Where and How to Buy Bitcoin in the UK

Want to buy Bitcoin in the UK? Bitcoin and other cryptocurrencies now offer an alternative way to invest and manage money within your investment risk appetite. In the UK, buying Bitcoin can be convenient. This guide will walk you through the process.

How to buy Bitcoin: Choosing a platform

Most people buy cryptocurrencies through crypto exchanges, but there are other ways to buy crypto. The cryptocurrency landscape in the UK is diverse, with various platforms offering Bitcoin. But first, here is how you can buy crypto from a crypto exchange. For this explanation, we will use CoinJar as an example, known for being very beginner-friendly. It has a user-friendly interface, robust protection measures, and strong reputation within the crypto community.

How to invest in Bitcoin (UK): Creating an account

The first thing you need to do on any crypto platform is to create an account.

Sign up

1. Visit the CoinJar UK website. Navigate to the CoinJar UK website and click on the “Sign Up” button.
2. Provide your information. You will need to show ID to verify your identity and sign up.
3. UK residents are required (in accordance with local legislation) to complete an assessment and to wait 24-hours (see below, all registered crypto exchanges in the UK will require you to do this).

Buy Bitcoin (UK): Adding a payment method

1. Once you have created an account and are verified, go to your account settings.
2. Select “Payment Methods.” Choose your preferred method. CoinJar usually supports bank transfers and debit cards. Most exchanges in the UK will have a variety of ways for you to transfer funds to the exchange.

Buying Bitcoin (Step-by-Step Guide)

1. Now we get to the business end of buying Bitcoin. Navigate to the “Buy/Sell” section. Select “Bitcoin (BTC).”
2. Enter the amount you want to buy. (You don’t need to buy a whole Bitcoin, you can buy a part of a Bitcoin.)
3. Specify the amount of Bitcoin you want to buy, either in GBP or btc to usd
4. Review the details. Double-check the transaction details, including the amount and any applicable fees.
5. Confirm your purchase. Welcome to the Bitcoin owners club!

Why buy Bitcoin? Expert opinion

Asher Tan, CEO of the crypto exchange CoinJar, says “One of the most compelling reasons to own Bitcoin is its potential for growth. We’ve seen incredible price appreciation over the years, and while past performance doesn’t guarantee future results, many believe Bitcoin’s journey is still in its early stages.” Tan also says that Bitcoin is increasingly being adopted as a legitimate payment method by businesses around the world. (For example Ferrari now accepts payment in crypto.) “Owning Bitcoin is about taking part in a financial revolution that’s reshaping the future of money.”

Other ways to buy Bitcoin in the UK

UK residents have several options for buying Bitcoin besides centralised crypto exchanges.

Peer-to-Peer (P2P) Platforms

These platforms connect buyers and sellers directly. They are mostly on decentralised exchanges, however they have started to appear on centralised exchanges. However, you need experience to use them, so maybe save these for later down the track when you are more familiar with the crypto landscape. Unfortunately, P2P platforms can charge uncompetitive “spreads” which is the difference between the price at which you can buy a cryptocurrency and the price at which you can sell it. This price difference is essentially the fee you pay to the platform for facilitating your trade. There is also perceived to be a high risk of fraud in P2P exchanges.

Bitcoin ATMs

While less common than traditional ATMs, Bitcoin ATMs allow you to buy Bitcoin with cash or card. However, like decentralised exchanges, they also can have uncompetitive fees / spreads. Brokerage Services: Some online brokerages allow you to buy and sell Bitcoin alongside traditional assets. Again, the fees and spreads can be uncompetitive here too.

Over-the-Counter (OTC) Trading

OTC desks cater to high-volume traders and offer more personalised service than exchanges. However, they typically have higher minimum investment requirements.

Where to keep your crypto: Storing your Bitcoin

Once you’ve purchased Bitcoin, you will need to store it in a protective manner. Most exchanges give you a wallet when you sign up to store your crypto in. The exchanges usually call it your “account” or similar. You can leave your Bitcoin in your exchange wallet. However sometimes exchanges can go bankrupt, like the notorious FTX collapse, and customers can lose all of their money, or have to wait years to reclaim it. Exchanges can also get hacked. While this happens less and less as crypto developers get better at protection, it is still a possibility, however small.

If you want to buy and sell often, then keeping your crypto in an exchange wallet is very convenient. However, if you want to buy and hold for some time, then you can consider a hardware wallet. These are offline devices that look somewhat like a USB memory key. They are designed to protect your cryptocurrencies from hacking. Because they are offline, it is nearly impossible for hackers to find a way in to hack them.

How to buy Bitcoins in UK: Best Practices and Tips

• Do your research – Before investing in Bitcoin, learn about its volatility and potential risks. All crypto is volatile, and while many coins have increased in value greatly, others have crashed through the floor never to be worth anything again.
• Start small – Begin with a small investment to understand the market. Some exchanges let you start with a mere £20 or similar. You don’t have to take big risks at any stage.
• Diversify – Consider investing in other cryptocurrencies to spread risk. While Bitcoin is the most popular cryptocurrency, and probably alway will be, there are some others that have really good uses.
• Stay informed – Follow the latest news and developments in the crypto world. Crypto news sites are full of stories and speculations, but also full of information and tips.
• Protection first – Always use strong passwords and enable two-factor authentication. The more you use crypto exchanges and wallets, the more you can learn and grow into your Bitcoin journey in the UK.

How to buy cryptocurrency (UK): In Summary

By now, you should have more guidance on how to buy Bitcoin in the UK. It’s not as hard as you think! In fact many platforms that allow customers to buy and sell cryptocurrencies are designed to be user-friendly, so new users don’t get scared and run off into the hills. Buying Bitcoin in the UK shares many similarities with the process in other countries, but there are some differences.

The UK has stricter rules than some countries when buying crypto. There are countries where the idea of the regulation of crypto is very loose, like in the Cayman Islands. But on the other hand, in some countries, like China, Bitcoin is totally banned. In the UK though, the Financial Conduct Authority (FCA) oversees crypto-asset activities, and exchanges like CoinJar need to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Now you know how to buy bitcoins uk. The next question to ask is… What cryptocurrencies are there other than Bitcoin? And.. how to buy crypto in the UK? Off you go, crypto enthusiasts!