How to Invest in Bitcoin UK
Many mainstream investors think it is difficult to invest in Bitcoin. This is far from the truth, as several cryptocurrency platforms now make it easy to invest in Bitcoin.
This guide will show you how to invest in Bitcoin UK easily using a safe, regulated broker with low fees.
How to Invest in Bitcoin UK - Quick Steps
Follow these quick-fire steps to buy Bitcoin (BTC) on our recommended broker, eToro.
- Open an account with eToro - Register on eToro by clicking the ‘Join Now’ button and provide the necessary documents to verify your account
- Deposit - Make a minimum deposit of $25 through a bank wire transfer, credit/debit card, PayPal, Skrill, Neteller, and several others
- Search for Bitcoin - Type ‘BTC’ to locate the digital currency
- Invest - Click on ‘Trade’ to open the order page and input how much BTC you want to buy. Tap on the ‘Open Trade’ button to complete the purchase process
Best Way to Invest in Bitcoin UK
There are several different ways you can invest in Bitcoin UK. The first and most common way is by buying the cryptocurrency itself. You can easily do this on a variety of different cryptocurrency exchanges and brokers - we reveal our top pick below.
Another way to invest in Bitcoin is by investing in Bitcoin stocks. By this, we mean buying stocks of companies that have some kind of interest in Bitcoin or that hold Bitcoin themselves. So, how do you invest in Bitcoin stock? Well, the best way to do this is via a crypto broker, as you can then both buy Bitcoin itself as well as Bitcoin stocks. Now let’s take a best way to invest in Bitcoin UK.
Best Place to Invest in Bitcoin UK
There are many different bitcoin investment platforms out there, so you need to carefully choose the right one for you. eToro is an FCA regulated bitcoin investment platform that we believe ticks all the boxes - here’s why.
eToro - Overall Best Platform to Invest in Bitcoin UK
eToro is a social trading platform that specialises in delivering financial investment management services, exchange of cryptocurrencies and brokerage services.
The firm, which was founded in 2007, is regulated in the UK by the Financial Conduct Authority (FCA), the Securities and Investment Commission in Australia (ASIC) and Cyprus’s Securities and Exchange Commission (CySEC). eToro is also regulated in the United States by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
eToro is regarded as one of the best brokers globally due to its top-notch security protocols and user-friendly trading interface.
As a social trading platform, eToro employs a unique CopyTrade feature allowing new traders to copy the trading strategies of more experienced traders. New users can easily make sound decisions on different trades and reap substantial profits by using this feature.
eToro offers access to over 27 standard crypto assets with good liquidity rates, in addition to low fees for users on its platform. eToro does not charge fees for trading stocks and ETFs; however, to trade crypto assets, the broker charges spread between 0.75% to 5% as the fees vary for different cryptocurrencies.
The most outstanding fees required on the platform is the withdrawal fee which is $5 and a minimum deposit fee of £37.74.
Users can make deposits or payments on eToro using PayPal, bank transfer, debit/credit cards, Neteller and Skrill to complete such transactions.
- Easy-to-use platform
- Regulated platform
- Very affordable fee rates
- CopyTrade functionality
- USD base currency
How to Invest in Bitcoin UK - Tutorial
Looking for more detailed steps on how to invest in Bitcoin UK on eToro? Then this section will provide you with step-by-step information and the documents you need to provide to unlock the full potential of your trading account.
The first step will be to create an account on eToro. Navigate to the eToro homepage and click on ‘Join Now’ to access the sign-up form. Here, you will provide your full name, email address, mobile number, choose a username, and a unique password. You can fast-track this process by registering with your Google or Facebook account.
eToro is a regulated broker, so you must complete the compulsory KYC process. Not to worry, this process is easy to complete. All you need to do is upload a snapshot of your driver’s license or government-issued ID card. You will also be required to upload a recent copy of your utility bill or financial statement.
Once these documents are uploaded, the eToro team will verify your account.
The next step will be to deposit into your verified account. The minimum deposit is $25 (37.74 GBP), and you can deposit through loads of everyday payment methods. eToro allows payment options such as bank transfer, credit/debit cards, PayPal, Skrill, Neteller, and several others.
If you are looking for more fluidity in your deposit option, you can try the bank transfer method to fund your account up to $1m per transaction. However, this option could take up to 4 - 7 business days to clear.
Search for Bitcoin
eToro offers two means to locate an asset you want to invest in. The first option can be done by clicking on the action tab and tapping the ‘Discover’ button to access all the financial markets the eToro platform covers. Then click on ‘Crypto’ and tap ‘Bitcoin.’
The easier option will be to type ‘BTC’ into the search bar and tap the appropriate result.
To invest in Bitcoin, click on ‘Trade’ on the digital asset dashboard to access the order page. Then input how much you want to invest in Bitcoin and click on ‘Open Trade’ to confirm your investment order.
What is Bitcoin (BTC)?
Bitcoin is a decentralised digital currency created by an anonymous developer, Satoshi Nakamoto, in 2008. The digital asset was introduced to revolutionise the monetary system and break off from the monopoly of traditional banking and payment systems. Some investors have also referred to Bitcoin as 'digital gold'.
This tag is due to the hard-cap limit coded into the Bitcoin network by Nakamoto. According to the whitepaper, only 21 million coins will ever be in circulation. This makes Bitcoin deflation due to the impending supply and positions the premier digital asset a great store of value like gold.
Bitcoin (BTC) works like digital money and allows peer-to-peer transactions while eliminating intermediaries like banks. This way, Bitcoin is decentralised and without any central authority or figure to manage transaction inflows and outflows.
Bitcoin is open-source, as every transaction carried out on the network is made public. Every Bitcoin transaction is recorded on the blockchain, which works like a bank’s ledger. However, the difference is that Bitcoin transactions are immutable and can never be modified once added to the blockchain.
Transactions on the Bitcoin network are pseudonymous and not anonymous. An alphanumeric wallet address is automatically generated whenever you create a Bitcoin wallet. With this address, you can send and receive Bitcoins. However, this address is published on the blockchain, and anyone can see this address even though it may be difficult to determine who the owner is.
Bitcoin uses a proof-of-work (PoW) consensus mechanism to verify transactions on the blockchain, a process known as mining. Bitcoin mining involves adding new transactions to the Bitcoin blockchain. Volunteers who undertake these tasks are called miners.
Many nations have not yet recognised Bitcoin as a legal tender for numerous reasons, such as its ability to allow users to circumvent government-imposed capital controls. However, the foremost cryptocurrency has continued to gain popularity and massive adoption globally. Many businesses now accept Bitcoin as a form of payment. Even countries are getting more interested in Bitcoin. The Latin American nation El Salvador recognises BTC as a legal tender. The country has also accumulated a sizable Bitcoin portfolio alongside.
Why Invest in Bitcoin?
As well as learning how to invest in Bitcoin UK, you need to learn how to weigh up whether or not it’s a good investment for you. So, how do you do that?
Bitcoin continues to grow in adoption. The asset is so popular that more than 54% of fintech experts expect Bitcoin to replace fiat currencies by 2050. Still, wondering why you should invest in Bitcoin? This section highlights why Bitcoin is a must-buy for savvy investors.
Great Store of Value
Investors are well versed in hedging their funds and investments against inflation. This process involves converting or storing investment in asset classes with low supply and high market demand. An example of a store of value is gold.
However, over the years, Bitcoin has proven to be a better store of value than any other asset class.
The premier asset is hard-coded only to produce 21 million tokens, which will be fully mined by 2140. This fixed limit is expected to make each Bitcoin more valuable and scarce by the day. This hard-cap limit has seen institutional investors term BTC the ‘digital gold’ and a better store of value than traditional gold.
2. Impressive Return on Investment
In the past year, the crypto market, led by Bitcoin, has posted impressive returns on investment (ROI). Compared to major traditional stocks like shares and stocks, Bitcoin worth is heads and shoulders above them in terms of ROI.
In a report by Goldman Sachs on the S&P 500 performance over the past decade, US stocks averaged 9.2%, while Bitcoin has grown 9,000,000% from a low price peg of $0.08 in 2019 to over $69,044.77 in the past month.
Put alongside top tech giants; Bitcoin has continued to show stellar performance. Tesla stock grew by 210,140% between 2008 ($15 million) and 2020 ($31.536 billion) while Facebook has grown from ($229 million) in 2009 to ($29.146 billion) in 2020; a price increase of only 12,627.5%. Thus, we can conclude that investing in Bitcoin offers massive gains.
If you had invested in Bitcoin at the start of 2020 and sold it on 31 December 2020, you would have made a 300% profit in just one year.
Liquidity has to do with how easy it is for investors to convert their investments to cash. Bitcoin is a highly liquid digital asset.
The plethora of crypto broker firms, trading platforms, and exchanges make it very easy to convert your Bitcoin to cash or any other assets within minutes. Bitcoin's high liquidity makes it a very good investment instrument, whether you are in for the short or long term.
Bitcoin Crypto Price
The world's first cryptocurrency has seen some incredible add-ons this year as the Bitcoin worth is at the £38,084 price mark today. The current price peg is indicative of a 0.84% decrease in the last 24 hours. Being the first digital currency ever to be launched, Bitcoin dominates up to 40.27% of the global crypto market and is currently ranked as the number one cryptocurrency based on market cap.
The Bitcoin crypto has a large market capitalisation value of £716.4 billion, down 0.94% since the last day. The crypto asset has a 24-hour trading volume of £23.5 billion, also down 16.67% in the last 24 hours.
Bitcoin has accrued up to a 35.39% increase in the last six months, and the year-to-date (YTD) statistics show a 74.75% increase. The parameters considered are strong motivators to invest in Bitcoin.
Over the last year, BTC has shown great potential to scale above current prices and reach new highs, as seen in the price action. Bitcoin was trading at £14,455 on December 12, 2020, and was already scaling upwards before the year’s close. By January 8 2021, the asset was traded at £30,397, double the price a month ago.
February 2021 was one of the peak months for the asset as the premier digital currency traded at £42,368 on February 19. March 13 saw the price of the asset rise to £44,787, and April was the first peak for the digital coin, trading at £47,663. The crypto asset dragged from May to September, trading within the £36,247 to £43,804 price range.
October gave way to a new all-time-high (ATH) as Bitcoin traded at £48,526 and even gained more value, reaching as high as £50,428 on November 8. The digital coin is seen to have dipped below the ATH, opening opportunities to invest in Bitcoin UK.
BTC Price Prediction
Bitcoin's price has risen dramatically to its current high position of £37,055 after the premier asset started the year below £22,556 in January.
Following the increase of Bitcoin price in the last 24 hours, the token is not expected to hit any major highs till the end of the year. However, a strong bullish run is predicted in 2022. Experts project that the coin could hit a price point of £75,188 in the first quarter (Q1) of the coming year. The price of BTC is likely to be in an upward trend with a strong bullish run between January and June.
The virtual asset is likely to follow the same pattern as the first half of the year in the second half of 2022, and Bitcoin price is predicted to be as high as £65,987 by the end of 2022.
While there are uncertainties about the long-term price of Bitcoin, crypto analysts agree on one thing: the price of the world's most popular cryptocurrency will only rise. According to forecasts, the price of Bitcoin will continue to rise in the next few years. In addition to the predicted rise in BTC price, the deflationary properties of the digital token make investing in Bitcoin a great financial decision.
Despite these optimistic forecasts, it's vital to remember that cryptocurrencies are very volatile and unpredictable. Investors are urged to exercise caution when investing in BTC.
Although Bitcoin has been around for over a decade, the crypto asset still makes a good investment. The asset continues to flourish as a group of development teams are making preparations for an upgrade, the first Bitcoin has seen since its launch in 2008. The Taproot Upgrade aims to enable the network protocol to handle smart contracts and support Bitcoin with some Non-Fungible Tokens (NFTs) of its own. This upgrade will improve the efficiency of the network and improve the privacy of the network.
Many broker platforms offer users the opportunity to invest in cryptocurrencies such as Bitcoin; however, our top pick is eToro. As stated earlier, the broker platform is helping users minimise losses and make good profits off their low-cost trades. We recommend eToro for traders who want to invest in Bitcoin in the UK.
FAQs on How to Invest in Bitcoin UK
- How do I invest in Bitcoin?
There are many platforms where you can invest in Bitcoin. However, we recommend the regulated platform eToro for its low fees and social trading feature. Setting up an account on eToro is also swift and easy. You can start to invest in BTC within minutes.
- What Are the Easiest Ways to Buy Bitcoin in the UK?
You can buy Bitcoin from trusted and FCA-regulated broker eToro.
The platform offers multiple payment methods, including PayPal, debit cards and bank transfers. Other ways of buying Bitcoin include using a crypto ATM or a peer-to-peer platform.
- Is Bitcoin a Good Investment in 2021?
Despite a shaky year price-wise, investing in BTC is a great investment and a way to better tap into the new financial ecosystem.
- How Do Beginners Invest in Bitcoins?
Beginners can invest in Bitcoin by creating a crypto account on a popular platform like eToro. The sign-up process is easy, and beginners can begin investing in BTC on the eToro website with ease.
- What Are the Risks of Investing in Bitcoin?
The prices of cryptocurrencies are volatile; hence investors are urged to invest cautiously.
- Is Bitcoin Going to Be the Future Currency?
Bitcoin has excellent anti-inflation characteristics. While it may not yet completely replace traditional currencies, it is a great investment gradually becoming a notable investment asset.
- Should I Invest in Bitcoin?
Bitcoin is a very popular investment product which has seen both significant rises and falls since its launch, so any investment should be undertaken within the knowledge that you may lose money.