Please keep in mind that cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. You could lose all the money you put into them. Capital gains tax may apply to profits from cryptocurrency sales.

How to Invest in Bitcoin in the UK

Updated On: Apr 28, 2022
How to Invest in Bitcoin UK

Contents:

How to Invest in Bitcoin

The easiest way to invest in Bitcoin if you live in the UK is to purchase it online from a crypto exchange such as eToro, Gemini or Coinbase. Crypto exchanges make it easy to buy and sell Bitcoin and other cryptocurrencies directly from your smartphone, tablet or computer.

After purchasing Bitcoin, you can do one of two things:

On the one hand, you can leave your Bitcoin in the crypto exchange, where you will be able to monitor the value and exchange it for other cryptocurrencies (such as Ethereum, Solana, USD Coin, BNB, XRP and more) or for fiat currencies (such as GBP, USD, EUR and others). 

On the other hand, you can move your Bitcoin and other crypto holdings to a secure Bitcoin wallet that can be separate from or owned by the crypto exchange you use.

In order to manage your Bitcoin, there are three basic concepts you must understand:

  1. Public Key: This is like an email address that you can share with others. With your Bitcoin public key, you can receive Bitcoins.
  2. Private Key: This is like a password to your Bitcoin holdings, and you should not share it with anyone. A private key is a long string of letters and numbers. It is extremely important to keep track of your private keys and keep them safe. If you lose them, you lose your Bitcoin forever.
  3. Bitcoin Wallet: You need a wallet to store and manage your Bitcoin and other crypto holdings. Crypto exchanges such as eToro, Gemini or Coinbase offer a simple Bitcoin wallet for storing and securing your Bitcoin. A wallet and a crypto exchange are two separate things. Even though most crypto exchanges listed on Koody have their own wallets, you do not need to use a wallet if you prefer to leave your Bitcoin in a crypto exchange.

Best Bitcoin Trading Platforms in the UK

We’ve compiled a list of some of the best Bitcoin trading platforms in the UK. These are Bitcoin exchanges, wallets, apps and websites where you can buy Bitcoin, Ethereum, Solana, Cardano and other cryptocurrencies in the UK.

Please remember that cryptoassets, such as Bitcoin, are a highly volatile unregulated investment product with no UK or EU investor protection. You could lose all the money you put into them. Additionally, capital gains tax may apply to profits from cryptocurrency sales.

Compare some of the best Bitcoin trading platforms below:


eToro - Live prices; Wallet; Advanced trading tools; Popular coins

eToro Logo
Minimum Deposit
US$10 (£8)
Trading Fees
1%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

eToro is a multi-asset trading platform that offers both investing in stocks and crypto assets, as well as trading CFDs. With eToro, you have over 120 cryptocurrencies to choose from, including popular coins like Bitcoin, Ethereum, Tether, XRP, Binance Coin (BNB) and Solana. 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 practice buying crypto and other assets before committing to them. eToro does not charge a deposit fee but charges a 1% trading fee on all buy and sell orders. 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, and the minimum withdrawal amount is $50.

For UK customers, eToro offers an eToro Money app which allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs. The app also functions as a wallet for storing your crypto holdings and allows for easy transfer of your cryptocurrency from one exchange or wallet to another. Of all the crypto exchanges listed here, eToro has the highest number of popular coins (cryptocurrencies with the highest market capitalisation) on offer. eToro offers other products, including 0% commission stocks.

Please note: Cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. Your capital is at risk. Additionally, 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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Coinbase - Live prices; Crypto wallet; Popular coins; Earn free crypto

Coinbase logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.50% - 0.00% / 0.50% - 0.04%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Coinbase is a cryptocurrency exchange that allows you to buy, sell and earn popular digital currencies, and keep track of them in one place. With Coinbase, you have over 500 cryptocurrencies and other digital assets to choose from, including popular coins and tokens like Bitcoin, Ethereum, USD Coin, Tether, Dogecoin and Cardano. You can set up recurring trades and invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly. You can also track your trades and monitor market movements via the web app or iOS and Android mobile apps. The Coinbase Wallet allows you to store all your crypto and NFTs in one place, trade 500+ assets on DEXes and earn interest. Of all the crypto exchanges listed here, Coinbase has the second highest number of popular coins (cryptocurrencies with the highest market capitalisation) on offer.

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.

Promo: Get £10 in Bitcoin when you sign up and verify your account with code KOODY10.

Please note: Cryptocurrency is not regulated by the Financial Conduct Authority (FCA) and is not subject to protection under the Financial Services Compensation Scheme or within the scope of jurisdiction of the Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may apply to profits from cryptocurrency sales.

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Uphold - Beginner-friendly; Crypto wallet; Cheap Forex rates

Uphold Logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
1.25% - 0.85% / 1.25% -  1%
Withdrawal Fee
Red cross mark indicating no
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Uphold is a beginner-friendly cryptocurrency exchange that allows you to buy and sell over 90 cryptocurrencies and utility tokens, including majors, altcoins and emerging tokens. You can also buy and sell up to 3 national currencies, including GBP, EUR and USD. 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. Uphold also lets users withdraw funds to bank accounts in 36 countries or to private wallets on five crypto networks - instantly and fee-free. Uphold currently has over 2 million customers worldwide.

There are multiple fees involved when trading crypto on Uphold. Fees are calculated at the time you place your order, so the price you see before your trade is the same price you pay when you trade. The most important fees to look out for are trading fees, FX fees, and market spreads.

Please note: Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk.

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Phemex - Live prices, Advanced crypto trading tools, Crypto wallets

Phemex logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.025% / 0.075%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Red cross mark indicating no

Phemex is a crypto trading platform with custom-built trading engines that process 300,000 transactions per second with order response times of less than one millisecond. The founding team consists of ex-Morgan Stanley executives who boast decades of practical Wall Street experience. With Phemex, you can buy Bitcoin, Ethereum, Tether, Dogecoin, Chainlink, Cardano, XRP, Litecoin, and other popular cryptocurrencies with your debit or credit card. The platform is suitable for both beginners and advanced crypto traders. However, advanced traders will find Phemex particularly appealing as you can trade BTC, ETH and over 224 Crypto Pairs with zero trading fees (Premium users only). Users can also boost their crypto knowledge by taking advantage of the 400+ articles on hot crypto projects available on the platform.

There are multiple fees involved when trading crypto on Phemex, including trading and withdrawal fees. These fees depend on whether you trade cryptocurrencies via the Phemex wallets, trading accounts, spot trading platforms or contract trading platforms. Click here to learn more.

Promo: Up to US$100 welcome bonus. Learn more here.

Please note: Cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. Your capital is at risk.

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Gemini - Live prices; Crypto wallet; Beginner-friendly

Gemini Logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.25% - 0.00% / 0.35% - 0.03%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Gemini, founded by Tyler and Cameron Winklevoss, is an easy-to-use cryptocurrency exchange suitable for both beginners and advanced crypto traders. Gemini makes it simple to research the crypto market, buy Bitcoin, Ethereum and 50+ 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 web app or iOS and Android mobile apps. UK customers can access the Gemini Exchange, which offers various beginner-friendly and advanced crypto trading tools. UK customers can also access the Gemini wallet, which lets you store all your assets in an insured hot wallet or institutional-grade cold storage system.

There are multiple fees involved when trading crypto on Gemini, including transaction fees, Maker-Taker fees and withdrawal 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.

Please note: Cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. Your capital is at risk.

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Coinsmart - Beginner-friendly; Advanced crypto trading tools

Coinsmart logo
Minimum Deposit
£0
Trading Fees
0.20% - 0.30%
Withdrawal Fees
Green check mark indicating yes
FX Fees
Green check mark indicating yes
FCA Registered
Red cross mark indicating no

Coinsmart is an easy-to-use crypto exchange on a mission to make cryptocurrency accessible to everyone. It is designed to be a simple crypto-trading platform that anyone can use and understand. With Coinsmart, you can buy and sell Bitcoin, Ethereum, Litecoin and other digital currencies quickly and easily on desktop and mobile. There are multiple fees involved when trading crypto on Coinsmart. Some of the fees include withdrawal fees (depending on your withdrawal method) and trading fees.

Promo: Get C$20 (~£12) in Bitcoin when you fund your account with a minimum of C$100 (~£63). Promo code: getcrypto.

Please note: Cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. Your capital is at risk.

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Bitpanda - Automatic investing; Crypto card; Beginner-friendly

Bitpanda logo
Minimum Deposit
€25 (£21)
Trading Fees
1.49% - 0.10%
Withdrawal Fees
Red cross mark indicating no
FX Fees
Green check mark indicating yes
FCA Registered
Red cross mark indicating no

Bitpanda is an easy-to-use multi-asset investment platform that allows you to invest or trade in stocks, crypto and metals. With Bitpanda, you have over 50 cryptocurrencies to choose from, including popular coins and tokens like Bitcoin, Ethereum and Polkadot. It is entirely free to open an account with Bitpanda, but you need to deposit a minimum of €25 to start trading or investing. Once you start investing, you can choose to swap your cryptocurrencies with stocks, precious metals and other Bitpanda assets whenever you want. You can also set up automatic and recurring daily, weekly or monthly payments and invest in your favourite digital assets over time. Bitpanda allows you to deposit and withdraw in multiple currencies, including GBP, CHF, EUR, TRY and USD. You also get a free crypto card which you can use to spend your crypto like cash. You can upgrade to Bitpanda Pro for more advanced features, including professional trading solutions, price matching capabilities and fully automated clearing, settlement and netting processes.

There are multiple fees involved when trading crypto on Bitpanda. All fees for buying and selling cryptocurrencies and digital assets are already included in the offered prices. This means you will always receive the exact amount of coins or fiat that is shown on the order confirmation page. Bitpanda currently has over 3 million users across multiple countries.

Please note: Cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. Your capital is at risk.

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Revolut - Round ups; Automatic investing; Beginner-friendly

Revolut logo
Minimum Deposit
US$1 (£0.80)
Trading Fees
1.50% - 2.50%
Withdrawal Fees
Red cross mark indicating no
FX Fees
Green check mark indicating yes
FCA Registered
Green check mark indicating yes

Revolut is a personal finance and money management app that allows you to invest in Bitcoin, Ethereum and other tokens in 30+ currencies from as little as US$1. With Revolut, you can stay on top of market movements, receive notifications when crypto hits your desired prices and enjoy the latest market news directly in-app. Revolut also allows you to round up your spare change and invest the difference in any cryptocurrency of your choice (subject to availability on the platform). Revolut charges a single, fixed fee for crypto conversions. This fee is 2.5% for Standard and Plus users (and 1.5% for Premium and Metal users). Revolut does not charge you any other fees for this service. Click here to learn more about Revolut’s fees. Revolut also has other products, including savings accounts, investment accounts, currency exchange and international money transfers.

Please note: Cryptoassets are a highly volatile unregulated investment product with no UK or EU investor protection. Your capital is at risk.

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What is Bitcoin?

Bitcoin is a form of digital money that you can buy, sell or securely send to anyone anywhere in the world without the interference of banks, payment platforms or central governments.

Launched in 2008, Bitcoin is by far the world’s biggest and most popular cryptocurrency, with a market capitalisation of around £633 billion (at the time of writing). 

Market capitalisation (or market cap) is a metric used to measure the size and popularity of a cryptocurrency based on its current price and the volume of the cryptocurrency in circulation. The higher the market cap, the more popular the cryptocurrency is.

There will only ever be 21 million Bitcoins in the world, making it a scarce cryptocurrency. Around 3 million Bitcoins are still available to be mined, and this will happen slowly over the next hundred years. The last blocks will theoretically be mined in the year 2140.

Who Created Bitcoin?

Bitcoin was created in 2009 by a person or organisation called Satoshi Nakamoto, who explained their theory of digital peer-to-peer transactions without the interference of the government in a white paper entitled "Bitcoin: A Peer-to-Peer Electronic Cash System".

What is the Bitcoin Blockchain?

A blockchain is a specific type of database containing a list of transactions that anyone can view and verify. You can think of it like your bank statement or a bank ledger where you can see a history of transactions carried out over a particular period. In the case of Bitcoin, the Bitcoin blockchain is a record of every time someone buys or sells Bitcoin. Read more about blockchain here.

How Has the Price of Bitcoin Grown Over the years?

In early 2010, one Bitcoin was valued at a fraction of a penny. By October 2013, it had grown to over £100 (that’s over 1,000,000% growth in just three years), and by December 2017, the price skyrocketed to a whopping £15,000 (an increase of about 15,000% in four years). At the time of writing in April 2022, the price of Bitcoin was £33,000 (120% growth from 2017).


Frequently Asked Questions

1. Is Bitcoin safe?

Bitcoin uses cryptographic technology, making it more secure than standard debit or credit card transactions. However, there are some risks involved with Bitcoin transactions. For example, Bitcoin wallets are not necessarily anonymous, and they rely on passwords that can never be recovered once lost.

2. What makes Bitcoin unique?

  1. First to market.
  2. Extremely high valuation.
  3. Solved the fundamental problem of affordable digital peer-to-peer cross-border transactions with zero interference from a bank or government.

3. What is the current price of Bitcoin?

The current price of Bitcoin can be found here.

Yes, you can buy Bitcoin legally in the UK. While the UK’s financial watchdog, the Financial Conduct Authority (FCA), does not currently regulate cryptocurrencies, it displays a list of the crypto exchanges that are currently registered with it. Some of them include eToro, Coinbase and Gemini. The FCA’s position on cryptocurrencies is: “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.

5. How do beginners invest in Bitcoin?

Beginners can invest in Bitcoin by purchasing it online from a crypto exchange such as eToro, Gemini or Coinbase. Crypto exchanges make it easy to buy and sell Bitcoin and other cryptocurrencies directly from your smartphone, tablet or computer. They also allow you to monitor the movements and performance of your crypto holdings.

6. What is the minimum amount I can invest in Bitcoin?

The smallest amount of Bitcoin you can buy is 1 satoshi which is 0.00000001 Bitcoins. This essentially means that you can start buying Bitcoins with as little cash as you are comfortable with. Most cryptocurrency exchanges allow you to invest in Bitcoin with as little as £10.

7. What is the best cryptocurrency to buy in 2022?

The top 10 cryptocurrencies by market capitalisation in 2022 can be found here

8. Is investing in Bitcoin a good idea?

As with all investments, it is entirely up to you to decide if they are worthwhile. Most people buy Bitcoins as a speculative investment or as an addition to their larger long-term investment portfolio. If you think the price of Bitcoin will go up in the future (for whatever reason), buying it now means you can sell it at a higher price in the future. That said, please remember that when it comes to investing, profits are not guaranteed, and your capital is at risk.

9. Do I need to pay tax on Bitcoin in the UK?

Yes, you need to pay tax on the profit you make on Bitcoins (and other cryptocurrencies) if you live in the UK. Most people hold cryptocurrencies such as Bitcoin as a personal investment, usually to make a profit. For this reason, HMRC requires you to pay Capital Gains Tax (CGT) when you make a gain on cryptoassets in the same way you pay CGT when you sell other assets like stocks.

10. Which Bitcoin wallet is best?

Here are some of the popular Bitcoin Wallets in the UK:

  1. Coinbase Wallet
  2. eToro Money Wallet
  3. Gemini Wallet
  4. Uphold Wallet
  5. Phemex Wallet


You might also like 🤓

  1. Top 10 Cryptocurrencies
  2. How to Buy Ethereum
  3. How to Buy NFTs
  4. Best Crypto Exchanges
  5. How to Invest in Cryptocurrency
  6. Best Investment Apps
  7. Compare Investment Platforms
  8. Compare Trading Platforms
  9. Compare Robo Advisors
  10. Best Pension Providers

Credits

  1. Bitcoin.org
  2. Coinbase
  3. Financial Conduct Authority

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