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.

How to Invest in Bitcoin in the UK

Updated On: May 17, 2024
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How to Invest in Bitcoin UK

Contents:

How to Invest in Bitcoin

The easiest way to invest in Bitcoin in the UK is to purchase it online from a crypto exchange, such as Coinbase, eToro, or CoinJar. 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 Bitcoin.
  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 Coinbase, eToro, and CoinJar, 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.

Where to Buy Bitcoin in the UK

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

Please remember that cryptoassets like Bitcoin are highly volatile, unregulated investment products 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.

Here are the best places to buy Bitcoin in the UK:


Coinbase - Beginner friendly; Crypto card; 240+ Cryptoassets

Coinbase logo
Minimum Deposit
£0
Trading Fees (Maker/Taker)
0.40% - 0.00% /
0.60% - 0.05%
Withdrawal Fees
No
FX Fees
No
FCA Registered
Yes

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. Coinbase also offers commission-free USDC trading.

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.

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eToro - Good for beginners and experts; 70+ Cryptocurrencies

eToro Logo
Minimum Deposit
US$100 (£80)
Trading Fees
1%
Withdrawal Fees
US$5 (£4)
FX Fees
Yes
FCA Registered
Yes

eToro is a multi-asset trading platform that enables you to trade or invest in cryptocurrencies, NFTs, stocks, ETFs, commodities, forex, and indices, directly or via contracts for difference (CFDs). 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 the superior charting and analytics tools, staking service, social trading feature, 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. Additionally, 80 - 90% of retail investor accounts lose money when trading CFDs with this provider. Copy Trading does not amount to investment advice.

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CoinJar - Ready-made crypto portfolios; 50+ Cryptocurrencies

CoinJar logo
Minimum Deposit
£10
Trading Fees (Maker/Taker)
0.10% - 0.00% /
1%
Withdrawal Fees
No
FX Fees
No
FCA Registered
Yes

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.

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Uphold - Crypto card; Cheap forex rates; 250+ Cryptoassets

Uphold Logo
Minimum Deposit
US$1 (£0.80)
Trading Fees
0.90% - 1.20%
Withdrawal Fee
US$3.99 (£3.22)
FX Fees
Yes
FCA Registered
Yes

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.

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Kraken - Low cost; Staking rewards; 200+ Cryptocurrencies

Kraken logo
Minimum Deposit
US$10 (£8)
Trading Fees (Maker/Taker)
0.20% - 0.00% /
0.26% - 0.001%
Withdrawal Fees
Yes
FX Fees
Yes
FCA Registered
Yes

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.

go to site

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 £1.03 trillion (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 Bitcoin in the world, making it a scarce cryptocurrency. Around 3 million Bitcoin 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 (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). As of April 2022, the price of Bitcoin was £33,000 (120% growth from 2017). At the time of writing, one Bitcoin was equal to £52,374.66.

Frequently Asked Questions

1. How do I buy Bitcoin in the UK?

To buy Bitcoin in the UK, you’ll need to:

  1. Create an account with a crypto exchange, such as Coinbase or eToro.
  2. Fund your account with GBP using your debit card or via bank transfer.
  3. Research Bitcoin and other cryptocurrencies.
  4. Buy Bitcoin with GBP using the crypto exchange’s web or mobile app.
  5. Choose and configure a Bitcoin wallet, such as Coinbase Wallet or Bither Wallet.
  6. Transfer your Bitcoin to your wallet for safekeeping.

If you are looking for a low-cost way to buy, the cheapest way to buy Bitcoin in the UK is to compare fees across reputable cryptocurrency exchanges such as Coinbase, eToro, and CoinJar, focusing on their trading, withdrawal, and any additional fees. Consider using bank transfers as your payment method for lower fees, explore peer-to-peer crypto platforms for potentially better rates, and keep an eye on promotions or discounts.

Prioritise platforms that offer transparency in their fee structure to avoid hidden charges. Finally, while seeking the most cost-effective option, remember to ensure the platform is secure, compliant with UK regulations, and has a solid reputation to safeguard your investment.

2. 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.

3. What makes Bitcoin unique?

Bitcoin is unique because:

  1. It was the first decentralised cryptocurrency ever created.
  2. It facilitates affordable digital peer-to-peer cross-border transactions with zero interference from a bank or government.
  3. It currently has an extremely high valuation.
  4. It is the most popular cryptocurrency in the world.
  5. It is easier to access and store securely than almost any other cryptocurrency.

4. What is the current price of Bitcoin?

The current price of Bitcoin is £52,374.66 (at the time of writing). At any point in time, the current price of Bitcoin can be found on CoinMarketCap.

It is perfectly legal to buy Bitcoin in the UK, and all UK residents can buy Bitcoin and other cryptocurrencies from crypto exchanges. While the UK’s financial watchdog, the Financial Conduct Authority (FCA), does not currently regulate cryptocurrencies, it displays a list of the crypto exchanges registered with it. Some of them include eToro, CoinJar, and Uphold. 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.

6. How do beginners invest in Bitcoin?

Beginners can invest in Bitcoin by purchasing it online from a crypto exchange such as Coinbase, eToro, or Uphold. 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.

7. 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 Bitcoin. This essentially means that you can start buying Bitcoin with as little cash as you are comfortable with. Most cryptocurrency exchanges allow you to invest in Bitcoin with as little as £10.

8. What is the best cryptocurrency to buy in 2024?

Here are the best cryptocurrencies to buy in 2024 ranked by market capitalisation:

  1. Bitcoin (BTC) - £1.03 trillion
  2. Ethereum (ETH) - £288 billion
  3. Tether (USDT) - £87 billion
  4. Binance Coin (BNB) - £67 billion
  5. Solana (SOL) - £59 billion
  6. USD Coin (USDC) - £26 billion
  7. XRP (XRP) - £22 billion
  8. Toncoin (TON) - £18 billion
  9. Dogecoin (DOGE) - £17 billion
  10. Cardano (ADA) - £13 billion

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.

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.

9. 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 Bitcoin 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.

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

Yes, Bitcoin and other cryptocurrencies are taxable in the UK. HMRC requires UK residents to pay Capital Gains Tax (CGT) on the profit they make from Bitcoin (and other cryptocurrencies) in the same way they pay CGT on the profit from other assets like stocks. For more information on cryptocurrency taxes, please read HMRC’s guidance.

11. Where can I buy Bitcoin in the UK?

You can buy Bitcoin in the UK from the following crypto exchanges:

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

12. Which Bitcoin wallet is best?

Here are some of the best Bitcoin wallets:

  1. Bither Wallet - Simple and secure; includes cold and hot modes; accessible via several platforms and devices.
  2. Coinbase Wallet - Stores all your crypto and NFTs in one place; supports hundreds of thousands of tokens and dApps.
  3. eToro Money Wallet - Provides an “unlosable” private key; supports a growing list of cryptoassets.
  4. Uphold BTC Wallet - Convenient; stores your keys, so you do not have to worry about storage.
  5. CoinJar Wallet - No fees; send and receive 50+ cryptocurrencies.


You might also like 🤓

  1. How to Buy Ethereum
  2. How to Buy XRP
  3. How to Buy Solana
  4. How to Buy NFTs
  5. How to Invest in Cryptocurrency
  6. How to Invest in Index Funds
  7. Best Crypto Exchanges
  8. Best Trading Platforms
  9. Best Forex Brokers
  10. Loan Calculator

Credits

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

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