Best Places to Buy Bitcoin in the UK (2024)
If you are looking to buy Bitcoin in the UK, it is crucial that you first find a reputable exchange that is regulated and trustworthy. Thus, you will ensure the safety of your funds and lessen the chances of fraud or theft.
And since there are now many convenient payment options such as credit card, debit card, or bank transfers, the process of buying Bitcoin has never been more straightforward.
But with so many options available, where should you start? Our team has evaluated the most reputable Bitcoin exchanges on the market. We give you the top exchanges to choose from so that you can find the best places to buy Bitcoin in the UK.
Start trading or investing in crypto right now with Binance!Where to Buy Bitcoin in the UK - Best Crypto Exchanges
When you are looking to buy Bitcoin in the UK, you have several options to choose from, like brokers, exchanges, and payment processors. However, each has advantages and disadvantages, which we will discuss below.
Coinbase - best-regulated crypto exchange
Coinbase is probably the best place to buy Bitcoin in the UK if you are a beginner. Users can access Coinbase online or through the Android/iOS mobile app, offering a seamless interface.
When you open an account at Coinbase, you can purchase bitcoin instantly using your credit or debit card in the UK. It is the easiest method and the most expensive - with Coinbase charging an all-in commission of 3.99%. Consider transferring funds to the UK to save on fees.
Once the funds arrive and you proceed to buy bitcoin, you will, however, still have to pay a standard commission of 1.49%. This exchange is popular with newbies because it provides lots of educational resources. You can also diversify your portfolio by using Coinbase's many other cryptocurrencies
👍 Advantages
• Coinbase is one of the most reputable cryptocurrency exchanges in the UK.
• It is easy to sign up and buy Bitcoin in the UK using a credit or debit card.
👎 Disadvantage
• The commission is on the high side.
How to Invest in Bitcoin with Kraken
Kraken is one of the more established crypto exchanges, having launched only two years after Bitcoin. But the oldest doesn't always mean the best.
With Kraken, you have top-shelf security, more than 60 coins to choose from, and the option to "stake" your coins for rewards, all at a price point that is lower than the norm.
Starting with just $10, Kraken allows you to buy bitcoin. There's no need to put thousands of dollars down to buy bitcoin; every bitcoin is divisible into smaller fractions, from one hundred millionths to one hundred thousandths, called a satoshi. Additionally, Kraken allows you to buy much more significant amounts of BTC if you wish.
Does Kraken work with GBP accounts?
Yes, Kraken works with GBP accounts. Through a partnership with Clear Junction, a UK-based payment service, users of the crypto exchange platform can fund their accounts using Faster Payments Service (FPS/BACS) or CHAPS.
👍 Advantages
• Its fees are on the lower side, making it a convenient place to buy bitcoin in the UK.
• A robust security system that hasn't been hacked
• You have a wide range of coins and tokens on offer.
👎 Disadvantage
• Instant Buy fees are high for beginners
• Customer support is limited
• Tax support is not available
How to Invest in Bitcoin with Binance
Binance is another mainstream crypto exchange option to buy Bitcoin in the UK. A popular platform for crypto-to-crypto trading - converting one cryptocurrency into another - the Binance exchange has one of the lowest transaction fees among cryptocurrency exchanges. Users who pay in BNB cryptocurrency tokens receive discounts and have high liquidity.
"Binance" combines the words "bitcoin" and "finance." In addition to bitcoin, Ethereum, Litecoin, and its own native BNB token, it supports trading in more than 500 cryptocurrencies.
The company offers high security and safety standards, a multi-tier architecture, and a high processing throughput—it promises to process 1.4 million orders in a second.
In addition to trading and listing cryptocurrencies, Binance also offers fundraising and delisting services. Binance offers initial coin offerings (ICOs) for cryptocurrency enthusiasts to raise money.
Many traders and participants use Binance for exchanging and investing in various cryptocurrencies.
Binance prevents U.K. retail investors from buying crypto derivatives in compliance with local regulations. As a result, U.K. customers must provide additional information before using Binance EARN - Dual Investment products and futures, margin, and leveraged tokens.
👍 Advantages
• Fees for non-instant and instant purchases are low
• A vast selection of coins
• Several additional services
👎 Disadvantage
• Verification issues
• The structure of the corporation is opaque
• Restriction for the U.K. customers
Steps to Buying BTC on Binance
Click on the [Buy Now] button on the homepage banner after logging in to Binance.
Different fiat currencies are available for buying Bitcoin. The system will automatically display the amount of Bitcoin you can get based on the amount of fiat you enter. Press the Continue button.
Here, you can choose your preferred payment method. You can purchase with a credit/debit card by clicking [Visa/Mastercard] - [Continue].
Fill out the form with your card information and follow the instructions.
You will have your card added to the system. Select [Continue].
You must confirm the payment details and fees within 1 minute, or you will lose the amount of crypto you can receive. The new amount of crypto will appear when you click [Refresh].
A link will redirect you to your bank's OTP Transaction Page. You will then need to verify the payment using the instructions on the screen. After that, you can immediately see the Bitcoin in your Binance Spot Wallet.
How to Invest in Bitcoin with eToro
If you're wondering how to buy Bitcoin in the UK, you will encounter many exchanges without a license.
However, in eToro's case, the truth is much closer to the contrary - the company is authorized and regulated by the FCA. Consequently, you can buy Bitcoin in the UK here in a secure, safe, and regulated environment.
eToro allows you to open a trading account by supplying the exchange with basic personal information and submitting $10, equivalent to £7.
Skrill or Paypal are e-wallet services that let you instantly fund your account with a UK credit/debit card. eToro also supports bank transfers from the UK.
You can purchase Bitcoin in the UK for only $10 once your account has been funded. There are no fees associated with GBP deposits in the UK.
Additionally, you will only pay the spread when buying or selling Bitcoin, which starts at 0.75%. Over 40 other digital currencies can be traded along with Bitcoin - including XRP, Ethereum, Cardano, and others.
Besides the traditional asset classes, eToro also offers the UK and international stocks, exchange-traded funds, and forex. Customers at eToro will also be provided with Copy Trading tools. By copying the trades of a seasoned investor, you can trade passively. Several SmartPortfolio strategies are also available.
👍 Advantages
👎 Disadvantage
• Non-trading fees are high
• One currency per account
How to Buy Bitcoin in the UK - A step by Step Guide
Below we provide a step by step guide to buying Bitcoins in the U.K.:
For this section, we focus on using Coinbase
Depositing with your U.K. bank account
Step 1: Link your U.K. bank account.
Here's how to link your U.K. bank account:
Navigate to the trading view.
Select Deposit under Wallet Balance on the left-hand side.
Click GBP under Currency Type.
Choose the From option in the Deposit GBP menu, click the Add Account link.
After completing the bank account verification process, you will be redirected to Coinbase.
Step 2: Once your bank account has been linked, you can deposit GBP using these steps:
Launch the trading view.
Under Wallet Balance, choose Deposit in the left-hand column.
Choose GBP as the currency type.
You can initiate a UK Bank Transfer in GBP from your bank account by selecting Bank Account in the Deposit GBP menu.
Include the reference code to ensure the deposit will be credited to your Coinbase account.
Step 3: Wait for Coinbase to process your GBP deposit. You must follow these steps for Coinbase to process your GBP deposit:
Make sure you have a UK ID and a mobile number associated with your Coinbase account.
Verify that your Coinbase and bank account names match. Bank accounts from companies or institutions are not supported unless you have completed the institutional onboarding process.
Be sure to include the reference code precisely as it appears in the document - no spaces or additional text.
All Coinbase deposits are subject to a £250,000 limit. Deposits and CHAPS transfers exceeding this limit will be rejected.
Step 4: Withdrawing to your UK Bank Account
You must first deposit GBP from your bank account to your Coinbase account before you can withdraw GBP to your UK bank account.
The steps for withdrawing GBP from your Coinbase account are as follows:
Select Portfolios from the menu.
From the GBP Wallet, click On Withdraw.
Then, choose the UK bank account you wish to withdraw funds from, enter the amount, and confirm the withdrawal.
Step 5: Buying Bitcoin in the U.K. with Coinbase
Set up two-factor authentication with your new account once it has been created.
Then, you can add your funds. Do this by logging in to Coinbase.com.
Navigate to Settings, and select payment options.
Next, add your bank account to transfer the funds.
How to Buy Bitcoin in the UK Fast
If you want to buy Bitcoin in the U.K., there are several things you should have in mind. For instance, the cost, payment system, and security. Furthermore, it's also necessary to look at the exchange itself.
The cost of Bitcoin
Although Coinbase allows its users to buy BTC at a low price, several other exchanges offer lower fees. This is one of the main issues for new buyers.
Bitcoin payment methods
If you want to purchase Bitcoin in the UK, you will also need to check whether there's a suitable payment method for you. You can pay for BTC with a credit card or bank account.
Bitcoin purchase security
Securing your Bitcoin means protecting your digital assets. If you want to ensure the safety of your funds and personal details, you need to be aware of the possible issues and look for a trustworthy platform.
How to Invest in Bitcoin with PayPal
PayPal is a large digital payments provider and payment service that allows users to send and receive money without a bank account. The company has its headquarters in the U.S., though it also has a subsidiary in the United Kingdom and PayPal Europe Limited.
In January 2023, PayPal launched "Checkout with Crypto," expanding its cryptocurrency offerings. PayPal launched cryptocurrency services in 2020.
When you're a PayPal user with crypto assets in the US, you can use Bitcoin for buying, selling, holding, and checking out. Trades, however, must be executed in US dollars (i.e., using fiat currencies other than US dollars may not be optimal for you).
How to invest with PayPal
You must first register once before you can purchase cryptocurrencies. PayPal users who want to invest in crypto can do so by following these steps:
Go to your PayPal dashboard and click “Buy crypto on PayPal”
The next step is to choose the crypto you wish to buy
Now, you can go with the preset amount of Bitcoin or click “Buy” to select an amount you want
Next, click the buy button. However, PayPal will require that you verify your identity before you can purchase
Once you’ve provided the required information, input the amount of Bitcoin you want to buy.
Next, you will see your linked bank account or credit/debit card. There is also the option to link additional cards or bank accounts.
The next step is to review your purchase.
Upon completion of the purchase, the account will update to reflect the amount of crypto purchased and the current value.
Finally, you are taken back to the home page where you see that your Bitcoin purchase is listed under "crypto" with the option to buy.
You can review PayPal's educational articles to learn more about crypto and its offerings if you're still uncertain.
It is also crucial to note that you can only hold cryptocurrency you have purchased via PayPal. Currently, you cannot transfer cryptocurrency between accounts.
Furthermore, PayPal limits the amount you can spend on cryptocurrency transactions. The maximum dollar limit for weekly crypto purchases is $100,000, but there is no yearly limit for purchases over 12 months.
How to Buy Bitcoin in the UK with Credit/Debit Card
Few crypto platforms, apps, or exchanges charge reasonably for crypto purchases on credit or debit cards. The reason for this is the exorbitant costs associated with most platforms, which can reach 7%.
Only a few platforms allow you to buy Bitcoin with a credit or debit card. Some of the best options are below:
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Coinbase: Coinbase is the world's most well-known exchange that allows users to buy and sell Bitcoins. The platform will enable you to buy Bitcoin with credit and debit cards. They charge a commission of 3.99%.
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CoinSmart CoinSmart: This platform allows users to buy Bitcoin with a credit or debit card. They charge a fee of up to 6%.
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eToro: This platform allows users to buy Bitcoin with a credit or debit card. They charge a fee of up to 7.5%.
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Binance: Binance is a crypto exchange platform that allows users to buy Bitcoin with credit and debit cards. The platform charges between 3.5%.
How to Invest in Bitcoin with Wallet
Wallets are a secure way to store your cryptocurrency. Each cryptocurrency has its wallet, which is available on different platforms.
For instance, you can use Neteller or Skrill wallets to invest in Bitcoin. These wallets allow you to make deposits and withdrawals into your credit or debit card.
Let's take a look at them:
Skrill
Skrill allows you to send payments online easily between Skrill accounts. It’s very similar to PayPal, except that it’s much more lenient with its regulatory requirements. To obtain a Skrill account, all you need is an email address. You can then fund that account with a bank account, credit and debit cards, Bitcoin, and Bitcoin Cash.
Skrill allows customers to purchase specific cryptocurrencies directly from their accounts for investment purposes only.
This means you can buy coins, but you can’t withdraw them to a crypto wallet. You can only exchange them back to fiat currency and withdraw that to your card or bank account.
Here's a simple step for buying Bitcoin with Skrill:
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Open a Skrill account
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Add your credit card
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Deposit funds in your local currency
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Go to the Crypto tab and choose exchange.
Neteller
Neteller is one of the most popular digital wallets accessible to millions of people around the globe. It’s used for a wide array of online transactions. Because of its popularity, it’s often listed as a method for buying Bitcoin (and other cryptocurrencies) on online crypto trading platforms. If you have a Neteller account and are interested in buying BTC using it, here’s what you need to know:
Buy Bitcoin with Neteller:
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Access your account by logging in.
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Select Neteller as a deposit option on the payments page.
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Put in the amount you want to deposit.
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Use your Neteller app to confirm the transaction.
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Once you have loaded your balance, you can buy Bitcoin.
What is the Easiest Way to Buy Bitcoin in the U.K.?
There are many ways to buy Bitcoin in the U.K. However, the simplest and most efficient way is through a crypto broker or exchange. This is because buying Bitcoin through a crypto broker or exchange is the most cost-efficient way to buy Bitcoin. Further, they also offer the safest way to store your Bitcoin.
How to Choose a Platform for Buying Bitcoin
When it comes to buying Bitcoin, there are a few things you need to consider before settling on a platform. Fees, verification requirements, and countries supported are just a few factors that vary from one exchange to another. Here is a breakdown of some of the most important considerations when choosing a platform to buy bitcoin.
Fees and commissions
In general, there are three types of fees associated with buying bitcoin: transaction fees, platform fees, and commission fees.
Each exchange or wallet provider charges transaction fees when you buy Bitcoins. Platform fees refer to any charges levied against users who use an exchange’s services. Commission fees refer to the fee paid to brokers on stock exchanges like NASDAQ.
Hence, you must know how much these costs will be before deciding on which cryptocurrency trading platform to buy Bitcoin.
Verification requirements
Depending on the platform you choose, you may need to undergo a tricky verification process. On most platforms, verification is a simple process involving providing your name and contact information.
However, on exchanges that allow you to trade cryptocurrencies for Bitcoin, you may be required to provide a photo of your passport. You’ll also need to set up an account with a reliable and secure email address.
Supported countries
Another vital factor to consider before choosing a platform for buying Bitcoin is whether they support countries in your region or not.
If you live in one of those regions, this may become very relevant when selecting a crypto-trading platform because certain platforms are only available within specific geographic areas.
You don't want to miss out on an opportunity just because you can't access them from where you live!
Ease of use
Some crypto exchange platforms are user-friendly and easy to use, while others require some technical knowledge to get started with their services. This means that if you're new to the world of cryptocurrencies, it might be easier to start by using a more beginner-friendly platform like Coinbase or Kraken than trying to navigate through complicated interfaces and settings for other exchanges such as Binance or Bitfinex.
Security
And finally, it goes without saying that security is one of the most critical aspects when choosing your cryptocurrency trading platform. If there's no way to verify users' identities, how do we know who they really are? And once you've been hacked, what will happen to all your funds?
Opt for a platform that offers two-factor authentication so that only people with access can make transactions on your account.
Also, choose an exchange where you have control over your private keys - this means that you'll need to generate these yourself rather than having them generated automatically to use their services.
How to Buy Bitcoin in the UK: Privacy and Security Tips to Keep in Mind
When it comes to privacy and security, you should keep a few things in mind when buying Bitcoin.
First, make sure you use a reputable exchange. Second, be sure to create a strong password and use two-factor authentication. Third, don't store your Bitcoins on the exchange; instead, download a Bitcoin wallet and store your Bitcoins there. Fourth, always be careful when clicking on links or downloading files.
Let's briefly discuss these four security tips.
Make sure you use a reputable exchange
The first and most important security tip is to use a reliable Bitcoin exchange. If an exchange goes down for any reason, then all of their customers' funds are at risk.
When choosing which exchange to use, look carefully into how they handle customer support, what kind of verification process they have in place, and whether or not they offer insurance against theft.
Create a strong password and use two-factor authentication
When it comes to passwords, make them as complex as possible. A good rule of thumb is that your password should contain every letter from each word in your name followed by numbers and special characters such as !@#$%^&*()_+-=[]{}|;':",<>? /
Two-factor authentication ensures that you need more than just your username/password combination when logging on to an account. This helps prevent hackers who access one user's credentials from accessing other accounts owned by the same person. It requires a code sent via text message or email to verify the login attempt.
Download a Bitcoin wallet
Newbies often mistake storing all their Bitcoin on the exchange instead of using a cold storage method that is best for long-term security.
The safest way would be to download a local copy of the blockchain then create multiple wallets with different addresses.
If anything happens to any address, it won't affect others. You can use Electrum Wallet for this purpose.
Be careful when clicking or downloading files
If you've been online for a while, you'd know that there are plenty of phishing websites out there trying to steal your money and personal information.
It's effortless to get fooled into thinking that something is legit just because it looks like one - especially in cryptocurrency sites where they try to look legitimate but have no idea what they're doing.
If you don't want to lose all your coins/tokens/wallets etc., make sure that you only download them from official sources such as Github, Bitbucket, Google Code, etc.
Do I Pay Cryptocurrency Tax in the UK?
Yes. Understanding how cryptocurrency is classified is crucial for understanding UK tax laws. HMRC offered guidance on this issue as one of the first tax offices worldwide. HMRC has regularly updated its crypto tax UK guidelines in the last few years.
Bitcoin and altcoins are categorized as assets under HMRC cryptocurrency guidelines. Rather than treating crypto as a currency, the HRMC views it as a form of capital, like a house, a car, an investment property, or stock. Thus, the HRMC does not consider crypto a currency like GBP.
Knowing how crypto is taxed is crucial to understanding how the HMRC defines it.
Do I Pay Crypto Tax in the UK 2024?Summary
In conclusion, there are many places to buy Bitcoin in the U.K. But our most preferred options are the crypto exchange platforms because they are secure, easy to use, and have a lot of flexibility.
The crypto exchange websites offer more than just Bitcoin trading. Some even have their own token that they use to trade them. They also provide support for other cryptocurrencies so you can exchange your coins with ease.
However, it is still worth it to do your due diligence before deciding where you want to buy Bitcoin in the U.K. Consider the security features, customer service, reputation, and ease of use before you pick an option. Happy trading!
FAQs
What is the best place to buy Bitcoin in the U.K.?
There are a few places where you can buy Bitcoin in the U.K., but we prefer crypto exchange platforms like Coinbase, eToro, and Luno because they allow you to purchase Bitcoin using a credit card, bank transfer, and other payment methods.
How do I invest in Bitcoin UK?
In the UK, buying bitcoin is mainly done through an exchange. In simplest terms, an exchange is a market for trading bitcoins (and other cryptocurrencies). You can also use different types of bitcoin exchanges.
Is Bitcoin a good investment in the U.K.?
Bitcoin reached an all-time high of $63,729 (£47,539) on 3 January 2024. However, Bitcoin can be volatile and very risky for those who do not understand cryptocurrencies. Plus, there is no EU investor protection, so your capital is at risk.
What is the best Bitcoin company in the U.K.?
Some of the best Bitcoin companies in the U.K. include:
- eToro
- Coinbase
- Bitcoin Profit
- Kraken
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Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.