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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.

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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.

 

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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.

how to trade bitcoin uk

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.

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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.

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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.

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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.

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Advantages of Trading Bitcoin

1. Lightning Fast Transactions:

Fiat currency has the disadvantage of completing a transaction taking days, even weeks. Cryptocurrencies don’t have this problem. Your money will be sent in an instant, no matter what time it is! That eliminates waiting time and hassle since there are no intermediaries. To send bitcoins to your buddy in another country, Bitcoin, check the Bitcoin Loophole website. You need to key in his bitcoin address, and the transfer will be carried out without any limits (unless the recipient decides to reverse the transfer).

2. Lower Transaction Fees:

Is it possible to imagine paying more than $35 to withdraw money from your bank account? If you withdraw amounts over $1000, you could be charged that amount. On the other hand, Bitcoin transactions have no fee associated with them, except for a small transaction fee (for the transaction to be processed). So there is no need to worry about this as well.

3. Privacy:

Bitcoin transactions are anonymous, making them ideal for people who value privacy. The owner(s) of BTC wallets possess one or multiple public keys that function as their bitcoin addresses, and these keys are the only information needed to execute a transaction. Unlike the credit card system, Bitcoin requires your name, address, or other information. All you need is the recipient’s address to accept payment!

4. Decentralization:

Governments and financial institutions cannot interfere with bitcoin transactions due to their decentralized nature. As a result, it’s an excellent alternative for people who want a little extra privacy or are against the system. When users’ information is hacked into traditional payment systems such as PayPal or credit cards, hackers access their complete financial records and make fraudulent transactions. Due to its unique blockchain technology, BTC can never encounter these problems.

Risks of Bitcoin Trading

1. Young Technology

Cryptocurrencies are in a very early stage of development at this point. It has been roughly 10 years since Bitcoin was introduced, and it has not yet matured into something truly solid. Trying to predict the market’s future is difficult, given all the changes in the past few years. Eventually, Bitcoin may be rendered meaningless. Due diligence and caution are the best approaches to approaching this new investment opportunity. Be prepared for the market’s future by taking steps to secure your funds.

2. Currency Or Investment Opportunity?

Cryptocurrency could be a powerful medium of exchange online. However, buyers trade bitcoins as an investment strategy similar to stock investing. Some believe that bitcoin could be an effective retirement investment. However, investors risk losing money when there is no regulation, no physical collateral, and always shifting markets. Despite the potential benefits of bitcoin, caution is the best course of action. It is better to take small steps and invest in small amounts.

3. Financial Loss

Some people refer to bitcoin as a Ponzi scheme, in which people at the top profit from the ignorance of others. That leads to a bubble economy as more people purchase bitcoins. Essentially, bitcoin will become worthless as soon as the bubble bursts; many people will hold on to cryptocurrency in the hope of selling but are unable to sell because of the bubble. The investment yields no return, resulting in a very painful financial loss.

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.

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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.

Best Platforms to Trade Bitcoin in the UK

1. eToro – Overall Best Place to Trade Bitcoin UK

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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.

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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.

eToro fees

Fee Amount
Stock trading fee Free
Forex trading fee Spread, 2.1 pips for GBP/USD
Crypto trading fee Spread, 0.75% for Bitcoin
Inactivity fee $10 a month after one year
Withdrawal fee $5

Pros:

  • Bank transfers and debit/credit cards are accepted
  • Zero commission on bitcoin purchases
  • Just $25 as a deposit
  • K. and U.S. fully regulated
  • More than 2,400 global shares and 250 ETFs
  • CFD markets are also available
  • Copy-trading social network
  • Licensed by the FCA, ASIC, and CySEC
  • FINRA and SEC approved

Cons:

  • A fee of $5 for withdrawals
  • It’s a U.S. dollar-based platform

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

how much does it cost to trade bitcoin 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.

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Coinbase fees

Fee Amount
Crypto trading fee Commission, starting from 0.50%
Inactivity fee Free
Withdrawal fee 1.49% to a U.K. bank account

Pros:

  • Newbies and experts alike will appreciate the simple interface
  • Your transactions move quickly on Coinbase because it is one of the most liquid exchanges
  • There are many altcoins available on Coinbase
  • The Balance minimum is low

Cons:

  • Complex fee schedule
  • The cost of trading on other platforms is higher

Your Money Is At Risk.

3. Kraken - Excellent For Trading Bitcoin in the UK

how to trade in bitcoin uk Since its founding in 2011, Kraken has been considered one of the oldest and biggest cryptocurrency exchanges. 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.

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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.

Kraken fees

Fee Amount
Crypto trading fee Commission, starting from 1% per trade for sellers. Free for buyers
Inactivity fee Free
Withdrawal fee According to the currency withdrawn. 0.0005 for BTC

Pros:

  • Multiple technical indicators on an advanced charting platform
  • Trading of 66 pairs and futures is supported
  • Beginners can easily use it
  • Traders may trade margins
  • Staking can be used to earn cryptocurrency
  • Pricing that is lower than most competitors in the industry

Cons:

  • The methods of depositing and withdrawing are limited
  • It can sometimes take a while for customer service to respond

Your Money Is At Risk.

4. Binance – Top-Rated Crypto Exchange to Trade Bitcoin UK

how to trade on bitcoin 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.

Binance fees

Fee Amount
Crypto trading fee Commission, starting from 0.1%
Inactivity fee Free
Withdrawal fee 0.80 EUR (SEPA bank transfer)

Pros:

  • Over 100 cryptos are available
  • Fees for trading are low
  • There are many ways to trade
  • Supports bank transfers and debit/credit cards
  • The cryptocurrency scene has a great reputation
  • Ideal for advanced traders that seek sophisticated tools and features

Cons:

  • Investing for beginners is not recommended
  • The fees associated with debit and credit cards are high

Your Money Is At Risk.

5. Evonax - Lower Fees to Trade Bitcoin UK

how to buy and trade bitcoin 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.

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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.

Evonax fees

Fee Amount
Crypto trading fee Vary between 1-3%
Inactivity fee Free
Withdrawal fee Free

Pros:

  • User-friendly
  • No KYC or sign-up required
  • Transfers instantly
  • Excellent customer service

Cons:

  • Currently available in 18 cryptocurrencies
  • There is no wallet service
  • It does not support live chat

Your Money Is At Risk

How to Trade Bitcoin UK - Fee Comparison

Platform Crypto trading fee Inactivity fee Withdrawal fee
eToro Spread, 0.75% for Bitcoin $10 a month after one year $5
Coinbase Commission, starting from 0.50% Free 1.49% to a U.S. bank account
Kraken Commission, starting from 1% per trade for sellers. Free for buyers Free According to the currency withdrawn. 0.0005 for BTC
Binance Commission, starting from 0.1% Free 0.80 EUR (SEPA bank transfer)
Evonax Vary between 1-3% Free Free

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.

We recommend using eToro for doing all background research on any crypto since it will provide you with expert opinion, trading strategies, crypto prices analysis, and other fabulous information which will help you determine whether to invest or not.

Investing in cryptocurrency in the UK can also be made easier with a UK-regulated broker. This platform is commonly known for its copy trading features that allow you to mimic the trades of experienced traders.

eToro – Best Platform to Trade Bitcoin With 0% Commission in the UK

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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

What are the best Bitcoin trading platforms in the UK?

Several registered and qualified brokers allow their customers to purchase bitcoins. eToro and Binance are our recommendations. You can complete a transaction quickly and easily on both platforms because they are regulated and secure.

What is a Bitcoin ETF?

Through exchange-traded funds (ETFs), investors can indirectly participate in the Bitcoin market. However, unlike major exchanges, investors cannot trade Bitcoin ETFs on larger platforms.

How to learn to invest in Bitcoin?

Invest in cryptos with the eToro trading platform, where you can find information on how to begin investing, build a portfolio, develop trading strategies, price analysis, expert comments, market news, and much more.

Is Bitcoin a Good Buy?

In 2022, Bitcoin will be a relatively safe investment. But, of course, all investments, including Bitcoin, carry risks. The Bitcoin currency is very safe, though, for someone who has done their homework and is confident.

Is Bitcoin trading illegal in the UK?

Financial Conduct Authority registration is required for crypto exchanges in the United Kingdom

How much money do you need to trade Bitcoin in eToro?

Investment amounts vary widely based on your preferences, disposable income, and other factors. Do not invest too much or too little in cryptos, as you will incur unnecessary risks, and don't invest too little (say $50) as you will not gain much

About Jhonattan Jiménez
About Jhonattan Jiménez

English Language professional with a vast experience teaching English as a second language, English translator to Spanish, Cryptocurrency enthusiast, interested in geopolitics and economy.

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