HomeInvestmentsHow and Where to Buy Cryptocurrency in the UK?

How and Where to Buy Cryptocurrency in the UK?

Last updated 30th Nov 2022
Disclosure

Investing in cryptocurrencies in the UK is straightforward, as the laws and regulations are crypto-friendly. The main way of buying crypto is by signing up for a cryptocurrency exchange like eToro, Coinbase, or Binance. These cryptocurrency exchanges feature beginner-friendly methods of acquiring crypto assets and let you discover new cryptocurrencies with their blog sections.

However, selecting which cryptocurrency exchange to use can be tedious as each cryptocurrency platform varies in its features. For example, they can differ in their trading fees structure, crypto assets listed, and methods available to deposit funds. To save you time, we’ve researched the top places to buy cryptocurrency in the UK and categorized them in this guide.

eToro - The Overall Best Way to Buy Crypto

💰 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:CySec and FCA💰 Fees:1% of purchase order🔁 CFDs Available:Yes⚽ Social Trading:Yes

How to Buy Cryptocurrency

Select a Cryptocurrency Platform

First, research the type of platform you’ll want to use - centralized exchange (CEX), decentrlized 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 to 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 averging (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.

ProviderFee (GBP 1000)Number of coins🥇 eToro1% fee for buying or selling crypto.78🥈 CoinbaseStarts from 0.6%; varies based on trading volume.224🥉 Crypto.comStarts 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 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.

ProviderWallet TypeNumber of coins🥇 Ledger Nano XHardware+5,500🥈 Trezor Model THardware+1,200🥉 Trust WalletHardware, software, online etc.+1,600

How to Sell Cryptocurrency in 2022 Using eToro?

Buy Cryptocurrency CFDs - Best for Trading

CFDs (Contract for Differences) are derivative products, so you won’t outright own the coins while still being invested. These are the top choices in the UK:

ProviderFee (GBP 1000)Number of coins🥇 eToro1% fee for buying or selling crypto.78🥈 Plus500Spreads vary based on cryptocurrency.17🥉 PepperstoneSpreads vary based on cryptocurrency.18

eToro

eToro is an established brand with over 3.2 million registered UK users. The platform is one of the best crypto exchanges and it offers various services, such as crypto trading, demo accounts, financial news, and an in-depth learning section. Also, eToro has integrated popular deposit methods like PayPal, Neteller, and Skrill.

Plus500

Plus500 is one of the best CFD brokers offering 17 cryptocurrencies. The platform also features a trading academy where you can learn the basics of trading.

Pepperstone

Another fantastic broker is Pepperstone, which offers CFDs in forex, commodities, stocks, and cryptocurrencies. Therefore, you can easily diversify your portfolio without using another platform. Also, they offer amazing customer support that operates 24/7.

What Is the Difference Between Buying Cryptocurrency and CFDs?

When you use a DEX or CEX, you purchase cryptocurrency you can spend, lend, stake, transfer, and pay for products. However, with brokers, you buy contract for differences (CFDs), derivative products that track an underlying crypto asset. This lets you invest without conveying ownership of the coin.

Pros of using CFDsCons of using CFDsEasier to get startedStaking is not available with CFDsYou can short and long CFDsNo ability to receive airdropsBrokers are regulatedBuying CFDs usually results in higher fee costs compared to buying coins.Brokers require ID verificationCFDs do not convey ownership of cryptocurrency, so you cannot spend or withdraw your coins.

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.

ProviderFee (GBP 1000)Number of coins🥇 CoinbaseStarting from 0.6%; varies based on trading volume.224🥈 BinanceStarting from 0.1%; varies based on trading volume.355🥉 KrakenStarting 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.

ProviderFee (GBP 1000)Number of coins🥇 BinanceStarting from 0.1%; varies based on trading volume.355🥈 Crypto.comStarting from 0.075%; varies based on trading volume.230🥉 KrakenStarting 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.

ProviderFee (GBP 1000)Number of coins🥇 Tinyman0.3% trading fee95🥈 Uniswap0.3% trading fee612🥉 PancakeSwap0.25% trading fee3463

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.

ProviderFee (GBP 1000)Number of coins🥇 Binance P2P0% to 0.35%7🥈 PaxfulNo fee for buying cryptocurrencies3🥉 Huobi P2PNo fees7

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 PlatformNumber of coinsFee (GBP 1000)Binance355Starting from 0.1%; varies based on trading volume.TD AmeritradeN/A£0 commissionsBitstamp74Starting from 0%; varies based on trading volume.Bittrex464Starting from 0.35%; varies based on trading volume.Coinbase224Starting from 0.6%; varies based on trading volume.Poloniex340Starting from 0.155%; varies based on trading volume.BitMart683Starting from 0.25%; varies based on trading volume.Bitrue544Starting from 0.098%; varies based on trading volume.BlockFiN/AStarting from 1% spread; varies based on trading volume.CoinDCXN/AStarting from 0.2%; varies based on trading volume.CoinSwitchN/AStarting from 0.5%; varies based on trading volume.Crypto.com230Starting from 0.075%; varies based on trading volume.EtherDeltaN/AStarting from 0.3%; varies based on trading volume.E*TRADEN/A£0 commissionFidelityN/A£0 commissionsGate.io1513Starting from 0.2%; varies based on trading volume.Hotbit1806Starting from 0.2%; varies based on trading volume.Kraken208Starting from 0.26%; varies based on trading volume.KuCoin732Starting from 0.1%; varies based on trading volume.Robinhood17£0 commissions; varies based on order flow fee and trade volume.Uphold202Spreads vary based on cryptocurrency.Venmo4The fee will vary based on the purchase or sale amount.Voyager103£0 commissionsWazirX2350.2% commissionsCharles SchwabN/AN/AWealthsimple56£0 commissions.Webull9The 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 fees 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 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.

CountryBest ProviderProvider TypeTrading feesAustraliaCrypto.comExchangeStarting from 0.075%; varies based on trading volume.USACoinbaseExchangeStarting 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.

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.

PlatformeToro BrokerCoinbase ExchangeDeposit fees£0£0Purchase fees£10£6Holding fees£0£0Selling Fees£10£4Payout fees£5£0Total fees£25£10

Cheapest Way to Buy Crypto

The cheapest method of acquiring crypto is through centralized exchanges due to their favorable trading fees. We’ve outlined a few great CEXs:

ProviderFee (GBP 1000)Number of coins🥇 BinanceStarting from 0.1%; varies based on trading volume.355🥈 Crypto.comStarting from 0.075%; varies based on trading volume.230🥉 KrakenStarting 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.

ProviderFee (GBP 1000)Number of coins🥇 eToro1% fee for buying or selling crypto.78🥈 CoinbaseStarts from 0.6%; varies based on trading volume.224🥉 KrakenStarting 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 a 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 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 21shares.

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.

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.

What is the best provider to buy cryptocurrency in the UK?
What is the cheapest provider to buy cryptocurrency in the UK?
Is it worth investing in cryptocurrency right now?
Where can you buy cryptocurrency for free?
How much money do you need to get started?
Are cryptocurrency transactions secure?
Can you buy cryptocurrency if you’re under 18?

Dominikas Pupkevicius