How to Buy Bitcoin UK in 2023 – A Beginner’s Guide

Bitcoin continues to operate independently of the broader investment markets and as such, remains one of the most popular asset classes outside of stocks and ETFs.

The purpose of this guide is to explain how to buy Bitcoin in the UK. In addition to offering a step-by-step walkthrough of the investment process, we also explore where to buy Bitcoin in the UK in terms of low fees and low account minimums.

Scroll down to find a much more detailed guide on how to buy Bitcoin in the UK via the eToro website.

Where to Buy Bitcoin in the UK – Reviews of the Best Bitcoin Brokers and Exchanges 

Deciding where to invest in Bitcoin in the UK requires first-time investors to assess whether or not the platform is regulated and what fees will apply when depositing funds and completing the purchase. Below, we help clear the mist by reviewing the best places to buy Bitcoin in the UK.

1. eToro – Best Place to Buy Bitcoin in the UK

We briefly mentioned eToro in our mini-tutorial as this crypto broker offers the best place to buy Bitcoin in the UK.

eToro accepts an assortment of convenient payment methods. This includes debit cards – which are processed instantly – and eToro also enables UK clients to transfer funds from their personal bank account, but this can take a couple of days to clear. Either way, eToro offers a way to buy Bitcoin with GBP deposit fees of 0.5%.

Furthermore, eToro charges a 1% fee when buying and selling Bitcoin. UK investors can start trading on eToro after making a minimum deposit of $50.

Past performance is not an indication of future results.

Although Bitcoin is one of the most traded assets on eToro, this broker also supports other cryptocurrencies. More than 70 options are available in this regard, from Ethereum, XRP, and Shiba Inu to Dogecoin, Cardano, and BNB.

eToro also supports copy trading which means that users can copy the investments of other experienced traders. eToro’s most distinctive feature is CopyTrader.

By using CopyTrader™, users can view real-time trades made by actual traders, discover and track the investors you prefer, and replicate their investment actions.

To start copying an investor, a minimum of $200 is required. The highest amount that can be invested in a trader is $500,000.

You can access all of the investors available for copying through eToro’s CopyTrader system. Additionally, you can replicate up to 100 investors at the same time.

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Coinbase – Beginner-Friendly Broker to Buy Bitcoin Online

Coinbase is an established cryptocurrency broker that supports Bitcoin and dozens of other digital assets.

The platform is simple to use, especially when it comes to opening an account and making an instant payment with a UK debit card.

Coinbase charges 3.99% to buy Bitcoin with a debit card, however, so there are certainly cheaper options in this regard. Nonetheless, Coinbase remains popular with newbies and the broker’s native wallet app enables safe storage on the move.

Coinbase also offers two-factor authentication alongside other water-tight security features.

3. Crypto.com – Buy Bitcoin via a User-Friendly App (Free UK Bank Deposits)

Crypto.com is also worth considering when researching where to buy Bitcoin in the UK. This option is primarily suited for investors that wish to buy Bitcoin via a user-friendly mobile app. The Crypto.com app is free to download and is compatible with both iOS and Android.

We found that the account opening process is fast and best of all – the Crypto.com app supports free GBP deposits made via personal bank accounts. Although Crypto.com states that this can take a couple of days to clear, in most cases this is significantly quicker.

Alternatively, investors that are in a rush to buy Bitcoin in the UK can do so instantly with a UK debit card. But do note that when compared to eToro’s 0.5% fee, debit cards at Crypto.com cost 2.99%. But nonetheless, the Crypto.com app offers plenty of useful features that ensure the provider stands out in this crowded market.

For example, Crypto.com offers more than 250 cryptocurrencies in addition to Bitcoin.

Trading commissions when exchanging one cryptocurrency for another amount to a mere 0.075%. Furthermore, the Crypto.com app not only supports interest accounts but it doubles up as a fully-fledged wallet.

4. Binance – Instantly Buy Bitcoin With a UK Debit Card

Binance is not only one of the best crypto exchanges in the UK – but globally. The platform supports hundreds of cryptocurrencies in addition to Bitcoin, alongside decentralized products such as interest accounts and yield farming.

It typically takes just five minutes from start to finish to buy Bitcoin via the Binance website. This includes the process of opening an account and uploading a copy of a passport or driver’s license for identity verification purposes. After that, UK investors can buy Bitcoin with a debit card at a fee of 1.8%.

The Bitcoin tokens will then be added to the Binance web wallet instantly. Alternatively, it is also possible to deposit funds into a Binance account via a UK bank transfer. The transfer usually clears in under five minutes and will cost just £1 in fees – irrespective of the deposit amount.

This option then requires the user to buy Bitcoin via the Binance exchange, which will cost just 0.1% in commission.

5. Bitstamp – Bitcoin Exchange Services Since 2011

Launched in 2011, Bitstamp is one of the original Bitcoin exchanges in the market. In addition to Bitcoin, Bitstamp also lists over 80 altcoins, such as Ethereum, Polygon, and Dogecoin.

Bitstamp is arguably the cheapest place to buy Bitcoin, at least in terms of commissions. This is because Bitstamp does not charge any trading commissions on monthly volumes of under $1,000 (about £800).

The main chink in one’s armor is that Bitstamp charges 4% to deposit funds with a UK debit card. This subsequently means that even with its 0% commission offering, Bitstamp is more expensive than the likes of eToro and Crypto.com.

Nonetheless, Bitstamp is a trusted cryptocurrency exchange with a solid reputation for security. It takes just minutes to register and the exchange also offers a native mobile app for iOS and Android.

What to Know When Buying Bitcoin in the UK 

The key takeaway when learning how to buy Bitcoin in the UK is that the investment process itself is no different from purchasing stocks from an online share dealing platform.

• For instance, the first step is to choose a suitable Bitcoin broker – such as eToro or Crypto.com.
• After that, an account will need to be opened with the online broker and a deposit will need to be made.
• And then finally, the Bitcoin purchase can be made by placing a buy order with the chosen broker.

That’s pretty much it. After buying Bitcoin from a broker, then it’s just a case of having an exit strategy in place.

• In some cases, investors in the UK will look to buy Bitcoin and hold on to the tokens for several years in anticipation that the price will continue to rise over the course of time.
• In other cases, an investor will buy Bitcoin with a short-term strategy in mind and perhaps cash out about a few weeks or months later.

Either way, there is no way to truly know what will happen to the Bitcoin price. On the contrary, the price of Bitcoin works just like stocks, insofar as its value is determined by market forces.

Nonetheless, the process of selling Bitcoin back to pounds is much the same as making the initial purchase.

What is Bitcoin? 

Bitcoin is a cryptocurrency that was launched in 2009. It was created by an anonymous developer called Satoshi Nakamoto with the view of revolutionizing the global financial system. The core backbone of Bitcoin is the blockchain.

The blockchain is reminiscent of an accounting ledger, insofar as it displays each and every transaction that has ever occurred on the Bitcoin network. This is with the view of creating transparency. Another crucial feature of Bitcoin and its underlying blockchain is that the network is decentralized.

In its most basic form, this means that no single person has control over Bitcoin. This is unlike traditional money – such as pounds, which is controlled by central banks and governments.

This means that when buying and storing Bitcoin, no third party can access the funds when the tokens are held in a private wallet. As a result, there is no risk of the Bitcoin tokens being frozen by a bank or confiscated by a government agency. With that being said, Bitcoin is considered a commodity and as such, it has real-world value.

The value of Bitcoin functions like any other commodity – such as gold or oil, insofar as the market forces of demand and supply will dictate its price.

Therefore, most people buy Bitcoin in the UK as an investment product rather than for its decentralized features. Crucially, Bitcoin is not a tangible asset as it operates digitally. This makes it perfect as a store of value, considering that just 21 million Bitcoin tokens will ever exist.

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

The Basics of How Bitcoin Works 

From an investment perspective, there is no requirement to understand the intimate details of Bitcoin.

After all, it’s just a case of buying Bitcoin from an online broker in the hope that its value increases over time. And if it does, then this will enable the investor to sell their Bitcoin tokens back to pounds for a profit.

Nonetheless, it still makes sense to understand the core features of how Bitcoin works – especially when it comes to storage.

The basics of Bitcoin are as follows:

Decentralized Transactions

Bitcoin can be transferred from one person to another without going through a third party, such as a bank. The decentralized nature of Bitcoin means that it employs a framework that operates independently from any other financial system.

With that said, in order to keep the Bitcoin network safe and subsequently verify that transactions are legitimate, the blockchain utilizes the services of ‘miners’.

Miners connect specialist hardware to a device, which has the capacity to solve complex mathematical equations. Every 10 minutes, one miner will be successful in solving the equation and as such, will be rewarded with newly minted Bitcoin tokens.

Right now, the reward amounts to 6.25BTC – which is worth approximately £130,000 as of writing. In 2024, the mining reward will be halved to 3.125 BTC. This process is known as ‘halving’ and it often spurns a rally to the upside for Bitcoin’s value.

Public Addresses

After buying Bitcoin, some investors in the UK will look to withdraw their tokens to a private wallet. This is usually an app that is compatible with smartphones, albeit, desktop software and even hardware wallets are an option too.

Either way, the wallet will store the Bitcoin tokens safely without a third party. Moreover, the wallet will have a ‘public address’, which is not too dissimilar to a bank account number.

This enables other people to send Bitcoin tokens to the wallet and therefore, can be shared.

Private Keys

When electing to buy Bitcoin in the UK and withdraw the tokens to a private wallet, it is important to understand what ‘private keys’ are.

In a nutshell, this is not too dissimilar to an online banking password and secret passphrase  – rolled into a long string of characters.

Most importantly, the private key grants access to the wallet storing the Bitcoin tokens. Therefore, it is crucial to key the private key safe to avoid having the Bitcoin funds compromised.

Should I Invest in Bitcoin? 

Here’s what to consider when exploring how to invest in Bitcoin in the UK:

Only 21 Million Bitcoin will Ever Exist

The first benefit to consider when investing in Bitcoin is that just 21 million tokens will ever exist. As of writing, there are just over 19 million BTC tokens in circulation, which is about 90% of the overall supply.

As Bitcoin is finite, this means that the digital asset is somewhat similar to other commodities, such as gold and silver. And, as long as demand for Bitcoin remains in place, its finite supply makes it a great store of value.

Huge Returns Since 2009

As noted earlier, Bitcoin was launched in 2009. There was no trading marketplace for Bitcoin in 2009, but just two years later, the digital currency surpassed the $1 level.

This means that by investing $100 into Bitcoin back in 2011, this would have resulted in a purchase of 100 BTC tokens. Those very same 100 BTC tokens today would be worth over $2.4 million – or about £2 million.

Still Plenty of Upside

As of writing, Bitcoin is priced at approximately $24,000 – which gives it a market capitalization of $480 billion.

To put this into perspective, the largest company on the FTSE 100 by market capitalization is Shell – which is valued at approximately $144 billion.

This means that Bitcoin is worth more than any company on the London Stock Exchange. With that being said, Bitcoin, according to many, is still undervalued and as such, has plenty of upside to offer.

For example, gold has a market capitalization of many trillions of dollars. If Bitcoin is able to solidify itself as a global store of value, its value still has a long way to go.

Trading at a Huge Discount From Prior Highs

Leading on from the section above, another consideration to make about Bitcoin is that the digital asset is trading at a huge discount as of writing.

This is because when compared to the $69,000 that the Bitcoin price achieved in late 2021, the digital asset is valued 65% lower. This offers a good opportunity to buy Bitcoin in the UK before the next bull market arrives.

Minimum Bitcoin Investment is Just a Few Pounds

Bitcoin is a risky investment and its value is largely driven by speculation. And as such, investors should never risk more than they afford to lose.

The good news is that there is no requirement to buy a Bitcoin in full for over £20,000. Instead, as Bitcoin can be split into small units, brokers like eToro support a minimum investment of $50.

Different Ways to Buy Bitcoin Online

Bitcoin is a digital asset and as such, the investment process can be completed from the comfort of home.

The most common ways to buy Bitcoin in the UK are as follows:

Buy Bitcoin With a Debit Card

All of the Bitcoin brokers discussed earlier accept UK debit cards. There is, however, a disparity in how much UK investors will need to pay when using a debit card to buy Bitcoin.

For example, at Coinbase and Bitstamp, there is a debit card fee of 3.99% and 4%, respectively. At Binance, this is much lower at 1.8%. The debit card fee is 0.5% at eToro.

Most Cost-Effective Way to Buy Bitcoin in the UK

When attempting to find the cheapest way to buy Bitcoin in the UK, there are a variety of fees to consider.

For example, many Bitcoin brokers and exchanges in the UK support fee-free bank account deposits. But this can take a few days to clear, which won’t be suitable for investors that wish to buy Bitcoin instantly.

Debit cards and e-wallets are usually processed instantly, but fees will vary from one Bitcoin provider to the next.

How Does the Bitcoin Price Work?

Unlike the traditional stock markets, Bitcoin trades globally on a 24/7 basis. With that said, the vast majority of trading volume is witnessed Monday through Friday. Nonetheless, the price of Bitcoin will rise and fall in line with broader market conditions.

• When there is strong demand for Bitcoin and subsequently more buyers, its price will increase
• When there is low demand for Bitcoin and subsequently more sellers, its price will decrease

The most successful Bitcoin investors are those that hold onto their BTC tokens over a long period of time.

For example, Bitcoin was priced as low as $5,000 in early 2020. By the end of 2021, Bitcoin hit an all-time high of $69,000. This represents gains of over 1,200%. During this period, however, the price of Bitcoin witnesses many highs and lows. But those that held on were able to achieve the most notable gains.

Another thing to note about the Bitcoin price is that – as we have done ourselves throughout this guide, BTC is usually quoted in US dollars. This is no different from trading other commodities like oil – which is also priced in USD.

As such, it’s a good idea to get used to analyzing the price of Bitcoin in USD as opposed to GBP. In doing so, investors will be more aligned with the broader market.

Bitcoin Price Forecast for 2023 and Beyond

The future price of Bitcoin will, as noted several times, be dependent on market forces. For Bitcoin to continuously grow in value over the course of time, it will need a constant influx of new buyers. This is much the same as investing in a blue-chip stock, like Johnson & Johnson or Apple – or any asset for that matter.

In terms of where Bitcoin could be trading by the end of 2023, there is still hope that the next bull market could resume. Not only has Bitcoin been stuck in a bear market since early 2022, but the next halving event is expected to take place in 2024. And as such, this often results in increased buying pressure.

Over a longer period of time, some analysts believe that Bitcoin will surpass $100,000 within the next couple of years. After that, there is no knowing how valuable will become. But crucially, there will only ever be 21 million Bitcoin in exitance, so in theory, there is no limit to the growth potential of the de-facto cryptocurrency.

Best Bitcoin Wallet in the UK 

Although private wallets are best suited for those without prior experience, there are many advantages to taking this route. After all, investors will have full control over their digital assets and will be able to easily transfer their Bitcoin tokens to another wallet.

The best Bitcoin wallet is offered by eToro. The wallet can be downloaded to an Android or iOS mobile phone via an app. The eToro app comes with plenty of features, such as having the capacity to swap one token for another without leaving the wallet interface.

Full Step-by-Step on How to Buy Bitcoin in the UK 

We have covered the benefits and risks of investing in Bitcoin in the UK. The final part of this guide will explain how to buy Bitcoin via eToro.

Step 1: Open an eToro Account

Visit the eToro website and click on ‘Sign Up’. Enter an email address and choose a strong password. eToro also requires some personal information alongside a mobile phone number.

Users will then need to type in the code that eToro sends to the registered mobile number and then answer some basic questions regarding their historical trading experience.

Step 2: Deposit Funds

After opening an account, the next step is to make a deposit. To deposit funds, select from eToro’s supported payment methods. Debit card deposits are instant but bank transfers will take a couple of days to process.

Step 3: Search for Bitcoin

In the search bar on the eToro website, type in ‘BTC’. As per the image below, Bitcoin will then appear.

Click on the ‘Trade’ button next to Bitcoin and eToro will load an order form.

Step 4: Buy Bitcoin

eToro requires investors to type in their desired investment amount. Confirm that everything is correct before clicking on ‘Open Trade’.

The eToro account balance will be deducted and the funds will be used to buy Bitcoin. The BTC tokens will then be transferred to the eToro wallet.

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 5: Sell Bitcoin

eToro supports Bitcoin trading on a 24/7 basis. To sell Bitcoin, log into the eToro account and click on ‘Portfolio’. Follow the on-screen instructions to sell Bitcoin. eToro will then sell the BTC tokens and add the funds to the account balance.

Bitcoin ETF Token ($BTCETF) – Best Bitcoin Alternative With Ties To SEC ETF Approval

In terms of alternatives to BTC, few presales offer as much potential as Bitcoin ETF Token ($BTCETF).

This is a brand new crypto offering with high APY, definitive increases in its presale, and a 25% token burn. 

This campaign is centered around SEC approval of Bitcoin ETFs, something which is expected later this year or early next year. Approval could vastly increase the trade volume of the entire crypto market, as well as bolster the price of Bitcoin and many other altcoins. 

But Bitcoin ETF Token could appreciate by even more, as it is positioning itself specifically for this to occur. While it has no official affiliation with Bitcoin or regulatory authorities, its roadmap coincides with many key events, such as approval by the SEC and the total market cap of BTC ETFs reaching $1 billion. 

There are 2.1 billion tokens in total with 840 million available in the presale at a price of $0.005, which will rise to $0.0068 by the final stage. There are 10 presale stages with 84 million tokens in each round, with price increases at each stage. 

A 5% token burn tax applies in order to reach the 25% total token burn of 525 million tokens. 5% of the overall supply is burned at specific roadmap intervals, such as Bitcoin reaching $100,000 or the SEC approving the BTC ETF. So the campaign closely follows real-world events in the crypto financial markets. 

The high APY, structured price increases, and aggressive deflationary mechanisms could make this one of the best presales of 2023, but it all hinges on SEC approval of Bitcoin ETFs

For more information, users should join the social channels (Twitter and Telegram) and read the Whitepaper in depth.

Conclusion

In summary, we have covered everything there is to know when asking the question – How do I buy Bitcoin as a crypto investor?

eToro offers transparent fees and accepts instant payment methods, such as UK debit cards and bank transfers.

A great alternative to direct BTC investment is Bitcoin ETF Token, which potentially offers far more upside should the BTC ETF approval come to pass. It also trades at a discount in its early presale stages and implements an aggressive 25% token burn to strongly encourage price appreciation.

Crypto assets are highly volatile and unregulated in most EU countries, Australia, and the UK. No consumer protection. Tax on profits may apply. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two minutes to learn more.

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