eToro - The Overall Best Way to Buy Crypto
How to Buy Cryptocurrency
Select a Cryptocurrency Platform
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.
Create an Account
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.
Connect a Deposit Method
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.
Buy Cryptocurrency
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.
Buying Cryptocurrency for Beginners - The Best Platforms Compared in the UK
The following section highlights the top crypto exchanges and brokers for buying cryptocurrency in the UK.
Buy Cryptocurrency With Crypto Brokers - The Easiest Way
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.
Provider | Fee | Number of coins |
---|---|---|
🥇 eToro | 1% fee for buying or selling crypto. | 78 |
🥈 Coinbase | Starts from 0.6%; varies based on trading volume. | 224 |
🥉 Crypto.com | Starts from 0.075%; varies based on trading volume. | 230 |
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.
Best Wallets to Store Cryptocurrency - Crypto Wallet Comparison
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.
Provider | Wallet Type | Number of coins |
---|---|---|
🥇 Ledger Nano X | Hardware | +5,500 |
🥈 Trezor Model T | Hardware | +1,200 |
🥉 Trust Wallet | Hardware, software, online etc. | +1,600 |
Best Apps to Buy Cryptocurrency - Most Convenient
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.
Provider | Fee | Number of coins |
---|---|---|
🥇 Coinbase | Starting from 0.6%; varies based on trading volume. | 224 |
🥈 Binance | Starting from 0.1%; varies based on trading volume. | 355 |
🥉 Kraken | Starting from 0.26%; varies based on trading volume. | 208 |
Buy Cryptocurrencies With Crypto Exchanges - The Cheapest Way
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.
Provider | Fee | Number of coins |
---|---|---|
🥇 Binance | Starting from 0.1%; varies based on trading volume. | 355 |
🥈 Crypto.com | Starting from 0.075%; varies based on trading volume. | 230 |
🥉 Kraken | Starting from 0.26%; varies based on trading volume. | 208 |
Buy Cryptocurrencies Using Decentralized Exchanges (DEX) - Best for Altcoins
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.
Provider | Fee | Number of coins |
---|---|---|
🥇 Tinyman | 0.3% trading fee | 95 |
🥈 Uniswap | 0.3% trading fee | 612 |
🥉 PancakeSwap | 0.25% trading fee | 3463 |
Can You Buy Cryptocurrencies Using P2P Services?
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.
Provider | Fee | Number of coins |
---|---|---|
🥇 Binance P2P | 0% to 0.35% | 7 |
🥈 Paxful | No fee for buying cryptocurrencies | 3 |
🥉 Huobi P2P | No fees | 7 |
Can You Buy Cryptocurrency Using Other Trading Platforms?
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.
Cryptocurrency Platform | Number of coins | Fee |
---|---|---|
Binance | 355 | Starting from 0.1%; varies based on trading volume. |
TD Ameritrade | N/A | £0 commissions |
Bitstamp | 74 | Starting from 0%; varies based on trading volume. |
Bittrex | 464 | Starting from 0.35%; varies based on trading volume. |
Coinbase | 224 | Starting from 0.6%; varies based on trading volume. |
Poloniex | 340 | Starting from 0.155%; varies based on trading volume. |
BitMart | 683 | Starting from 0.25%; varies based on trading volume. |
Bitrue | 544 | Starting from 0.098%; varies based on trading volume. |
BlockFi | N/A | Starting from 1% spread; varies based on trading volume. |
CoinDCX | N/A | Starting from 0.2%; varies based on trading volume. |
CoinSwitch | N/A | Starting from 0.5%; varies based on trading volume. |
Crypto.com | 230 | Starting from 0.075%; varies based on trading volume. |
EtherDelta | N/A | Starting from 0.3%; varies based on trading volume. |
E*TRADE | N/A | £0 commission |
Fidelity | N/A | £0 commissions |
Gate.io | 1513 | Starting from 0.2%; varies based on trading volume. |
Hotbit | 1806 | Starting from 0.2%; varies based on trading volume. |
Kraken | 208 | Starting from 0.26%; varies based on trading volume. |
KuCoin | 732 | Starting from 0.1%; varies based on trading volume. |
Robinhood | 17 | £0 commissions; varies based on order flow fee and trade volume. |
Uphold | 202 | Spreads vary based on cryptocurrency. |
Venmo | 4 | The fee will vary based on the purchase or sale amount. |
Voyager | 103 | £0 commissions |
WazirX | 235 | 0.2% commissions |
Charles Schwab | N/A | N/A |
Wealthsimple | 56 | £0 commissions. |
Webull | 9 | The fee will vary based on the purchase or sale amount. |
How to Choose the Best Provider to Buy Crypto
When choosing which crypto provider to use, there are a few considerations to make, which we’ve outlined here:
Trading fees: Crypto platforms will apply trading fees, withdrawing cryptocurrencies, and through other means. Therefore, you should check out the platform's trading fee structure beforehand to ensure it meets your standards.
Coin protection: Security should be your number one priority, as you don’t want your investment to get stolen. Established cryptocurrency exchanges will have high levels of protection, which you can learn about in the FAQs section. Also, always enable 2-step authentication and verification for coin withdrawals.
Coin variety: crypto exchanges will differ in the coins they have listed along with trading pairs. You can see if the platform supports the coins you want by opening the spot trading feature and searching for them in the search bar.
Educational content: Cryptocurrencies are generally a new concept for many investors, and it’s easy to get overwhelmed. An in-depth educational section is a brilliant way to receive expert information on multiple topics for free.
Ease of use: One of the main factors when deciding on a crypto platform is its ease of use since you don’t want to waste time navigating through interfaces to find essential features.
Best Ways to Buy Cryptocurrency in the UK
This part of the guide is a brief rundown of the best ways to buy cryptocurrency in the UK.
Buy Cryptocurrency Instantly With Online Banking - The Fastest Way
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.
Buy Cryptocurrency With PayPal - The Safest Way
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.
Buy Cryptocurrency Using a Debit/Credit Card - The Convenient Way
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.
Buy Cryptocurrency Using Prepaid Cards
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.
Buy Cryptocurrency Using a Neteller, Skrill, or Venmo
The best way to buy crypto using Neteller, Skrill, or Venmo is via eToro as they are integrated payment methods.
Buy Cryptocurrency Using Crypto ATMs
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.
Buy Cryptocurrency Using Cash
You can buy crypto with cash via crypto ATMs, P2P services, or joining local crypto groups.
Best Platforms to Buy Cryptocurrency in Other Countries
Here, you can learn which platforms are the best to use in certain countries.
Country | Best Provider | Provider Type | Trading fees |
---|---|---|---|
Australia | Crypto.com | Exchange | Starting from 0.075%; varies based on trading volume. |
USA | Coinbase | Exchange | Starting from 0.6%; varies based on trading volume. |
UK | Coinbase | Exchange | Starting from 0.6%; varies based on trading volume. |
Bangladesh | eToro | Broker | 1% fee for buying or selling crypto. |
Canada | Binance | Exchange | Starting from 0.1%; varies based on trading volume. |
Hawaii | CEX.io | Exchange | Starting from 0.25%; varies based on trading volume. |
India | WazirX | Exchange | Starting from 0.2%; varies based on trading volume. |
Japan | BitFlyer | Exchange | No trading fee |
Nepal | Kraken | Exchange | Starting from 0.26%; varies based on trading volume. |
New Zealand | Binance | Exchange | Starting from 0.1%; varies based on trading volume. |
Pakistan | KuCoin | Exchange | Starting from 0.1%; varies based on trading volume. |
Philippines | Binance | Exchange | Starting from 0.1%; varies based on trading volume. |
Singapore | Crypto.com | Exchange | Starting from 0.075%; varies based on trading volume. |
South Africa | eToro | Exchange | 1% fee for buying or selling crypto. |
UAE | Coinbase | Exchange | Starting from 0.6%; varies based on trading volume. |
How to Buy Cryptocurrency Safely
Buying cryptocurrencies is a great way to diversify your portfolio and grow your funds in time. However, there are many things to be wary of when buying crypto, like scams and untrustworthy websites. Here are some ways to stay safe:
Keep your private keys safe and hidden
Research the platform thoroughly by reading online reviews
Enable 2-step authentication
Never connect your crypto wallet to unverified dApps
Ensure that the broker or crypto exchange is regulated
What Are the Fees When Buying Cryptocurrency?
Cryptocurrency platforms have different fee structures that can impact your trading profits. Here are the trading fees you’d pay to buy £1,000 worth of any cryptocurrency and hold for 30 days.
Platform | eToro | Coinbase |
---|---|---|
Deposit fees | £0 | £0 |
Purchase fees | £10 | £6 |
Holding fees | £0 | £0 |
Selling Fees | £10 | £4 |
Payout fees | £5 | £0 |
Total fees | £25 | £10 |
Cheapest Way to Buy Crypto
The cheapest method of acquiring crypto is through centralized exchanges due to their favourable trading fees. We’ve outlined a few great CEXs:
Provider | Fee | Number of coins |
---|---|---|
🥇 Binance | Starting from 0.1%; varies based on trading volume. | 355 |
🥈 Crypto.com | Starting from 0.075%; varies based on trading volume. | 230 |
🥉 Kraken | Starting from 0.26%; varies based on trading volume. | 208 |
Fastest Way to Buy Crypto
These platforms provide fast sign-up processes, ID verification, and deposits. Also, they have instant buy sections, so you can acquire coins immediately.
Provider | Fee | Number of coins |
---|---|---|
🥇 eToro | 1% fee for buying or selling crypto. | 78 |
🥈 Coinbase | Starts from 0.6%; varies based on trading volume. | 224 |
🥉 Kraken | Starting from 0.26%; varies based on trading volume. | 208 |
How to Buy Cryptocurrency Anonymously in the UK?
This section expands on how to buy crypto anonymously, without ID, or registration in the UK.
How to Buy Cryptocurrency Without Registration or KYC?
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.
How to Buy Cryptocurrency Without Verification?
You can avoid the verification process on KuCoin. However, you will only be able to deposit and trade cryptocurrency.
Can You Buy Cryptocurrency Offline?
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.
Should You Buy Cryptocurrency?
Yes, cryptocurrencies can help diversify your portfolio to minimize overall risks. Also, countries are becoming more crypto-friendly, which means in the future, we could potentially be using crypto in our everyday lives. Therefore, the value of cryptocurrencies can rise significantly in the long-term future, making them worth buying now.
Nevertheless, you should conclude yourself whether or not to buy cryptocurrencies. Compared to stocks, commodities, and crypto assets, cryptocurrencies are extremely volatile, and it is easy to lose money.
Benefits of Buying Cryptocurrency
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
When to Buy Cryptocurrency
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.
Should You Invest in Bitcoin or Altcoins?
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.
What Is the Best Cryptocurrency to Buy?
There are thousands of cryptocurrencies you can invest in, but only a few are worthwhile buying. Generally, the best coins have use cases, a strong community, and long-term value. Here are five cryptocurrencies worth looking at:
Bitcoin: Best cryptocurrency for beginners
Ethereum: Best for those looking to use dApps
Decentraland: Great for getting into crypto MetaVerse games
Monero: Perfect for sending untraceable transfers
Cronos: Good for staking
Do You Need to Pay Tax on Cryptocurrency in the UK?
The UK does not have short-term or long-term capital gain tax. Instead, UK residents will pay a flat amount based on their income tax bracket.
10% if you earned less than £50,270 total income.
20% if you earned more than £50,270
Also, the HMRC (HM Revenue and Customs) provides every taxpayer with a capital gain tax allowance of £12,300 a year.
What Impacts Cryptocurrency Price?
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.
Other Ways to Invest in Cryptocurrencies in the UK in 2022
Here are some different ways you can make money from cryptocurrencies.
Stake Crypto Using DeFi or CeFi
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.
Buy Cryptocurrencies Using ETPs (ETFs & ETNs)
ETPs are securities traded on the traditional stock exchange. The best place for investing in ETPs is 21 shares.
Invest in Cryptocurrency Trusts
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.
Buy Cryptocurrencies Using Mutual Funds
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.
Buy and Sell NFTs
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.
Buy Cryptocurrency Stocks and Shares in Companies Owning Crypto
Some of the biggest companies that have invested in cryptocurrency are:
Tesla
MicroStrategy
Block, Inc.
Cryptocurrency Mining
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.
Use Cryptocurrency Faucets
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.
Is It Still Worth Investing in Cryptocurrency or Not?
Yes, It’s worth buying cryptocurrencies as they offer an alternative way of investing and diversifying your portfolio. Cryptocurrencies are becoming more adopted, and prices are expected to rise in the future. Therefore, implementing a long-term strategy would be ideal. Nevertheless, you should research the coins you want to buy and strategies your investment plans accordingly.