features, fees, and ease of navigation that fits your needs. A regulated and reputable platform is the best option, as it will give the best security and user experience.
2. Create and Fund an Account
Click the sign-up button on the website and provide details such as an email address and password to create an account. You will probably need to complete KYC by submitting a photo ID to verify your account. Choose a payment option to make a deposit.
3. Invest in Bitcoin UK
Search your platform for the BTC/GBP trading pair. You can then open a buy order and enter how much you want. Use a limit order to purchase BTC once it reaches a specific price or a market order to buy immediately. Hit the “Buy” button to complete the transaction.
Most exchanges mimic the same features as traditional stock brokerages. Virtually all exchanges offer market and limit orders; some also provide stop-loss orders.
- Market order: Orders executed immediately at the current market price are referred to as market orders. While the order is executed immediately, prices can vary slightly from the current market quote due to market volatility.
- Limit order: This order specifies a price you are willing to buy or sell. For example, if Bitcoin’s price is currently £29,000, but I’d like to purchase it for £25,000, I can choose a limit order and enter the price to initiate this trade. The order will then be triggered automatically once the price hits my desired price point.
- Stop loss order: Designed to limit potential losses on a trade, this order type will automatically trigger a market order to close a trade when its price falls to or below a specified stop price.
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Where to Invest in Bitcoin in the UK
Choosing a trustworthy platform is key when learning to invest in Bitcoin. With over 220 firms blacklisted by the FCA, it’s vital to opt for a well-regulated, secure exchange. We assess some of the UK's best platforms for buying Bitcoin.
eToro: The User-Friendly Bitcoin Investment Platform
Israel-based eToro is an investment firm that added BTC in 2014. Today, the website boasts over 30 million users. Here’s a snapshot of what’s on offer at eToro:
- Buy Bitcoin without deposit fees via a wide variety of payment options.
- The platform supports Bitcoin, stocks, and commodities.
- You can follow each coin's trends with advanced charts and analysis tools.
- Traders on eToro receive free access to the latest market research and news.
- eToro provides a risk-free $100,000 in a virtual portfolio so you can better understand and practice trading strategies.
-
Copy trading lets you replicate other traders' investment moves automatically.
While eToro does offer Bitcoin staking, it is currently unavailable for users based in the UK and US.
Yield App: A Bitcoin Investing Wealth Management Platform
Yield App can be described as a digital asset wealth management platform. In simpler terms, it’s a place where you can put your Bitcoin to work and earn yield. They offer features such as a launchpad, which allows retail investors to get involved in early-stage startups (a benefit previously reserved for VCs), and Bitcoin savings accounts that pay interest, allowing users to earn passive income on Bitcoin.
Yield App has become a popular platform for those looking to earn yield, but among its most potent offerings is full BTC to fiat on and offramp services, which facilitate seamless transfers to and from your bank account. Users in the UK are assigned their own sort code and banking details, making it possible for:
- Fiat-to-fiat
- BTC-to-fiat
- Fiat-to-BTC
The Yield App OTC desk offers among the lowest spreads in the UK for over-the-counter trades. The company holds a VASP registration, Fireblocks insures custodial assets, and the platform has been operational since 2020, all of which point to Yield App being a solid and reputable platform for buying Bitcoin and other digital assets in the UK and European markets.
Binance: The Low-Fee Bitcoin Exchange
Binance has the lowest trading fees on the market at just 0.1%-or less if you belong to a higher loyalty tier. It is also free to make BTC deposits, though withdrawals using the Bitcoin blockchain incur a 0.0002 BTC fee.
There’s also plenty of educational material in the Binance Academy to help you build your knowledge. The Earn section lets you put any Bitcoin you buy into a savings account for an estimated APR of up to 5%. Higher-yield BTC investment products, such as liquid swap and DeFi staking.
UK users can deposit a minimum of £15 by card or £2 by bank transfer, with fees of 1.8% and £1, respectively.
Bitstamp: An Exchange With A User-Friendly Interface
The platform boasts an intuitive interface, instant deposit options, and direct cash out to your bank account.
You can stake ETH and generate some yield, but the company takes a 15% commission on all rewards. Bitstamp employs institutional-grade security, with 95% of assets stored offline. It also has live customer support, a rarity in AI chatbots.
Fidelity: A Trusted Name in Financial Services
Fidelity is a traditional financial services firm, its BTC offering lacks the oomph typical Bitcoin investors seek. For example, you can only buy and sell BTC and ETH commission-free. In June, Fidelity refiled paperwork for a spot in Bitcoin ETF.
Solidi: A UK Bitcoin Exchange With Simple Services
Solidi builds itself as the UK's “easiest and safest exchange” but the user interface leaves a bit to be desired.
Solidi only lets you trade four tokens:
- BTC
- ETH
- Ripple (XRP)
- Litecoin (LTC)
You can start with as little as £2. Turning to fees, the exchange charges a £0.50 withdrawal fee if you withdraw GBP. For more information, you can head over to the Solidi Fees page.
Coinbase: The Popular Exchange
Coinbase makes it simple to invest in Bitcoin in the UK, regardless of experience. It’s as simple as clicking the “Buy / Sell” button, choosing Bitcoin, and typing how much you want. You don’t need a big budget either as the minimum purchase amount is just £2. Check out your dashboard for a clear display of your portfolio’s past performance, or use your watchlist to keep track of the price movement of Bitcoin or any of the 150+ other coins available. You can also regularly set up automatic BTC purchases with the recurring buys feature.
Newbies can head to the Learn section of the website to access tips, tutorials, and articles on Bitcoin and related topics. Coinbase’s regular learn and earn campaigns also allow you to earn some free BTC while you learn. The platform received an e-money license from the FCA and keeps your assets safe and insured in cold storage. You will need to deposit at least £50 to get started, and after that, there will be fees of 0.6% plus spread when you buy or sell BTC.
Bitpanda: A Secure Digital Asset Platform
Bitpanda stores all its users’ assets offline, making it a great place to invest in Bitcoin for the security-conscious. The platform holds all the necessary licenses, is fully regulated, and complies with AML rules.
If you want to build a diversified portfolio around Bitcoin, Bitpanda also offers indices, stocks, ETFs, and metals, and you can swap directly between different types of assets. To set up recurring purchases of Bitcoin or any other asset, you can use the Bitpanda savings plan.
Getting Started with Bitpanda: Resources, Ratings, and Payment Options
You can find advice in the Helpdesk if you need help navigating the platform. At the same time, plenty of resources are available in the Bitpanda Academy to help you build your knowledge. The platform has received an excellent rating on Trustpilot from its customers.
Various payment options are available for making a deposit, which will need to be a minimum of £25. The quoted price of BTC includes a 1.49% premium, and you can invest with as little as £1.
OKX: The Advanced Bitcoin Trading Platform
OKX provides everything the advanced Bitcoin investor needs, such as customizable charts, technical indicators, and various order types. There is even a trading bot for setting up innovative portfolios and arbitrage orders.
OKX employs cold storage, emergency backups, and a semi-offline multi-signature mechanism for online storage to keep your BTC safe. Users can also join an OKX Bitcoin mining pool. You can even use the products in the Earn section to receive interest on your Bitcoin.
Beginners can access educational materials in the Learn section and simplify trading with instant card purchases and direct swaps.
You can’t deposit fiat to OKX, but the minimum Bitcoin deposit is 0.00005 BTC, and the minimum trade size is 0.00001 BTC at very competitive trading fees of up to 0.1%. You can also purchase a minimum of £9 worth of BTC with a credit/debit card for a 1.99% fee.
Coinmama: A Non-Custodial Bitcoin Exchange
If you want to make a significant investment in Bitcoin, Coinmama could be the platform for you as it has higher spending limits than most competitors. You can buy as much as £25,000 worth of Bitcoin in a single transaction.
Most payment options are fast, so you can receive your Bitcoin within 10 minutes. Users also control their funds throughout the process, as Coinmama is non-custodial and doesn’t store payment information.
Coinmama: Simplified Buying Process with Fees and Payment Options
Although advanced traders may not be satisfied with the lack of charts and tools, the platform is designed to simplify the buying process, and there is a customer support team to help.
The minimum purchase amount is £42, and you can pay with a credit/debit card, bank transfer, Google Pay, or Apple Pay. Coinmama adds 2% to the market rate for BTC, and there is a commission of up to 3.9% for purchases. There is an additional 5% momentum fee on card transactions.
Uphold: A Simple Bitcoin Investing Platform
Buying Bitcoin in the UK couldn’t be more straightforward on Uphold. You can buy directly with GBP, so there’s no need to complicate the process with currency conversions or buying stablecoins. Once you’ve made an account, enter the GBP you want to spend and click Buy.
Although Uphold doesn’t offer savings accounts, you can stake some altcoins to earn rewards. The platform is transparent, fully reserved, and adheres to high-security standards. The FCA also regulates it.
Uphold doesn’t charge any fees for deposits, withdrawals, or commissions. There is a spread of 0.85% when buying BTC and 1% when selling it. UK customers can fund their accounts with a debit card or bank transfer via Faster Payments.
CEX.IO: A Bitcoin Exchange for Quick Trades
CEX.IO enables users to invest in Bitcoin quickly thanks to its high liquidity order book and favorable conditions for market making. Trades can be executed reliably with the platform’s advanced order-matching algorithms, making high-frequency trading and scalping strategies possible.
The platform keeps funds safe with security features like cold storage, full data encryption, and protection against DDoS attacks.
Getting Started with Bitcoin: Instant Buy, Fees, and Support
If you’re new to Bitcoin, you can use the Instant Buy feature for a simple way to buy Bitcoin, and there is dedicated support available 24/7 by phone, email, and live chat. You can also check out the university for blockchain fundamentals and trading lessons.
The minimum deposit is £20, and there is a 1.49% fee for card transactions in the UK and no fee for using Faster Payments. The trading fees are pretty competitive at 0.25% or less, and you can withdraw your Bitcoin for a 0.0005 BTC withdrawal fee.
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