How to Buy Bitcoin UK

Bitcoin is one of the hottest assets in the financial world right now. It grew by more than 60% last year, and many experts believe it could be headed to new highs in 2022.

Whether you’re looking to hold Bitcoin as a long-term investment, trade it for a profit, or use it for everyday purchases, the first step is to buy Bitcoin. In this guide, we’ll explain everything you need to know about how to buy Bitcoin in the UK.

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Buy Bitcoin UK - Quick Guide

Want to buy Bitcoin in the UK as quickly as possible? Our quick-start guide will walk you through the steps to buy Bitcoin with eToro, our top-rated crypto exchange in the UK for 2022.

Step 1: Sign up for eToro. Head to eToro and create a new trading account. You’ll need your email and ID to verify your account.

Step 2: Deposit funds. Fund your eToro account with at least £140. You can use a credit or debit card, PayPal, or bank transfer.

Step 3: Buy Bitcoin. Click on Bitcoin and click ‘Trade.’ Enter the amount of Bitcoin you want to buy, then click ‘Open Trade’ to complete your purchase.

Buying Bitcoin with eToro takes less than 5 minutes and you’ll pay some of the lowest fees in the industry. Get started with eToro to buy Bitcoin in the UK today!

Where to Buy Bitcoin

The easiest way to buy Bitcoin in the UK is to use a cryptocurrency exchange. Crypto exchanges work a lot like stock brokers. You fund your account, select the cryptocurrency you want to buy, and the exchange handles the transaction for you. It’s simple and fast, and you can use pounds to buy Bitcoin.

Almost all crypto exchanges in the UK will let you buy Bitcoin. However, exchanges can differ in a few important ways.

First, be sure to check how much a crypto exchange charges in transaction fees when you buy Bitcoin. Some exchanges offer ultra-low fees, while others charge an arm and a leg for using their service.

Second, make sure the exchange is fully secure. This is especially important if you are storing your Bitcoin at the exchange rather than in your own Bitcoin wallet. The best Bitcoin exchanges use encryption, multi-factor authentication, and identity verification to keep your crypto safe.

Finally, look for other crypto trading tools that might help you down the road. Having access to dozens of different digital currencies can be an advantage if you want to diversify from Bitcoin later. Charting and research tools can be a plus for actively trading cryptocurrencies.

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The 3 Best UK Crypto Exchanges

There are dozens of crypto exchanges in the UK where you can buy Bitcoin. So to make your choice easier, we’ve narrowed down the field to 3 top Bitcoin exchanges that stand out for their ease of use, affordability, and overall quality.

1. eToro - Overall Best Crypto Exchange in the UK for 2022

eToro is our #1-rated exchange to buy Bitcoin in the UK. This exchange does almost everything well.

The process for getting online and buying crypto is seamless, and you can fund your account with a credit card, debit card, or even PayPal. eToro offers charting and analysis tools for trading Bitcoin, and there’s a built-in social network so you can connect with other Bitcoin enthusiasts.

Perhaps the most incredible thing about eToro is how affordable it is to buy Bitcoin with this platform. eToro charges a transaction fee of 0.75% when you buy Bitcoin and nothing when you sell. That’s less than half the cost of buying and selling Bitcoin at other major UK exchanges.

Another advantage to eToro is that it gives you two ways to store your coins. You can hold Bitcoin inside your exchange account to keep things simple, or use eToro’s integrated Bitcoin wallet for more security. eToro also offers trading on more than 25 other cryptocurrencies if you want to explore beyond Bitcoin.

Pros:

  • Incredibly low exchange fees
  • Buy Bitcoin with credit, debit, PayPal, or a bank transfer
  • Custodial accounts and integrated wallet
  • Excellent Bitcoin trading tools

Cons:

  • Minimum £140 deposit for new users

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2. Coinbase - Advanced Crypto Exchange for Bitcoin Trading

Coinbase is one of the best crypto exchanges in the UK for trading Bitcoin. It features in-depth tools, including customizable price charts, depth-of-market charts, and dozens of technical indicators. You can monitor the entire history of trades on the exchange to find the perfect time to buy and sell Bitcoin.

For anyone who simply wants to buy Bitcoin and hold it, Coinbase can do that, too. However, it’s significantly more expensive than exchanges like eToro. Coinbase fees vary widely, but expect to pay at least 1.49% plus a flat fee of several pounds for every trade.

On the plus side, Coinbase offers custodial accounts and its own Bitcoin wallet to make it easy to store your coins. The exchange supports thousands of coins, which can be an advantage if you want to venture beyond Bitcoin to less commonly used altcoins.

Pros:

  • In-depth charting and analysis tools
  • Depth-of-market data for all currencies
  • Thousands of cryptos available to trade
  • Integrated wallet available

Cons:

  • Trading tools are complex
  • Very high fees to just buy Bitcoin

3. CoinJar - Most Beginner-friendly Exchange to Buy Bitcoin in the UK

CoinJar is one of the simplest places to buy Bitcoin in the UK. At this exchange, you won’t be confronted with complex charts or an overwhelming set of features. Instead, you can simply deposit pounds and buy Bitcoin in seconds.

That ease of use makes CoinJar a great choice for beginners. However, the exchange isn’t the cheapest place to buy Bitcoin - you’ll pay a commission of 1% per trade plus a spread that pushes the real fee closer to 1.2%. Coinjar also charges an extra 2% fee if you buy Bitcoin with a credit or debit card.

If price isn’t a problem, then CoinJar has a lot to like. You can store, send, and receive Bitcoin all through your exchange account without setting up a dedicated Bitcoin wallet. You can also check out more than 40 other digital currencies to purchase in addition to Bitcoin.

Pros:

  • Very user-friendly
  • Simple custodial account to store Bitcoin
  • Offers 40+ cryptocurrencies

Cons:

  • Relatively high fees to buy Bitcoin
  • No integrated Bitcoin wallet

How to Store Your Bitcoin

Once you buy Bitcoin, you need a place to store it. You have two options.

The first is to store your Bitcoin with the exchange you bought it from. This is called a custodial account, and it works similarly to storing stock shares in a brokerage account. The exchange holds your coins - typically at no cost - and you have full access to them for trading, making payments, or anything else you want.

The second option is to store your Bitcoin in your own Bitcoin wallet. This is considered more secure than a custodial account, since only you have the encryption key needed to open your wallet and access your Bitcoin.

eToro offers both custodial accounts and a Bitcoin wallet app for iOS and Android. It’s easy to switch back and forth between the two.

How Much Does It Cost to Buy Bitcoin in the UK?

The cost to buy Bitcoin in the UK varies from one exchange to another and often depends on how much Bitcoin you’re buying. Some exchanges charge a flat commission of several pounds per transaction. Others don’t charge commissions, but make money through a spread between the price at which you buy Bitcoin and the price at which someone on the other side of the exchange sells Bitcoin.

At eToro, you never pay commissions for buying Bitcoin. The exchange charges a fixed spread of 0.75% when you buy and nothing when you sell.

That makes eToro one of the cheapest Bitcoin exchanges in the UK. For comparison, Coinbase charges a spread that starts at 1.49%, plus a commission of several pounds. CoinJar charges a 1% commission plus a spread.

Buy Bitcoin in the UK Today with eToro

It’s easy and affordable to buy Bitcoin in the UK when you have the right crypto exchange for the job. We recommend using eToro to buy Bitcoin in the UK because it offers low exchange fees and makes storing your Bitcoin simple. Get started today to buy your first cryptocurrency!

FAQs

Is it legal to buy Bitcoin in the UK?

It’s entirely legal to buy Bitcoin in the UK. In fact, many UK businesses accept Bitcoin as payment for goods and services.

How can I buy Bitcoin in the UK?

The best way to buy Bitcoin in the UK is through a cryptocurrency exchange like eToro. Exchanges are easy to use, inexpensive, and allow you to quickly swap pounds for Bitcoin.

Where is the best place to buy Bitcoin in the UK?

Based on our experience, eToro is the best crypto exchange to buy Bitcoin in the UK in 2022. eToro offers ultra-low fees, excellent account security, and access to dozens of top cryptocurrencies. eToro also has trading tools and an integrated Bitcoin wallet.

Should I buy Bitcoin in the UK?

Bitcoin is the best-known cryptocurrency and some people believe it’s the future of money. It’s impossible to say what will happen in the future, but Bitcoin is already accepted as legal payment at many UK businesses. It’s easy to buy Bitcoin in the UK if you want to try out crypto.

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