How To Make Money With Bitcoin UK – Beginner’s Guide for 2022
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
You’ve no doubt heard the buzz surrounding Bitcoin (BTC) over the past few years. After all, the digital currency has generated sizable gains since it was first launched in 2009.
In this guide, not only do we discuss how to make money with Bitcoin in 2022 but we also explore some tried and tested strategies that can get you started in minutes!
Table of Contents
In order to make money with Bitcoin in the UK, you need a top-rated broker to execute your investment. Below you will find a selection of the best Bitcoin investment platforms in the market right now.
We review the above Bitcoin investment platforms further down.
If you’re wondering how to make money with Bitcoin right now – check out the quickfire step-by-step guide below.
And that’s it – you’ve just invested in Bitcoin – the world’s first and still de-facto cryptocurrency of choice. If the value of Bitcoin increases and you decide to sell your tokens – you will have made money.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
The first step in learning how to make money with Bitcoin is to open a brokerage account. The provider in question will give you access to the Bitcoin markets from the comfort of your home. The best platforms in this space will offer low investment fees, a user-friendly interface, and most importantly – will have a strong regulatory framework.
To save you from having to research hundreds of brokers and exchanges – below you will find the best platforms that allow you to make money with Bitcoin in the UK.
In terms of making money, many people in the UK use eToro to invest in Bitcoin. This is because the broker – which now serves over 20 million traders, allows you to purchase Bitcoin at a minimum stake of just $25. This means that you can buy a small ‘fraction’ of a single BTC token – which is perfect for those of you looking to dabble with crypto for the very first time. Additionally, eToro is one of the most competitively priced Bitcoin brokers in this space, as you will only need to pay the ‘spread’.
If you’re new to this term, this simply means that your trading fee is determined by the gap between the buy and sell price of Bitcoin. At eToro, this starts at just 0.75%. Another way to make money with Bitcoin at eToro is to use its Copy Trading tool. This is an innovative feature that allows you to copy a skilled and experienced investor that uses the eToro platform to trade. Any positions that the trader makes thereon will be mirrored in your own account. As such, the tool allows you to make money with Bitcoin in a fully passive nature.
You then have the eToro CopyPortfolio tool – which is also a passive way to make money with Bitcoin. This will give you access to a more diversified portfolio that on top of Bitcoin – will contain a range of other cryptocurrencies. This includes everything from Ethereum, Ripple, and Litecoin to EOS, Cardano, and Ethereum Classic. Both the CryptoPortfolio and Copy Trading tools come at no extra cost, but minimums do apply. This stands at $1,000 and $500, respectively.
If that wasn’t enough, eToro also offers a staking facility. This allows you to earn interest on your digital currencies. However, as Bitcoin isn’t a staking token, you can only use this feature with other digital currencies. Nevertheless, getting started at eToro could not be easier. It’s just a case of opening an account and making a deposit with your debit/credit card, e-wallet, or bank account. The process should take you no more than 5 minutes from start to finish – and you can complete this online or via the eToro app.
Pros
Cons
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Capital.com is one of the best online brokers for anyone with a thirst for knowledge and a passion for trading.
Capital.com’s platform offers you access to thousands of markets via CFDs and spread betting instruments. This means that you may speculate on an asset’s increase or decline without having to possess it – it’s the ideal way to get started in the world of trading!
Access to a wide range of CFD assets on Capital.com’s platform enables traders to invest in everything from shares and indices to commodities and cryptocurrencies.
CFD trading on cryptocurrencies enables leveraged trading and increased liquidity, so you can maximize your profits while minimizing your risk.
The most popular cryptocurrencies may be traded against a variety of fiat currencies on Capital.com’s platform.
Furthermore, with Capital.com’s cutting-edge platform, you may trade crypto-cross pairs easily, knowing that you have plenty of the best options to make a profit.
With variable spreads on all instruments, you can be confident that you’re getting the best possible pricing throughout typical market hours.
And with different instruments to choose from, you can customize your trading experience to suit your needs.
One of the great things about Capital.com is that it’s open to traders of all experience levels. So whether you’re a complete beginner or a seasoned professional, you’ll find everything you need to make informed trades.
There’s a handy demo account available so you can test out the platform before committing any real money, and the 24/7 customer support team is always on hand to answer any questions you might have.
If you’re looking to make money with Bitcoin, Capital.com is an excellent choice. With over 200 markets backed and more being added on a regular basis, you’ll always find an opportunity to profit.
And because the platform is so user-friendly, you’ll be able to get started right away – even if you’re a complete beginner.
Don’t miss out – sign up today at Capital.com!
Pros
Cons
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
Alvexo is a respected name in the online Bitcoin trading world, and for a good reason. As a regulated CFD broker, Alvexo provides access to a wide range of markets, including cryptocurrencies, commodities, indices, stocks, and currencies.
Not only is Alvexo regulated by the Cyprus Securities and Exchange Commission, but they offer a variety of innovative features that are designed to give you the best possible trading experience.
With a robust web-based platform and mobile app, Alvexo makes it easy for traders of all experience levels to get started.
Plus, with MT4 support, experienced forex traders can take advantage of all the features they’re accustomed to.
In addition, Alvexo offers competitive spreads and leverage, making it an ideal choice for both beginner and experienced traders alike.
On the Classic account, spreads start at just 2.9 pips. But if you upgrade to the Gold account, you can enjoy spreads as low as 2.2 pips.
And for professional traders who opt for the Elite account, Alvexo offers spreads as low as 0.1 pips!
With tight spreads and advanced account options, Alvexo is the perfect broker for serious traders who demand the best.
Are you looking for a commission-free way to trade cryptocurrency? Look no further than Alvexo! With no transaction fees, you can invest in your favorite assets with ease.
Alvexo’s CFD products give you all the upside of the markets without any of the hassles or risks associated with traditional investing. With Alvexo, you can invest with confidence and peace of mind.
Whether you’re new to online trading or a seasoned pro, Alvexo has the tools and resources you need to succeed.
Pros
Cons
70.81% of retail investor accounts lose money when trading CFDs with this provider.
Founded in 2020, Margex is one of the newest players in the crypto derivatives trading space, but it is already making waves thanks to its innovative features and cutting-edge technology.
So whether you’re a seasoned crypto trader or just getting started, Margex is the perfect platform for you.
Based in Seychelles, Margex is able to offer a high level of privacy to its users. That means no KYC requirements – so you can trade anonymously and keep your personal information safe.
Margex offers some of the most competitive fees in the industry, with maker fees as low as 0.019% and taker fees of just 0.060%.
Margex’s exclusive MP Shield technology protects you from price manipulation, ensuring that you always get the best possible deals.
Margex offers a wide range of crypto pairs with leverage as high as x100, including BTC/USD, ETH/USD, LTC/USD, XRP/USD, EOS/USD, and YFI/USD. So you can maximize profits on your trades. Don’t miss out on this opportunity!
You don’t want to miss out on the Bitcoin boom! Margex makes it easy to get in on the action by allowing you to quickly and easily deposit Bitcoin to your Margex account wallet.
Just copy the BTC address or QR code to send funds to, and you’re ready to trade! With Margex, there’s no need to worry about complex wallets or exchanges – they make it simple so you can focus on what’s important: making money!
With Margex’s Changelly integration, you can easily use your credit card to purchase Bitcoin directly on the platform.
If you’re looking for a platform that is user-friendly, competitively priced and offers a wide range of features, then Margex is the perfect choice for you!
So why not give Margex a try? Register today and start trading with confidence!
Pros
Cons
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
This means that you can enter the Bitcoin marketplace instantly. However, do note that the fee applied on debit card purchases at Coinbase is a huge 3.99%. As such, you will pay £39.90 for every £1,000 invested. If you are not in a hurry to make money with Bitcoin, you might also consider depositing funds via a UK bank transfer. Although this will take a few days to arrive, bank account deposits at Coinbase are free.
When your bank transfer deposit has been processed, you can then proceed to invest in Bitcoin. Coinbase charges a standard commission of 1.49% – so that’s £14.90 for every £1,000 invested. Coinbase also offers a debit card that allows you to spend your Bitcoin holdings in the real world. The card is issued by Visa – so that means you can use it online, in-store, or at an ATM.
Pros
Cons
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
Although the fees are less competitive than eToro, the process can be completed in minutes. Alternatively, if you decide to invest in cryptocurrencies other than just Bitcoin – OKEx offers hundreds of pairs at super-low fees. For instance, if you wish to swap Bitcoin into Ethereum, the commission payable on this trade amounts to just 0.10%.
OKEx also gives you the chance to make money with Bitcoin via its ‘Earn’ tool. This operates in a similar way to a savings account, insofar that you will be paid interest for as long as you keep your Bitcoin tokens locked up. The interest rate payable is just 0.64% per year, but, you can withdraw your funds whenever you wish. OKEx can be accessed online or through its native iOS and Android app.
Pros
Cons
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
Binance is the largest digital currency exchange in the world with over 100 million users and billions of dollars worth of daily trading activity. This top-rated platform allows you to earn money with Bitcoin in several ways. First and foremost, if you simply want to invest in Bitcoin tokens – Binance supports debit and credit cards.
Buying Bitcoin in this manner will set you back 2% of the total investment amount. If you then decide to trade Bitcoin for alternative digital tokens, the commission at Binance amounts to just 0.10%. Binance also offers savings accounts on a flexible and locked-up basis. To give you an idea on available rates, Bitcoin pays a 7-day APR.
This is on a flexible savings account, so you can withdraw your tokens at any time. On the other hand, if you were to swap Bitcoin for Pancakeswap tokens – you would earn an APR of 20%. This would require you lock your tokens up for 15 days. Much like Coinbase, Binance also offers a cryptocurrency debit card. Issued by Visa, this allows you to spend your Bitcoin tokens online, in-store, and at ATMs.
Pros
Cons
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
The next broker to consider in your quest to make money with Bitcoin in the UK is CoinJar. This platform is likely more suitable for those of you that are looking to invest small amounts into the Bitcoin arena whilst you are still finding your feet. This is because CoinJar allows you to gain exposure to Bitcoin from just £5.
All you need to do to get your hands on some tokens is open an account, upload a copy of your ID, and enter your debit or credit card details. The transaction will be processed instantly, albeit, you will need to pay an all-in fee of 2%. If you deposit funds via a UK bank transfer, this is free – but you will then need to pay a commission of 1% to go and buy Bitcoin.
CoinJar also supports recurring buys – meaning you can invest in Bitcoin at set intervals. For example, you might decide to invest £30 into Bitcoin at the end of each month. You can do this on an automated basis at CoinJar – which is superb for creating a long-term investment plan. CoinJar also offers a user-friendly mobile wallet – which allows you to store your Bitcoin tokens in safety.
Pros
Cons
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
So now that we have discussed the best cryptocurrency platforms operating in this marketplace, we now discuss some of the most notable ways to make money with Bitcoin. After all, there is more than one way to skin a cat in the investment arena – and Bitcoin is no different.
With this in mind, below we discuss the best ways to make money with Bitcoin in the UK.
Note: In a similar way to gold, silver, oil, and other commodities – Bitcoin is priced in US dollars. As such, for the remainder of this guide, we will discuss Bitcoin price in USD. This shouldn’t concern you, as all of the brokers discussed on this page accept deposits in pounds and pence.
The easiest and perhaps most effective to make money with Bitcoin in the UK is to simply invest in some digital tokens of your own. That is to say, you will use a trusted online broker like eToro to buy Bitcoin at an amount you feel comfortable with.
Crucially, eToro supports fractional investments – meaning you can buy just a small portion of one Bitcoin token. For instance, if Bitcoin is priced at $30,000 and you decide to invest $300 – you will own 1% of a BTC token.
In terms of making money, this works in exactly the same way as buying traditional shares. In other words, if the value of Bitcoin increases above the price you initially paid, you will make money. The amount you can make will be determined by the size of your investment and how much Bitcoin has increased.
Let’s clear the mist with a real-world example of how you can make money with Bitcoin in this way.
Bitcoin and other cryptocurrencies operate in a marketplace that functions 24 hours per day – 7 days per week. This means that at any given time, you can cash your Bitcoin investment out. This is a process that is as simple as buying Bitcoin.
For instance, if you invested in Bitcoin at eToro, the tokens remain in your portfolio until you decide to sell. To do this, you simply need to hit the ‘Sell’ button and the funds will be added to your account. You can then make a withdrawal request and the money will be sent back to your bank account or debit/credit card.
Invest in Bitcoin Now From $25
If you are completely new to the world of Bitcoin and blockchain technology – we would suggest considering a dollar-cost averaging strategy. In simple terms, this is a strategy that will see you invest small but frequent amounts into Bitcoin. In doing so, you won’t need to be concerned about the volatile nature of cryptocurrency prices.
This is because, on each purchase, you will get a different cost price that constantly averages out.
The key concept here is that had you invested a full lump sum into Bitcoin in month 1 when it was priced at $30,000 – you will only be able to make money if the value surpasses this figure. But, by taking a slow and steady approach through dollar-cost averaging, you will be able to buy Bitcoin when the price goes down and benefit if and when it eventually recovers.
Another way to make money with Bitcoin in the UK is to use the eToro Copy Trading tool. As we briefly explained earlier, this allows you to copy a successful and proven eToro investor like-for-like. You will need to meet a minimum investment of just $500 (about £360) per trader and thereon – all future buy and sell orders will be mirrored in your own portfolio.
This feature at eToro is nothing short of innovative – not least because you can make money with Bitcoin in a fully passive nature. After all, your chosen investor will do all required research on your behalf and then proceed to place appropriate trades.
If you’re new to the Copy Trading phenomenon – check out the example below.
The above example shows that it’s entirely possible to make money with Bitcoin without needing to have an ounce of knowledge in cryptocurrencies or blockchain technology.
This is especially crucial for inexperienced investors – as understanding how the Bitcoin market functions can take a long time to truly master. But, with the eToro Copy Trading feature – you can passively become an expert overnight without needing to lift a finger!
Many in the UK are unaware of the fact that Bitcoin savings accounts are actually a thing.
The borrower will be required to put up some cryptocurrency tokens as collateral – so this acts as a major safeguard of your investment.
If you have some knowledge of trading concepts – then you might consider a shorter-term approach to Bitcoin. In a nutshell, by trading Bitcoin – as opposed to investing, you will be looking to make a quick entry and exit into and from the market.
We should note that UK-based Bitcoin traders do not have it as easy these days. This is because in January 2021 – the FCA banned cryptocurrency derivatives. This means that you cannot legally accept CFD (Contracts-for-Differences) – which permitted 0% trading, leverage, and even short-selling capabilities.
Nevertheless, you can still trade Bitcoin at eToro in a safe and low-cost environment – you just can’t use leverage anymore.
Earlier in this guide, we provided a quickfire walkthrough of how to make money with Bitcoin in the UK. In this section, we take things to the very next level by taking you through the Bitcoin investment process step-by-step. This includes opening an account with an FCA-regulated broker, depositing funds, and finally – completing your Bitcoin investment.
To invest in Bitcoin from the UK – you’ve got dozens of brokers and exchanges to choose from. But, the most important thing is that your chosen platform is regulated by the FCA. Plus, the broker should offer low fees and a simple-to-use investment platform. In this sense, eToro is by far the best option – as the broker allows you to invest in Bitcoin from just $25.
So, head over to the eToro website, click the ‘Join Now’ button and proceed to enter your personal information and contact details. Next, you will be asked to upload a copy of your government-issued ID. This can be a driver’s license or passport. You will also need to choose a username and password – and confirm your email address and mobile number. All in all, this part of the process rarely takes more than five minutes.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Now that you have an account with the eToro – the broker will ask you to make a deposit.
As soon you confirm the deposit and funds are credited to your account – proceed to the next step!
You can proceed to search for ‘BTC’ and then click on the result that loads. This will take you to the Bitcoin investment page – where you can view research materials and charts on how the digital currency is performing.
If you’re ready to invest in Bitcoin tokens right now – hit the ‘Trade’ button.
You will now be asked to enter the amount of money you wish to invest in Bitcoin. As noted earlier, the minimum at eToro is just $25. In our example below- we are looking to invest $250.
Finally, click on the ‘Open Trade’ button to confirm your Bitcoin investment! The digital tokens can now be found in your eToro portfolio – where they will be safely stored until you decide to sell.
This beginner’s guide has explained the ins and outs of how to make money with Bitcoin in the UK. Not only have we explained the main strategies involved – but the best UK brokers to consider when completing your investment. For this, we would suggest checking out eToro – an FCA-regulated platform that is used by over 20 million people.
This top-rated brokerage allows you to invest in Bitcoin traditionally or through its innovative Copy Trading tool. The minimum investment at eToro is just $25 and you can get started in minutes by registering an account and depositing funds with your UK debit/credit card!