How to Buy Bitcoin UK for Beginners

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Looking to buy Bitcoin in the UK in the most safe and cost-effective way?

This beginner’s guide explains how to buy Bitcoin in the UK with the best FCA-regulated trading platform that supports debit/credit cards, e-wallets, and bank transfers.

The process generally takes just five minutes, so read on to discover the easiest way to buy Bitcoin as a UK-based investor.

How to Buy Bitcoin in the UK – Easy Beginners Guide

The best way to buy Bitcoin in the UK is with eToro – a world leading online broker that is regulated by the FCA and other licensing bodies.

• Step 1: Open an account with eToro – The first step is to register an account with eToro, the best and safest place to buy Bitcoin in the UK. This is a standard process that requires some personal information and contact details.

• Step 2: Deposit funds – The next step is to deposit funds into the eToro account with a debit/credit card, e-wallet, or bank transfer. UK investors are required to deposit at least $10 – which is about £8.

• Step 3: Search for Bitcoin – Look for the search box and type in ‘Bitcoin’. Click on the ‘Trade’ button to proceed.

• Step 4: Buy Bitcoin – An order box will appear, which requires the investor to type in the amount of money that they would like to allocate to the Bitcoin purchase ($10 minimum). To confirm, click on the ‘Open Trade’ button.

At this stage, the Bitcoin purchase is complete and eToro will add the BTC tokens to the investor’s wallet.

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Still unsure about investing in Bitcoin in the UK? Read on for a more detailed walkthrough of the buying process in addition to some background information on Bitcoin as an investment product.

Where to Buy Bitcoin in the UK – Top Exchanges Reviewed

Those learning how to buy Bitcoin in the UK for the first time will be pleased to know that there are dozens of online exchanges and brokers that support crypto purchases.

Story continues

To further explore where to buy Bitcoin in the UK, find comprehensive reviews of the best crypto trading platforms in the following sections.

1. eToro – Overall Best Place to Buy Bitcoin in the UK

eToro enables investors in the UK to buy Bitcoin in a safe, fast, and seamless manner. This online broker has a superb reputation in the crypto space, considering that it is regulated by multiple licensing bodies. Not only does this include the UK’s FCA, but regulators in the US, Australia, and Cyprus.

Moreover, eToro is now used by over 27 million clients. eToro accounts can be opened online in about five minutes and the minimum first-time deposit is just $10 for UK investors. To make a deposit, investors can opt for a debit/credit card or an e-wallet like Paypal and Skrill. UK bank transfers are also supported.

After depositing funds into the eToro account, investors can then buy Bitcoin in the UK at a flat commission rate of 1%. For instance, those buying £200 worth of Bitcoin at eToro will pay a small commission of just £2. Many investors in the UK will also look to explore other cryptocurrencies, in addition to Bitcoin.

eToro supports more than 70 altcoins, including but not limited to Dogecoin, Litecoin, Ethereum, Cardano, BNB, XRP, and Solana. We like that eToro offers an in-built crypto wallet that enables investors to buy, store, and sell digital currencies safely and without any prior experience. eToro also offers a mobile wallet in the shape of an iOS and Android app.

The latter option offers more flexibility, including the ability to swap tokens and transfer digital assets out of eToro. Beginners will also appreciate the many tools and features hosted on the eToro platform. This includes a copy trading tool. As the name suggests, this enables eToro users to ‘copy’ other investors.

For instance, if the chosen investor allocates 10% of their portfolio to Bitcoin and 5% to Ethereum – the same investment will be copied but at a proportionate amount. The minimum copy trading investment is just $200 per trade or about £165. As this allows you to copy successful crypto traders, it’s the perfect choice for beginners.

Another way to invest in crypto at eToro is via the smart portfolio feature. These are pre-built portfolios that contain a diversified range of crypto assets. Users can choose the smart portfolio they wish to invest in from just $500 or about £410 and this will be professionally managed by the eToro team. Additionally, eToro offers traditional brokerage services outside of the Bitcoin space.

This includes a huge range of UK and international stocks, with the latter covering markets in Europe, the US, Asia, and more. All stocks at eToro are commission-free and can be bought and sold from just $10. eToro also supports ETFs, forex trading, commodities like gold, silver, and oil, and indices such as the FTSE 100.

Pros

• Overall best place to buy Bitcoin in the UK

• Copy top crypto traders and investors

• 70+ altcoins supported

• Regulated by the FCA & completely secure

• Accepts debit/credit card, PayPal, and e-wallet payments

• Used by over 27 million investors

• User-friendly website and mobile app

• Also supports stocks, ETFs, commodities, forex, and more

Cons

Visit eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

2. Binance – World Leading Exchange for Buying Bitcoin

Binance is the largest crypto exchange globally. This popular platform supports UK Bitcoin purchases with either a debit/credit card or bank transfer. The latter option, however, is arguably the best way to buy Bitcoin via Binance. The reason for this is that Binance charges just £1 on bank deposits.

Not only that, but the deposit should appear in the Binance account in under five minutes, as the platform utilizes the faster payment network. When opting for a debit/credit card payment, this will be processed instantly at a fee of 1.8% for UK investors. When it comes to commissions, Binance offers the cheapest way to buy Bitcoin online.

Put simply, commissions will never exceed 0.1% at Binance. Those trading larger amounts will be able to secure an even lower price. Binance offers more than 350 crypto assets to UK investors, including the likes of Ethereum, Litecoin, and Dogecoin. Binance also offers crypto staking services, interest accounts, NFTs, loans, and more.

Pros

• Commissions start from 0.1%

• Near-instant UK bank transfers cost just £1

• 350+altcoins supported

• Advanced trading tools and features

Cons

Visit Binance

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Crypto.com – Low-Cost Bitcoin Exchange With a User-Friendly App

When considering where to buy Bitcoin in the UK, Crypto.com is another worthy contender. Commissions here are even lower than Binance at just 0.075%. Not only that, but Crypto.com offers fee-free deposits when transferring funds from a UK bank account.

Do note, however, that bank payments can take several working days to clear. Those in a rush to buy Bitcoin in the UK can do so instantly with a debit/credit card at a fee of 2.99%. Crypto.com supports plenty of digital assets in addition to Bitcoin. This includes more than 250 altcoins, inclusive of metaverse and DeFi tokens.

Crypto.com is also one of the best places to buy Bitcoin in the UK via a smartphone. The Crypto.com app – which is free to download on both iOS and Android, offers seamless access to the Bitcoin markets. The Crypto.com app can also be used to earn interest on Bitcoin and other cryptocurrencies, in addition to buying and selling NFTs.

Pros

• Buy Bitcoin via a debit/credit card or bank transfer

• 250+cryptocurrencies supported

• Top-rated mobile app for iOS and Android

• Used by more than 70 million investors

Cons

4. Coinbase – Popular Crypto Exchange With Strong Regulatory Framework

Another option to consider when exploring where to buy Bitcoin in the UK is Coinbase. This crypto exchange is known for its strong regulatory framework, meaning that investors in the UK can buy and sell crypto safely. Coinbase accepts several payment methods, including debit/credit cards and UK bank transfers.

Fees amount to 3.99% when using Visa or MasterCard. While this is expensive, this includes the commission and the Bitcoin purchase will be processed instantly. Bank transfers take 1-2 working days but are fee-free. However, after the bank transfer has been cleared, there will be a standard commission of 1.49% to pay when buying Bitcoin.

Coinbase is also one of the best places to buy Bitcoin in the UK for diversification. The platform is now home to over 240 altcoins, including the likes of Polygon, Polkadot, Litecoin, and Shiba Inu. The Coinbase platform is ideal for first-time buyers considering its simple and sleek interface. Coinbase also offers educational materials to learn more about Bitcoin.

Pros

• Buy Bitcoin with debit card instantly

• Access to more than 240 altcoins

• Regulated framework and industry-leading security tools

• Free crypto wallet app for iOS and Android

Cons

Buying Bitcoin for Beginners Explained

Bitcoin has generated unprecedented returns since it was launched more than a decade ago, but do remember that cryptocurrencies, in general, are high-risk.

As such, it is wise to have a clear understanding of how Bitcoin works from an investment perspective. Fortunately, those with a grasp of traditional stocks and shares should know that the profit and loss aspect of Bitcoin is much the same.

More specifically, the overarching aim when buying Bitcoin in the UK is to see the value of the digital asset increase. If this happens and the investor sells their Bitcoin back to pounds, a profit will be made.

A simple example of a profitable Bitcoin investment can be found below:

• An investor in the UK buys £750 worth of Bitcoin with a debit card via an online broker

• When the investment is made, Bitcoin is trading at $20,000

• Two years have passed and Bitcoin is now trading at $70,000

• This represents growth of 250% on the original investment

• The investor cashes out their Bitcoin back to pounds and subsequently receives a total of £2,625

When buying Bitcoin – in addition to cashing out back to pounds, an online exchange or broker like eToro will facilitate the trade. Unlike stocks, this can be done 24 hours per day, 7 days per week – as the Bitcoin markets never sleep.

Another factor to note is that Bitcoin is usually priced and traded in US dollars – as per the example above. This is no different to commodities like gold and crude oil, so doesn’t present any issue for UK investors as most crypto exchanges and brokers accept pounds.

What is Bitcoin?

Bitcoin is a cryptocurrency – otherwise referred to as a digital currency, crypto asset, or digital asset. Although there are thousands of cryptocurrencies in existence as of 2023, Bitcoin was the first and still is the most popular. Bitcoin is also the most valuable digital asset in this space, with an all-time high market capitalization of over $1.2 trillion.

Bitcoin is a decentralized asset, which means that no single person, authority, or government has control of the network. Not only that, but unlike pounds, dollars, and euros, Bitcoin is not backed by a central bank. This means that the supply of Bitcoin cannot be manipulated or printed. As such, Bitcoin is a deflationary asset class.

Bitcoin is also a finite asset, considering that its total supply will be capped at 21 million BTC. Although more than 90% of this figure is already in circulation, the full supply of Bitcoin will not be reached for at least another 100 years. We know this because every 10 minutes, new Bitcoin is automatically minted.

This is one of the key reasons why Bitcoin is often defined as a store of value and thus – more and more investors are looking to enter the market. There is plenty of upside on the table when buying Bitcoin, especially considering that the digital currency has since dropped in value by more than 70% from its former peak.

Should I Buy Bitcoin Now? Deciding if Bitcoin is a Good Investment

Beginners should avoid buying Bitcoin without first having an understanding of how this asset class works. Not only in terms of the upside potential but the underlying risks.

Here are five factors to consider when learning how to buy Bitcoin in the UK for the first time.

Ideal for Investors Looking for High Growth Potential

Those looking for a low-risk and stable investment will likely not be suitable for Bitcoin and other cryptocurrencies. On the flip side, investors with a higher appetite for risk will likely be attracted to the growth potential of this asset class.

Crucially, since Bitcoin was launched in 2009, no other asset class has provided greater financial gains. To offer some insight, CoinMarketCap notes that Bitcoin was trading at just $133 in 2013.

Compared to Bitcoin’s hit an all-time high of $69,000 in late 2021, this represents growth of over 51,000%.

Great Opportunity to Buy the Dip

All asset classes – whether that’s stocks, gold, or real estate – go through market cycles. In this regard, Bitcoin is no different, albeit, price fluctuations are generally more volatile than traditional assets.

Nonetheless, when Bitcoin prices are down – like they have been since the late 2021 peak, this presents a great opportunity to enter the market.

For example, as of writing, Bitcoin is trading at around $20,000. This amounts to a discount of over 70% when compared to its all-time high price of $69,000.

Ultimately, seasoned investors will often increase their exposure to Bitcoin when the digital asset is in a prolonged bear market – in anticipation of the next bull run.

Fixed Supply

As we briefly noted earlier, Bitcoin has a fixed supply – where new BTC tokens enter circulation every 10 minutes. As of writing, each 10-minute cycle will yield an additional 6.25 BTC.

However, this amount is halved approximately every four years, so in 2024, just 3.125 BTC will enter the Bitcoin circulation every 10 minutes.

Crucially, this means that the supply of Bitcoin cannot be manipulated. Rather, ‘Code is Law’ in the case of Bitcoin, so there are no threats of inflation.

This is in stark contrast to the supply of pounds, which is determined by the Bank of England. When the Bank of England prints money, this devalues the pound and ultimately results in higher levels of inflation.

As such, by choosing to buy Bitcoin in the UK, this offers a way to hedge against ever-rising inflation risk.

Decentralized

Another reason why more and more people in the UK are looking to buy Bitcoin is that the underlying network is decentralized.

• In Layman’s Terms, this means that no single person or authority owns the Bitcoin network.

• In turn, this means that Bitcoin enables people to own their own money, rather than relying on third-party institutions such as banks.

• More specifically, when holding Bitcoin in a non-custodial wallet, access is only granted to the person that has the private key – which is the owner of the funds.

As such, the Bitcoin tokens cannot be frozen or confiscated, as is often the case when holding money in a bank account.

Fixed and Finite Supply

We also mentioned earlier that Bitcoin is viewed by many as a store of value. Just like gold or fine art, for instance, the supply of Bitcoin is finite.

To reiterate, once Bitcoin hits a total supply of 21 million BTC, no more tokens will ever enter circulation.

This means that over the course of time – and assuming that global demand for Bitcoin remains, this will have a positive impact on its value.

Stores of value like Bitcoin are also great for hedging against the traditional stock markets.

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Different Ways of Buying Bitcoin

When learning how to buy Bitcoin in the UK, beginners will be pleased to know that there are several convenient ways to invest in this popular cryptocurrency.

The safest and most seamless ways to Bitcoin are discussed below:

Buy Bitcoin With Paypal

Those with a Paypal account can use this e-wallet to buy Bitcoin at a variety of regulated brokers.

This includes Coinbase, but fees when using Paypal to buy Bitcoin amount to 3.99%. A more cost-effective option is eToro, with the FCA-regulated broker charging just 0.5%.

In addition to Paypal, eToro supports a wide range of other popular e-wallets, including Skrill and Neteller.

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Buy Bitcoin With Credit Card or Debit Card

The most common way to buy Bitcoin in the UK is with a debit card. All of the exchanges and brokers discussed earlier – eToro, Binance, Coinbase, and Crypto.com – support Visa and MasterCard deposits.

However, fees will vary greatly:

• eToro: 0.5%

• Binance: 1.8%

• Coinbase: 3.99%

• Crypto.com: 2.99%

It goes without saying that once again, eToro offers the cheapest way to buy Bitcoin with a debit card. At just 0.5%, this amounts to 50p for every £100 deposited.

In terms of buying Bitcoin in the UK with a credit card, investors should tread with caution. The main risk here is that after making the purchase, the value of Bitcoin declines greatly.

If this happens, the full purchase amount will still need to be repaid to the credit card company – potentially with high rates of interest.

Buy Bitcoin With Bank Transfer

Most UK crypto exchanges and brokers also support bank transfers. Binance charges just £1 on UK bank transfers and in most cases, the deposit will be credited to the account in less than five minutes. eToro is also a great choice for this payment method.

What is the Cheapest Way to Buy Bitcoin?

There are a variety of fees to consider when learning how to buy BTC in the UK. Naturally, investors will want to find the cheapest option.

Fees will ultimately be determined by the chosen Bitcoin exchange or broker – so here’s what to look for before proceeding.

Deposits

After opening an account with a crypto exchange or broker, the investor will need to deposit some funds. This might attract a fee depending on the chosen payment method.

When using eToro, all payment methods – including debit/credit cards and e-wallets, attract an FX fee of 0.5%.

In comparison, Binance charges 1.8% on debit/credit card payments, but just £1 when transferring funds from a UK bank account.

Trading Commissions

Trading platforms are in the business of making money, so expect to pay a commission when electing to buy Bitcoin in the UK. Different exchanges charge different fees, which is something to consider when looking for where to buy Bitcoin.

eToro offers some of the lowest commissions of all UK Bitcoin trading platforms, another reason why it’s our number one choice.

Instant Buys

Some crypto exchanges and brokers offer an instant buy feature, which includes both the deposit fee and trading commission.

This is often the most expensive option available. For example, when electing to buy Bitcoin instantly with a debit card at Crypto.com or Coinbase, this will cost 2.99% and 3.99%, respectively.

Cheapest Option

When factoring in deposits, commissions, and instant buys, eToro is the cheapest way to buy Bitcoin in the UK.

For example, let’s suppose an investor wants to buy £1,000 worth of Bitcoin. The deposit itself will cost 0.5% or £5. Commissions amount to 1% or £10 – totaling the investment cost to just £15.

At Coinbase, the instant buy feature includes both the deposit and commission. But at 3.99%, the same £1,000 investment would attract fees of £39.90.

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Safest Way to Buy Bitcoin – How to Stay Secure

In addition to exploring fees, investors should also consider safety and security when learning how to buy Bitcoin in the UK.

Make no mistake about it – one of the greatest risks to assess is that of the exchange or broker being used to buy Bitcoin.

After all, FTX – one of the largest crypto exchanges globally just a few months ago, has since filed for bankruptcy.

Investors can give themselves the best chance possible of avoiding another FTX scandal by making the following considerations:

Regulation

The regulatory status of the chosen crypto exchange or broker is the most important safety mechanism to focus on.

Among many other reasons, this is why we concluded that eToro is the overall best place to buy Bitcoin in the UK. Not only is the broker authorized and regulated by the FCA, but also the SEC, CySEC, and ASIC.

The FCA is one of the most stringent regulators globally, so investors can be certain that they are using a legitimate platform when buying Bitcoin with eToro.

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Two-Factor Authentication and Other Security Tools

Another factor to consider when exploring safe ways to buy Bitcoin in the UK is the level of security offered by the chosen exchange or broker.

For example, eToro offers two-factor authentication to all account holders. In turn, each login attempt will send a code to the registered mobile phone for confirmation.

Additionally, investors should look for platforms that keep the vast majority of funds in cold storage.

IP address whitelisting is also a solid security tool. This will ask for additional verification if the investor logs into their account from a new or unrecognized IP address.

Storage

After buying Bitcoin, investors will need to consider where they intend on storing the BTC tokens.

The most convenient option is to leave the BTC tokens in the exchange or broker that was used to make the purchase.

This is a safe option when using a regulated broker like eToro. However, if the purchase was made through an unregulated platform, it’s best to withdraw the BTC tokens to a private wallet.

Secure and private wallets can be downloaded via an iOS and Android app from eToro, Binance, Coinbase, and Crypto.com.

The Dollar-Cost Average Strategy

Safety measures should also extend to the investment strategy itself when buying Bitcoin in the UK.

• In simple terms, beginners should avoid investing too much money into Bitcoin at any given time.

• Instead, a more risk-averse option is to invest small amounts but on a regular schedule.

• For instance, investing £50 each and every month.

This is known as ‘Dollar-Cost Averaging’ and it enables investors to ride out volatility over the course of time.

How to Buy in Bitcoin in the UK – Detailed Walkthrough

We will now explain how to invest in Bitcoin in the UK via eToro – which is the best place to buy crypto in an FCA-regulated and low-cost environment.

Step 1: Open an eToro Account

Visit the eToro website and click on the ‘Sign Up’ button.

eToro will require the following information:

• Full name

• Nationality

• Home address

• Date of birth

• Email address

• Mobile number

Confirm the mobile number via an SMS code.

Visit eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Step 2: Deposit Funds

The only way to buy Bitcoin with eToro is to have a funded account. Investors in the UK can deposit from $10 and the fastest option is a debit/credit card.

E-wallets and bank transfers are supported too and the former includes Paypal, Skrill, and Neteller. Deposit fees on all supported payment types amount to 0.5%.

Step 3: Search for Bitcoin

Now that there are funds in the eToro account, the next step is to search for Bitcoin.

Simply type in ‘BItcoin’ in the search box and click on ‘Trade’ to proceed.

Step 4: Buy Bitcoin

On clicking the ‘Trade’ button, an order form like the image below will appear.

In the ‘Amount’ box, this is where the investor needs to enter their total purchase amount ($10 minimum).

In the example above, we are buying $100 worth of Bitcoin.

To proceed with the purchase, click on ‘Open Trade’ and this will be executed by eToro instantly.

At any given time, click on the ‘Portfolio’ button to view the real-time value of the Bitcoin investment.

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Conclusion

This beginner’s guide has explained the simple process of buying Bitcoin in the UK from the comfort of home. Whether a laptop or mobile phone is being used, it takes less than five minutes from start to finish to buy Bitcoin with eToro.

Not only is eToro authorized and regulated by the FCA, but the broker offers one of the cheapest ways to buy Bitcoin online. First-timers can enter the Bitcoin market today by joining eToro and making a purchase with a debit/credit card, e-wallet, or bank transfer from just $10 (about £8).

Buy Bitcoin on eToro

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

FAQs

How do I buy Bitcoin in the UK?

It takes just five minutes to buy Bitcoin in the UK when using an FCA-regulated broker like eToro. Simply open an account, deposit funds via a debit/credit card or e-wallet, and complete the Bitcoin investment.

What can you buy with Bitcoin?

While more and more merchants in the UK and abroad are starting to accept Bitcoin as a form of payment, this digital asset is widely purchased as an investment product. Just like stocks, most people in the UK buy Bitcoin with the view of making financial gains.

Is it legal to buy Bitcoin in the UK?

Yes, Bitcoin is completely legal in the UK – whether that’s in terms of buying, selling, or storing the digital asset. The UK regime aims to become a hub for Bitcoin and blockchain technology in general – so a full legislative framework is expected in the coming years.

How much does a Bitcoin cost in the UK?

The price of Bitcoin in the UK fluctuates just like any other tradable investment product. Those looking to buy a full Bitcoin will need to fork out many thousands of pounds. Fortunately, platforms like eToro enable investors in the UK to buy a fraction of a Bitcoin from just $10 – or about £8.

Where can I buy Bitcoin in the UK?

Dozens of exchanges and brokers enable investors to buy Bitcoin in the UK, but it’s best to stick with a regulated platform. eToro stands out here, as the platform is authorized and regulated by the FCA.

What is the best platform to buy Bitcoin for beginners in the UK?

Many beginners in the UK will elect to buy Bitcoin from eToro – for its user-friendly and straightforward investment process. Beginners can buy Bitcoin at eToro with a debit/credit card or e-wallet, and the trading platform is regulated by the FCA.

Contact Details

Finance News

Alex Brown

alex@financenews.com

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