Do not invest unless you are prepared to lose all the money you invest. Cryptoassets are high-risk investments, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Additionally, capital gains tax may apply to profits from cryptocurrency sales.
Contents:
The best crypto exchanges in the UK are Coinbase, eToro, and CoinJar. These exchanges are registered with the FCA and facilitate the seamless buying and selling of Bitcoin and other cryptocurrencies directly from your smartphone, tablet, or computer.
Scroll down for a detailed review of each exchange and to discover our top five crypto exchanges for buying, selling, and holding Bitcoin, Ethereum, XRP, USD Coin, Dogecoin, and other cryptocurrencies in the UK.
Cryptoassets and crypto exchanges are not regulated in the UK, but the UK’s financial watchdog, the Financial Conduct Authority (FCA), requires crypto exchanges operating in the UK to complete a registration process. Below, we’ve noted the crypto exchanges currently registered with the FCA.
Please keep in mind that cryptoassets are highly volatile, and there is no government protection for your crypto holdings. You could lose all the money you put into them.
Here are the best crypto exchanges in the UK:
Coinbase is a cryptocurrency exchange that allows you to buy, sell and hold cryptocurrencies, NFTs, and other DeFi products and keep track of them in one place. With Coinbase, you have over 240 cryptocurrencies to choose from, including popular coins and tokens like Bitcoin, Ethereum, USD Coin, Tether, Dogecoin and Polygon. You can also trade new or rare coins that may not be available on other crypto exchanges. New cryptocurrencies are added to the Coinbase exchange as frequently as every few days.
Coinbase also gives you access to a self-custody crypto wallet where you can store all your crypto and NFTs in one place. The Coinbase Wallet also supports hundreds of thousands of tokens and dApps, and users can use DeFi liquidity pools to supply or borrow crypto and swap assets on decentralised exchanges. Coinbase offers a crypto card powered by an FCA-licensed e-money institution. With the Coinbase card, you can spend crypto like cash anywhere Visa cards are accepted. If you are interested in learning about how specific cryptocurrencies work, you can take advantage of Coinbase’s earn feature, which rewards you with a tiny bit of crypto for completing online courses on cryptocurrencies. The Coinbase desktop and mobile apps are beautifully designed, easy to use, and offer a range of products that are suitable for beginners, advanced crypto traders, and businesses.
There are multiple fees involved when trading crypto on Coinbase. Fees are calculated at the time you place your order and may be determined by a combination of factors, including the selected payment method, the size of the order, and market conditions such as volatility and liquidity. For basic trading, fees will be listed in the trade preview screen before you submit your transaction and may differ for similar transactions. For advanced trading, Coinbase charges a Maker fee ranging from 0.40% to 0.00% and a Taker fee ranging from 0.60% to 0.05%, depending on the size of your order. The larger the order size, the smaller the fee on a percentage basis.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
eToro is a multi-asset trading platform that enables you to trade or invest in cryptocurrencies, NFTs, stocks, ETFs, commodities, forex, and indices. With eToro, you can trade over 70 “real” cryptocurrencies, including popular coins like Bitcoin, Ethereum, XRP, Binance Coin (BNB) and Dogecoin.
Crypto trading on eToro is suitable for both beginners and advanced traders. Beginners can benefit from the educational materials, user-friendly desktop and mobile apps and copy trading tools (which allow you to copy the trades of top-performing crypto traders on the eToro platform). Advanced traders can take advantage of superior charting and analytics tools, social trading features, and real-time crypto market news and insights. You can also benefit from eToro’s risk management tools, such as Stop Loss, Take Profit and Trailing Stop Loss, to better manage your positions, protect your investments and secure your profits. Stop Loss and Take Profit are not guaranteed.
It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practise buying crypto and other assets before committing real money. eToro does not charge a deposit fee but charges a 1% trading fee on all crypto positions. Trading on eToro occurs in USD, so a conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5 (£4), and the minimum withdrawal amount is US$30 (£24). For UK customers, eToro offers an eToro Money app that allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs. The app also functions as a crypto wallet for storing your crypto holdings and allows for easy transfer of your cryptocurrency from one exchange or wallet to another.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
CoinJar is a cryptocurrency app and exchange based in the UK and Australia. With CoinJar, you can trade or invest in 50+ cryptocurrencies, including popular coins such as Bitcoin, Ethereum, XRP, USD Coin, Dogecoin and Shiba Inu Coin. The CoinJar app, which doubles as a crypto wallet, allows you to buy, sell, hold, spend and transfer cryptocurrencies securely on your desktop, iOS or Android device. The CoinJar card lets you make purchases with your crypto, online and in-store, anywhere Mastercard is accepted. It is free to activate the CoinJar card, and there are no monthly fees for using it. When paying with the card, your crypto is automatically converted to fiat currency using CoinJar’s best rates at the time of the transaction. You can choose to have a virtual or physical card or both. The CoinJar card is fully integrated with Google Pay, so Android users can spend crypto instantly and securely with any device.
CoinJar has a unique feature called a Crypto Bundle. A Crypto Bundle is a themed basket of cryptocurrencies, similar to a crypto index fund, crypto ETF or a ready-made stock portfolio. For example, you can buy a CoinJar Universe bundle, which is a portfolio of all the cryptocurrencies available on CoinJar. One investment into such a bundle means you have invested in every cryptocurrency available on CoinJar with just a click of a button. Crypto Bundles can either be proportional, where the weight of each cryptocurrency in a bundle is equal or cap-allocated, where the weights are allocated based on market cap performance.
CoinJar is suitable for both beginners and advanced traders. Beginners can take advantage of the easy-to-use app and ready-made crypto portfolios, while advanced and professional traders can take advantage of CoinJar’s institutional-grade crypto solutions, such as the CoinJar OTC, with razor-thin spreads and globally sourced liquidity. The minimum deposit to open an account with CoinJar is £10. Deposits are made in GBP, so FX fees do not apply. There is a trading fee of 1% on the CoinJar mobile app and website. The CoinJar Exchange (for market orders and aggressive limit orders) charges 0.00% for Taker orders and 0.10% - 0.04% for Maker orders (limit orders).
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
Uphold is a beginner-friendly cryptocurrency exchange that allows you to buy and sell over 250 cryptocurrencies, including majors, altcoins and emerging tokens such as Bitcoin, Ethereum, XRP, Dogecoin, Polkadot, ApeCoin, PancakeSwap and Audius. Users can also buy and sell up to 3 national currencies, including GBP, EUR and USD and enjoy competitive forex rates. Uphold offers a free virtual crypto card that allows you to spend your crypto anywhere a Mastercard is accepted. With the Uphold crypto card, you receive up to 1% cashback on your card transactions paid to you in GBP. The card has no transaction fees when spending locally or internationally and can be easily linked to Apple Pay or Google Pay.
As an Uphold customer, you can earn staking rewards when you put your digital assets to work. Currently, customers can earn up to 13% APY. Please keep in mind that staking rates are variable and may change at Uphold’s discretion. Uphold offers crypto wallets for up to seven cryptocurrencies and crypto networks. Customers can store their crypto in the Uphold Bitcoin Wallet, Ethereum Wallet, XRP Wallet and many more. With Uphold, you can schedule regular transactions using AutoPilot, which allows you to set up recurring buy or sell orders and reduce the impact of price volatility. As an Uphold customer, you can also take advantage of the limit order feature, which allows you to buy or sell a cryptocurrency at a specified price. Customers can place up to 50 limit orders using one pool of capital.
There are multiple fees involved when trading crypto on Uphold. The most important fees to look out for are trading fees, FX fees, and market spreads. In the UK, US and Europe, Uphold charges a market spread ranging from 0.9% to 1.2% on BTC and ETH. Spreads can be significantly higher for low-liquidity cryptos and tokens such as XRP, ZIL, OXT, UPT, DOGE and others. You will be able to see the total cost of your trade before you place the trade. Uphold charges a withdrawal fee of $3.99 for bank transfers and $2.99 for crypto transfers. Visit Uphold to learn more.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
Kraken is a crypto exchange that allows you to trade and invest in over 200 cryptocurrencies, including Bitcoin, Ethereum, Tether, XRP, USD Coin, and Litecoin. The platform is robust and will accommodate the needs of both beginners and experienced crypto traders. Beginners or newbie crypto traders can benefit from Kraken’s slick and easy-to-navigate mobile apps, wide range of educational materials, and 24/7 customer support. Advanced traders can take advantage of Kraken Pro, which provides access to spot, margin, futures trading, and staking in an all-in-one powerful interface that boasts low spreads and deep liquidity across markets. Advanced traders can also benefit from Kraken’s risk management tools, including Limit, Market, and Advanced (Stop Loss and Take Profit) Orders, to better manage positions, protect investments and secure profits.
Kraken allows you to earn staking rewards when you put your cryptocurrencies to work. Currently, customers can earn up to 24% in rewards annually by staking digital assets with Kraken. Please keep in mind that this rate is subject to change and compliance with Kraken’s terms and conditions. Additionally, to help customers feel more secure about trading on Kraken, the platform regularly publishes its proof of reserves audits, making it easy for customers to verify that the balances they hold are backed by real assets.
It is entirely free to open an account with Kraken. However, your first trade must be worth at least US$10 (£8). Kraken charges multiple fees depending on the assets you buy and how you choose to trade: If you trade via the mobile app using the basic features, a Maker fee ranging from 0.20% to 0.00% and a Taker fee ranging from 0.26% to 0.001% will apply, depending on the type and size of your order. The larger the order size, the smaller the fee on a percentage basis and vice versa. Other fees such as withdrawal, FX, and instant buy fees may apply.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
Gemini, founded by Tyler and Cameron Winklevoss, is an easy-to-use cryptocurrency exchange suitable for beginners and advanced crypto traders. Gemini makes it simple to research the crypto market, buy Bitcoin, Ethereum, NFTs, and 100+ digital currencies, and build a portfolio of cryptocurrencies and tokens. With Gemini, you can trade assets, manage your holdings, set recurring trades, dynamic price alerts and choose a default currency from GBP, USD, AUD, CAD, EUR, HKD and SGD. You can also track your trades and monitor market movements via the Gemini web app or iOS and Android mobile apps.
The Gemini Wallet lets you store all your assets in an insured hot wallet or institutional-grade cold storage system and supports all cryptocurrencies and assets listed on the Gemini Exchange. UK customers can access the Gemini Exchange, which offers various beginner-friendly crypto trading tools. For customers looking for a more advanced trading experience, Gemini’s ActiveTrader is a high-performance crypto trading platform that delivers a professional-level experience, advanced charting, and multiple order types. Gemini has a unique feature called Gemini Clearing, which allows two parties to settle a trade off the order book. Gemini then acts as a confirming third party in the pre-arranged transaction, which helps ensure timely settlement while mitigating counterparty risk.
There are multiple fees involved when trading crypto on Gemini, including transaction fees, convenience fees, and Maker-Taker fees, depending on whether you access the Gemini Exchange via the mobile app, web app or ActiveTrader interface. Gemini charges between £0.75 - 1.49% for mobile and web app trades and Maker-Taker fees for orders placed via ActiveTrader. Gemini does not charge a withdrawal fee but charges a convenience fee in addition to the transaction fee for instant orders placed via its mobile app.
Please note: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more. Cryptoassets are not regulated by the FCA and are not subject to protection under the FSCS or within the scope of jurisdiction of the Financial Ombudsman Service. Capital gains tax may apply to profits from cryptocurrency sales.
The following are factors to consider when choosing cryptocurrencies:
One way to gain exposure to the crypto market without the complexities of buying and holding individual cryptocurrencies is through crypto ETFs, index funds, and ready-made portfolios.
Crypto exchange-traded funds (ETFs) and index funds are investment vehicles that provide exposure to a basket of cryptocurrencies or a single cryptocurrency. They are designed to track the performance of a specific index, benchmark or cryptocurrency, and they allow investors to gain exposure to the crypto market without having to purchase and manage multiple coins.
One example of a crypto ETF is the Purpose Bitcoin ETF, which is listed on the Toronto Stock Exchange. This ETF exposes investors to the price of Bitcoin by investing directly in the cryptocurrency. The Bitcoin ETF is designed to track the performance of the price of Bitcoin and offers a convenient way for investors to gain exposure to Bitcoin without buying it directly.
An example of a crypto index fund is the Grayscale Bitcoin Trust, which is a popular option in the US. The trust invests solely and passively in Bitcoin. It aims to provide investors with a cost-effective and convenient way to gain exposure to Bitcoin in the form of a security while avoiding the challenges of buying, storing, and safekeeping it directly.
Please note: The Financial Conduct Authority (FCA) has placed a ban on the sale of crypto-derivatives and exchange-traded notes (ETNs) to retail customers, so crypto index funds and ETFs, such as the Bitcoin ETF, are not available to UK customers.
Ready-made crypto portfolios are pre-constructed portfolios of cryptocurrencies designed to provide UK investors with a diversified exposure to the crypto market.
One example is eToro’s CryptoPortfolio, a basket of several cryptocurrencies weighted according to each cryptocurrency’s total market capitalisation. As of October 2024, Bitcoin, Ethereum, and BNB made up 46%, 12%, and 11% of the holdings in this portfolio, respectively. The portfolio is rebalanced once a year.
Another example of a ready-made crypto portfolio in the UK is the CoinJar Universe Bundle, a portfolio of all the cryptocurrencies available on CoinJar. One investment into such a bundle gives you exposure to every cryptocurrency available on CoinJar.
UK Investors looking for exposure to the crypto market without the complexities of buying and holding individual cryptocurrencies might want to consider ready-made crypto portfolios since crypto ETFs and index funds are unavailable in the UK.
Please remember that crypto assets are volatile and unregulated, and you can lose all the money you put into them. This information does not constitute financial advice.
The differences between a crypto exchange and a crypto wallet can be confusing for those new to cryptocurrencies.
Below, we explain the differences between these two essential tools and why it is important to understand them, especially in the context of crypto hacks.
Crypto exchanges are online platforms where you can buy, sell, and hold cryptocurrencies. They are also called crypto brokers, crypto on-ramps, or crypto trading platforms (or apps). Two of the most popular crypto exchanges in the UK are eToro and CoinJar.
These exchanges act as intermediaries between buyers and sellers, matching them up and executing trades. They typically charge fees for their services, which can vary depending on the exchange and the transaction type.
A crypto wallet is a tool that allows users to store, send, and receive cryptocurrencies. It is designed to hold the private keys needed to access a user’s cryptocurrency on the blockchain.
There are different types of crypto wallets available in the market today, and they can broadly be classified into two categories: hot wallets and cold wallets.
While both crypto exchanges and wallets play critical roles in the world of cryptocurrencies, they are fundamentally different. Exchanges are designed for trading, while wallets are designed for storage. Exchanges offer liquidity and convenience, while wallets provide security and control.
When it comes to crypto hacks, exchanges are more vulnerable than wallets. In fact, there have been several high-profile hacks of crypto exchanges in recent years, including the infamous Mt. Gox hack in 2014, which resulted in the loss of over 700,000 Bitcoin.
More recently, in 2019, Binance suffered a hack that resulted in the loss of over US$40 million (£33.2 million) worth of Bitcoin.
Additionally, defunct cryptocurrency exchange FTX claimed to have been hacked in 2022, resulting in a loss of around US$415 million (£338 million) worth of crypto.
Crypto wallets are generally considered to be more secure than exchanges. While there have been instances of wallet hacks, these are typically the result of user error or phishing attacks rather than vulnerabilities in the wallet software itself.
By using a hardware wallet, which stores a user’s private keys offline, users can significantly reduce their risk of a hack.
Here is a breakdown of the most common crypto trading fees:
HM Revenue & Customs (HMRC) has provided guidance to help people determine whether they need to pay tax on their cryptoassets. In a nutshell, here are the key aspects you need to know about taxes when you receive or sell cryptocurrencies:
The tax rules depend on the specific transaction circumstances. Generally, you may need to pay Income Tax and National Insurance contributions if you receive cryptoassets as income.
You don’t pay tax when you purchase cryptocurrencies. If you acquire them through mining and aren’t trading, you might need to complete a Self Assessment tax return, depending on the value of the assets or other untaxed income.
If your employer pays you in readily convertible cryptoassets (easily exchanged for cash), they must handle Income Tax and National Insurance through PAYE. If the assets aren’t readily convertible, you should ask your employer about your Income Tax and, if necessary, complete a Self Assessment tax return.
Keep records of all cryptoassets you receive, including the type, date, amount, total holdings, value in pounds, bank statements, and disposal date. If in doubt, consult a professional tax adviser for guidance.
Tax rules for selling cryptoassets also depend on the specific transaction circumstances. Generally, you pay Capital Gains Tax when your gains from selling certain assets exceed the tax-free allowance.
This tax year, the Capital Gains tax-free allowance is £3,000 (£1,500 for trusts). This means you do not need to pay tax on the first £3,000 profit you make from selling cryptoassets unless you’ve already used up your allowance elsewhere, for example, on the profit from the sale of stocks and shares.
You may need to pay Capital Gains Tax when you sell cryptoassets, exchange them for a different type, use them to pay for goods or services or give them away (unless it’s a gift to your spouse or civil partner).
Donating cryptoassets to charity may require you to pay Capital Gains Tax. You don’t need to pay Capital Gains Tax on the value of cryptoassets you’ve already paid Income Tax on but will need to pay it on any gains made afterwards.
Keep accurate records of each transaction, including the disposal date, the number of cryptoassets disposed of, remaining assets, value in pounds, bank statements, wallet addresses, and pooled costs before and after disposal.
If you’re unsure about paying Capital Gains Tax on your cryptoasset sales, consult a professional tax adviser. HMRC’s guidance can help you understand your obligations, but in complex cases, professional advice may be necessary.
In the UK, it is best to use a crypto exchange or Bitcoin trading platform that is registered with the UK’s financial watchdog, the Financial Conduct Authority (FCA).
While the FCA and the Financial Ombudsman Service do not provide any kind of compensation for crypto losses, hacks or scams, it might still be worth using a crypto exchange that is registered with the FCA, as registered financial institutions tend to offer more reliable products than those that play entirely by their own rules.
Here are the best crypto exchanges and Bitcoin trading platforms in the UK:
Whether cryptocurrencies are considered “real money” depends on how one defines money. Cryptocurrencies can be used as a medium of exchange, a unit of account, and a store of value, which are key functions of money. However, they are not legal tender in most countries, and their value is highly volatile.
Additionally, unlike fiat currencies that are backed by a central government, cryptocurrencies have no intrinsic value and rely on market demand and adoption. This can make their value subject to speculation and manipulation.
Some businesses and individuals do accept cryptocurrencies as payment for goods and services, and there are even some countries where cryptocurrencies are recognised as a form of payment for taxes or fees. However, the lack of widespread adoption and regulatory clarity means that cryptocurrencies are not yet widely accepted as a mainstream form of money.
Cryptocurrencies are not regulated in the UK. However, some crypto exchanges, such as eToro, CoinJar, and Uphold, are registered with the Financial Conduct Authority (FCA).
The FCA’s position on cryptocurrency is that “Cryptoassets are considered very high-risk, speculative investments. If you invest in cryptoassets, you should be prepared to lose all your money. You are unlikely to have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS) if something goes wrong.” To learn more about the FCA’s position on cryptocurrencies, read its guidance.
Cryptocurrencies are based on secure cryptographic protocols that make them difficult to counterfeit or manipulate, but they are not immune to hacking, theft, or fraud.
The decentralised and unregulated nature of many cryptocurrencies also means that there is no central authority, such as the Financial Conduct Authority (FCA) or the Financial Ombudsman Service (FOS), to provide protections or recourse in the event of a problem.
To keep your cryptocurrencies safe, it is essential to take several precautions, including using strong passwords, enabling two-factor authentication (2FA), using reputable exchanges or wallets, and avoiding sharing your private keys with anyone.
It is also wise to regularly update your software and stay up-to-date with the latest security practices and news in the cryptocurrency world. In general, being diligent and cautious with your cryptocurrency investments can help reduce the risk of loss or theft.
Cryptocurrencies offer several potential benefits that traditional fiat currencies and payment systems may not. Here are five examples:
The cheapest FCA-registered cryptocurrency exchange in the UK is Kraken.
With Maker fees ranging from 0.20% to 0.00% and Taker fees ranging from 0.26% to 0.001%, depending on the size of your portfolio and trading method, Kraken is the cheapest FCA-registered cryptocurrency exchange in the UK.
Cryptocurrency is legal in the UK, and there are no restrictions on individuals buying, selling, or holding cryptocurrencies like Bitcoin, Ethereum, Dogecoin and other altcoins. However, some businesses dealing with cryptocurrencies are required to register with the Financial Conduct Authority (FCA) and comply with anti-money laundering regulations.
Additionally, HMRC requires individuals and businesses to pay taxes on their cryptocurrency gains or profits using different payment methods depending on the nature of the activity.
To get cryptocurrency, you can either mine, earn or buy it from someone who owns the type of cryptocurrency you want. Buying or selling crypto is called a trade and can be carried out via crypto exchanges.
The most common way to acquire cryptocurrency today is by buying it online from a crypto exchange (or crypto on-ramp), such as eToro or Coinbase. To buy crypto, you can use the cash in your bank account or exchange your existing crypto for another.
Cryptocurrency mining involves solving complex mathematical equations with the goal of earning some cryptocurrencies. These equations validate blocks of transactions, and each block is added to the blockchain. The first computer to solve the complex equation or algorithm gets rewarded with new cryptocurrencies.
Here are the best apps and crypto on-ramps for buying cryptocurrencies in the UK:
Every month, we’ll send you The Plug - a curation of the best personal finance content in the UK. We share real-life stories, how-to guides, top personal finance news, popular community questions, and tips to help you stay on top of your money.