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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 $60,000 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.

In This Guide

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 eToro

At eToro, 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 eToro, go to the website and click on the ‘Join Now’ button. After that, complete the information below by providing your first and last name, email address, phone number, username, and password.

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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.

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 eToro to complete your registration.

Step 2: Upload ID

We have already mentioned that eToro is regulated by several reputable bodies. Your identity must therefore be verified. Although this step can be completed at a later date – it must be completed before you can:

  • Make any amount of deposits over $2250
  • Request a withdrawal

invest in bitcoin

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, eToro will authenticate your documents immediately, removing all restrictions on your account subsequently.

Step 3: Deposit Funds

The purchase of Bitcoin through eToro is not possible. You must first deposit funds. You will receive instant credit for all deposit methods except for bank transfers.

how to invest in bitcoin uk

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.

There is no fee associated with eToro’s deposits – regardless of how they are made. Coinbase, for instance, charges 3.99% to invest Bitcoin in the U.K. using a debit card. That is much cheaper than some of its main competitors.

Step 4: Invest in Bitcoin

Having completed our step-by-step guide, you should now have a funded eToro 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 ‘Trade’ button. In addition, the amount of your stake can now be entered into the ‘Amount’ box (minimum $25).

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.

should i invest in bitcoin

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?

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. eToro – Overall Best Place to Invest in Bitcoin

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Bitcoin is arguably the best way to buy it at eToro, which has become a favorite of crypto investors. Plenty of leading digital currencies is available through this online broker, including various assets and markets. You can buy cryptocurrency heavyweights like Bitcoin, Ethereum, Ripple, and Defi crypto assets like Aave, Kyber Network, and Augur.

eToro has gained over 20 million investors due to a variety of factors. eToro’s platform is really simple to use – so even if it’s your first time investing in Bitcoin U.K. online, it should be no problem. The commissions on eToro are also extremely low, so you can invest in Bitcoin U.K. without paying high fees.

if i invest $100 in bitcoin today

The fees charged by eToro are among the lowest of all Bitcoin brokers. The platform charges no commissions. Bitcoin can be purchased online without paying a cent in commissions. Instead, the broker charges 0.5% F.X. on each deposit you make.

There is a lot of regulation involved in eToro. ASIC, Cyprus Securities and Exchange Commission, and the Financial Conduct Authority (FCA) are the regulatory agencies that our brokerage holds licenses from. In addition, FINRA and the Securities and Exchange Commission (SEC) regulate it in the U.S.

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 accepted
  • 0% commission on Bitcoin purchases
  • with just a $25 deposit
  • K. and U.S. regulated
  • ETFs and shares of more than 2,400 companies
  • can also be traded through CFDs
  • Social network with copy trading
  • licensed by the FCA, ASIC, and CySEC
  • FINRA and SEC approved

Cons:

  • $5 withdrawal fee
  • U.S. dollars are used on the 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. Binance – Top-Rated Crypto Exchange to Invest in Bitcoin UK

how do i invest in bitcoin 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.

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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.

Binance fees

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

Pros:

  • Access to more than 100 cryptos
  • Low trade fees
  • Several trading options
  • Bank transfers and debit/credit cards accepted
  • Excellent reputation in the cryptocurrency world
  • Excellent tools and features for sophisticated traders

Cons:

  • Inaccessible to new investors
  • Pricey fees associated with debit/credit cards

Your money is at risk.

3. Coinbase – The Largest Crypto Exchange in the United States Available in the UK

how much to invest in bitcoin The largest cryptocurrency exchange is Coinbase. Customers benefit from the exchange's clear interface and numerous trading pairs.

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.

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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.S. bank account

Pros:

  • Easy-to-use interface for newbies and experts alike.
  • You can conveniently transfer funds on Coinbase as it is one of the most liquid exchanges
  • Large selection of altcoins
  • Low minimum balance

Cons:

  • Complicated fee structure
  • Expensive trading

Your money is at risk.

4. Kraken - Excellent For Investing in Bitcoin in the UK

best way to invest in bitcoin Ever since Kraken was founded in 2011, it has been known as one of the oldest and largest cryptocurrency exchanges. In 2013 the company launched its Bitcoin trading platform, and since then, it has gathered over four million users in several countries worldwide. The platform enables users to trade 66 different cryptocurrencies and stake them. Kraken's main feature is a Money Service Business (MBS) regulated by FinCEN in the United States and FINTRAC in Canada. In addition, the U.K.'s Financial Conduct Authority, Australia's AUSTRAC, and Japan's FSA regulate some of its affiliated businesses.

how do you invest in bitcoin

This platform provides the industry's best safety and security features, and Kraken even allows traders to make futures trades with cryptocurrencies, which is a change from many other platforms. Moreover, it allows users to trade on high margins depending on which currency they wish to trade and is quite easy to get started with. As an example, Kraken offers 10x leverage for trading BTC.

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:

  • Excellent charting tools and an extensive technical analysis section
  • Support for 66 pairs and futures trading
  • Easy to use for new users
  • Trading with margin allowed
  • The possibility of earning cryptocurrency through staking
  • The lowest price in the industry

Cons:

  • Limited withdrawal and deposit options
  • Long wait times for customer service

Your money is at risk.

5. Evonax - Lower Fees to Invest Bitcoin UK

when to invest in bitcoin 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.

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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.

Evonax fees

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

Pros:

  • Very user-friendly
  • Transfers instantly
  • Excellent customer service

Cons:

  • A limited selection of cryptocurrencies
  • Lack of wallet service
  • Inability to chat live

Your money is at risk.

Invest in 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

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.

should you invest in bitcoin

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 2022

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 2022.

should i invest in bitcoin now

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.

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.

Liquidity. 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.

Minimalistic trading. 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 Invest in Bitcoin UK

Bitcoin is difficult to invest in, according to many mainstream investors. However, many cryptocurrency platforms make investing in Bitcoin easier now, which is far from the truth.

Investing in Bitcoin UK - Quick Steps

We recommend eToro as our recommended broker to invest in Bitcoin (BTC).

  • Open an account with eToro - Click the Join Now button on eToro and provide the required documents to verify your account.
  • Deposits must be made through a bank wire transfer, credit/debit card, PayPal, Skrill, Neteller, or other methods.
  • The currency can be located by typing BTC into the search bar
  • By clicking 'Trade,' you will be brought to the order page, where you can specify how much BTC you would like to buy. To complete the purchase, click on the 'Open Trade' button.

How to Store your Bitcoin in a Secure Wallet?

eToro Money Wallet

Traders who are new to bitcoin will find the eToro Bitcoin wallet contains many tools and features that are easy to use. For example, besides bitcoin, the wallet also allows you to store 120 other digital currencies. So if you hold a variety of crypto assets, you can easily store all of them in a single wallet.

Download the eToro wallet for free on your iOS or Android device. You can start trading cryptocurrencies directly from within the app if you create a wallet. In addition, there are over 500 pairs of cryptocurrencies available on eToro, which also allows exchanging cryptocurrencies.

eToro Bitcoin wallets are regulated and authorized by the Guernsey Financial Services Commission (GFSC). You can also recover access to your wallet if you lose your private keys by using a password recovery service.

how can i invest in bitcoin

For those who want to read and share Bitcoin-related news, it's worth checking out Reddit. The Bitcoin community now numbers over 2.9 million members.

Around the clock, the Bitcoin Reddit group posts interesting posts and viewpoints. Reddit allows you to view posts as a non-member, but you should sign up as soon as possible for posting and replying to comments.

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.

Coinbase 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.

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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.

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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.

Conclusion

Bitcoin has proved that it is here to stay for the global investment world in the long run. Over 1,000% 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.

We recommend our recommended broker, eToro, for anyone who wants to purchase Bitcoin right now. The process takes less than three minutes.

eToro – Buy 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

How much to invest in Bitcoin?

Investing amounts vary according to personal preferences, disposable income, and other factors. Nonetheless, you shouldn't invest too much money in cryptos due to excessive risk, and don't invest too little (say $50) due to unbearable loss.

How many people are investing in Bitcoin?

Despite the lack of exact data on how many people are investing in cryptocurrency. The number of investors in these digital assets is estimated to be over 100 million. Even some people argue that 10% of the world's population has invested money in cryptocurrencies.

How to learn to invest in Bitcoin?

Invest in cryptos and have your account on the eToro trading platform, where you can get information on how to start, the type of portfolio you should have, what your trading strategies should be, as well as price analysis, experts' comments, market-related news, and much more.

How to invest in Bitcoin ETF?

Go to the eToro markets page after you have created an account on the platform. Choose the ETFs you want to trade in, and choose the fund you want to deal in. After clicking on the trade button, you can begin trading that ETF.

Are banks investing in Bitcoin?

Standard Chartered Bank of London, BNY Mellon, Citibank, etc., are just some of the big banks that have started investing in cryptocurrencies.

What is the best crypto to invest in?

If a trader intends to make huge returns on his investment, Bitcoin should be the ideal investment avenue based on current price trends. Moreover, Bitcoin's outlook is also positive. By the end of the next four years, i.e., in 2025, the figure is expected to reach $330,000.

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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