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Cryptocurrency
Multiple surveys have concluded that 1 in 5 adults in the UK has bought crypto in the past. According to a recent study by Gemini, as much as 20% of the UK adult population believe cryptocurrencies are the future of money. An even higher percentage has expressed interest in buying cryptocurrencies in the future.
According to these surveys, the country's most popular cryptocurrencies are Bitcoin, Ethereum, Ripple, Dogecoin, and Litecoin.
The fact that you are here tells us that you, too, are probably interested in the most lucrative investment class of the last decade. That you want to invest in this digital economy but probably aren’t sure how to buy cryptocurrencies.
In this article, we teach you everything you need to know about buying cryptocurrencies in the UK. We tell you about the best exchanges to buy crypto, ways to buy crypto in these exchanges and add on to the reasons why you are considering crypto investing.
We will also tell you if crypto buying is legal in the UK and provide you with a comprehensive step-by-step guide on how to buy crypto on one of the most popular exchanges.
Let us dive right in.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
How to Buy Cryptocurrencies on eToro
Want to jump straight to buying cryptocurrencies? We recommend using the eToro crypto exchange. You only need $10 to get started, and here is a simplified guide on how to buy cryptocurrencies on the exchange:
Step 1: Register an account with eToro
Start by creating a crypto trader account on the eToro exchange. The process is quick and straightforward - taking less than 10 minutes. They will only capture basic personal information and ask that you verify your identity - like FCA regulations.
Step 2: Deposit funds
Fund the approved crypto trader account. Choose one of the supported payment options and use it to deposit funds into eToro. The minimum you can deposit here is $10 (Remember that eToro has the USD as its base currency and non-USD deposits attract a 2% currency conversion fee).
Step 3: Buy crypto in the UK
From the list of cryptocurrencies supported by the broker, choose one and hit the “BUY” button. Customise the trade by indicating how many crypto tokens/coins you wish to buy and hit the “Open Trade” button to execute the order.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Not familiar with the eToro crypto exchange or simply new to crypto trading? Read on and we will provide you with a more detailed step-by-step guide to buying cryptocurrencies on eToro further below in this post.
Where to Buy Cryptocurrencies in the UK in 2022
The UK's huge population of crypto investors has piqued the interest of most crypto exchanges. Today, virtually all the popular and upcoming crypto exchanges have set up bases in the UK. This explains why finding the best exchange to buy cryptocurrencies has proven overwhelming for most crypto enthusiasts.
To help clear this confusion and help you get started with buying cryptocurrencies, we have analyzed tens of legit cryptocurrencies before singling out five of what we consider the best places to buy cryptocurrencies in the UK.
Let us go over each of these exchanges below. We will highlight the reasons why they made it here and explain why you too should consider registering with either.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
1. eToro - Overall Best Place to Buy Cryptocurrencies UK
eToro tops our list of best exchanges to buy cryptocurrencies in the UK because of its user-friendliness and commitment to the safety of client data and cryptos.
For starters, the exchange that began as a forex brokerage runs a highly intuitive crypto trading platform that appeals to both novice and expert crypto traders. To draw in beginner crypto traders, eToro has oversimplified the account creation process, made its user interface as intuitive as possible, simplified the crypto buying process, and instituted affordable deposit and trade minimums. Here, you can start buying crypto at $10.
To draw in expert traders, eToro has integrated advanced analytics and risk management tools into its trading platform. It maintains some of the fastest order execution speeds, is transparent with its already competitive fees, and maintains adequate liquidity.
In addition to these, eToro integrates social and copy trading tools. Social trading creates a platform where traders can interact with one another, share trade and research ideas, and for beginner traders to gain mentorship. On the one hand, copy trading lets novice traders mirror popular investors' trade settings - allowing them to make money while they learn how to trade. On the other hand, Pro traders earn passively as they receive 20% of the profits from their copied trades.
You, too, may consider eToro the best place to buy cryptocurrencies because of its commitment to the safety of client data and digital assets. The exchange does not share sensitive client information with third parties. It also provides all its platform users access to a custodial wallet and a mobile wallet app.
Not forgetting that eToro supports a wide range of cryptocurrencies and tokens. At the time of writing, you can buy 40+ cryptocurrencies on eToro.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
2. Crypto.com - Best Place to Buy Cryptocurrencies UK for High Passive Incomes
Crypto.com is a relatively new crypto exchange. However, aggressive marketing campaigns and a user-friendly user interface have nevertheless helped make it one of the most popular exchanges. Today, it constantly features among the liquid crypto trading platforms worldwide. It has also developed a reputation for its ultra-fast transaction execution speeds.
We feature it among the best exchanges to buy cryptocurrencies in the UK because of its integrated DeFi programs that let you earn passively. For starters, Crypto.com lets you buy 250+ cryptos and stablecoins on the platform.
Most of these can also be staked on the exchange via the Crypto.com staking program. This rewards interests of up to 14.5% p.a. for staked cryptocurrencies and up to 8.5% on stablecoins. It, therefore, lets traders earn doubly - from value gain for the crypto and staking rewards.
Other reasons why you should consider buying cryptocurrencies on Crypto.com include the fact the exchange maintains a smooth client onboarding process. It, too, maintains affordable deposit/trading minimums at £20. The exchange also maintains highly competitive trading fees.
When buying cryptocurrencies on Crypto.com, for instance, you will only have to pay the maker/taker fee of between 0.4% and 0.1%. But if you had staked at least 5000 CR tokens - you qualify for a 10% discount.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
3. Binance - Best Place to Buy Cryptocurrencies UK at Low Fees
Binance is the largest crypto exchange in the world. It is also the most liquid crypto trading platform - processing crypto trades worth more than £70+ Billion daily. Like virtually all other popular crypto exchanges, Binance has oversimplified the client onboarding process. It operates a highly intuitive crypto trading platform and has also simplified the process of buying crypto.
But we include it on our list of best exchanges to buy cryptocurrencies in the UK primarily because of its ultra-low and heavily discounted transaction fees. When buying crypto on Binance UK, you will only be charged a fixed maker/taker fee of between 0.1% and 0.04% - based on your 30-day trading volumes. And if you choose to settle this trading fee using BNB coins, you get to qualify for a 25% discount - bringing the cost of trade on the platform down to between 0.75% and 0.03%.
There are numerous other reasons why you too should add Binance to your list of best places to buy crypto in the UK. First, Binance lists the widest range of cryptocurrencies and an extensive pool of crypto pairs. Secondly, Binance provides all its platform users with free crypto storage services. Here, you can choose the exchange-based custodial wallet that holds coins in offline vaults of the non-custodial Trust mobile wallet app.
Additionally, Binance operates the largest crypto-focused insurance fund - currently exceeding $1 Billion. This, according to Binance - is set aside to reimburse its platform users should a network breach result in loss of client funds.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
4. Coinbase - Best Place to Buy Cryptocurrencies Instantly in the UK
Coinbase is an equally popular crypto exchange. It stands out from the rest of the crypto trading platforms because of its pro-regulation stance and also due to the fact that it is the only publicly-traded crypto exchange today. But we include it in the list of best exchanges to buy cryptocurrencies in the UK because it supports instant trading.
In addition to maintaining an easy onboarding process, Coinbase runs one of the most intuitive trading platforms. And here is the buy instantly feature that lets you buy any supported cryptocurrency with fiat or other cryptos right away i.e., without having to add the trade to the order book. And we might add that Coinbase supports a wide range of cryptocurrencies and their trading pairs.
You, too, might want to consider buying cryptocurrencies via Coinbase because of its commitment to securing client funds and data. The exchange doesn’t share sensitive client information with third parties. It also gives users access to a custodial wallet that holds 98% of their coins in offline vaults. In addition to this is the non-custodial Coinbase wallet app.
Another reason you might want to add Coinbase to your list of best places to buy cryptocurrency in the UK is that it is a multi-platform exchange. You can access your Coinbase crypto account on your PC at home. And you can also manage your crypto portfolio while on the move via the Coinbase mobile wallet app. Not forgetting that both platforms have integrated highly advanced market analysis, trading, and risk management tools.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
5. Kraken - Safest Exchange to Buy Cryptocurrencies in the UK
Kraken makes it to our list of best places to buy cryptocurrencies for UK residents because of its commitment to the safety of client data and digital coins. We especially liked the fact that, unlike most other exchanges, Kraken has never been hacked. According to the exchange, Kraken servers are under 24-hour surveillance by armed guards. On the other hand, client digital assets are stored offline and widely distributed in offline vaults.
But in addition to security, there are a few more reasons why you should consider buying cryptocurrencies via Kraken UK. For example, the exchange appeals to both beginner and expert traders. This starts with a straightforward account registration process, a highly intuitive user interface, and affordable minimum deposit/trade limits - as low as £20.
It then extends the integration of useful educational content and a wide range of highly advanced analysis, trading, and risk management tools. Kraken will also let you buy cryptocurrencies instantly and boasts of maintaining some of the fastest order execution speeds.
We also appreciate that Kraken maintains relatively high trade limits for Intermediate and Pro traders - making it an excellent trading platform for high-volume crypto investors.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Are Cryptocurrencies Worth Buying in the UK?
Cryptocurrencies were the most profitable crypto asset of the last decade. With the likes of Bitcoin and Ethereum reporting ROIs in excess of 100000%, it is easy to see why cryptos are one of the most sought-after investments in the UK.
Moving forward, most analysts and investors are confident that cryptos will sustain this uptrend. The likes of Bitcoin, for instance, are expected to grow by as much as 5000% by the turn of the decade to break above $1 Million.
Those cryptocurrencies are expected to help grow investor portfolios is the primary reason why they are worth buying in 2022.
Other reasons to invest in cryptocurrencies include:
- Hedge against other investments: Cryptocurrencies provide you with an excellent hedge against other investments like Gold and stocks.
- Diversify portfolio: You may also consider buying cryptocurrencies as a way of diversifying your investment portfolio. In fact, leading fintech experts have argued that everyone should consider covert at least 1% of their portfolio to crypto.
- Protect wealth against inflation: Cryptocurrencies are always uptrending and gaining value, which effectively makes them one of the best tools for shielding your wealth against inflation.
- Gain absolute control over investment: Cryptocurrencies are the only investment that gives you absolute control over your investment.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Ways of Buying Cryptocurrencies in the UK
Crypto exchanges in the UK have added numerous ways of buying cryptocurrencies safely with low fees. In this section, we look at the three most common ways of buying cryptocurrencies in the UK.
1. How to Buy Cryptocurrencies in the UK With Credit Cards and Debit Cards
Credit cards and debit cards are one of the most popular online payment methods in the UK. It, therefore, doesn’t come as a surprise that virtually all the popular crypto exchanges operating here will let you buy cryptocurrencies with credit or debit cards.
Some of the benefits of buying crypto with cards are that most exchanges do not charge a deposit-processing fee for these payments. They also process card payments near-instantaneously and maintain relatively high deposit limits.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
2. How to Buy Cryptocurrencies in the UK With PayPal
There are two ways of buying cryptocurrencies in the UK with PayPal. First, you could buy supported cryptocurrencies - like Bitcoin, Ethereum, and Litecoin - directly on the PayPal website or app.
Alternatively, you could buy cryptocurrencies with PayPal by registering an account with an exchange that welcomes PayPal deposits - like eToro.
As is the case with cards, exchanges do not maintain a deposit-processing fee for PayPal transfers and they are processed near-instantaneously.
3. How to Buy Cryptocurrencies in the UK With Bank
Bank is arguably the most common and the most accessible payment method in the UK. This explains why a majority of crypto exchanges operating in the UK will let you buy cryptocurrencies with bank wire deposits.
The upside to buying cryptocurrencies in the UK with banks is that most exchanges maintain high deposit limits. And they also do not charge deposit-processing fees. On the flip side, however, bank deposits take time - between 3 and 8 business days - before reflecting in your crypto trader account.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
How to Buy Cryptocurrencies in the UK for Beginners - Step-by-Step Guide
As promised hereinabove, here is the step-by-step guide to buying cryptocurrencies on the all-popular eToro crypto exchange.
Step 1: Register a trader account on eToro
On your browser, open the official eToro website and tap on the “Join Now” icon. Complete the user registration form that pops up here by entering such basic personal information as your name, email address, phone number, and country of residence. It will also inquire about your income sources and trading experience.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Step 2: Verify your identity
eToro UK is regulated by the FCA, which requires it to subject its platform users to KYC and AML checks. It will, therefore, demand that you verify your identity before you can start trading.
Step 3: Deposit funds
Log in to your approved eToro crypto trader account. On the user dashboard, click on the “Deposit Funds” at the bottom right corner. A funding tab will pop up, choose one of the payment options available here and follow the prompts to fund the account. The minimum you can deposit is $10.
Step 4: Search for cryptocurrencies
On the user dashboard, click on the “Discover” icon and from the list of supported crypto assets - choose “Crypto.” eToro will then present you with a list of supported cryptocurrencies. Choose one or a couple of cryptocurrencies that you would like to buy.
Step 5: Buy cryptocurrencies
Hit the “Buy” button against the crypto you wish to buy and a trading tab will pop up. Customise the trade by indicating the number of coins/tokens you wish to buy or the amount of cash you wish to spend on these cryptos.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Conclusion - How to Buy Cryptocurrencies in the UK Now
That is it. There goes everything you need to know about buying cryptocurrencies in the UK. Here, we have introduced you to what we consider the best exchanges to buy crypto in the UK and discussed why you should also consider buying crypto via these trading platforms.
We have addressed the question of whether cryptocurrencies are worth buying in 2022 and highlighted some of the key reasons to buy crypto today. We then told you about the different ways of buying cryptocurrencies in the UK.
Want to start buying cryptocurrencies today but aren’t sure where to start? Follow the step-by-step guide on how to buy crypto that we have outlined above. It teaches you how to create a trader account on eToro and start buying crypto in less than 10 minutes.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Frequently Asked Questions on How to Buy Cryptocurrencies in the UK in 2022
Is it legal to buy cryptocurrencies in the UK?
Yes, cryptocurrency investing and trading are legal in the UK. In January 2021, however, the FCA banned the sale of crypto derivatives (CFDs, futures, and options) to retail investors in the UK.
What is the best exchange to buy cryptocurrencies in the UK?
We would recommend buying cryptocurrencies via the eToro crypto exchange. We nevertheless have discussed four other exchanges that we consider the best places to buy cryptos in the UK. These are Binance, Crypto.com, Kraken, and Coinbase.
How much do I need to start buying crypto in the UK?
The minimum required to start buying cryptos in the UK is largely determined by your choice of a crypto exchange. The majority have highly affordable deposit/trade minimums. eToro, for instance, lets you buy cryptos with as little as $10.
What is the best crypto wallet in the UK?
We do not encourage our readers to leave their crypto assets in an exchange or hold them in an online wallet. We recommend that you invest in the more secure hardware wallet, which stores the private keys for your cryptocurrencies in an offline vault - away from hackers and malware.
Can I buy cryptocurrencies instantly in the UK?
Yes, the majority of crypto exchanges in the UK including the one we have discussed in the above guide will let you buy cryptocurrencies instantly. While some make this possible by maintaining the buy crypto instantly feature, others have the convert crypto option.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
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