Since their inception of Bitcoin in 2008, cryptocurrencies have gained massive popularity and acceptance amongst individual and corporate investors. Most cryptocurrencies are completely decentralized crypto and allow for completely anonymous peer-to-peer transactions.
Aside from that, cryptocurrencies are also one of the world’s best-performing asset classes. This means that cryptocurrencies are widely available for purchasing, selling, trading, or simply holding as a store of value for investors.
But how easy is it to buy Bitcoin and other cryptocurrencies in the United Kingdom? This article breaks down everything you need to know about buying cryptocurrencies in the UK.
Is It Easy to Buy Bitcoin or Other Cryptocurrencies In The UK?
The short answer is yes. Cryptocurrencies are widely available in the UK and can be purchased on various platforms, including exchanges, brokerages, wallets, and even e-wallets such as PayPal, which now support direct crypto purchases.
Many cryptocurrency exchanges now allow handy payment options, including debit/credit cards and bank transfers, making purchasing Bitcoin in the UK simple. While the bitcoin market in the United Kingdom is not as liquid as other markets, it offers plenty of options.
Although capital gains taxes are still levied, the tax regime in the United Kingdom encourages speculation, gambling, and cryptocurrency trading. Trading in CFDs and cryptocurrency futures is more appealing due to the favorable tax treatment of speculation and gambling winnings in the United Kingdom.
You can buy Bitcoin or other cryptocurrencies easily through peer-to-peer networks and groups, as well as bitcoin ATMs, in addition to several well-known cryptocurrency exchanges. Many online brokerages in the United Kingdom now provide crypto CFDs and futures trading if you choose to trade.
Consider whether trading bitcoins, investing in them for long-term gains, or using them makes more sense for you. If all you want to do is speculate or bet on bitcoin fluctuations, you won’t need an exchange or a wallet because you won’t be keeping them.
If you want to invest and spend bitcoins in the future, you’ll need a wallet and, more than likely, an account with a cryptocurrency exchange.
When dealing with a cryptocurrency asset directly, you must pay for each unit. Nonetheless, some online brokerages, such as XTB, offer leverage as high as 300:1 when trading CFDs or bitcoin futures.
Next, we’ll talk about buying Bitcoin and other cryptocurrencies in the UK.
Step-By-Step To Buy Bitcoin and Other Cryptocurrencies in The United Kingdom
Open a Cryptocurrency Exchange Account
The United Kingdom is home to many top-tier cryptocurrency exchanges and cryptocurrency gambling and spread-betting brokers that allow you to wager on the movement of a cryptocurrency pair. You can buy Bitcoin and other cryptocurrencies on almost all cryptocurrency exchanges. Bitcoin is also the most widely utilized cryptocurrency for buying and selling other cryptocurrencies.
Get a Cryptocurrency Wallet
To retain complete control over your cryptocurrencies, you should transfer them to a personal crypto wallet from an exchange, ATM, or peer-to-peer group, and then back up and safeguard your wallet’s private key. The primary role of the wallet is to tell the exchange or other source that you want to send and receive transactions.
Cryptocurrency wallets have certain characteristics in common with email accounts. A crypto wallet has two keys: a public key for accepting payments and gifts and a private key for making purchases that must be kept confidential.
Wallets can be downloaded and installed on a desktop or laptop computer and a smartphone or tablet running Android or iOS. In addition to the wallets mentioned above, a web-based wallet does not require a download and allows you to access your bitcoins from any computer with an internet connection.
A hardware wallet, which consists of a peripheral device plugged into a computer like a USB memory stick, can be used to enhance protection.
Once you have a wallet, please make a backup by saving it to a USB device or printing it off and keeping it somewhere secure. Remember that this form of “cold storage” has some disadvantages. You risk losing your USB drive or your paper wallet, and thus your wallet’s contents.
Withdraw Crypto from Your Wallet
After purchasing crypto on an exchange or from another source, you can use a QR code to transfer the funds to your crypto wallet. It’s unsafe to leave your bitcoins with an exchange because you don’t have control over your private keys, and exchanges can be hacked.
If you don’t have your bitcoins in your possession, hackers could steal them. As a result, keep your crypto assets in your private key-encrypted wallet.