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How to Buy Bitcoin in the UK in 2022

Last updated 30th Nov 2022
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Buying Bitcoin in the UK is a straightforward process if you use crypto exchanges because these platforms offer multiple trading pairs for BTC, popular deposit methods, payment method options, and excellent security. However, selecting which cryptocurrency exchanges to use can be tedious, especially for beginners. Therefore, we’ve curated this in-depth guide showcasing the best crypto exchanges in the United Kingdom. Also, we’ll disclose the best crypto wallets to use and alternative ways of potentially making money with BTC.

eToro - The Overall Best Way to Buy BTC in the UK

💰 Trade Values:CFDs, ETFs, Currencies, Indices, Cryptocurrencies, Stocks, and Commodities.📊 Software:Website and smartphone app.🏆 Demo Account Available:Yes📺 Ease of use:Excellent⭐ Our rating:5/5📱 App Available:iOS and Android🧩 Regulation:Cyprus Securities and Exchange Commission (CySEC)💰 Fees:1% of purchase order🔁 CFDs Available:Yes⚽ Social Trading:Yes

Best Platforms to Trade and Buy Bitcoin in the UK

The best way to buy Bitcoin in the UK is via a cryptocurrency broker or crypto exchange. These cryptocurrency exchanges are regulated and make trading Bitcoin convenient thanks to the multiple swap pairs and straightforward trading software. Also, depending on the exchange, you can fund your account through bank transfers from a current or savings account, bank transfers, or a cryptocurrency wallet.

Buy Bitcoin in the UK Using Cryptocurrency Brokers - The Easiest Way

If you’re a beginner who wants to learn how to invest in cryptocurrency in the UK, the best way to get started is with a cryptocurrency broker due to their ease of use. The cryptocurrency exchange options mentioned underneath are the overall best crypto brokers in the UK and contain tutorials to help you get started.

ProviderFee (GBP 1000)🥇 eToro1% fee for buying or selling crypto.🥈 BinanceStarts from 0.1%; varies based on trading volume.🥉 CoinbaseStarts from 0.6%; varies based on trading volume.

Buy Bitcoin in the UK using eToro

eToro is ideal for those starting their crypto investing journey because this broker offers an academy, news with analytics, and amazing customer support. Moreover, you can test the software with a demo account before committing your capital to eToro.

Buy Bitcoin in the UK using Binance

Binance is an established platform with the largest trading volume for Bitcoin and several BTC trading pairs. The crypto exchange contains many useful features like instant buying with credit or debit card, P2P services, and Bitcoin leverage trading.

Buy Bitcoin in the UK using Coinbase

Coinbase makes crypto accessible to beginners by implementing simple trading interfaces and popular deposit methods like credit or debit card. Moreover, you can complete various courses to earn free crypto, which you can trade for Bitcoin.

Best Wallet to Buy and Store Bitcoin in the UK - BTC Wallet Comparison

Bitcoin is a highly valuable asset you should store in a cryptocurrency wallet or a specific Bitcoin wallet for the best protection. Although most Bitcoin exchanges or crypto exchanges have become more secure in recent years, they are still a target for hackers. Therefore, it’s worth investing in a hardware crypto wallet like Ledger Nano X or Trezor Model T. However, Trust Wallet is a brilliant alternative if you do not want to invest in a physical Bitcoin wallet. Not your keys, not your crypto.

ProviderWallet Type🥇 Ledger Nano XHardware🥈 Trezor Model THardware🥉 Trust WalletSoftware

Buy Bitcoin in the UK Using CFDs - Best for Trading

If you do not require ownership of your Bitcoin, you can invest through CFDs. This derivative product tracks Bitcoin’s movement and lets you speculate its future value by placing long or short positions. Here are the top CFD brokers:

ProviderFee (USD 1000)🥇 eToro1% fee for buying or selling crypto.🥈 Plus500The market spread is 0.30%.🥉 EightcapThe minimum spread is 12.

Buy Bitcoin in the UK using CFDs with eToro

The best overall broker offering Bitcoin CFDs is eToro due to its ease of use. Registration is a fast process, and the trading software is beginner-friendly. Also, you have access to tutorials on how to navigate the platform.

Buy Bitcoin in the UK using CFDs with Plus500

Plus500 is great for advanced users since it comes with analytics, trading tools, alerts, and more. The broker is upfront about fees, and you’ll see the spread on Bitcoin, along with the overnight fees.

Buy Bitcoin in the UK using CFDs with Eightcap

Eightcap is a leading CFD crypto brand offering over 250 crypto derivatives, including Bitcoin. Also, the MetaTrader 5 software comes with helpful tools and displays useful information.

Best Apps to Buy Bitcoin in the UK - Most Convenient

If you are looking for the best crypto apps in the UK, you will find out some crypto apps that allow you to trade from anywhere as long as you have an internet connection. They come with the same features you’d find on a desktop, like spot trading, depositing, and leveraging.

ProviderFee (GBP 1000)🥇 CoinbaseStarting from 0.6%; varies based on trading volume.🥈 Crypto.comStarting from 0.075%; varies based on trading volume.🥉 KrakenStarting from 0.26%; varies based on trading volume.

Buy Bitcoin in the UK With Exchanges - The Cheapest Way

The Bitcoin exchanges underneath have native cryptocurrencies or crypto assets which can be used to pay for fees, resulting in discounts. Also, they use a tier system that changes your fee rates based on 30-day trading volume.

ProviderFee (GBP 1000)🥇 Crypto.comStarting from 0.075%; varies based on trading volume.🥈 BinanceStarting from 0.1%; varies based on trading volume.🥉 KuCoinStarting from 0.1%; varies based on trading volume.

Buy Bitcoin in the UK Using Decentralized Exchanges (DEX) - The New Way

You can buy crypto and also buy Bitcoin anonymously or without registration with a decentralized crypto exchange. There are many cryptocurrency exchange options and these platforms are not owned by a single entity and operate using smart contracts. The best DEXs for buying Bitcoin are:

ProviderFee (GBP 1000)🥇 THORSwapVaries🥈 BisqVaries🥉 dYdXVaries

Can You Buy Bitcoin in the UK Using P2P Services?

P2P services connect investors and allow trades without an intermediary like a crypto exchange. Sellers will list how much they are willing to sell each Bitcoin, and the choice is yours to accept the offer or decline.

ProviderFee (USD 1000)🥇 LocalbitcoinsStarts from 0.1%; varies based on trading volume.🥈 PaxfulStarts from 0.1%; varies based on trading volume.🥉 Bisq0.88% of the purchase order.

Can You Buy Bitcoin in the UK Using Other Trading Platforms?

Here you can explore different Bitcoin exchanges so you can find out more about which crypto exchanges and platforms sell Bitcoin in the UK and the starting fee rates. Also, you can read our in-depth review if you’re interested in a particular platform.

Cryptocurrency PlatformCan You Buy BTC?Fee (GBP 1000)BinanceYesStarting from 0.1%; varies based on trading volume.TD AmeritradeNoN/ABitstampYesStarting from 0%; varies based on trading volume.BittrexYesStarting from 0.35%; varies based on trading volume.CoinbaseYesStarting from 0.6%; varies based on trading volume.PoloniexYesStarting from 0.155%; varies based on trading volume.BitMartYesStarting from 0.25%; varies based on trading volume.BitrueYesStarting from 0.098%; varies based on trading volume.BlockFiYesStarting from 1% spread; varies based on trading volume.CoinDCXYesStarting from 0.2%; varies based on trading volume.CoinSwitchYesStarting from 0.5%; varies based on trading volume.Crypto.comYesStarting from 0.075%; varies based on trading volume.EtherDeltaNoN/AE*TRADENoN/AFidelityYes£0 commissionsGate.ioYesStarting from 0.2%; varies based on trading volume.HotbitYesStarting from 0.2%; varies based on trading volume.KrakenYesStarting from 0.26%; varies based on trading volume.KuCoinYesStarting from 0.1%; varies based on trading volume.RobinhoodYes£0 commissions; varies based on order flow fee and trade volume.UpholdYesBuy spread of 0.85%.VenmoYesThe fee will vary based on the purchase or sale amount.VoyagerYes£0 commissionsWazirXYes0.2% commissionsWealthsimpleYes£0 commissions.WebullYes£0 commissions.

What Is the Difference Between Buying Bitcoin and CFDs in the UK?

The main difference between buying CFDs and Bitcoin is that you will not convey ownership of real coins with Contract for Differences. CFDs are strictly an investment asset that lets you speculate the future value of Bitcoin. Therefore, most investors stray away from CFDs and buy real Bitcoin since they have full control of their coins.

Pros of using CFDsCons of using CFDsBuying Bitcoin CFDs is convenient with a broker.You cannot buy Bitcoin CFDs with cryptocurrency.Brokers provide many payment methods for buying Bitcoin CFDs.Cannot lend your BTC to earn passive income.Brokers like eToro offer a demo account, so you can trade Bitcoin without repercussions. Once you’re familiar with the trading software, you can use real funds.Some brokers selling Bitcoin have overnight fees.Multiple fiat currency swap pairs for BTC.Cannot store your Bitcoin in a hardware wallet.

Best Ways to Buy Bitcoin in the UK

Here’s a rundown of the best ways to buy crypto and also buy Bitcoin in the UK using various payment methods.

Buy Bitcoin Instantly With Online Banking - The Fastest Way

Online banking is easy with Coinbase Pro because bank transfers are simple to initiate. Coinbase Pro will showcase their banking information and a reference code that won’t change for your account. Therefore, you can set up recurring payments for convenience.

Buy Bitcoin With PayPal in the UK - The Safest Way

PayPal is an established global money transfers brand that has introduced a cryptocurrency section containing Bitcoin and other digital assets. However, buying through their platform will result in higher fees compared to crypto exchanges. Therefore, you can alternatively use PayPal as a deposit method on eToro or Binance.

Buy Bitcoin in the UK Using a Debit Card - The Cheapest Way

You can buy Bitcoin via debit card using the instant buy section on Coinbase. Alternatively, you can deposit with a debit card and spot trade. Apart from Bitcoin, you can buy other cryptocurrencies or crypto assets with your debit card.

Buy Bitcoin in the UK Using a Credit Card

Crypto.com is a top choice for UK investors as it accepts UK credit cards and will remember your information for future deposits like bank transfer, credit or debit card.

Best Platforms to Buy Bitcoin in Other Countries

This table shows the top crypto exchanges and platforms in different regions. We can see discrepancies mainly due to regulations, platform accessibility, and crypto laws.

Country to Buy BTC inBest ProviderProvider TypeFeeAustraliaCoinbaseExchangeStarting from 0.6%; varies based on trading volume.UKCoinbaseExchangeStarting from 0.6%; varies based on trading volume.BangladesheToroBroker1% fee for buying or selling crypto.CanadaBinanceExchangeStarting from 0.1%; varies based on trading volume.HawaiiCEX.ioExchangeStarting from 0.25%; varies based on trading volume.IndiaWazirXExchangeStarting from 0.2%; varies based on trading volume.JapanBitFlyerExchangeNo trading feeNepalKrakenExchangeStarting from 0.26%; varies based on trading volume.New ZealandBinanceExchangeStarting from 0.1%; varies based on trading volume.PakistanKuCoinExchangeStarting from 0.1%; varies based on trading volume.PhilippinesBinanceExchangeStarting from 0.1%; varies based on trading volume.SingaporeCrypto.comExchangeStarting from 0.075%; varies based on trading volume.South AfricaeToroExchange1% fee for buying or selling crypto.UAECoinbaseExchangeStarting from 0.6%; varies based on trading volume.

What Are the Fees When Buying Bitcoin in the UK?

Here you can learn what fees you’ll pay on eToro, Plus500, and Binance. For simplicity, the table calculates buying £1,000 worth of Bitcoin and holding for 30-days.

PlatformeToro BrokerPlus500 CFDBinance ExchangeDeposit fees£0£0£0Purchase fees£10Spread of 0.30%£1Holding fees£0£0£0Selling Fees£10Spread of 0.30%£1Payout fees£5£0£15Total fees£25Spread of 0.30% for selling/buying£17

Cheapest Way to Buy BTC in the UK

When selecting a crypto exchange based on price there are a few criteria to look out for such as fee structure, coin variety, and withdrawal costs. Crypto.com, Binance, and KuCoin offer the best fee schedules, and all have native coins that give discounts.

ProviderFee (GBP 1000)🥇 Crypto.comStarting from 0.075%; varies based on trading volume.🥈 BinanceStarting from 0.1%; varies based on trading volume.🥉 KuCoinStarting from 0.1%; varies based on trading volume.

Fastest Way to Buy BTC in the UK

These exchanges have been selected for their fast signup speeds, ID verification, and deposit methods like bank transfer, credit or debit card. Also, you can use the instant buy section to acquire Bitcoin quickly. Unfortunately, this will incur significantly higher fees than spot trading, but it’s the fastest way of buying Bitcoin.

ProviderFee (GBP 1000)🥇 CoinbaseStarting from 0.6%; varies based on trading volume.🥈 eToro1% fee for buying or selling crypto.🥉 KrakenStarting from 0.26%; varies based on trading volume.

How to Buy Bitcoin Anonymously in the UK?

Here’s how you can buy Bitcoin anonymously in the UK and also without KYC, or registration.

How to Buy Bitcoin in the UK Without Registration or KYC?

The best way to buy crypto and buy Bitcoin without registrations is via a decentralized crypto exchange since account creation isn’t required. THORSwap and Bisq are excellent options for beginners.

How to Buy Bitcoin in the UK Without Verification?

Binance allows you to deposit cryptocurrency and trade without going through the verification process.

Can You Buy Bitcoin in the UK Offline?

Yes, buying Bitcoin in an offline environment is possible with paper crypto wallet. First, you’ll have to provide your public key to the business you are buying your Bitcoin from and confirm the bank transfers has been made. Once you have an internet connection, you can access your Bitcoin wallet using the private key and manage the coins.

Should You Buy or Sell Bitcoin in the UK?

Bitcoin is worth buying as it’s the largest cryptocurrency by market cap, has a significant following, and is accepted by many brands. Therefore, Bitcoin is much less risky to buy than most altcoins. Also, it has always performed well during bull runs, reaching new all-time highs every time. However, you should research Bitcoin in-depth and come to the conclusion yourself if it's worth your investment. We listed below some reasons why buying or selling Bitcoin.

Why should you buy Bitcoin?Why should you sell Bitcoin?Lower risk compared to other cryptocurrenciesPrice is volatileAdopted by most crypto-friendly brands.Bitcoin's intended use was as a payment method. However, there are far better payment coins like Stellar Lumens and Monero.Has always performed well during bull runs.Bitcoin is not regulated.DecentralizedLong transfer timesStrong communityUses a PoW consensus mechanism, which is not as efficient as PoW.

Do You Need to Pay Tax on Bitcoin in the UK?

Yes, you will have to pay a flat amount based on your capital gain income.

  • 10% if you earned less than £50,270 total income.

  • 20% if you earned more than £50,270

Moreover, UK residents have a capital gain tax allowance of £12,300 a year, so technically, you only need to pay taxes on your crypto after you surpass this number in profits. For the best information, visit the UK official government website regarding this matter. Read our UK cryptocurrency tax guide.

What Impacts Bitcoin Price?

Here’s a quick rundown of what can influence Bitcoin’s value:

  • Regulations: Laws and regulations can make crypto more accessible or restricted to investors.

  • Adoption: Businesses accepting Bitcoin is great for adoption as more people utilize the cryptocurrency.

  • Demand: Bitcoin has a limited supply, creating scarcity, which increases demand. As investors are willing to pay more for each Bitcoin, its value goes up.

  • Bull runs: Market conditions impact Bitcoin heavily, and bull runs are where BTC reaches new all-time highs. During bull runs, more money flows into crypto from institutional investors, and the overall market grows.

  • Influencers: Viral content for Bitcoin is great as more people are exposed to the project and may potentially invest.

Historical Bitcoin Course: Major Milestones in the History of Bitcoin

This graph shows Bitcoin’s historical price movements:

Other Ways to Make Money With Bitcoin in the UK in 2022

Now, we’ll dive into alternative ways to make money from Bitcoin.

Stake Bitcoin Using DeFi or CeFi

Bitcoin uses a proof-of-work consensus mechanism, meaning you cannot stake to earn rewards.

Buy Bitcoin Using ETPs (ETFs & ETNs)

Securities traded on the stock exchange are called ETPs. You can find these times of investment products on ProShares.

Buy and Sell NFTs Using BTC

There is no marketplace where you can buy or sell NFTs with BTC. You’d need to convert your Bitcoin to a cryptocurrency accepted by the NFT platform.

Buy Stocks and Shares in Companies Owning Bitcoin

Coinbase has significant Bitcoin holdings and recently went public on the stock exchange. You can buy their stock on eToro.

Bitcoin Mining in the UK

Bitcoin uses a PoW (proof-of-work) consensus mechanism to validate transactions on the blockchain and create new blocks. This is done using GPUs that solve difficult cryptographic puzzles in return for a reward. However, Bitcoin mining is not profitable now unless you are prepared to invest in many GPUs. More often than not, you are better off buying and holding Bitcoin than mining.

Use Bitcoin Faucets in the UK

Faucets are small rewards a cryptocurrency exchange provides for completing various tasks. Coinbase is ideal for faucets as they have many courses where you can earn cryptocurrencies for free.

What Cryptocurrencies Are Similar to Bitcoin?

Here are similar coins to Bitcoin. They are either also PoW cryptocurrencies or used as payment methods. Also, you can check out our reviews if you’re interested in learning more about the coin. For example, if you would like to buy Ethereum in the UK, we created a complete step-by-step guide showing how to do it.

CoinSymbolLitecoinLTCEthereumETHBitcoin CashBCHDogecoinDOGEMoneroXMR

Is It Still Worth Investing in Bitcoin in the UK or Not?

Bitcoin is considered digital gold and is predicted to have a long-term future. The cryptocurrency has a huge following, investments from large institutions, and is accepted as a payment method by multiple global brands. In addition, the coin performs outstandingly during each bull run. Therefore, it is highly recommended to allocate some of your portfolio to BTC. Note: Not Financial Advice (NFA).

FAQs

What Is the Best Provider to Buy Bitcoin in the UK?
What Is the Cheapest Provider to Buy Bitcoin in the UK?
Is It Worth Investing in Bitcoin Right Now?
Is There a Limit to How Much Bitcoin I Can Buy?
Can You Buy Bitcoin on the Blockchain?
What Can You Buy With Bitcoin?

Dominikas Pupkevicius