Invest in Bitcoin in the UK 2024 – Beginner’s Guide
Currently, Bitcoin is the most popular cryptocurrency in the world. Over a decade later, its value has increased from just a few cents in 2010 to more than $35,000 today. There are many reasons why people purchase Bitcoin. Often referred to as ‘digital gold,’ it acts as both a store of value and a medium of exchange.
You should learn how Bitcoin works and where to invest in Bitcoin UK if you are new. Various platforms offer different features, trading options, fees, and deposit options.
Your money is at risk.
How to Invest in Bitcoin in the UK?
How about an in-depth guide on purchasing Bitcoin? Then, you’ll learn exactly how to obtain Bitcoin most cost-effectively and safely in the section below.
Step 1: Open an Account with Coinbase
At Coinbase, an account can typically be opened, funds deposited, and bitcoin bought within 10 minutes. That is due to the platform’s automated technology, which verifies your personal information.
Therefore, to join Coinbase, go to the website and click on the ‘Create account’ button. After that, complete the information below by providing your first and last name, email address, phone number, username, and password.
Your money is at risk.
Following that, you will be asked for additional personal information, such as your home address, birth date, and national tax I.D. number. An SMS will then be sent to your mobile device. When prompted, enter the code you will receive from to complete your registration.
Step 2: Upload ID
We have already mentioned that Coinbase is a centralized exchange. Your identity must therefore be verified. Although this step can be completed at a later date – it must be completed before you can:
- Request a withdrawal
For this reason, you should upload the documents quickly now so that there won’t be any delays in the future.
- Your documents must include the following:
- Your passport, driver’s license, or national identification card
- issued within the last three months Utility bills or bank account statements
Most of the time, Coinbase will authenticate your documents immediately, removing all restrictions on your account subsequently.
Step 3: Connect a payment method
To invest in Bitcoin, you will need to connect a payment method to your Coinbase account. The exchange accepts debit cards, bank transfers and e-wallets.
You may need to verify the connection with your banking provider.
You do not need to deposit any funds into your account. This is because it is possible to buy crypto directly with your payment method vi Coinbase pay.
Your money is at risk.
Step 4: Invest in Bitcoin
Having completed our step-by-step guide, you should now have a funded Coinbase account. So you can go ahead and invest in bitcoins now. To do this, type ‘BTC’ into the search box at the top of the page.
To open a trade order box, click the ‘Buy’ button. In addition, the amount of your stake can now be entered into the ‘Amount’ box (minimum $1).
Why invest in Bitcoin?
If you’re curious about digital currencies but unsure about them, here are several reasons you should invest in cryptocurrencies as soon as possible.
Cryptocurrencies are decentralized, meaning you have control over your funds
You have to go through a decentralized platform to trade cryptocurrencies, meaning you don’t have to rely on a third party. The assets you store in these cryptocurrencies are under your complete control, and you can store them without any outside influence. The exchange and broker prices do not affect their values either.
Cryptocurrencies tend to be deflationary
Due to their limited supply, cryptocurrencies tend to be deflationary. As a result, cryptocurrencies tend to increase in purchasing power over time. Most cryptocurrencies have a cap placed on their total supply by an algorithm.
A cryptocurrency is a transparent and secure asset
Cryptocurrencies have gained popularity due to their transparency and security. Blockchain technology boosts investors’ confidence by making crypto transactions secure and transparent. Additionally, cryptocurrencies are open-source and verified publicly, making them a favorite among traders.
Where can you buy Bitcoin in the UK? – List
- Coinbase – Largest Crypto Exchange in the United States Available in the UK
- Binance – Top-Rated Crypto Exchange to Invest in Bitcoin UK
- Huobi -Excellent Trading Platform to Invest Bitcoin in the UK
- Kraken – Excellent For Trading Bitcoin in the UK
- Evonax – Lower Fees to Trade Bitcoin UK
Where can you buy Bitcoin in the UK?
There has been a lot of growth in the Bitcoin market. Bitcoin has become so popular that there are now several places to buy it. Several years ago, this was not feasible.
This variety can make finding the best Bitcoin merchant a bit difficult, though. Our guide provides an overview of the various platforms, a condensed breakdown of their features, and a summary of how each differs.
You will find the best places to invest in Bitcoin UK below, saving you the effort of researching dozens of different platforms.
1. Coinbase – The Largest Crypto Exchange in the United States Available in the UK
A popular option for crypto beginners in the United States, Coinbase is headquartered in Wilmington, Delaware. With Coinbase’s user-friendly interface, beginners can also trade here. You may want to consider the Coinbase Pro version if you’re an experienced trader.
The company is also the largest cryptocurrency firm. Coinbase Pro is a trading platform in addition to its exchange service. In addition, it offers a payment platform for business, custody services, and its cryptocurrency, COIN.
Your money is at risk.
2. Binance – Top-Rated Crypto Exchange to Invest in Bitcoin UK
With a daily trading volume of $3.3 billion, Binance is the world’s largest crypto exchange. Its daily trading volume exceeds $50 billion. Therefore, there is a lot for users at Binance. Due to the high trading volume and the availability of several cryptocurrencies, including Bitcoin and Ether, you get to enjoy great liquidity.
Binance offers trading commissions starting at about 0.1 percent, and KYC is a straightforward process. Traders can also access crypto futures and leveraged trading with Binance, which allows them to buy cryptos larger than their wallet balance.
Users can also purchase Bitcoins on Binance with fiat currency. If you are based in the U.S., your cheapest option is to give a bank transfer a try, though it may take a day or two before you receive the funds.
Your money is at risk.
3. Huobi – Excellent Trading Platform to Invest Bitcoin in the UK
Singapore-based Huobi is the largest cryptocurrency exchange and online financial services company in the world. Known for its large selection of crypto assets, Huobi also offers users a chance to participate in initial coin offerings (ICOs) ahead of their mainstream launch. Founded in Beijing, China, Huobi is a leading cryptocurrency exchange. After the government expelled cryptocurrency exchanges from the Chinese market in 2017, its presence in the market grew quickly.
A more favorable crypto law regulation led to a relocation to Singapore. The largest exchange in the world, Huobi supports over 355 different types of cryptocurrency. Over five million users throughout the world use the platform, which is represented by 130 countries. A measure of daily trading volume derived from Coinmarketcap places Huobi third among top cryptocurrency exchanges. The list also includes Coinbase and Bithumb.
It is because of Huobi’s accessibility that it is so popular. In summary, it has become quite convenient both for new traders as well as experienced traders to have access to it.
Getting your account up and running will not take long at all, it will take you no more than two minutes. Please do not hesitate to take advantage of this opportunity, as you should also have no problems doing it.
There has not been a security breach since Huobi launched its own company wallets last year. The enviable record we have achieved has been possible as a result of several strict security protocols. As part of Huobi’s security framework, Huobi’s crypto funds are not accessible to bad actors, given that they are being handled by a cold storage room off chain, which makes it impossible for anyone to hack into the funds.
Your Money Is At Risk.
4. Evonax – Lower Fees to Invest Bitcoin UK
Evonax is the right trading platform for you if you want to experience crypto trading while remaining anonymous on the platform. Evonax was founded in 2016 and allowed users to trade cryptocurrencies with zero fees. Its platform stands out from other service providers due to its zero transaction fee policy.
There are more than 100 locations of this platform worldwide, and investors worldwide have reposed their trust in it. In addition, users’ sensitive information is protected due to its user-friendly interface and secure technology.
Using this platform does not require you to submit Know Your Customer (KYC) information. However, if the user requires assistance for any reason, this information will only be needed.
Your money is at risk.
What is Blockchain?
The use of blockchain technology makes changing, hacking, or cheating the system difficult or impossible.
A blockchain functions as a distributed ledger of transactions, replicating and distributing them across multiple computer systems. A new transaction on the blockchain is added to every participant’s ledger whenever a new block is added to the chain. Distributed Ledger Technology (DLT) is a decentralized database that multiple participants can manage.
Transactions on a blockchain are recorded using immutable cryptographic signatures known as hashes.
What to know before you buy Bitcoin
1. Bitcoin is Volatile
This one probably got a lot of attention. Cryptocurrencies like Bitcoin are very volatile. In less than a day, Bitcoin’s price can change dramatically. Bitcoin’s price was only a few points away from $20,000 in December of last year, which is a perfect example of this. After losing 83 percent of its value in the following month, the asset traded at around $3,000.
Additionally, Bitcoin’s price fell from $64,000 to $30,001 in May 2021. Price fluctuation is a regular occurrence. Demand and supply are the factors that determine Bitcoin’s price. A higher price indicates more people are purchasing it. Market news and events also affect Bitcoin’s price. Regulators or the government are likely to release bad news at some point, which will affect Bitcoin’s price.
2. Public Transactions
Bitcoin offers the most transparency of any payment method on the planet. Every Bitcoin transaction is public and illustrative, thanks to the blockchain. Therefore, when a Bitcoin is bought and sold, it is immediately entered into the blockchain for everyone to see.
3. Addresses are Anonymous
Everyone has access to the transaction details, but it’s hard to ascertain who owns what. A Bitcoin transaction is implemented using the wallet address, a string of letters, and numbers. Anyone checking your wallet address will need your wallet address to check your account balance and transaction history.
Bitcoin Price Forecast 2024
There are a few critical levels for Bitcoin in the future that can be identified using Fibonacci retracements.
A growing number of investors will use Bitcoin to rebalance their portfolios due to increased institutional interest. Natixis Investment surveyed large enterprises and found that roughly 28% have increased their exposure to cryptocurrency. In addition, some of the top retail chains are now accepting bitcoins as payments, and VISA said that all banks should have crypto policies by 2024.
Your money is at risk.
With bitcoin becoming part of corporate and household balance sheets, it is making its way into treasury management. In Tesla’s case, Bitcoin is included as an investment on its balance sheet, which lays the groundwork for governments to build a framework that would incorporate cryptocurrencies into the tax system.
Newly elected officials in the United States are already urging the government to develop regulatory guidelines for these emerging assets. For example, the incoming mayor of New York, Eric Adams, wants his first paycheck to be in bitcoin as part of his plans to make the city a crypto-capital.
Is Bitcoin a Good Investment?
Traditional and institutional investors alike have been attracted to bitcoin due to its outstanding performance as a currency and investment. So what is the investment potential of bitcoin? First, there are some advantages to over-investment in traditional assets.
Several trading platforms, exchanges, and online brokerage firms worldwide make Bitcoin one of the most liquid investment assets. Incredibly low fees enable you to convert bitcoin into cash or assets like gold instantly. The demand for digital currencies is also high because they are long-term investments.
Lower inflation risk
Unlike world currencies controlled by governments, the bitcoin currency is not inflation. In addition, your cryptos can’t lose value with the blockchain system because it’s limitless.
You need a license or certification to trade stocks. The shares of a company must also be traded through a broker. In contrast, bitcoin trading is minimalistic: buying or selling bitcoins is as simple as placing them in a wallet. Furthermore, unlike stock trading orders, cryptocurrency transactions are instant, which may take days or weeks to settle.
How to Store your Bitcoin in a Secure Wallet?
As a cryptocurrency wallet, Coinbase is an excellent choice. It may evolve into next-level security and crypto-transaction efficiencies shortly. Though the wallet supports only a limited number of digital currencies, it is also compatible with other wallets and fiat currencies. Furthermore, Coinbase wallets are easy to use and have the best security features compared to any other wallet, making them among the top cryptocurrency wallets.
Users of the Coinbase exchange platform will find the wallet a welcome companion. Experts and beginners alike can use it. Coinbase wallet attracts cryptocurrency enthusiasts worldwide due to its comprehensive security measures, zero-hacking history, ease of use, and overall solid reputation.
Binance Exchange Wallet
Binance is an excellent choice when it comes to cryptocurrency wallets. Crypto-transactions could soon be made more efficient and secure. The wallet is not only compatible with other wallets and fiat currencies, but also supports a limited number of digital currencies. To make it even better, Coinbase wallets have the best security features, making them among the best cryptocurrency wallets.
Is Bitcoin Mining a Better Investment?
Bitcoin is often bought or traded by those who wish to make money using it. Another option is to mine it. Mining bitcoins is verifying transactions on the Bitcoin blockchain through complex mathematical processes. You validate and confirm transactions, add them to the Bitcoin blockchain, thus contributing your part to the Bitcoin ecosystem.
Blocks are the groups of transactions verified on the Bitcoin blockchain. As soon as a block is verified, its transactions are added to the blockchain, and the miners are rewarded with Bitcoins. But mining is more difficult than it seems. Due to its excessive congestion, miners now need specialized tools to work on the Bitcoin blockchain. You could mine Bitcoins using your personal computer in the early days.
As the industry has evolved, P.C. mining has essentially become obsolete due to the competition in the blockchain. Using Application-Specific Integrated Circuits (ASIC) will help you profit from mining. Unfortunately, these are rather expensive. The price of some ASICs may reach $5,000. If there are government subsidies on electricity, you will need to consider the cost of electricity. Mining is an energy-intensive endeavor unless you live in an area where renewable energy is abundant.
However, mining might not profit even if you do all of this. The mining process is based on first-come-first-serve, so you will likely need some time before you can earn any coins. Mining is a labor-intensive process that takes time before earning enough money to justify the costs. The best way to earn bitcoins is by investing in them. They are less expensive, and you can start with whatever amount of money you have.
Is Bitcoin Staking a Better Investment?
Storing cryptocurrency is the process of earning interest or rewards from them over time by storing them on an exchange. That is how proof-of-stake technology works. If you have a staking pool full of cryptocurrencies, you will earn a percentage yield based on the number of cryptocurrencies you have.
You need to stake more coins to increase your earnings. Staking has recently gained popularity among crypto enthusiasts since it allows traders to earn passive income through rewards or interest. This industry is poised for a revolution with the launch of Ethereum 2.0 staking.
Taxes and Regulations Regarding Bitcoin in the UK
Many countries have passed laws relating to cryptocurrency taxes due to the increasing adoption of cryptocurrencies. For example, the United Kingdom also treats cryptocurrencies as property, taxing them.
To determine what is taxable and non-taxable in the case of cryptocurrencies, Her Majesty’s Revenue and Customs (HMRC) has issued guidelines. Compared to normal income, digital assets are subject to a similar rate of taxes. Therefore, if you lost money holding crypto assets, you can deduct those losses from your total taxable income generated from those crypto assets and carry them forward to the next tax year.
Cryptocurrencies are subject to capital gains tax if they are sold, received as payment from employment or mining, exchanged from one cryptocurrency to another, used to buy goods and services, or given to another individual except in the case of gifts made to a spouse or civil partner.
According to HMRC guidelines, the taxpayers can also ascertain the amount of taxes on capital gains. Your gains must be deducted from these allowance costs when calculating capital gains tax.
Before they are added to the blockchain, the costs associated with transactions would be transaction fees, valuations when working out gains for a transaction, costs associated with drafting contracts for a transaction, advertisements by buyer and seller, etc. Also, capital losses can be adjusted against capital gains, arriving at a taxable figure; however, the losses first have to be reported to HMRC.
There are two types of capital gains: short-term capital gains and long-term capital gains. For example, the profits earned from the sale of a cryptocurrency that has been held for less than a year would be considered short-term capital gains. On the other hand, capital gains resulting from the sale of a cryptocurrency held for more than a year would be considered long-term gains.
Bitcoin has proved that it is here to stay for the global investment world in the long run. Over 135% of the value of Bitcoin has risen in the past 12 months alone – so logically, people are now looking to invest in Bitcoins UK and hold them for future gains. Elon Musk, Mark Cuban, and George Soros are the ten billionaires who bought Bitcoin here.
Your money is at risk.