Best Crypto Exchanges in the UK

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Contents:

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The best crypto exchanges in the UK are Coinbase, eToro, and Uphold. 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.

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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. We’ve noted below which crypto exchanges are registered with the FCA.
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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.
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Here are the best crypto exchanges in the UK:

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Cryptocurrency is digital money designed to be used over the internet. It is a virtual currency that uses cryptography to secure and verify transactions and to control the creation of new units.

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Like any type of money, cryptocurrency can be used to transfer value from one person or institution to another. It is designed to do everything currently possible with the money in your bank account or the physical cash in your wallet, such as buying products or paying for services.

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Unlike other types of money, cryptocurrency is not issued by the government or central bank, and you can use it without the help of an intermediary like a bank or payment processor.

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You can also buy, sell, invest and trade cryptocurrencies on exchanges. Crypto exchanges are like regular stock exchanges where you can buy and sell different investment products. When you trade or invest in crypto, its value can drop or rise in correspondence with demand and supply, and you could lose all the money you put into it.

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The first part of the term “crypto” originates from the Greek word Kryptos, which translates to “hidden”. Cryptocurrency transactions are often protected through cryptography to keep them private and secure from anyone not involved in the transaction. These transactions are vetted by a technology called a blockchain.

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A blockchain is similar to a bank’s ledger or database. But instead of being managed by one bank, it is distributed across the different participants of the cryptocurrency’s entire network. A blockchain consists of a network of computers or nodes that validate and verify transactions.

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Once a transaction is verified, it is added to a block, which is added to the chain of other blocks, creating a permanent and unalterable record of all transactions. No person, company, bank, or authority controls the blockchain, and anyone can participate.

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The theory behind blockchain and Bitcoin first appeared online in late 2007 in a white paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System”, credited to an anonymous individual or group using the pseudonym Satoshi Nakamoto.

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Bitcoin is considered the world’s first and most well-known cryptocurrency and has a market capitalisation of over £398 billion (as of September 2023).

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As Bitcoin gained popularity, several other cryptocurrencies emerged, each with unique features and use cases. Ethereum, created in 2015, is the second-largest cryptocurrency by market capitalisation, with over £155 billion in value (as of September 2023). Unlike Bitcoin, Ethereum allows for the creation of smart contracts, which are self-executing contracts that can automate complex processes.

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Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), Binance Coin (BNB), and Dogecoin (DOGE) are just a few examples of the most popular cryptocurrencies by market capitalisation available today. 

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Tether and USD Coin are examples of stablecoins, which are cryptocurrencies pegged to the value of a stable asset such as the US dollar. These types of cryptocurrencies are used to provide stability and reduce volatility in the cryptocurrency market.

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Dogecoin is a meme-inspired cryptocurrency that gained popularity in 2021. Despite its humorous origins, Dogecoin has a market capitalisation of over £7 billion (as of September 2023) and is widely accepted as a form of payment for goods and services.

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Cryptocurrency has the potential to revolutionise the way we conduct transactions and transfer value. Its decentralised nature allows for greater transparency and security, while its global reach makes it a viable alternative to traditional banking systems.

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While the cryptocurrency market remains highly volatile, its potential for growth and innovation has sparked the interest of investors and enthusiasts worldwide.

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As the world becomes increasingly digitised, it is important to understand the origins and operation of cryptocurrencies to fully appreciate their potential impact.

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Cryptocurrency works by using a decentralised network of computers to verify transactions and maintain the blockchain. When someone wants to send cryptocurrency to another person, they create a transaction and broadcast it to the network. Miners on the network then compete to verify the transaction and add it to the blockchain.

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Miners use powerful computers to solve complex mathematical problems and are rewarded with newly created cryptocurrency for their efforts. This process of adding new transactions to the blockchain is called mining, and it is how new units of cryptocurrency are created.

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Once a transaction is added to the blockchain, it is permanent and cannot be altered. This is because the blockchain is a decentralised ledger distributed across the network of computers, making it nearly impossible to hack or manipulate.

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Staking is another way to validate transactions on the blockchain. Instead of using computing power to mine, staking involves holding a certain amount of cryptocurrency in a crypto wallet to help validate transactions.

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Crypto wallets are digital wallets that allow users to store and manage their cryptocurrency. They are available in different forms, such as hot wallets, which are connected to the internet, or cold wallets, which are offline and more secure.

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Staking can be a more energy-efficient way to participate in the network, as it does not require the same level of computing power as mining.

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To own a cryptocurrency, you can mine, earn or buy it from someone who holds that type of cryptocurrency. Buying or selling crypto is called a trade and can be carried out via crypto exchanges.

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The most common way to acquire crypto in the UK today is to buy it on a crypto exchange such as eToro or Coinbase. To buy crypto, you can use the cash in your bank account or exchange your existing crypto for another.

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You can buy cryptocurrencies in the UK from crypto exchanges, such as eToro,  Coinbase, and Uphold.

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Other methods of buying cryptocurrencies include crypto index funds, exchange-traded funds (ETFs) and ready-made portfolios. These alternative crypto investment vehicles allow you to invest in a basket of cryptocurrencies rather than buying individual cryptocurrencies. We go into detail about these types of crypto investments in the next section.

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To buy and store individual cryptocurrencies securely, follow the steps below:

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1. Create an Account With a Crypto Exchange: A crypto exchange or crypto app allows you to buy, sell, and hold many kinds of cryptocurrencies, including popular coins like Bitcoin, Ethereum, USD Coin, and Dogecoin. Each exchange has its own fees, security features, and range of available cryptocurrencies, so it is important to research and compare before choosing one.
   
   You should only use crypto exchanges for transactions and not for storing your cryptocurrencies–use a crypto wallet instead for storing your cryptocurrencies. You’ll need a valid means of identification and payment method to create an account with a crypto exchange.
   
   
2. Add a Payment Method: Most crypto exchanges allow you to deposit funds using your GBP debit card, bank transfer, PayPal, or open banking technology.
   
   
3. Choose and Configure Your Wallet: Wallets are extremely important as they help you store your crypto holdings securely. It is better to store your cryptocurrencies in a wallet than a crypto exchange because wallets are typically independent of exchanges.
   
   If the exchange goes bust or gets hacked, for example, you will be sure that your money is safe on the blockchain and separated from the crypto exchange if it is stored in a wallet. Examples of crypto wallets include Coinbase Wallet, ‍Bither Wallet, eToro Money Wallet, MetaMask, and MyDoge Wallet.
   
   
4. Research Cryptocurrencies: Before buying crypto, it might be worthwhile to conduct some research. Factors to consider when choosing cryptocurrencies include the cryptocurrency’s objectives, market capitalisation, adoption and popularity, underlying technology, development team, and liquidity.
   
   A good place to start would be to examine the top 10 cryptocurrencies by market capitalisation.
   
   
5. Buy Cryptocurrencies: Once you’ve signed up to a crypto exchange, configured your wallet and determined what cryptocurrencies you want to purchase, you are now ready to buy crypto. Navigate to the trading section of your preferred crypto exchange and buy the cryptocurrencies of your choice.
   
   
6. Transfer Your Cryptocurrencies to a Secure Crypto Wallet: Upon completing your purchase, transfer your cryptocurrencies to a secure wallet for safekeeping. You can always transfer them back to the exchange when you are ready to convert your crypto to cash.

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Buying and storing cryptocurrencies can be daunting, particularly for those new to the world of crypto.

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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.

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1. Crypto ETFs and Index Funds

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.

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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.

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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.

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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.

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2. Ready-Made Crypto Portfolios

Ready-made crypto portfolios are pre-constructed portfolios of cryptocurrencies designed to provide UK investors with a diversified exposure to the crypto market.

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One example is eToro’s CryptoPortfolio, a basket of several cryptocurrencies weighted according to each cryptocurrency’s total market capitalisation. As of September 2023, Bitcoin, Ethereum, and BNB made up 47%, 18%, and 9% of the holdings in this portfolio, respectively. The portfolio is rebalanced once a year.

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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.

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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.

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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.

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The following are factors to consider when choosing cryptocurrencies:

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1. Market Cap and Liquidity: The first thing to consider is the market capitalisation of the cryptocurrency. Market capitalisation (or market cap) is a metric used to measure the size and popularity of a cryptocurrency based on its current price and volume. The higher the market cap, the more popular the cryptocurrency is.
   
   To get the market cap at any given time, multiply the current price of any cryptocurrency by the total number of that cryptocurrency in circulation. Similarly, liquidity is important as it allows you to buy and sell the cryptocurrency easily.
   
   
2. Technology and Innovation: Technology is the foundation of any cryptocurrency. It is important to understand the underlying technology and its potential applications. Look for cryptocurrencies that are innovative and have the potential to solve real-world problems.
   
   Most cryptocurrencies have a website where the developers go into detail about the technology and innovation, for example, Bitcoin.org and Ethereum.org.
   
   
3. Team and Community: The team behind a cryptocurrency is crucial to its success. Look for teams with experienced developers, advisors, and a strong community of supporters. A strong community helps to create a network effect that can drive adoption and increase the value of the cryptocurrency.
   
   
4. Use Case and Adoption: A cryptocurrency is only valuable if it has a real-world use case. Look for cryptocurrencies that have a clear use case and are being adopted by businesses and individuals. A cryptocurrency that is being used in the real world has a better chance of succeeding than one that is purely speculative.
   
   
5. Security and Transparency: Cryptocurrencies are vulnerable to hacking and fraud. Look for cryptocurrencies that have a robust security system in place. Similarly, transparency is vital as it allows investors to verify the authenticity of the cryptocurrency and its transactions.
   
   
6. Regulatory Landscape: The regulatory landscape for cryptocurrencies is constantly evolving. Look for cryptocurrencies that comply with local regulations and have a clear legal framework. This will help to mitigate regulatory risks and ensure the long-term viability of the cryptocurrency. In the UK, you should look for cryptocurrencies compliant with FCA laws and regulations.
   
   
7. Risk and Reward: Investing in cryptocurrencies is risky. It is important to understand the risks involved and to invest only what you can afford to lose. Look for cryptocurrencies that have a good risk-reward ratio. This means that the potential rewards outweigh the risks.

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The differences between a crypto exchange and a crypto wallet can be confusing for those new to cryptocurrencies.

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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.

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1. Crypto Exchange

Crypto exchanges are online platforms where you can buy, sell, and hold cryptocurrencies. Some of the most popular crypto exchanges in the UK are eToro, Coinbase, and Uphold.

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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.

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2. Crypto Wallet

A crypto wallet is a digital 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.

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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.

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• Hot Wallet: A hot wallet is a digital wallet that is connected to the internet, allowing users to access their cryptocurrencies quickly and easily. It is ideal for people who need to make frequent transactions and want easy access to their crypto holdings.
  
  Examples of popular hot wallets include Exodus, MyEtherWallet and Coinbase Wallet.
  
  
• Cold Wallet: A cold wallet is a hardware wallet that is not connected to the internet. Cold wallets provide a more secure way to store digital assets because they are not vulnerable to hacking attacks. They are best suited for the long-term storage of cryptocurrencies.
  
  Cold wallets can be further classified into two types: paper wallets and hardware wallets. Paper wallets are simply printouts of private keys, whereas hardware wallets are physical devices that store the private keys offline. Some popular cold wallets include Ledger Nano S, Trezor, and KeepKey.

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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.

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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.

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More recently, in 2019, Binance suffered a hack that resulted in the loss of over US$40 million (£33.2 million) worth of Bitcoin.

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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.

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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.

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By using a hardware wallet, which stores a user’s private keys offline, users can significantly reduce their risk of a hack.

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Here is a breakdown of the most common crypto trading fees:

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1. Maker-Taker Fees: Maker-taker fees are a common fee structure used by cryptocurrency exchanges. When you place an order to buy or sell crypto, you can either take liquidity from the order book (a taker) or add liquidity to the order book (a maker). Takers pay a fee for taking liquidity from the order book, while makers receive a fee for adding liquidity to the order book.
   
   This fee structure is designed to incentivise liquidity providers to add more liquidity to the exchange. Not all crypto exchanges featured on Koody charge maker-taker fees, but those that do are highlighted above.
   
   
2. Trading Fees: Trading fees are charged by crypto exchanges when you buy or sell cryptocurrency. These fees can vary depending on the exchange and the volume of the trade. They are usually a percentage of the trade amount, but some exchanges charge a flat fee. Trading fees can also vary depending on whether you are a maker or a taker.
   
   
3. Foreign Exchange (FX)/Currency Conversion Fee: FX or currency conversion fees are charged when you buy or sell crypto using a currency different from the base currency of the crypto exchange.
   
   For example, if the base currency of the exchange is USD and you buy BTC with GBP, you may be charged a currency conversion fee. This fee is usually a percentage of the transaction amount and is used to cover the cost of converting the currency.
   
   
4. Withdrawal Fees: Withdrawal fees are charged when you withdraw crypto or cash from an exchange to an external wallet or bank account. These fees can vary depending on the cryptocurrency and the exchange. Not all exchanges charge a withdrawal fee, but those that do typically charge a flat fee or a percentage of the withdrawal amount.
   
   It is essential to be aware of withdrawal fees before making a withdrawal or creating an account with a crypto exchange so you can factor them into your decision-making.
   
   
5. Market Spread: Market spread is the difference between the bid price (the highest price a buyer is willing to pay) and the ask price (the lowest price a seller is willing to accept) of a cryptocurrency. This difference represents the spread, and it is where the crypto exchange makes its profit. The market spread can vary depending on the liquidity of the market and the volatility of the cryptocurrency.
   
   
6. Gas Fees: Gas fees are fees you pay miners on the blockchain network to process a transaction. When you send a transaction on the blockchain, it requires computational resources to process it. Gas fees are used to incentivise miners to process your transaction faster.
   
   The higher the gas fee you pay, the faster your transaction will be processed. You will only ever encounter gas fees when you transact directly in cryptocurrencies, for example, when buying a domain name on the Ethereum Name Service.

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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:

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1. Tax When You Receive Cryptoassets

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.

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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.

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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.

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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.

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2. Tax When You Sell Cryptoassets

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.

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This tax year, the Capital Gains tax-free allowance is £6,000 (£3,000 for trusts). This means you do not need to pay tax on the first £6,000 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.

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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).

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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.

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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.

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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.

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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).

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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.

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Here are the best crypto exchanges and Bitcoin trading platforms in the UK:

1. Coinbase - Beginner friendly; Crypto card; 240+ Cryptoassets
2. eToro - Good for beginners and experts; 70+ Cryptocurrencies
3. Uphold - Crypto card; 3 National currencies; 250+ Cryptoassets
4. CoinJar - Ready-made crypto portfolios; 50+ Cryptocurrencies
5. Kraken - Low cost; Staking rewards; 200+ Cryptocurrencies

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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.

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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.

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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.

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Cryptocurrencies are not regulated in the UK. However, some crypto exchanges, such as eToro, Coinbase, and Uphold, are registered with the Financial Conduct Authority (FCA).

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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.

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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.

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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.

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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.

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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.

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Cryptocurrencies offer several potential benefits that traditional fiat currencies and payment systems may not. Here are five examples:

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1. Decentralisation: Cryptocurrencies are decentralised, meaning they are not controlled by a central authority such as a government or bank. This can make them more resistant to censorship, manipulation, and corruption.
   
   
2. Security: Cryptocurrencies use strong cryptographic protocols to secure transactions and prevent counterfeiting or fraud. The transparency and immutability of the blockchain also provide an additional layer of security and accountability.
   
   
3. Efficiency: Cryptocurrencies can facilitate fast, low-cost transactions across borders without the need for intermediaries. This can be particularly beneficial for individuals and businesses who need to transfer funds quickly or frequently.
   
   
4. Financial Inclusion: Cryptocurrencies can help provide access to financial services for individuals who are unbanked or underbanked. For example, stablecoins like Tether and USDC offer a stable value that can be used as a store of value or medium of exchange in regions with unstable or inflationary currencies.
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5. Innovation: Cryptocurrencies have sparked a wave of innovation and experimentation in the financial sector, leading to new applications and technologies that could benefit society as a whole. For example, smart contracts on the Ethereum blockchain enable decentralised applications and programmable money that can automate complex financial processes.

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The cheapest FCA-registered cryptocurrency exchange in the UK is Kraken.

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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.

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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.

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Additionally, HMRC requires individuals and businesses to pay taxes on their cryptocurrency gains or profits, with different payment methods depending on the nature of the activity.

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Although primers of cryptocurrency have said that Bitcoin “can be used to buy merchandise anonymously”, cryptocurrencies, despite their reputation, are not anonymous. They are pseudo-anonymous.

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Even though no banks or external authorities are involved in a crypto transaction, and it only happens between a buyer and seller, by linking the transaction to a fixed wallet address and maintaining a public record of every transaction made on the blockchain, financial activity can be monitored.

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Additionally, if you change your public wallet address to a readable name, for example, charlie.eth, using a domain service like the Ethereum Name Service, anyone can view all your transactions on Etherscan.

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‍The USA has made matters even more complicated by proposing a rule which states that all transactions over US$10,000 involving self-hosted wallets must be reported to FinCEN. However, this rule only applies to the USA and will not affect the UK.

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This controversial rule is designed to deter people from transacting with cryptocurrency through illegal schemes. However, such rules tarnish the idealised image of autonomy that cryptocurrencies are trying to bring into reality.

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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.

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The most common way to acquire cryptocurrency today is by buying it on a crypto exchange such as eToro or CoinJar. To buy crypto, you can use the cash in your bank account or exchange your existing crypto for another.

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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.

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Here are the best apps to buy cryptocurrencies in the UK:

1. Coinbase - Beginner friendly; Crypto card; 240+ Cryptoassets
2. eToro - Good for beginners and experts; 70+ Cryptocurrencies
3. Uphold - Crypto card; 3 National currencies; 250+ Cryptoassets
4. CoinJar - Ready-made crypto portfolios; 50+ Cryptocurrencies
5. Kraken - Low cost; Staking rewards; 200+ Cryptocurrencies

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