Are you looking for a new way to invest your money? Or, maybe you have already decided that you want to invest money in cryptocurrency. But you don’t know, how to buy cryptocurrency in the UK?
Stick to the blog to learn more about cryptocurrency and how to buy cryptocurrency in the UK.
What is Cryptocurrency?
Cryptocurrencies are encrypted digital currency, and you can buy goods and services with them. This currency is also encrypted and decentralised money, and it uses blockchain technology. The value of a cryptocurrency is managed and maintained by its users via the internet.
Also, you can hold them in your account for some time and trade them for profit. In the UK, there are many cryptocurrency exchange websites available that you can use to buy and sell crypto.
Top Cryptocurrency on the Market in 2021
Before going into detail about how to buy cryptocurrency in the UK, let us look at the top cryptocurrencies in the market. The first cryptocurrency is bitcoin and was outlined by Satoshi Nakamoto in 2008. After that, many companies have issued their own currencies. Nowadays, there are more than 5300 types of cryptocurrencies that are being traded worldwide. As of April 2021, the total value of these traded cryptocurrencies market capitalisation is around $201 billion.
The cryptocurrency companies often called their currency “tokens” or “coins”. Users can trade these tokens or coins for buying goods and services online from different companies. The following are the top 10 popular cryptocurrencies on the market.
1. Bitcoin
2. Tether
3. Ethereum
5. Hamebi Token
6. Binance USD
8. XRP
9. SoPay
10. Binance Coin
How to Buy Cryptocurrency in the UK?
In the UK, there are many cryptocurrency exchange platforms available for buying cryptocurrency, such as bitcoin. There is a certain process that needs to be followed in doing that. Follow the below steps to learn how to buy cryptocurrency in the UK.
1. Decide Where to Buy Bitcoin.
Nowadays, there are more than 5400 cryptocurrencies available. Also, to trade these digital currencies, there are many cryptocurrencies exchange platforms available. Using these exchange platforms, you can trade cryptocurrency from people and companies. So, decide first which exchange you are going to use to purchase cryptocurrency.
2. Think About How to Store Your Cryptocurrency.
Now that you have chosen the exchange platform you want to use. The next step in how to buy cryptocurrency in the UK is to find a secure location to store your digital currency. So, you can store your bitcoins in a digital wallet.
There are two types of digital wallets, which are hot wallets and cold wallets. So, what wallet are you going to keep in your cryptocurrency?
| Hot wallet | Cold wallets | |
| Transaction’s speed | Faster than cold wallets | Slower than hot wallets |
| Transaction’s security | Less secure than cold wallets | Faster than hot wallets |
| Price | Free. | Quite expensive. |
| Example | Coinbase, Electrum, Blockchain, Mycelium, etc. | Trezor, Ledger Nano, etc. |
The bottom line is that with a hot wallet, the transactions are faster, and with cold wallets, your currencies are safe. So, decide what kind of wallet you are going to use to store and trade your cryptocurrency.
3. Make Your Purchase.
Now you have to link your digital wallet to the cryptocurrency exchange account. After that, you need to decide how many coins or tokens you want to buy. You can buy as little as £20 to one billion pounds. So, figure out how much you want to invest in your chosen currency.
After that, you can manage your currency as you see fit. You can day-trade or hold your cryptocurrency for the long haul and make a profit. Although to manage your cryptocurrency, you should enhance your cryptocurrency knowledge.
What is a Bitcoin Wallet?
Since we have built an idea of ‘how to buy cryptocurrency in the UK,’ let us discuss how to store them now. A Bitcoin wallet is a software program that helps users store and trade bitcoins and other cryptocurrencies. If you have bitcoins in your wallet, then you will have a private key. The secret key corresponds to the address of the bitcoin wallet.
There are many types of bitcoin wallets available on the internet. Some of them are more popular and secure than others. The two main types of bitcoin wallets are hot wallets and cold wallets. Hot wallets are the software, and they support mobile, desktop, web browsers. On the other hand, a cold wallet is the hardware component.
Among these mentioned above, bitcoin wallets, cold wallets are the most secure. Although they are a bit expensive, Ledger Nano S, for instance, could cost you £80-90.
What is Bitcoin Exchange?
A bitcoin exchange is an online marketplace where buyers and sellers trade bitcoins. It works just like regular stock exchanges, and the users set the market price for the Bitcoin. You can find many sellers and buyers of bitcoin on a Bitcoin exchange platform. So, in short, bitcoin exchange platforms are the middleman when purchasing and selling cryptocurrencies.
What are the Best Websites to Purchase Bitcoin in the UK?
We have now developed a general idea of how to buy cryptocurrency in the UK. But, now there is the question- which cryptocurrency exchange should you use to purchase? Well, in the UK, there are many exchange platforms available. Some of them provide better customer support and while others offer the best value. However, among these vast numbers of platforms, Coinbase, Bitpanda and Binance are the most popular.
Although you should do your due diligence before buying cryptocurrency, below is the list of the best websites you can consider using when purchasing bitcoin:
1. Coinbase Pro
2. Binance
3. Bitpanda
4. Wirex
5. CoinJar
Coinbase Pro
Coinbase is the most popular Bitcoin exchange in the world. It has around 56,000,000 users.
Coinbase was the first major bitcoin exchange that was granted an e-money licence. The advantages and disadvantages of Coinbase Pro are given below.
| Pros | Cons |
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How to Buy Bitcoins Using Coinbase Pro?
Buying bitcoin with Coinbase pro is relatively easy. Below are the few steps you can follow to create an account and buy bitcoin.
Step 1: Create an Account at Coinbase Pro and Verify the Account.
First, you need to open an account in Coinbase Pro. To open up an account at Coinbase, follow the following steps.
1. Go to the official Coinbase website and click on the “Sign-up” button.
2. After signing up at Coinbase, it is highly recommended that you should set up Two-factor authentication security.
3. Then verify your account with proper identification.
Step 2: Add Funds to the Coinbase Pro Account.
Now your accounts are secured and safe to trade funds. The next step is to add your funds to your account.
1. Log in to your Coinbase account, then go to account and access settings.
2. You will see many options; click on “Payment options”.
3. After that, add your bank accounts to transfer the desired funds to the coin base account.
Step 3: Buy Bitcoin from Coinbase Pro.
Now you have the necessary funds to buy bitcoin from Coinbase. After linking your bank account to this exchange site, you can access your Coinbase Pro account.
1. Go to the Coinbase pro website and sign in.
2. In the top left of the Coinbase Pro website, check that you are on the BTC-GBP market. If the currency is not in the BTC-GBP market, then you have to change it. Therefore, to set your currency BTC-GBP:
a) Click on “Select market”.
b) A drop-down will appear; from the drop-down, select BTC-GBP.
3. Look at the left sidebar on your screen, and you will see many options, such as wallet balance. First click on “Buy”, then click on “Market”.
4. After that, input how much bitcoin you would like to buy in GBP.
5. Now you will see the bitcoin amount and exchange fee. If you are ok with it, click on “Place Buy Order”.
That’s it; now you have bitcoin in your wallet. To see the order, click on the “Open Orders Section”. Now you will see your bitcoin order appear, and status will also show filled. After a few moments, your GBP and BTC balance will add to the Coinbase Pro account.
Binance
You can also buy bitcoin in the UK from Binance along with other cryptocurrencies. Binance accepts UK bank transfers, debit cards, or credit cards for purchasing Bitcoin. Binance charges maximum fees of 0.1% when you purchase bitcoin with a UK bank transfer.
Also, this exchange platform has its own cryptocurrency. You can use Binance coin for transaction charge fees because they charge less when you use their coin. Below are the pros and cons of using Binance for buying cryptocurrency in the UK.
| Pros | Cons |
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How to Buy Bitcoins Using Binance?
Using Binance for buying bitcoin and other cryptocurrencies are pretty easy and cheap. You can buy Bitcoin through the Binance Buy Crypto platform and Binance P2P. So, follow the below steps to create an account in Binance and to purchase bitcoin.
Step 1: Create a Private Bitcoin Wallet
There are many bitcoin wallets available in the market. For example, you can use Trust Wallet or Coinomi as your private bitcoin wallet. First, sign up and then generate a new address.
Step 2: Create an Account in Binance
1. Go to the official Binance website or click here.
2. Click on the sign-up option at the top right side of the screen. After that, a pop up will appear on the screen to input your information.
3. Fill up all the fields on the page and set a strong password.
4. After that, complete the account verification process.
5. Set up a two-way authentication for your account.
If you have already had a Binance account, then skip the above steps.
Step 3: Deposit Fund and Buy Bitcoin.
Now you have your private bitcoin wallet and Binance account. The next step is depositing your fund in the Binance account. After that, you can bank transfer the fund or link your debit or credit card to the Binance account.
1. Log in to your Binance account.
2. Click on the menu bar at the top left side of the website or desktop app.
3. Then click on Buy Crypto. After that, select Bank deposit/Credit/Debit Card.
4. . Select GBP as currency and Bitcoin as a cryptocurrency.
5. Input your funds and click on “Buy Bitcoin”.
Once the transaction is successful, you will receive your Bitcoin in your account. After that, you can also transfer your purchased Bitcoin to your private wallet.
Cryptocurrency: Buy, Sell and Trade Cryptocurrency
Cryptocurrency: Buy, Sell and Trade Cryptocurrency
Bitpanda
Another popular bitcoin exchanger in the UK is Bitpanda. They offer a good selection of payment methods. Also, they have a vast customer base in Europe. The level of privacy you will get depending on your usage. For example, if you verified your email only, you can buy bitcoin, but you can sell only limited amounts of bitcoin.
Although, with a verified account, you will get extra services from Bitpanda. Below are the pros and cons of using Bitpanda for trading bitcoin.
| Pros | Cons |
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How to Buy Bitcoin Using Bitpanda?
Buying bitcoin with Bitpanda is relatively easy. The process is very streamlined and less complex for the buyers and investors. Below are the few steps you can follow to create an account and buy bitcoin.
Step 1: Create a Bitpanda Account and Verify it.
1. Go to the official Bitpanda website or click here.
2. Click on the “Log in” then “Sign-up” button at the top right side of the webpage.
3. After that, fill up all the fields on the web page and set a strong password.
4. Then, verify the account.
5. The next important step is to set up two-way authentication for your account.
If you have already had a Binance account, then skip the above steps.
Step 2: Add Money to your Bitpanda Fiat Wallet
Before buying Bitcoin, you have to deposit your funds from a bank account, debit card, or credit card to Bitpanda fiat wallet. Follow the below steps to deposit money on a fiat wallet.
1. First, click the “Deposit” on the navigation bar at the top of the website.
2. After that, choose GBP as your fiat wallet currency.
3. Then, select a payment provider and then input the amount you want to deposit.
4. Next, click on “Go To Summary” and click on “Make Deposit”.
Now you have completed your fiat wallet deposit, and you will be redirected to the Bitpanda official page. Also, you will see that your wallet has updated, and the fund is in GBP.
Step 3: Buy Bitcoin from Bitpanda Trade.
Bitpanda offers many other services such as Crypto Indices, Metals, Stocks and ETFs other than trading cryptocurrency. To buy Bitcoin from Bitpanda, follow the following steps:
1. Click “Trade” on the top right of your browser page.
2. After that, click on the “Buy” button.
3. Then, select the cryptocurrency you wish to buy.
4. Choose the GBP fiat wallet, and then input the amount.
5. Lastly, click on the “Buy Now” button to complete the Bitcoin order.
That’s it; you have completed your Bitcoin purchase. To see the bitcoin in your Bitpanda wallet, click on “Go To Wallet”. After that, you can transfer Bitcoins from your account.
Wirex
Another cheapest website for buying Bitcoin is Wirex. And, you can deposit the fund with Bank transfer, debit and credit card. Although, they charge 1% when purchasing bitcoin using a debit or credit card.
Bank deposits are free of charge, but it requires two to three days to show your deposited amount in the wallet. They also charge their customers for account maintenance. Below are the pros and cons of Wirex exchange:
| Pros | Cons |
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So, if you are ok with the extra charges, then you should use Wirex to purchase Bitcoin.
How to Buy Bitcoin Using Wirex?
Buying bitcoin with Wirex is not very difficult. You do not need to be pro or experienced personnel to do this. Below are a few easy steps you can follow:
Step 1: Create a Wirex Account and Verify it.
First, go to the official website page of Wirex. Then, click on the “Open an account” button to create a new account on Wirex. Next, fill up the fields and set a strong password for your account. After that, verify your account and set up two-way authentication security for your account.
But if you already have a Wirex account, then skip this step and log in to your account.
Step 2: Link your Account to your Wirex Account.
1. Click on the accounts.
2. Next, click on the add funds options and then select the option to add the funds.
Step 3: Buy/Exchange Bitcoin from Wirex.
1. Click on the accounts.
2. Then click Exchange on the left-hand side of the page.
3. After that, select the card or bank account you want to use to buy bitcoin.
4. Enter the amount and click on “Use maximum amount”.
5. Click on “Exchange”. Review your transaction details and if everything is ok then click “Confirm”.
CoinJar
Another reliable and cheap cryptocurrency broker is CoinJar (which was first founded in 2013). They offer bitcoin and other cryptocurrencies tradings so that you can buy bitcoin from them. Although, they only support bank transfers. So you can’t use a debit card, credit card and other transfer methods.
The first UK bank transfer could take some time to credit in your CoinJar account. However, the subsequent deposits don’t take much time, and the fund will be credited within just minutes.
Also, you would be charged for a UK bank transfer, but you’ll be charged a 1% fixed fee when you buy or sell bitcoin on CoinJar. Below are the pros and cons of the CoinJar bitcoin exchange:
| Pros | Cons |
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How to Buy Bitcoin from CoinJar?
You can purchase bitcoins from CoinJar in very easy steps. The whole process of creating an account and buying bitcoins is very user-friendly. Below is an easy step-by-step procedure to do this:
Step 1: Create a CoinJar Account and Verify it.
Visit CoinJar official website page and click on “Sign up”. After that, verify your account and set two-way security.
Step 2: Deposit Funds in your CoinJar Account.
1. Log in to your account.
2. After that, scroll down and click on the “Setting” option.
3. Scroll down again, and you will see the options for linking your bank account. Click on “Add New Account”.
4. Fill up the blanks with your bank account information and click on “Link this account.”
[Note: The first deposit from your UK bank account could take some hours or even take 2-3 days to be credited to your Wirex account.]Step 3: Buy Bitcoin from CoinJar
1. Click on the “Payments” button. After that, select the “Transfer” option.
2. Then, click on “Select account” in the “Transfer from” section and choose your bank account.
3. After that, again click on “Select account” in the “Transfer to” section and choose “Everyday Bitcoin”.
4. Input the GBP amount and click on “Review and Confirm”.
5. After that, a pop-up screen will appear; click on the “Done” button to complete your Bitcoin purchase.
Closing Note
Deciding which cryptocurrency to buy is pretty straightforward. However, choosing an exchange website and wallet is more challenging than purchasing cryptocurrency.
If you choose well and invest in it, you could enjoy a substantial return on your investment. Also, your funds will be safe and secure. On the other hand, if you choose poorly, you could suffer a significant loss in your investment. So, do your own research on what cryptocurrency you want to buy or the exchange platform you wish to use.
If you want to learn more about which currency is best for investment and how to buy cryptocurrency in the UK, take this Cryptocurrency: Buy, Sell and Trade Cryptocurrency course with Course Cloud and enhance your knowledge on various cryptocurrencies and exchange websites.
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