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How to Invest in Bitcoin in the UK 2024

Tobi Opeyemi Amure
Reviewed by:
How to invest in Bitcoin UK

In a nutshell, the easiest way to invest in Bitcoin in the UK is to buy it online from a crypto exchange, such as eToro, Coinbase, or Uphold. Crypto exchanges make it easy to buy and sell Bitcoin directly from your smartphone, tablet, or computer.

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 where to buy Bitcoin in the UK, 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.

This article was reviewed by Tobi Opeyemi Amure, a cryptocurrency expert and writer at Investopedia and Investing.com, to ensure its accuracy.

Quick Steps to Buy 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. Evaluate aspects like user experience, transaction fees, features, compliance with regulations, and overall security. I recommend eToro.
  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. 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.

Comprehensive Step-by-Step Guide

In case you need more detail, here’s a more comprehensive step-by-step guide.

1. Register with a cryptocurrency exchange

Choosing an Exchange: Select an exchange that is known for its security, ease of use, and Bitcoin availability. Consider factors like transaction fees, user reviews, and support services. I recommend eToro.

I’ve done a lot of testing on different exchanges, you can see my guide to the best crypto exchanges in the UK here.

etoro assets

Creating an Account: Go to the chosen exchange’s website or app, and initiate the sign-up process.

Verification Process: Complete the necessary identity verification, typically requiring personal details and a government-issued ID, to comply with regulatory standards.

Securing Your Account: Enable two-factor authentication (2FA) for additional security, linking it with your phone number or an authenticator app.

2. Deposit GBP into your newly created account

Linking Payment Method: Connect a preferred payment method, such as a bank account or credit/debit card, to your exchange account.

Making a Deposit: Select the deposit option, choose GBP, enter the desired amount, and confirm. Be mindful of any transaction fees.

Transaction Processing: Await the processing of your deposit, which may vary in time based on the payment method and bank policies.

3. Conduct thorough research on Bitcoin

Understanding Bitcoin: Learn about Bitcoin’s history, technology, market trends, and how it differs from other cryptocurrencies.

Market Analysis: Keep up-to-date with current market conditions, news, and analyses specific to Bitcoin.

Risk Assessment: Evaluate your risk tolerance, especially considering Bitcoin’s volatility, to make informed investment decisions.

4. Purchase Bitcoin

Navigating the Exchange: Familiarise yourself with the platform’s trading interface, focusing on Bitcoin.

Executing a Purchase: Choose Bitcoin, decide on the investment amount, check the current market price, and be aware of any transaction fees.

What is the current price of Bitcoin?

Finalising the Transaction: Confirm your purchase and monitor your account for the successful addition of Bitcoin.

5. Set up a secure Bitcoin wallet

Choosing a Wallet: Decide between a hardware wallet for heightened security or a software wallet for easier access. Ensure it supports Bitcoin.

Creating a Wallet: Follow the steps provided by the wallet provider, which may involve downloading software or acquiring a hardware device.

Wallet Security: Protect your wallet with a strong password, securely store the recovery phrase, and utilise any additional security features offered.

You can see my guide on crypto wallets in the UK here to help you with this step.

6. Store your Bitcoin securely

Evaluating Storage Options: Weigh the pros and cons of storing Bitcoin on the exchange versus transferring it to your private wallet.

Transferring to a Wallet: If opting for a wallet, generate a receiving address from your wallet and transfer your Bitcoin from the exchange.

Regular Monitoring and Management: Continuously monitor your Bitcoin investment and stay informed about market trends and security best practices.

If you plan on using or trading your Bitcoin soon, and it’s a small amount, you might be fine leaving it on the exchange. However, I recommend moving it into a more secure hardware wallet.

Where to Buy Bitcoin in the UK?

I’ve put together a guide to the best sites to purchase Bitcoin in the UK.

This includes exchanges, digital wallets, mobile applications, and online sites where you can purchase it.

Top pick
  • 4.5
  • eToro is trusted by over 30 million users worldwide. It's the best place to buy Bitcoin in the UK due to its cold storage, innovative trading features, user-friendly GBP deposit options, and industry-leading fees.

  • Don’t invest unless you’re prepared to lose all the money you invest.
Runner-up
  • Don’t invest unless you’re prepared to lose all the money you invest.
Large selection of altcoins
  • Don’t invest unless you’re prepared to lose all the money you invest.
Top pick
4.5

eToro is trusted by over 30 million users worldwide. It's the best place to buy Bitcoin in the UK due to its cold storage, innovative trading features, user-friendly GBP deposit options, and industry-leading fees.

Don’t invest unless you’re prepared to lose all the money you invest.
Runner-up
4.4

Simple to use exchange to buy Bitcoin in the UK. Over 240 cryptocurrencies to choose from and a secure self-custody crypto wallet to use.

Don’t invest unless you’re prepared to lose all the money you invest.
Large selection of altcoins
4.4

Uphold is the easiest way to buy, sell, and stake cryptocurrency in the UK. A secure and transparent platform with over 250 assets.

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

Final Thoughts

If you’re just starting with Bitcoin, I recommend eToro for investing in Bitcoin in the UK.

With low fees, 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 as well as follow the latest news.

FAQs

Is Bitcoin taxed in the UK?

In the UK, Bitcoin and other cryptocurrencies are subject to taxation. Profits from trading or investing in Bitcoin can be taxed as capital gains, while crypto received from mining or salary payments may be taxed as income.

Is buying Bitcoin legal in the UK?

Buying Bitcoin is legal in the UK. The UK government regulates the use of cryptocurrencies, including Bitcoin, but does not recognise them as legal tender.

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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. 76% 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.

Don’t invest unless you’re 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 2 mins to learn more.

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.

Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London 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”.

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