How to Invest in Bitcoin in the UK (2023)

I remember when I first bought Bitcoin, it was overwhelming and I felt out of my depth.

If you’re feeling this way or you’re looking for the best place to buy Bitcoin, this guide is for you.

I will walk you through the process step-by-step, ensuring you can securely purchase this digital currency with confidence.

I’ll cover key aspects like selecting the right exchange, payment methods, and security precautions.

Quick answer: how to invest in Bitcoin in the UK? To invest in Bitcoin in the UK, start by registering on a cryptocurrency exchange that lists BTC and accepts UK customers. Complete the required identity verification, then deposit GBP via bank transfer, credit card, or other supported methods. Once your account is funded, you can buy Bitcoin through the exchange’s trading platform.

How to Invest in Bitcoin in the UK for Beginners

Here’s a quick step-by-step guide if you are short on time:

1. Select a cryptocurrency platform: First, identify the platform where you’ll make your purchase. I recommend eToro for its user-friendly interface, cost-effective rates, and impressive copy trading functionalities. However, if you prefer to make an independent choice, evaluate aspects like user experience, transaction fees, features, compliance with regulations, and overall security.
2. Register for an account: Navigate to your chosen platform’s website to initiate the account setup. This is a brief process—simply provide some basic personal information and confirm your identity to proceed.
3. Determine your investment size: Decide on the amount of BTC you wish to buy. Once you have a specific amount in mind, go ahead to the next phase.
4. Add funds to your account: Locate the ‘Deposit Funds’ option on your chosen platform. For eToro, it’s at the bottom left corner of your interface. Choose your favoured payment technique and finalise the deposit.
5. Buy Bitcoin: Type ‘BTC’ into the search field at the upper part of your screen. When it shows up, hit ‘Trade’, input your desired purchase amount, and then click on ‘Open Trade’ to finalise the transaction.

Best Place to Buy Bitcoin UK Compared for Investors

Here I’ve compared the best sites to purchase Bitcoin in the UK based on four key factors you must consider and compare:

Rank	Crypto exchange	Fees to Buy Bitcoin	Deposit fees	Number of Crypto	GBP Deposit Methods
1	eToro	1% + market spread	0.5%	90+	Bank transfer, debit card, Neteller, Skrill, eToro Money
2	Uphold	1% trading fee & 1% spread fee	Debit card fee of 3.99%	250+	Bank transfer (ACH), debit card, Apple Pay, Google Pay
3	Coinbase	1% commission + 0.5% spread fee	Debit card fee of 3.99%	250+	Bank transfer, credit card, cryptocurrency, debit card, PayPal
4	Kraken	From 0.26%	£1 fee on bank transfers	230+	Bank transfer, credit card, cryptocurrency, debit card, Apple Pay, Google Pay, SWIFT
5	Revolut	1.49%	2.5%	80+	Bank transfer, credit card, cryptocurrency, debit card, Apple Pay, Google Pay, SWIFT

Where to Buy Bitcoin in the UK? Reviews of the Best Places

Crypto is moving fast in the UK, here are some statistics that highlight the movement.

• As of 2023, nearly 4.97 million people in the UK hold some form of crypto asset, which is nearly 10% of the population¹.
• The revenue in the cryptocurrency market in the UK is projected to reach US$1.89bn in 2023, with an annual growth rate of 18.84%².
• Almost 500 businesses in the UK accept cryptocurrency as a payment method³.

As you can see, crypto and Bitcoin are gaining traction in the UK and reshaping the financial scene daily⁴.

The complexities put many people off, but I’m here to shine some light on it and help UK investors choose the best way to buy Bitcoin for them.

Having worked in the retail investment & crypto sector in London over the last four years, I had the opportunity to experience the rise in Bitcoin first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest cryptocurrency exchanges and platforms on the market.

Using my experience in this field, I’ve compiled a list of the best places to invest in Bitcoin based on four key criteria:

1. Fees to buy Bitcoin (as a base fee)
2. Deposit fees
3. Number of cryptos available
4. GBP deposit methods

Factors such as usability, education materials, and additional features were also considered.

All the platforms I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA), and have apps available on Android and iOS.

1. eToro – Overall best place to buy Bitcoin UK

Don’t invest unless you’re prepared to lose all the money you invest.

The overall winner on my list of where to buy Bitcoin and what I recommend for beginners is eToro.

eToro ranks as a leading platform for buying Bitcoin in the UK, favored for its user-friendly interface that echoes the dynamism of a trading floor.

Regulated by the Financial Conduct Authority (FCA), eToro provides a secure investment environment.

With a variety of payment methods, eToro makes funding your account and entering the Bitcoin market straightforward. The platform’s global reach is impressive, with 30 million users worldwide⁵ and a high Trustpilot rating, reflecting its reliability and user satisfaction.

For newcomers, eToro simplifies the process with quick registration and the option to start trading without immediate ID verification for investments under €2,000.

The platform’s fee structure is competitive, with a 0.5% deposit fee and a 1% commission on Bitcoin trades, alongside a minimum investment as low as $10.

eToro not only offers Bitcoin but also an array of over 90+ cryptocurrencies, and it supports investments in stocks, ETFs, and other markets at zero commission.

For those interested in diversifying their portfolio effortlessly, eToro’s CopyTrader system is a standout feature, allowing users to mirror the moves of experienced traders.

I recommend eToro if you are taking your first steps to purchase Bitcoin. It’s a comprehensive and accessible platform, backed by robust security, a low fee structure, and a wealth of options for both beginners and experienced traders.

Read my complete eToro review.

Key rating criteria:

Fees to buy Bitcoin	Deposit fees	Number of crypto	GBP deposit methods
1% + market spread	0.5%	90+	Bank transfer, debit card, Neteller, Skrill, eToro Money

eToro pros:

• Low minimum deposit amount ($10)
• CopyTrader feature for passive investing
• Easy-to-use interface for beginner investors

eToro cons:

• Small conversion fee for GBP deposits

2. Uphold – Best BTC exchange for a large selection of other altcoins

Uphold stands out as a prime choice for buying Bitcoin in the UK, with its user-centric design and varied payment options, including bank transfers, cards, and other cryptocurrencies.

Its competitive fees position it as an affordable option in the market.

Security is paramount at Uphold, where transactions are safeguarded with advanced security protocols, ensuring personal and financial information remains secure.

Known for its transparency, Uphold allows users to view its real-time financial reserves which undergo regular third-party security audits.

Offering over 250 cryptocurrencies, Uphold’s variable spread for trades, typically between 0.8%-1.2% for popular coins, is displayed before transactions are finalised.

Beyond crypto, Uphold provides access to stock and commodity trading.

In conclusion, Uphold is recommended for its extensive cryptocurrency options and commitment to transparency and security, making it a solid platform for those looking to trade a diverse range of assets, including Bitcoin.

Read my complete Uphold review.

Key rating criteria:

Fees to buy Bitcoin	Deposit fees	Number of crypto	GBP deposit methods
1% trading fee & 1% spread fee	Debit card fee of 3.99%	250+	Bank transfer (ACH), debit card, Apple Pay, Google Pay

Uphold pros:

• 250+ cryptocurrencies 
• Preview the spread before every trade
• Transparent financial reserves
• Third-party security audits

Uphold cons:

• High spreads on lower-volume assets

3. Coinbase – Beginner-friendly place to buy Bitcoin in the UK

Coinbase is widely regarded as one of the best platforms for buying Bitcoin in the UK, known for its simplicity and strong security measures. It was the first exchange I used for investing in Bitcoin.

The platform provides useful features like price alerts to assist in making timely investment decisions. It utilises two-factor authentication and cold storage to safeguard user investments, alongside offering insurance for added security.

With over 70 million users globally, Coinbase has established a solid reputation for reliability. It supports a vast array of over 250 coins, catering to both beginners through its main platform and seasoned traders via Coinbase Pro.

However, users should consider the platform’s higher fees, ranging from 0% to 3.99%, depending on the transaction type.

In summary, Coinbase is favored for its user-friendly interface, robust security, and comprehensive educational resources, making it a preferred choice for those new to Bitcoin, despite its premium pricing.

Read my complete Coinbase review.

Key rating criteria:

Fees to buy Bitcoin	Deposit fees	Number of crypto	GBP deposit methods
1% commission + 0.5% spread fee	Debit card fee of 3.99%	250+	Bank transfer, credit card, cryptocurrency, debit card, PayPal

Coinbase pros:

• User-friendly interface
• Reliable crypto wallet
• Coinbase Visa card to spend crypto worldwide

Coinbase cons:

• High fees & complicated structure
• Customer support tends to be slow

4. Kraken – Cheapest way to buy Bitcoin UK

Kraken emerges as a formidable choice for buying Bitcoin in the UK, catering to both frequent traders and beginners.

Established shortly after Bitcoin’s creation, Kraken offers a vast selection of 237 cryptocurrencies.

It’s known for user-friendly mobile apps, comprehensive educational resources, and continuous customer support, ensuring a smooth trading experience for newcomers.

For the more advanced, Kraken Pro delivers an all-encompassing trading interface with low fees, high liquidity, and robust risk management tools.

The exchange’s fees are competitive, ranging from 0.16% to 2%, positioning it as one of the most cost-effective options for active traders.

Kraken also rewards users who stake their cryptocurrencies, with potential earnings of up to 24% annually, though this is variable. Transparency is a key aspect of Kraken, with regular proof of reserves audits providing users assurance of asset backing.

Opening an account with Kraken is free, with a minimum first trade value of $10. Fees are scaled based on order size and type, making it accessible for various trading strategies and volumes.

Overall, Kraken stands out for its blend of accessibility for beginners and depth for experts, backed by strong security and clear fee structures.

Key rating criteria:

Fees to buy Bitcoin	Deposit fees	Number of crypto	GBP deposit methods
From 0.26%	£1 fee on bank transfers	230+	Bank transfer, credit card, cryptocurrency, debit card, Apple Pay, Google Pay, SWIFT

Kraken pros:

• Suitable for traders & investors of different experience levels
• Advanced crypto trading platform
• Low trading fees when using the Pro version

Kraken cons:

• Higher fees when not using Kraken Pro
• Some trading features unavailable to UK users (futures trading)

5. Revolut – Best if you want your mobile banking & Bitcoin in one place

Revolut stands out as a seamless choice for buying Bitcoin in the UK, particularly for those who value the convenience of managing banking and cryptocurrency from a single app.

This British fintech company has integrated a crypto exchange feature into its online banking app, offering the ability to buy, hold, and sell an array of 80 cryptocurrencies swiftly.

With Revolut, once you’ve set up your account and added funds, you can start investing in cryptocurrencies immediately.

Though its fees may be higher compared to specialised crypto exchanges, the ease of use could justify the cost for users who prefer an all-in-one financial solution.

Revolut also offers additional perks such as sending crypto to friends, staking options with competitive APYs, earning free tokens through quizzes, making payments with crypto via your card, and rounding up transactions to invest spare change into crypto.

For those prioritising a user-friendly platform that simplifies the Bitcoin investment process, Revolut presents a compelling choice.

Read my complete Revolut review.

Key rating criteria:

Fees to buy Bitcoin	Deposit fees	Number of crypto	GBP deposit methods
1.49%	2.5%	80+	Bank transfer, credit card, cryptocurrency, debit card, Apple Pay, Google Pay, SWIFT

Revolut pros:

• Users can spend in 150 different currencies with no hidden fees
• Fintech banking solution with crypto features
• Disposable virtual cards

Revolut cons:

• High crypto tokenfees
• Not as many cryptocurrencies as other platforms

How to Buy Bitcoin UK – Step-by-Step Guide

In case you missed the quick guide at the beginning, here’s a step-by-step guide on how to invest in Bitcoin in the UK:

1. Set up a Digital Wallet: Before you can buy Bitcoin, you’ll need a digital wallet to store your coins securely. Choose a reputable crypto wallet provider and follow the instructions to create your wallet.
2. Choose a Reliable Cryptocurrency Exchange: Select a trusted cryptocurrency exchange that operates in the UK. Some popular options include eToro, Uphold, and Coinbase. Create an account on the chosen exchange and complete the necessary verification steps.
3. Link a Payment Method: Connect your bank account or credit/debit card to your exchange account. This will allow you to deposit funds for purchasing Bitcoin. Ensure that the exchange supports your preferred payment method.
4. Place an Order: Once your account is funded, navigate to the trading section of the exchange and select Bitcoin (BTC) as the cryptocurrency you want to purchase. Specify the amount you wish to buy or the amount you want to spend. Review the details and confirm the order.
5. Secure Your Bitcoin: After your purchase is complete, transfer the Bitcoin from the exchange to your digital wallet for enhanced security. Follow the instructions provided by the exchange to initiate the withdrawal.
6. Stay Informed: Keep yourself updated with the latest news and developments in the cryptocurrency space. Bitcoin prices can be volatile, so it’s essential to stay informed about market trends and potential risks.

Remember, buying Bitcoin involves financial risk, and it’s crucial to do your research and invest only what you can afford to lose.

By following these steps and exercising caution, you can start your Bitcoin investment journey in the UK with confidence.

What Is Bitcoin?

Bitcoin is a digital currency that operates on a decentralised network called the blockchain.

It was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto.

Bitcoin is not controlled by any central authority, such as a government or financial institution. Instead, it relies on cryptographic technology to secure transactions and regulate the creation of new units.

Bitcoin can be used for various purposes, including online purchases, investments, and remittances. Its unique features include limited supply, transparency, and the potential for anonymity in transactions.

Here’s a good video that helps further explain what exactly Bitcoin is:

What Is the Bitcoin Blockchain?

The Bitcoin blockchain is a distributed and decentralised ledger that serves as the underlying technology for the Bitcoin network. It can be thought of as a digital database that records and stores all transactions made with Bitcoin.

Unlike traditional financial systems that rely on a central authority, the Bitcoin blockchain operates through a network of computers, called nodes, that work together to validate and confirm transactions.

Each transaction is bundled into a block and added to a chain of previous blocks, forming a chronological and immutable record of all Bitcoin transactions.

The blockchain ensures the integrity and security of the Bitcoin network by using advanced cryptographic techniques.

Each block contains a unique identifier, called a hash, which is generated based on the data within the block and the hash of the previous block. This interlinking of blocks makes it extremely difficult to alter past transactions, providing transparency and tamper resistance.

The decentralised nature of the Bitcoin blockchain means that no single entity has control over the entire network. Nodes across the world maintain copies of the blockchain and participate in the process of verifying and validating transactions, thereby ensuring the network’s security and reliability.

Overall, the Bitcoin blockchain is a fundamental component of the Bitcoin network, facilitating secure and transparent peer-to-peer transactions without the need for intermediaries.

Commonly Asked Questions About Bitcoin

Is Bitcoin safe?

The safety of Bitcoin depends on various factors and considerations.

Here are some key points to keep in mind:

1. Blockchain Security: Bitcoin’s underlying technology, the blockchain, provides a high level of security. Its decentralised nature, cryptographic algorithms, and consensus mechanism make it difficult for malicious actors to tamper with transactions or manipulate the system.
2. User Responsibility: As a user, you have a crucial role in ensuring the safety of your Bitcoin. This involves implementing proper security measures, such as using strong passwords, enabling two-factor authentication, and keeping your private keys secure. Be cautious of phishing attempts, fraudulent websites, and untrusted third-party services.
3. Price Volatility: Bitcoin is known for its price volatility. Its value can fluctuate significantly in short periods, which can result in potential gains or losses. Understanding and accepting this volatility is essential for any Bitcoin investor.
4. Regulatory Environment: The regulatory landscape for cryptocurrencies, including Bitcoin, varies across countries. Some governments have established regulatory frameworks to provide consumer protection and combat illicit activities. Staying informed about the legal and regulatory aspects of your jurisdiction is important for compliance and safety.
5. Market Risks: Like any investment, Bitcoin carries market risks. The value of Bitcoin can be influenced by factors such as market demand, economic events, government regulations, and investor sentiment. It’s advisable to conduct thorough research, diversify your investment portfolio, and consider your risk tolerance before investing in Bitcoin.

While Bitcoin offers unique benefits and has gained significant popularity, it’s crucial to approach it with caution and be aware of the potential risks involved.

Educate yourself, follow best security practices, and make informed decisions to enhance the safety of your Bitcoin holdings.

What makes Bitcoin unique?

Bitcoin’s uniqueness lies in its decentralised nature, limited supply of 21 million coins, utilisation of blockchain technology for transparency and security, cryptographic algorithms for transaction verification, borderless transactions, and potential for financial inclusion.

Is buying Bitcoin legal in the UK?

Yes, buying Bitcoin is legal in the UK. Cryptocurrencies, including Bitcoin, are not prohibited or illegal in the country. The UK government recognises cryptocurrencies as a form of property, subject to taxation and regulatory guidelines.

However, it’s important to note that regulatory frameworks and tax obligations may apply, and it’s advisable to comply with the relevant laws and seek professional advice if needed.

How do beginners invest in Bitcoin?

For beginners looking to invest in Bitcoin, here are a few simplified steps:

1. Set up a digital wallet to securely store your Bitcoin
2. Choose a reputable cryptocurrency exchange and create an account
3. Complete any required verification process
4. Link your preferred payment method, such as a bank account or debit/credit card
5. Deposit funds into your exchange account
6. Select the amount of Bitcoin you want to buy and place your order
7. Transfer the purchased Bitcoin to your digital wallet for enhanced security

Remember to research and understand the risks associated with Bitcoin investing, and only invest what you can afford to lose.

What is the minimum amount I can invest in Bitcoin?

The minimum amount you can invest in Bitcoin can vary depending on several factors, including the exchange or platform you use and the current price of Bitcoin.

While there is technically no fixed minimum investment amount for Bitcoin, some exchanges may have their own minimum requirements or trading limits.

In practice, you can generally invest any amount, even a fraction of a Bitcoin. Bitcoin is divisible up to eight decimal places, with the smallest unit being called a “Satoshi,” representing 0.00000001 Bitcoin. This divisibility allows for flexibility in investment amounts, accommodating both small and large investors.

It’s essential to note that transaction fees, both for purchasing Bitcoin and transferring it to your digital wallet, can impact the overall cost of your investment. Additionally, consider any minimum deposit requirements set by the exchange or platform you choose to use.

To determine the specific minimum investment amount, it is recommended to review the requirements and fees of the specific exchange or platform you plan to use for buying Bitcoin.

Is Bitcoin a good investment?

Deciding whether investing in Bitcoin is a good idea depends on various factors, including your risk tolerance, investment goals, and understanding of the cryptocurrency market.

Here are some points to consider:

1. Volatility: Bitcoin is known for its price volatility, which can lead to significant fluctuations in short periods. This volatility can present both opportunities for profit and risks of potential losses.
2. Potential Returns: Bitcoin has experienced substantial growth since its inception, attracting investors seeking high potential returns. However, past performance is not indicative of future results, and the cryptocurrency market can be unpredictable.
3. Diversification: Bitcoin can be a part of a diversified investment portfolio. By allocating a small portion of your overall investments to Bitcoin or other cryptocurrencies, you may potentially benefit from diversification.
4. Market Awareness: Staying informed about market trends, regulatory developments, and technological advancements in the cryptocurrency space is essential for making informed investment decisions.
5. Risks and Security: Investing in Bitcoin carries risks, including cybersecurity threats, regulatory changes, and market manipulation. It’s important to understand these risks and take appropriate measures to secure your investments.

Ultimately, investing in Bitcoin involves a certain level of risk and uncertainty.

I recommend conducting thorough research, consulting with financial advisors, and considering your financial situation and risk tolerance before making any investment decisions.

Is Bitcoin taxed in the UK?

Yes, Bitcoin and other cryptocurrencies are subject to taxation in the UK. The UK tax authority, HM Revenue & Customs (HMRC), treats cryptocurrencies like Bitcoin as taxable assets rather than currencies.

The tax treatment can vary depending on the specific activities involving Bitcoin, such as buying, selling, mining, or receiving it as payment.

Here are some key points to consider regarding Bitcoin taxation in the UK:

1. Capital Gains Tax: When you sell or dispose of Bitcoin, any capital gains made may be subject to Capital Gains Tax. The tax is calculated based on the difference between the acquisition cost and the disposal proceeds.
2. Income Tax: If you receive Bitcoin as payment for goods or services or receive mining rewards, it may be subject to Income Tax. The value of Bitcoin received should be converted to the equivalent fiat currency value at the time of receipt for tax purposes.
3. Trading and Speculative Activity: If you are actively trading Bitcoin as a business or engaging in speculative activities, profits and losses from such activities may be subject to Income Tax or Corporation Tax.
4. Record-Keeping and Reporting: It’s important to maintain accurate records of Bitcoin transactions, including dates, values, and any associated costs. These records will be crucial for calculating tax liabilities and reporting them to HMRC.
5. Professional Advice: Due to the complex nature of cryptocurrency taxation, it’s advisable to consult with a qualified tax professional or accountant who is knowledgeable in cryptocurrencies to ensure compliance with tax regulations.

Tax laws and regulations are subject to change, and it’s recommended to stay updated with the latest guidance from HMRC or seek professional advice to understand your specific tax obligations related to Bitcoin in the UK.

Final Thoughts

All things considered, if you’re just starting with Bitcoin, I recommend eToro as the best place to buy Bitcoin.

With low fees and an FCA-regulated status, eToro is one of the safest and easiest options for beginners as well as more experienced investors.

However, it’s important to research all the benefits and drawbacks of buying Bitcoin as well as follow the latest news.

FAQs

You may also like:

• How to buy Bitcoin with a credit or debit card UK
• Best crypto exchange UK
• How to buy Ethereum UK
• How to invest in cryptocurrency UK

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as a basis for investment decisions.

Copy Trading does not amount to investment advice. Your investment value may go up or down. Your capital is at risk.

Crypto assets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilising publicly available non-entity-specific information about eToro.

Sources:

1. https://www.fca.org.uk/publication/research-notes/research-note-cryptoasset-consumer-research-2023-wave4.pdf ↩︎
2. https://www.statista.com/outlook/dmo/fintech/digital-assets/cryptocurrencies/united-kingdom ↩︎
3. https://uk.style.yahoo.com/most-popular-cryptocurrency-2021-uk-093057693.html ↩︎
4. https://www.cam.ac.uk/research/news/study-highlights-growing-significance-of-cryptocurrencies ↩︎
5. https://www.statista.com/statistics/1262787/etoro-registered-users/ ↩︎