How to Trade Bitcoin UK – Beginner’s Guide
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More and more people are asking how to trade Bitcoin UK due to the rapid growth of cryptocurrencies like Bitcoin in the recent past. Today, finding an online broker that offers competitive fees is the easiest part, and you just need to deposit some cash with a debit/credit card and decide how much to invest.
It is possible to trade Bitcoin for just $25, or about £18 on some platforms. In addition, we provide a comprehensive guide on how to trade bitcoins in the UK for those who still don’t understand how this revolutionary technology works. Check our review for more information about how to trade Bitcoin UK.
How to Trade Bitcoin UK – Step by Step Guide
Getting started with BTC trading on eToro can be accomplished by following steps. Trading on eToro involves 4 main steps that require just a few minutes. Let’s see how to trade bitcoin etoro.
Step 1: Open an Account with eToro
To join eToro, you must navigate to the site’s homepage and click on “Join Today.” Following that, you will be prompted to fill in a short form that asks for your personal information and requires setting up your login credentials. If you’d rather not remember your username and password, you can sign up using your Facebook or Google account.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Step 2: Upload ID
After that, upload a copy of your I.D. to verify your identity. To make sure you are a legit customer, eToro has to perform KYC (Know Your Customer) before you are permitted to trade bitcoin. There are two parts to this verification process. Firstly, your identity needs to be verified. You can upload a copy of your passport, driving license, or visa to verify your identity. Then, you need to upload either a bank statement or a utility bill to verify your address in the next step.
eToro’s response time is fast, and most accounts are verified within a few hours of uploading the documents.
Step 3: Deposit Funds
After that, you will be required to deposit it into your account. or require a minimum deposit of 200 GBP. There are many ways to deposit money. Funding your eToro account can be done via bank transfer or credit/debit card. PayPal and Skrill are among the e-wallets they accept. Besides USD, GBP, and EUR, you can also add funds in different currencies. Withdrawals appear in your account almost immediately, and there are no fees or charges associated with them.
Step 4: Trade Bitcoin
Following that, you will be able to trade Bitcoins. To purchase Bitcoin or BTC, go to the search bar, type in the amount, and click the order button.
What is Bitcoin?
Bitcoin (BTC) is regarded as the world’s leading cryptocurrency, and it is highly speculative. Understanding Bitcoin and its workings are essential before investing in it. An unknown developer named Satoshi Nakamoto launched the digital currency in 2009, resulting in its popularity and scalability. Satoshi Nakamoto is also credited with inventing the technology that has enabled Bitcoin to reach its current level of popularity and scalability. There is no single owner or central bank of Bitcoin. That is a fundamental aspect of the Bitcoin concept. Since it is a decentralized currency, it cannot be manipulated.
Unlike traditional currencies such as the dollar and the pound, it is impossible to manipulate or print Bitcoin. Each Bitcoin is generated automatically every 10 minutes. As Bitcoins are issued in 25 million units, the price will increase. It is possible to transfer bitcoins from one account to another. Bitcoins are often purchased as an investment tool, despite this fact. Bitcoin’s value should increase in the future, allowing them to cash out at a higher price in the future.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Other Types of Bitcoin Assets
Bitcoin ETFs
Investors can indirectly participate in the Bitcoin market and gain exposure through bitcoin exchange-traded funds (ETFs). Bitcoin ETFs prohibit investors from holding and trading Bitcoins on larger exchanges.
In October, the New York Stock Exchange launched a Bitcoin futures exchange-traded fund. ETFs that track Bitcoin futures are typically backed by futures contracts rather than real Bitcoin. ETFs, regulated financial products represent a variety of assets. Due to the growing popularity of ETFs and Bitcoins, their convergence was inevitable. Bitcoin ETFs allow investors to participate directly in the bitcoin market without directly investing in the cryptocurrency. According to our currency conversion, Bitcoin trades for 54.35 lakhs at writing.
Bitcoin CFDs
Cryptocurrencies have also begun to generate interest as an alternative investment or CFDs.
Bitcoin’s price surged to more than $19,000 by December of 2017 due to the wide-scale media coverage created by its spike in value. Bitcoin’s value began 2017 at around $1,000 and rocketed to more than $19,000 by December of that year. Trading is always a priority when prices move quickly.
The emergence of Bitcoin futures contracts by established exchanges like CBOE and CME further validated the new asset space.
People often gain exposure to cryptocurrencies by buying the actual currency and putting their money into them. However, this approach has its downsides. First, cryptocurrency transactions take longer to process than forex trades, which have instant fills. Second, Bitcoin and Ethereum wallets have been compromised in cases of unregulated exchanges.
Bitcoin Futures
Investing in ETFs is similar to buying or selling stocks. ETFs, however, allow you to trade and sell them anytime during market trading hours, unlike mutual funds. For example, the Bitcoin ETF enables two investors to reach a contractual agreement to purchase or sell Bitcoin at an agreed-upon price someday in the future. Commodities trading is typically used for this purpose.
Can You Trade Bitcoin in the UK?
There are currently several cryptocurrencies, but Bitcoin is the most accessible. Several platforms allow Bitcoin purchase today, including exchanges, brokerages, wallets, and even electronic wallets like PayPal.
All U.K. residents are welcome to use eToro’s revolutionary brokerage platform. The simplicity of the products, the ease of use on mobile devices, and the ability to copy other traders make it attractive to younger investors. When people can buy and sell complex assets like Bitcoin more comfortably, they feel more at ease. eToro does not charge commission fees, which means that more of your hard-earned money stays in your pocket.
Bitcoin Trading Strategies
1. Do Your Research
In crypto lingo, DYOR is well known. Before investing, always do your homework and remain confident in your decision.
Find out as much as you can and seek out reliable sources of information. Many review sites provide good analysis, and you can also get good information from experts online or through social media.
2. Beware of Fraudulent Schemes
The cryptocurrency market is largely unregulated, which leads to many scammers and individuals on the prowl for victims. Therefore, check the security level of a platform before committing funds. That is another benefit to using review sites.
Additionally, we advise you to only deal with regulated brokers. There is an excellent track record of success among services like eToro, regulated in different countries. Therefore, it is much safer to use services like these.
3. Only Invest Funds You Can Lose
Bitcoin is no exception – it carries a high degree of risk. As a precaution, you should only invest money you are willing to lose.
Investing in Bitcoin shouldn’t require you to lie to yourself or take a loan. Instead, be prepared to lose your capital if things go wrong when investing, and only invest when you have enough money.
You can invest and trade Bitcoin with as little as you have – especially if you’re a newbie. Along the way, you will improve your trading skills and financial situation. Before you know it, you’ll be earning big bucks.
4. Track Your Results
No matter what you’re doing, you need to know how your portfolio is doing. Traders especially need to know this. The market’s outlook could affect your position.
Keeping track of Bitcoin’s price is difficult due to its volatile nature. However, you can monitor the performance of your portfolio with the help of several apps. In addition, you reduce the risk of suffering a big loss by regularly checking your account.
5. Resist FOMO
Especially if you’re new to crypto trading, it can be challenging to handle the pressure. Be careful not to follow others into a position or make an investment just because they do the same thing. That’s the Fear of Missing Out (FOMO).
Do your research and take your time. When people FOMO into a trade, they will miss out on an earning opportunity. The risk is minimal. It is important to invest only when you are confident and prepared, regardless of how strong the temptation may be.
Platforms to Trade Bitcoin in the UK – List
- eToro – Overall Best Place to Trade Bitcoin UK
- Coinbase – Largest Crypto Exchange in the United States Available in the UK
- Huobi – Excellent Trading Platform for Bitcoin in the UK
- OKX – One Of The Most Recognized Platforms On The Market
- Kraken – Excellent For Trading Bitcoin in the UK
- Binance – Top-Rated Crypto Exchange to Trade Bitcoin UK
- Evonax – Lower Fees to Trade Bitcoin UK
Platforms to Trade Bitcoin in the UK
1. eToro – Overall Best Place to Trade Bitcoin UK
eToro is arguably the best place to trade Bitcoin and is a favorite among crypto investors. Investing in leading digital currencies is easy with this online broker, which offers a variety of assets and markets. Aave, Kyber Network, and Augur are among the Defi coins you can buy alongside Bitcoin, Ethereum, and Ripple.
eToro’s client base has grown to more than 20 million investors due to many factors. To start with, eToro is a really easy platform to use, so even if this is your first time buying Bitcoin online, eToro can handle it. Furthermore, eToro offers super low commission rates so that you can trade Bitcoin with no fees.
It is difficult to find Bitcoin brokers that can compete with eToro as far as fees go. eToro has no commissions. Buying Bitcoin without commission is possible with the online broker. You are only charged 0.5% F.X. when you deposit with the broker.
eToro offers withdrawals and deposits through several popular channels, such as PayPal, Neteller, debit, and credit cards.
A lot of regulation applies to eToro. The brokerage firm holds licenses from agencies such as the Financial Conduct Authority (FCA) of the U.K., the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). Moreover, the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have registered it in the United States.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2. Coinbase – Largest Crypto Exchange in the United States Available in the UK
The largest crypto exchange out there is Coinbase. Customers will enjoy a clear interface and a large selection of trading pairs on the exchange.
Wilmington, Delaware, is home to Coinbase, the biggest cryptocurrency exchange in the United States. With Coinbase’s user-friendly interface, trading is easy for beginners as well. In addition, Coinbase Pro is an option for experienced traders.
Another major cryptocurrency company is Coinbase. Coinbase Pro provides trading along with its exchange service. Furthermore, users can access a payment platform for businesses, custody services, and COIN cryptocurrency.
Your Money Is At Risk.
3. Huobi – Excellent Trading Platform for Bitcoin in the UK
Founded in Singapore, Huobi is an online financial services company and cryptocurrency exchange. The popular crypto-asset exchange Huobi provides users with access to popular resources like Bitcoin, Ethereum, and XRP and a way to acquire initial coin offerings (ICOs) before they become mainstream. Huobi’s origin can be traced back to Beijing, China, where it was founded. After the government expelled cryptocurrency exchanges from China in 2017, its presence in the Chinese cryptocurrency grew rapidly before it was barred from being a participant.
Due to more friendly crypto law regulations in neighboring Singapore, the company later moved to that country. Over 355 crypto-assets are supported by Huobi, making it the largest crypto exchange in the world today. With over 5 million active users globally, the platform boasts 130 countries represented on the platform. Using a daily trading volume measure derived from Coinmarketcap, we see that Huobi is ranked third in the list of top cryptocurrency exchanges. Among the other prominent exchanges on the list are Coinbase and Bithumb.
There is a reason why Huobi is so popular: it is accessible to both new traders and seasoned ones alike.
You will be able to get your account fully set up in about two minutes at the click of a button, and you should not have any difficulty doing this.
Since the launch of its company wallets, Huobi hasn’t had any security breaches on the platform. This enviable record has been made possible by adhering to several strict security protocols. Moreover, there is no way for the bad actors to get their hands on Huobi’s crypto funds as they are stored in an off-chain cold storage facility which makes it impossible for these companies to hack them.
Your Money Is At Risk.
4. OKX – One Of The Most Recognized Platforms On The Market
OKX is a cryptocurrency platform in more than 100 countries where you can trade with Bitcoin. In addition, this platform implements blockchain technology to provide advanced services to all its users.
Hundreds of cryptocurrency pairs and futures trading are available so users can perfect their Bitcoin trading strategy. According to the platform, its daily volume in BTC is almost 1.5 billion dollars.
If you want to buy Bitcoin and then trade it on this platform, you can complete the process in two ways. The first is through the website, and the second is using the mobile application. This is because OKX accepts multiple payment methods.
You should know that there are two methods when trading Bitcoin on this platform. The basic way is uncomplicated trading, and the second method is employing leverage, a way more recommended for experienced users.
Margin trading, options contracts, and perpetual swaps are available for leveraged trading on OKX. A user agreement and account activation are required for this type of trading.
Your money is at risk.
5. Kraken – Excellent For Trading Bitcoin in the UK
Since its founding in 2011, Kraken has been considered one of the oldest and biggest crypto platforms. Over 4 million users have joined its Bitcoin trading platform since 2013. In addition, 66 different cryptocurrencies can be traded through the platform, and they can also be staked. Kraken’s key feature is regulated as a Money Service Business (MBS) by FinCEN in the United States and FINTRAC in Canada. In addition to the UK FCA, Australia’s AUSTRAC, and Japan’s FSA, these agencies govern several affiliate businesses.
In addition to providing exemplary safety and security, Kraken allows traders to trade futures of cryptocurrencies, which is not available with most other platforms. Further, it is very simple to use and allows users to trade on high margins depending on the currency they want to trade. Kraken, for instance, allows you to trade BTC with leverage as high as 10x.
Your Money Is At Risk.
6. Binance – Top-Rated Crypto Exchange to Trade Bitcoin UK
Among all crypto exchanges, Binance is the largest by daily trading volume. The exchange is very popular worldwide, with daily trading volumes exceeding $50 billion. Quite a few features are available on Binance for users. With the exchange, you can access many cryptocurrencies, including Bitcoin and Ether, and enjoy great liquidity, as assets see significant trading activity.
Binary starts offering trading commissions at about 0.1 percent, and the platform’s KYC process is relatively straightforward. Traders can also gain access to crypto futures and leveraged trading on Binance, allowing them to buy cryptos worth more than the amounts in their wallets.
Binance also allows fiat currency purchases of Bitcoin. However, there is a possibility that you may need to wait a few days for funds to arrive if you live in a country with relatively cheap bank transfers. Therefore, if you want to benefit from a fast deposit, you might want to use your credit card or debit card.
Your Money Is At Risk.
7. Evonax – Lower Fees to Trade Bitcoin UK
Evonax is the right trading platform for crypto traders who wish to maintain their anonymity on the trading platform. In addition, Evonax offers zero-fee cryptocurrency trading. It was founded in 2016. Its platform’s zero transaction fee sets it apart from other providers.
Platforms from different regions have trusted this platform, an international presence in more than 100 countries. Moreover, the secure technology behind its user-friendly interface ensures that its sensitive data is private.
This platform does not require your Know Your Customer (KYC) information. However, if users need assistance from their customer support program, this information will only be required.
Your Money Is At Risk
Conclusion
Cryptocurrencies will shape the future of finance. They are here to stay. Crypto markets have grown rapidly in the past few years. Regulators can’t ignore such a trillion-dollar industry. Because of this, governments of many countries recognize digital currencies informally or formally.
According to Goldman Sachs, investing a portion of your portfolio into these blockchain assets is an excellent strategy for those who are once suspicious of crypto. That is because cryptocurrencies will completely change how we buy and sell goods and services in a short period.
Despite the volatility of crypto assets, investors have realized they can generate huge returns on their investment with market research and analysis. Investing in cryptocurrency in the UK can also be made easier with a UK-regulated broker.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
FAQs
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Jhonattan Jimenez
