Invest In Bitcoin UK – How to Invest in Bitcoin in the UK In Under 5 Minutes!

More and more people in the UK are taking an interest in Bitcoin – not least because the digital currency has yielded some phenomenal returns since it was first launched in 2009. You do, however, need to tread carefully when investing in this volatile and speculative asset class – as the risks are much higher than more traditional instruments like stocks and mutual funds.

In this guide, we walk you through the step-by-step process of how to invest in Bitcoin UK – alongside a brief discussion on the best online cryptocurrency brokers to open an account with.

#1 Broker to Invest in Bitcoin UK – eToro

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  • Invest in a wide range of cryptocurrencies
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  • eToro crypto wallet included which makes it beginner-friendly
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How To Invest in Bitcoin UK – Choose a Broker

If you want to invest in Bitcoin in the UK – you will first need to choose a suitable online broker that offers low fees. Below you will find an overview of the best brokers to consider when investing in Bitcoin for the first time.

  • eToro – Overall Place to Invest in Bitcoin UK (FCA Regulated)
  • Coinbase – Best Way to Invest in Bitcoin UK for Beginners
  • OKEx – Best Low-Cost Broker to Invest in Bitcoin UK via a Crypto Deposit
  • Binance – Best Place to Invest in Bitcoin UK for Asset Diversity
  • Coinjar – Best Broker to Invest in Bitcoin UK for Small Deposits

We review the above brokers in great detail further down in this guide.

How to Invest in Bitcoin in the UK – A Quick Guide For 2021

If you want to bypass the jargon and get straight to your BTC purchase – the below steps will show you how to invest in Bitcoin in the UK in less than 5 minutes!

  • Step 1: Open an Account with eToroWe found that eToro is the best broker to invest in Bitcoin UK – as the FCA-regulated platform offers low fees and the minimum purchase amount is just $25 (about £18). To open an account with eToro – simply hit the ‘Join Now’ button and enter your personal details.
  • Step 2: Upload Your ID – If you’re looking to invest more than $2,250 (about £1,600) into Bitcoin – you will need to upload a copy of your passport or driver’s license. If not, you can upload the required documents at a later date.
  • Step 3: Deposit Funds – You will need to make a deposit into your eToro account before you can invest in Bitcoin. Choose from a Visa, MasterCard, Paypal, or Skrill deposit to have your payment processed instantly.
  • Step 4: Invest in Bitcoin – The final step is to search for ‘Bitcoin’, click the ‘Trade’ button, and enter your stake.

As soon as you hit the ‘Open Trade’ button, eToro will instantly execute your Bitcoin investment order. The digital tokens will then appear in your eToro portfolio = which is where you can keep tabs on your investment in real-time!

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

Where to Invest in Bitcoin in the UK

Bitcoin is now a multi-trillion dollar asset class – so it makes sense that plenty of online platforms allow you to invest in the digital currency. You do, however, need to tread very carefully when choosing a Bitcoin platform – as many are unregulated. On top of safety, you also need to consider the costs involved when investing in Bitcoin – alongside the type of payment methods supported.

We have done the hard work for you by reviewing the very best places to invest in Bitcoin in the UK – which you will find in the sections below.

1. eToro – Overall Best Place to Invest in Bitcoin UK

etoro review Irrespective of your experience in the digital currency space – we found that eToro is by far the best place to invest in Bitcoin in the UK. The first thing to note is that unlike the vast majority of platforms in this industry – eToro is authorized and regulated by the Financial Conduct Authority (FCA). This is a major safeguard – as you have the UK’s financial watchdog and its respective regulations keeping eToro in check.

In addition to the FCA, eToro – which is now used by over 20 million people, is also regulated by financial bodies in Cyprus and Australia. Once you have gone through the 5-minute process of opening an account – eToro then allows you to add funds via debit/credit card (Visa, MasterCard, Maestro), bank transfer, or an e-wallet (Paypal, Skrill). The minimum deposit for new customers is $200 (about £145), but you only need to invest $25 into Bitcoin. As such, you can use the remaining balance to invest in other digital tokens or alternative asset classes like stocks.

etoro review

When it comes to fees, eToro offers a very competitive pricing model that is unrivaled in the UK cryptocurrency scene. This is because you won’t pay any commissions – rather, you simply need to cover the spread. In the case of Bitcoin, the spread starts at 0.75% – meaning that for every £100 invested you will only need to pay about 75p. As soon as you have invested in Bitcoin, you don’t need to worry about wallets and third-party storage. This is because eToro takes care of storage for you – so the tokens remain in your account until you decide to cash out.

When the time to offload your Bitcoin investment does occur, it’s just a case of heading over to your eToro portfolio and clicking on the ‘Sell’ button. If you have a broader interest in the cryptocurrency arena, you’ll be pleased to know that eToro offers lots of other tokens. For example, you can easily invest in Ethereum, Ripple, AAVE, Litecoin, EOS, Ethereum Classic, Bitcoin Cash, Uniswap, and more. You can even invest in a professionally managed cryptocurrency portfolio – which consists of a diversified basket of tokens.

etoro review

You also have the Copy Trading feature, which permits passive investing. The way this works is you will choose a successful eToro trade to copy and then all subsequent positions will be mirrored in your own portfolio. In addition to digital currencies, eToro also gives you access to 17 UK and international stock exchanges. This means that you can buy shares in companies listed in the UK, North America, Europe, and more The minimum stock investment is just $50 (about £36). Other supports assets include ETFs, forex, commodities, and indices.

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 – Best Way to Invest in Bitcoin UK for Beginners

coinbase review Next up we have Coinbase – the US-based cryptocurrency exchange that is also popular in the UK. Launched in 2012 -the platform services over 56 million customers around the world – many of which are complete beginners. Coinbase is very easy to use if you simply want to invest in some Bitcoin tokens, as the registration and verification process typically takes less than 10 minutes.

Once you have entered your personal details and uploaded a copy of your passport or driver’s license – you can then invest in Bitcoin with your UK debit card. Take note, although the transaction will be processed instantly – you will pay a hefty fee of 3.99%. This means that for every £100 invested – Coinbase keeps £3.99. The more cost-effective option is to transfer funds from your UK bank account – which is fee-free. When the funds arrive (1-2 working days) – you can then process to invest in Bitcoin at a commission of 1.49%.

coinbase review

When you have invested in Bitcoin at Coinbase, the digital tokens will appear in your online portfolio. If you wish, you can keep your BTC funds there – as Coinbase is home to top-grade security protocols. This includes keeping 98% of client digital assets in cold storage and mandatory two-factor authentication. You can also withdraw your Bitcoin tokens to a private wallet – but this will require some knowledge of cryptocurrency storage controls (e.g. private keys, data backup).

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. 67% of retail investor accounts lose money when trading CFDs with this provider.

3. OKEx – Best Low-Cost Broker to Invest in Bitcoin via a Crypto Deposit

OKEx is another cryptocurrency exchange that serves UK clients in a safe and simple way. However, we should note that the platform isn’t licensed by the FCA – so do bear this in mind. Nevertheless, the platform offers some of the lowest commissions in this industry – especially if you are able to pay for your Bitcoin investment with another digital token. If you can, you will only pay 0.10% per slide – and even less if you trade large volumes.

The other payment option is to transfer funds from your UK bank account. The key issue here is that OKEx does not offer a Bitcoin market against GBP – so additional FX fees will apply. Regardless of how you pay for your UK Bitcoin investment, it’s best to withdraw your digital tokens to a private wallet once the purchase is complete. This will ensure that you retain full control over your Bitcoin funds and thus – your capital isn’t at risk should OKEx get hacked.

okex review

With that said, OKEx is behind some impressive security features. For instance, the platform allows you to keep your account safe by setting up compulsory 2FA. This means that you will need to enter a code that is sent to you via SMS on each login attempt. The platform also claims to keep client digital funds in cold storage – meaning they are stored offline. In total, you will find over 400 digital tokens at OKEx, alongside a range of notable tools such as crypto interest accounts and loans.

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. 67% of retail investor accounts lose money when trading CFDs with this provider.

4. Binance – Best Place to Invest in Bitcoin UK for Asset Diversity

If you’re thinking about investing in cryptocurrencies other than just Bitcoin – you’ll want to choose a platform that offers plenty of markets. In this respect, Binance is one of the best options on the table for asset diversity – as the exchange is home to hundreds of tokens. This covers crypto assets of all shapes and sizes – so you can easily create a diverse portfolio.

The first step, however, is to open an account and add some funds. You can do this easily by making a deposit with your debit or credit card. The minimum is just £15 and the payment will be processed instantly. Take note, you will need to upload a copy of your passport or driver’s license as part of the platform’s KYC process. In terms of fees, you will pay 1.8% of the deposit amount. Once you have funded your Binance account, you can then proceed to buy Bitcoin at a super-competitive commission of just 0.10%.

binance review

Best of all, the exchange offers a market on GBP/BTC – so you don’t need to worry about foreign exchange fees. The main drawback with Binance is that the platform can no longer offer fiat currency withdrawals. This means that when the time to cash out arises, you will need to transfer your Bitcoin tokens to another exchange. Binance might, however, reinstate its GBP bank account withdrawal facility soon – so keep an eye on this. Finally, Binance allows you to invest in Bitcoin through its main website or via an Android/iOS mobile app.

Pros

  • Facilitates billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits via debit/credit card
  • 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. 67% of retail investor accounts lose money when trading CFDs with this provider.

5. Coinjar – Best Broker to Invest in Bitcoin UK for Small Deposits

coinjar review If you’re looking to invest in Bitcoin UK with a small amount of money – Coinjar might be the right platform for you. First and foremost, this user-friendly exchange allows you to invest in BTC tokens at a minimum stake of just £5. You can fund your investment in two ways when using Coinjar. The first is to use the Instant Buy tool – which allows you to invest in Bitcoin with your debit/credit card.

For this, you will be charged an all-in commission of 2% – so that’s £2 for every £100 invested The BTC tokens will appear in your Coinjar wallet instantly – which you can then withdraw should you wish. The other option is to fund your account manually via a UK bank transfer. Coinjar utilizes the Faster Payments network – so the funds should arrive in a matter of minutes. You will then be able to invest in Bitcoin at a commission of 1%. Both deposit options require you to go through a speedy KYC process – meaning you will need to upload a copy of your ID.

coinjar review

In addition to Bitcoin, Coinjar allows you to invest in a number of other digital currencies. Many of its supported tokens fall within the remit of decentralized finance (Defi) coins – which many believe could be the next big thing in the crypto space. This includes the likes of Chainlink, Uniswap, Yearn.finance, Maker Dai, 0x Token, AAVE, and Synthetix. Another feature that is popular at Coinjar is the ‘Recurring Buy’ tool. This allows you to invest in Bitcoin and other cryptocurrencies at fixed intervals in an automated manner – such as £100 per month.

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 bank transfer
  • 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. 67% of retail investor accounts lose money when trading CFDs with this provider.

 

How to Invest in Bitcoin in the UK – Detailed & Explained in Full

If you’re a complete novice in the world of digital currencies – then the above quickfire guide on how to invest in Bitcoin might not be sufficient enough for you. Instead, you might require a more detailed and explained walkthrough. If so, below you will find a comprehensive step-by-step guide on how to invest in Bitcoin UK – with no stone left unturned.

Step 1: Open a Bitcoin Investment Account

As we noted in our cryptocurrency platform reviews, eToro is the number one broker to invest in Bitcoin in the UK. To recap – the broker is FCA-regulated, offers low fees, and is super-easy to use. As such, this walkthrough will guide you through the Bitcoin investment process with eToro. The first thing is to visit the eToro website and open an account.

how to join etoro

Look out for the ‘Join Now’ button and click it. In doing so, a registration form will appear asking you to enter your name, email address, and mobile number. You also need to select a username a strong password – which will act as your login credentials once the account is open.

On the next page, you will then be asked for additional personal information. This includes your home address, national insurance number, and date of birth.

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: Upload Your ID

Now that you have opened an investment account with eToro – you can proceed to purchase Bitcoin. However, you will be required to upload a copy of your passport or driver’s license before you can:

  • Deposit more than $2,250
  • Make a withdrawal

As such, we would suggest completing the Know-Your-Customer (KYC) process now so that you can remove all account limitations.

Step 3: Fund Your Investment Account

You will need to deposit some money into your eToro account before you can invest in Bitcoin. The broker supports a wide range of payment methods, which you will find listed below:

  • Credit Card
  • Debit Card
  • Bank Transfer
  • Skrill
  • Neteller
  • Paypal

As we briefly noted earlier, the minimum deposit at eToro is $200 and you will pay a very small transaction fee of 0.5%.

Step 4: Go to Bitcoin Investment Page

You should now have money in your eToro account – meaning that you can proceed to invest in Bitcoin! To go straight to the relevant investment page, enter ‘Bitcoin’ into the search bar at the top of the page.

how to invest in bitcoin UK

Click on the result that appears at the top – like in the highlighted example above. Then, on the next page, click the ‘Trade’ button.

Step 5: Invest in Bitcoin UK

You should now see an order box populate on-screen. This is where you need to tell eToro how much you wish to invest in Bitcoin. The minimum investment is just $25 – meaning that you can purchase just a very small fraction of 1 BTC token.

how to invest in bitcoin UK

To complete your UK Bitcoin investment – click on the ‘Open Trade’ button. In doing so, eToro will execute your investment order instantly at the next best available price. The digital tokens will remain in your eToro portfolio until you decide to sell!

How to Sell Bitcoin UK

If you’re here reading our guide on how to invest in Bitcoin in the UK – you are likely doing so because you want to make money. In order to do that, you will need to sell Bitcoin at a higher price than you originally paid. If you’re wondering how to sell Bitcoin in the UK – the process can be very straightforward – but this depends on how you made the purchase.

For example, if you followed our step-by-step walkthrough by investing in Bitcoin at eToro – then you sell your BTC tokens in a matter of seconds. All you need to do is visit your eToro portfolio, look out for BTC, and then click the ‘Sell’ button. eToro will then instantly convert your Bitcoin investment back to cash – which you can withdraw to your bank account or debit/credit card.

Ways to Invest in Bitcoin UK

There are many ways to invest in Bitcoin in the UK – some better than others. For example, you might find that Bitcoin ATMs are good for investing with cold-hard cash – but the fees will be astronomical.

You then have low-cost cryptocurrency exchanges, but these are typically unregulated. As such, it’s best to consider the pros and cons of each Bitcoin investment provider before taking the financial plunge.

Regulated Broker

Make no mistake about it – using a regulated online broker to invest in Bitcoin UK is by far the best option.

  • This is because you are using a legitimate provider that takes investor protection seriously.
  • For instance, our top-rated provider – eToro, is authorized and regulated by the FCA.
  • This means that the platform must keep client funds in segregated bank accounts, ID all new customers, and regularly submit its order books for audit.
  • As such, you can invest in Bitcoin in safe, fair, and transparent trading conditions.

By using an FCA-regulated broker like eToro, you will also be able to use your UK debit/credit card or bank account to pay for your Bitcoin investment.

Cryptocurrency Exchange

You then have cryptocurrency exchanges – which typically operate in a borderless manner. This means that they accept clients from all over the world – often without requiring any personal information or KYC documents. Exchanges can do this if the client is not paying for their Bitcoin investment with ‘real’ money via a debit/credit card or bank account.

bitcoin exchanges

Naturally, by allowing anonymous investments, cryptocurrency exchanges will usually operate without a regulatory license. This means that as a UK investor – you are putting your capital at risk. This is in addition to the risk of investing in a speculative asset class like Bitcoin. Perhaps the main draw with cryptocurrency exchanges is that you will have access to hundreds of digital tokens at rock-bottom commissions.

Bitcoin ATM

There are just over 200+ Bitcoin ATMs in the UK – most of which are found in London. If you have a Bitcoin ATM close by – the process works as follows:

  1. Follow the on-screen instructions by entering the amount of Bitcoin that you wish to buy (e.g. £40)
  2. The ATM will then tell you how much Bitcoin you will receive for the amount desired – taking into account fees and commissions
  3. If you are happy with the exchange rate offered – enter pound notes into the Bitcoin ATM
  4. The Bitcoin ATM will then print a receipt – which explains how to claim your BTC tokens in a private wallet. Some ATMs can scan your Bitcoin wallet address – so that the tokens are automatically transferred to you.

The main issue with using a cryptocurrency ATM to invest in Bitcoin in the UK is that the fees are ridiculously high. Many providers charge in excess of 10-15% of the transaction value – which means you are overpaying by a considerable amount. After all, when using eToro to invest in Bitcoin UK – you only need to cover the spread of 0.75%!

Peer-to-Peer Platform

You might also come across a number of peer-to-peer exchanges in the online space. These platforms allow you to buy and sell Bitcoin directly with other users – subsequently cutting out the need for a middleman. The main issue here is that peer-to-peer exchanges are known to attract scammers. This means that you might end up transferring your money to a seller that never supplies you with any Bitcoin.

Bitcoin Stocks

Although most people in the UK will invest in Bitcoin directly – it’s also possible to gain exposure to the digital currency arena via traditional stocks. Several options exist in this respect, but Coinbase is arguably the best. This is because popular Bitcoin broker Coinbase – which we reviewed earlier, recently went public.

buy coinbase stocks etoro

You will find the stocks listed on the US-based Nasdaq exchange. In theory, the value of Coinbase will be correlated to the wider sentiment of the cryptocurrency market. For example, if digital tokens like Bitcoin are performing really well – then you might find that the value of Coinbase stocks follows suit.

If you want to invest in Bitcoin-related stocks – you can do this at eToro on a 0% commission basis – irrespective of which exchange the shares are listed.

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

 

Should I Invest in Bitcoin UK?

Bitcoin is certainly one of the most exciting asset classes available in the investment scene. After all, this innovative cryptocurrency has generated unprecedented returns since it was launched in 2009. But, equally, Bitocin is also a highly speculative asset – meaning that many people invest because of a ‘fear of missing out’.

This is largely the reason behind the digital token’s rise to fame in recent years – so you do need to consider the added risks that this brings. In the sections below, we discuss some of the main reasons why you might decide to invest in Bitcoin in the UK – but, of course, you should also perform your own research before proceeding.

Financial Returns and Growth Trajectory

Let’s start by having a look at how Bitcoin has performed since it was launched in 2009. In its first few years of trading, Bitcoin was virtually unheard of and this was reflected in its price. In fact, those who invested in Bitcoin early would have paid less than a few pence per token. Fast forward to December 2017 and the digital currency breached a price of $20,000.

Bitcoin investment UK

Bitcoin then went on a prolonged downward spiral – the digital asset has since gone on a bullish run since hitting lows of $5,000-ish in early 2020. In fact, Bitcoin hit a new all-time high of just under $65,000 in May 2021. This means that in just over 1-year of trading, Bitcoin investors saw returns of over 1,200%. That’s a profit of £6,000 for every £500 invested.

Bear Market Means Investing in Bitcoin on the Cheap

Leading on from the section above – where we noted that Bitcoin hit all-time highs of $65,000 in May 2021 – the price of the digital token has since cooled off. This isn’t just the case with Bitcoin – but the wider cryptocurrency marketplace.

  • At the time of writing in August 2021 – you can invest in Bitcoin at a more favorable entry price of around $40,000.
  • With that said, Bitcoin has also hit lows of $29,000 since its recent all-time high.
  • This is actually a good thing if you are yet to invest in Bitcoin – as you can enter the market at a lower cost price.
  • For instance, if you were to invest at a price of $40,000 as opposed to its peak of $65,000 – you are essentially getting yourself a discount of 38%.

Furthermore, if Bitcoin is able to regain its previous high of $65,000 – this would represent an upside of over 62%.

You can Dollar-Cost Average Your UK Bitcoin Investments

Many in the UK that are considering a Bitcoin investment are under the impression that you need to purchase a full BTC token. At its peak of $65,000 – this would amount to a total investment of approximately £46,000 at current exchange rates. Fortunately, you don’t need to invest such sizable amounts into Bitcoin – as the digital currency can be ‘fractioned’ into tiny units.

should I invest in Bitcoin UK?

This means that you can invest small and steady amounts to mitigate your long-term risk. At eToro, for example, the minimum investment per trade is just $25. As such, an account balance of $250 would allow you to dollar-cost average your investments at $25 per week, fortnight, or month. In taking such a strategy, you will invest in Bitcoin at a different entry price on each subsequent investment.

For example, you might invest $25 in week one at $40,000 and then $25 in week two at $35,000. In week three, you might pay a cost price of $50,000. Either way, your total entry cost is constantly averaging out – meaning that you are not overreliant on a single price.

Bitcoin is Similar to Gold

Many commentators in the cryptocurrency industry will argue firmly that Bitcoin is not too dissimilar to a store of value like gold.

  • This is because much like gold – the total supply of Bitcoin is finite. In other words, once BItcoin hits a total supply of 25 million tokens – no more will be created.
  • This adds tremendous value to the digital asset from an investment perspective.
  • On the other hand, Bitcoin is a lot more flexible and efficient than gold.
  • For example, Bitcoin can be broken down into tiny units at the click of a button.
  • There is no need to store Bitcoin in expensive vaults and cashing out doesn’t require a visit to a gold broker.

Instead, Bitcoin is stored in digital wallets and selling can be completed in a matter of seconds.

What are the Risks of Investing in Bitcoin UK?

In the sections above, we covered the most notable benefits of investing in a digital currency like Bitcoin. However, we now need to discuss the main risks involved so that you only enter the Bitcoin investment market with your eyes wide open.

  • New and Largely Unproven – Bitcoin was first launched in 2009 – but it wasn’t until 2017 that the digital currency experienced global exposure. Even factoring in its 12-year history, this still makes Bitcoin a new and unproven asset class. In comparison, many blue-chip stocks have been trading for multiple decades.
  • Volatility – Bitcoin is extremely volatile and can move up and down by double-digit percentages in a matter of days. For example, those that purchased Bitcoin in May 2021 at $65,000 per token have since seen their investment drop by over 50% – as the cryptocurrency hit lows of $29,000 just two months later.
  • Speculative – Many people invest in Bitcoin on a speculative basis – not least because they hope to make huge financial returns. While this might result in attractive short-term gains for those that time the market well – it remains to be seen how sustainable this is in the long-term.
  • Regulation – Bitcoin and the wider cryptocurrency industry is still largely unregulated around the world. In the UK specifically, there is no cryptocurrency legislation in place. This regulatory uncertainty is a huge risk – as nobody knows whether or not the UK government will eventually embrace Bitcoin and blockchain technology.

Ultimately, the best thing you can do is perform lots of independent research before proceeding with an investment. If you do make an informed decision to invest in Bitcoin in the UK – then make sure you keep your stakes modest and never risk more than you can afford to lose.

How Much Does it Cost to Invest in Bitcoin UK?

There are a number of costs involved in the UK Bitcoin investment process – which we briefly explain below.

  • Payments: You will likely need to pay a deposit fee when you invest in Bitcoin in the UK. Debit and credit card payments are usually the most expensive – with Bitcoin brokers and exchanges charging in the region of 2-5% per deposit. You can get this down to just 0.5% when using eToro.
  • Commission: Bitcoin brokers and exchanges are in the business of making money – so you will need to pay a commission when you complete your investment. This can vary quite considerably – with the likes of Gemini and Coinbase both charging 1.49%. Coinmama is even more expensive at 3.90%. eToro, on the other hand, charges a spread that averages just 0.75%.
  • Selling: You also need to pay a commission when you decide to sell your Bitcoin investment. This is usually the same commission that you paid to your broker when you originally invested. For example, if you cash out your Bitcoin funds at Coinbase, you will again pay 1.49%.

Just make sure you check your chosen provider’s fee table before opening an account.

How to Buy Invest in Bitcoin UK – Conclusion

This guide on how to invest in Bitcoin UK has covered the fundamental steps involved. To recap – you first need to choose a suitable broker that supports your preferred payment type. Once you have made a deposit, it’s then just a case of deciding how much you wish to invest in Bitcoin. Once the investment has been processed – you then need to think about storage.

The easiest, safest, and most cost-effective way to invest in Bitcoin in the UK is to use an FCA-regulated broker like eToro. You can instantly deposit funds with your debit/credit card at an industry-leading fee of just 0.5%. Then, you can invest in BTC tokens at a minimum of $25 and at a spread of just 0.75%.

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  • eToro crypto wallet included which makes it beginner-friendly
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FAQ

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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.