So you want to buy some Bitcoin? UK residents are fortunate enough to have a few different ways of purchasing the digital currency.
In this article, we will show you the most popular methods of buying Bitcoin in the UK.
We’ll show you which exchanges have the lowest fees and the quickest way to buy Bitcoin.
How To Buy Bitcoin UK
Following our guide on how to buy Bitcoins UK should take you 3 minutes. From signing up to having the Bitcoin in your account.
1. Sign Up for an Exchange
The first thing we need before we buy our Bitcoin is a cryptocurrency exchange.
Whilst you can pick from a variety of cryptocurrency exchanges, we need it to have a few features:
- Open to UK residents
- Safe and secure
- Bank transfer & Card deposit
- Low fees
- Easy to use and trade on
Taking onboard all of these qualities we have listed our top 3 crypto exchanges below.
You can’t go wrong picking from either of these three.
Note: By using the links to sign up from our website, you will get a discount on trading fees.
2. Deposit Fiat Currency onto your Account
Now you’ve signed up to an exchange we’re going to need to deposit some fiat money.
In this example I’ll show how to do it on FTX, which is the cheapest way to buy Bitcoin UK.
You need to head to “Wallet” in the top left of the screen.
Now on the wallet page you should see a long list of balances that you have in your exchange account.
On the right hand side is a blue “Card Deposit” button. This will let us deposit with either a Credit or Debit card.
Using a Credit or Debit card is a great way to deposit for small amounts up to several thousand.
It’s convenient, nearly instant and you’ll be able to trade right away.
Click on the “Card Deposit” button if you want to deposit this way. If you want to use a Bank Transfer then keep reading below.
When you click the “Card Deposit” button it will pop up with a box that allows you to add your Debit card information.
You can deposit any currency on FTX. So we can deposit GBP (Pounds) and it will be automatically converted over to USD, that we can then trade with.
For those looking to deposit via UK Bank Transfer, scroll down on the “Wallet” page until you see the coin: Pound (GBP)
You can then click on “Deposit” on the right hand side, this will open a popup that lets us use UK Faster Payments or standard Bank Transfers to deposit GBP onto our account.
A Bank Transfer may not be instant, so a Debit card is quicker for deposits.
Although in the UK, a Bank Transfer utilizes the faster payments system, which should speed it up significantly.
You may be waiting 24-48 hours for your deposit to credit onto your account by using this method.
Once you deposit money onto your account, you’ll need to convert it into USD.
If you’ve deposited via Debit card then it should automatically be converted over.
If you’ve deposited via Bank transfer, you’ll need to press the “Convert” button on the right of “Pound” and change it into USD.
3. Go to Markets and Buy Bitcoin
The next step is to exchange our USD for Bitcoin.
In the top left of your screen you’ll see several options to pick from.
Click on “Markets”.
On this page you should see several trading pairs you can choose.
Most of the time it starts on “Futures” though which we are not in need of right now.
We want to buy Bitcoin on a spot market so we receive the Bitcoins in our account.
So next we need to click “Spot”.
You should now see a bunch of trading pairs to pick from.
These are all spot trading pairs.
We want to pick the “BTC/USD” trading pair.
You should now be on a trading page.
This is where we buy Bitcoin.
On the left part of the page, you should see the graph. This graph shows the historical price action for Bitcoin.
In the middle we have the orderbook which displays the bids and asks for Bitcoin.
On the right side you should see “Buy BTC” and “Sell BTC”. This is how we will be buying Bitcoin.
The first step we need to take is to change the “Order Type” to a “Market Order”.
To do this click the “Order Type” drop down and then click “Market Order”.
A “Market Order” will allow us to buy from the lowest available ask price automatically.
If you want to set your own price, you can use a “Limit Order”.
Next you’ll need to either enter the amount of BTC that you want or drag the slider to a percentage.
If you want to spend 100% of your dollars on Bitcoin, then drag the slider all the way to the right.
When you have selected the amount you want, press the green “Buy” button.
4. Congratulations you have Successfully Bought Bitcoin!
Your purchase is now complete.
If you head back to the “Wallet”, you’ll see the Bitcoin in your account balance.
You can now trade this Bitcoin for other digital currencies or HODL it.
Is it safe to buy Bitcoin in the UK?
You are safe to buy Bitcoin in the UK.
The biggest risk is choosing a good cryptocurrency exchange. This is when your Bitcoin is at most risk.
There are many scammers, fraudsters and con artists trying to steal your Bitcoin in the UK.
So stick to a popular crypto exchange such as FTX, Binance or Coinbase.
Which Bitcoin wallet is best in UK?
After you finish purchasing crypto, move your Bitcoin into a hardware wallet.
A hardware wallet is a Bitcoin wallet that requires authentication on the physical device before you can send Bitcoin. Online wallets are not recommended to store cryptocurrency as you can easily lose it to hackers.
Popular hardware wallets are Ledger and Trezor.
You will not be able to trade Bitcoin or purchase Bitcoin directly from your hardware wallet. You first have to buy Bitcoin online on an exchange before you transfer it over.
How do I sell Bitcoin in the UK?
You sell Bitcoin the same way you buy Bitcoin.
To sell Bitcoin you head over to a Bitcoin exchange such as FTX or the other ones listed in this guide.
Once there you can trade Bitcoin for the US Dollar or British Pound. You can then withdraw these funds to your bank account instantly.
Should I use a Debit Card or Bank Transfer?
Depending on the amount you deposit, you should change the payment method.
Depositing with a card will lead to lower limits and higher deposit fees. It’s a great way to buy Bitcoin instantly, but you end up with a higher deposit fee.
Utilizing a bank transfer is the more professional way to do a Bitcoin purchase. This is because you can do larger amounts, pay less fees and therefore make more profit.
If you are doing your first Bitcoin purchase then it’s ok to use a debit card. For those looking for a more serious Bitcoin investment, stick with using a Bank transfer before you purchase Bitcoin in the UK.
Can I legally buy Bitcoin in UK?
Buying and selling Bitcoin is legal in the UK. When you buy Bitcoin in the UK, it’s the same as buying any other asset class. Such as stocks, real estate and more.
Any profits will be counted as capital gains, so you will have to pay taxes.
Will I Make Money if I Buy Bitcoin?
There is no guarentee you will make money.
Some people will make money when they buy Bitcoin because they are smart investors.
If you begin a Bitcoin investment when the market is down, you’re more likely to do well compared to buying when everyone else is.
Selling Bitcoin at the right price is also difficult to predict. Many people sell too early and buy Bitcoin higher at a later date.
How can I buy Bitcoin Anonymously?
You cannot buy Bitcoin in the UK anonymously. When using an exchange you must complete KYC and AML checks before you buy Bitcoin.
If you use a private cryptocurrency broker, then you can buy slightly more anonymously, however you could easily be scammed and it’s not recommended.
The Bitcoin industry has evolved and digital assets have become regulated.