How To Make Money With Bitcoin UK – Beginner’s Guide for 2021

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 2021 but we also explore some tried and tested strategies that can get you started in minutes!

#1 Broker to Invest in Bitcoin – eToro

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How To Make Money With Bitcoin UK – Choose a Broker

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.

  • eToro – Overall Best Platform to Make Money With Bitcoin
  • Coinbase – Great Bitcoin Investment Platform for Beginners
  • OKEx – Top-Rated Bitcoin Investment Site With Low Fees
  • Binance – Popular Bitcoin Exchange With Crypto Savings Accounts
  • Coinjar – Quality Crypto Broker for Small Bitcoin Investments

We review the above Bitcoin investment platforms further down.

How To Make Money With Bitcoin UK – A Quick Guide For 2021

If you’re wondering how to make money with Bitcoin right now – check out the quickfire step-by-step guide below.

  • Step 1: Open an Account with eToro – You will need a trusted brokerage site to enter the Bitcoin marketplace. We like eToro, as the platform is FCA-regulated and allows you to invest in Bitcoin from just $25 (about £18).
  • Step 2: Upload Your ID – To get your Bitcoin investment account verified instantly – upload a copy of your passport or driver’s license.
  • Step 3: Deposit Funds – You’ll need to deposit some funds into your eToro account before you can make money with Bitcoin. The broker supports UK debit/credit cards, e-wallets like Paypal, and bank transfers.
  • Step 4: Make Money With Bitcoin – And finally – you can now invest in Bitcoin. Simply search for ‘BTC’ and click the ‘Trade’ button. Enter the amount of money you would like to invest in Bitcoin and click ‘Open Trade’ to complete your trade!

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.

Choose a Bitcoin Investment Site – Full Reviews

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.

1. eToro – Overall Best Platform to Make Money With Bitcoin UK

etoro review As this review will explain in great detail – eToro is by far the best platform to make money with Bitcoin in the UK. Before we get to the specifics, we should explain that unlike most crypto providers in this industry – eToro is heavily regulated. In fact, the platform holds that all-important license with the Financial Conduct Authority (FCA ) – so can be sure you are investing with a legitimate and credible brokerage firm.

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’.

etoro review

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.

etoro review

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

  • Invest in cryptocurrencies on a spread-only basis
  • Buy thousands of UK and international stocks at 0% commission
  • Minimum investment per trade from just $25
  • Supports debit/credit cards, e-wallets, and local bank transfers
  • Regulated by the FCA, CySEC, and ASIC
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Coinbase – Great Bitcoin Investment Platform for Beginners

coinbase review Coinbase is a user-friendly cryptocurrency broker that is largely aimed at beginners. Much like with eToro, the process of opening an account and verifying your identity should take less than five minutes. After that, Coinbase allows you to invest in Bitcoin directly with your UK debit card.

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.

coinbase review

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

  • One of the most popular cryptocurrency exchanges
  • More than 56 million users
  • Supports instant debit card purchases
  • Dozens of digital currencies to choose from
  • Institutional-grade security practices

Cons

  • Debit card deposits are expensive at 3.99%
  • You will pay a standard trading commission of 1.49%

at eToro, UK’s #1 Broker

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

3. OKEx – Top-Rated Bitcoin Investment Site With Low Fees

OKEx – a popular cryptocurrency trading platform, was first launched in 2014. This makes it one of the most established digital asset sites in this industry. With more than 20 million traders on its books – OKEx is rated for several key reasons. First, you can easily invest in Bitcoin by using your UK debit/credit card or bank account to pay for your purchase.

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%.

coinbase review

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

  • Trusted crypto exchange with over 20 million users
  • More than 400+ digital currency pairs
  • Buy and sell cryptocurrencies with a debit/credit card or bank transfer
  • Low commissions that start from 0.1%
  • Fully-fledged mobile app on Android and iOS
  • Great reputation and highly secure

Cons

  • Debit/credit card fees could be more competitive
  • Derivative products are too complex for beginners

at eToro, UK’s #1 Broker

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

4. Binance – Popular Bitcoin Exchange With Crypto Savings Accounts

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.

binance review

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

  • Facilitates billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits via debit/credit cards
  • Trading commission starts at just 0.1% per slide
  • Offers crypto savings accounts
  • Ideal for both beginners and experienced traders alike

Cons

  • Not all supported cryptocurrencies can be purchased with a debit/credit card
  • No e-wallet deposits or withdrawals

at eToro, UK’s #1 Broker

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

5. Coinjar – Quality Crypto Broker for Small Bitcoin Investments

coinjar review

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 review

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 in 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 you Bitcoin tokens in safety.

Pros

  • Has been active in the crypto brokerage arena since 2013
  • Very user-friendly platform – so perfect for beginners
  • Mininmum deposit of just £5
  • No fees to deposit funds via Faster Payments
  • Debit/credit cards also supported
  • Top-rated mobile app

Cons

  • Too basic for experienced cryptocurrency traders

at eToro, UK’s #1 Broker

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

Learn the Best Ways to Make Money From Bitcoin UK

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.

Invest in Bitcoin Long-Term

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.

how to make Money With Bitcoin

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.

  • Let’s suppose that you invest £5,000 in Bitcoin
  • At the time of your investment, the price of Bitcoin is $10,000 per token
  • You leave your Bitcoin investment untouched for three years
  • In doing so, the price of Bitcoin is now $60,0000
  • This means that Bitcoin has increased in value by 500%
  • On your original stake of £5,000 – your portfolio is now worth £30,000
  • This consists of your original £5,000 investment – plus a profit of £25,000

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

Dollar-Cost Average

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.

  • For instance, you might decide to invest £50 into Bitcoin at the end of each month.
  • If in months 1 and 2 Bitcoin is priced at $30,000 and $20,000 respectively – this means that your average cost price of $25,000.
  • Then, in month 3, if Bitcoin has crashed to $10,000 – your average cost price is reduced further to $20,000.

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.

Bitcoin Copy Trading

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.

copy trading etoro

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.

  • Let’s say that you invest $1,000 into an eToro investor that specializes in cryptocurrency
  • Your chosen investor decide to allocate 25% of their capital in Bitcoin when the digital token is worth $30,000
  • This means that you automatically invest $250 into Bitcoin – as this amounts to 25% of your $1,000 Copy Trading investment
  • A few weeks later, Bitcoin is priced at $45,000 per token – so the investor sells their position
  • This results in a profit of 50%
  • You also make a profit of 50% – albeit, this is on your stake of $250.

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!

Bitcoin Savings Accounts

Many in the UK are unaware of the fact that Bitcoin savings accounts are actually a thing.

  • In its most basic form, this operates much like a traditional bank account.
  • That is to say, by leaving your Bitcoin tokens stored in a cryptocurrency savings account – you can earn interest.
  • If you’re wondering where the interest comes from – this is funded by a crypto lending agreement.
  • For instance, the platform in question will use your Bitcoin tokens to fund loans.
  • Those taking out the loan will therefore pay the money back in installments – with interest.

The borrower will be required to put up some cryptocurrency tokens as collateral – so this acts as a major safeguard of your investment.

Short-Term Bitcoin Trading

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.

  • For example, you might buy Bitcoin in the morning at $40,000 and sell a few hours later when the digital currency breaches $40,500.
  • In this example, you would have walked away with a profit of just 1.25%.
  • However, this is good work for a short-term trader – as you will be placing similar positions throughout the day.

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.

how to make Money With Bitcoin

Nevertheless, you can still trade Bitcoin at eToro in a safe and low-cost environment – you just can’t use leverage anymore.

Trade Bitcoin Now From $25

How to Make Money With Bitcoin in the UK – Detailed & Explained in Full

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.

Step 1: Open an Account With an FCA-Regulated Broker

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.

how to join etoro

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.

Step 2: Make a Deposit

Now that you have an account with the eToro – the broker will ask you to make a deposit.

  • The minimum deposit at eToro is just $200 – so that’s about £145
  • You can deposit funds instantly with a debit card, credit card, Paypal, Skrill, or Neteller
  • UK bank transfers are also supported, but the transaction might take a few days to process
  • eToro charges a deposit fee of 0.5% – which is very competitive in the Bitcoin brokerage scene

As soon you confirm the deposit and funds are credited to your account – proceed to the next step!

Step 3: Search for Bitcoin Investment

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.

buy bitcoin with credit card UK

If you’re ready to invest in Bitcoin tokens right now – hit the ‘Trade’ button.

Step 4: Complete Bitcoin Investment

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.

buy bitcoin at eToro

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.

How to Make Money With Bitcoin UK: Full Conclusion

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!

eToro – Best Broker to Make Money With Bitcoin

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.