How to buy Bitcoin in UK

What Is the Bitcoin Blockchain?

The Bitcoin blockchain has proven to be a very dynamic ecosystem, providing new options like Ordinals, numerous DeFi developments, and other breakthroughs.

The history of the Bitcoin blockchain originates from the cryptopunks movement, which aimed to create a new, independent financial system that won't have intrinsic value and wouldn’t be controlled by traditional banking systems or governments. Satoshi Nakamoto summarized the ideas of the cryptopunks and created the Bitcoin blockchain. On January 3, 2009, the first block of the Bitcoin blockchain was generated.

Key Features of the Bitcoin Blockchain

The core feature of the Bitcoin blockchain is decentralization. It operates on a peer-to-peer network of computers, known as nodes. These nodes validate transactions and maintain a copy of the entire blockchain. There is no central authority controlling transactions, and all transactions are recorded transparently.

The Bitcoin blockchain is a digital ledger that stores all the transactions ever made. These transactions are grouped into "blocks," with each block linked to the one before it, forming a continuous "chain" of blocks. Because the blockchain is transparent, anyone can view the entire history of transactions.

The Bitcoin blockchain has a high level of security, provided by a consensus mechanism called Proof of Work (PoW). In PoW, miners solve complex cryptographic puzzles in order to add a new block to the blockchain. The first miner to solve the puzzle is rewarded with a block reward as well as transaction fees.

Bitcoin is one of the most widely known cryptocurrencies in the world. Recently, it reached its all-time high (ATH) of $99,800. While Bitcoin has had its ups and downs, it always seems to rise from the ashes, setting new records.

Now, as the new bull run begins, it’s time to learn the best ways to buy Bitcoin.

How to Invest in Bitcoin in the UK. The best Crypto Exchange

In the UK, it is relatively simple to buy bitcoin if you know the step-by-step process and have learned about the potential pitfalls along the way. The process can be done through various online platforms.

Most Popular Platforms to Buy Bitcoin in the UK

• Coinbase: Beginner-friendly, supports GBP, easy to use.
• Binance: Offers low fees, supports a huge number of cryptocurrencies.
• Uphold: Provides lots of assets ( 250+ cryptocurrencies).
• eToro: over 100 assets available , including BTC, with a competitive 1% fee.
• CoinJar: trade with high liquidity and low fees.

Coinbase

Coinbase is one of the most popular crypto exchanges, allowing users to buy crypto, non-fungible tokens, and many more. Enjoyover 240 crypto assets for trade. For basic trading, fees will be visible in the trade preview screen. They may vary depending on the type and specific details of the transaction on the exchange.

Binance

Binance is another top-notch crypto exchange providing a wide range of services and crypto, including bitcoin investment with debit card. It s known for its low trading fees and the place where beginners invest thanks to its huge knowledge base. It has a powerful 2FA and is equipped with cold storage of funds. Binance offers peer-to-peer (P2P), spot and margin trading.Crypto loan option allows users to borrow funds for different trading options. Loan terms include seven, 14, 30, 90, and 180 days.

eToro

eToro is a multi-asset trading platform where you can buy bitcoin, other cryprocurrencies, NFTs and also ETFs. Choose from over 70 cryptocurrencies, including Bitcoin. eToro is a convenient exchange, offering a huge scopeeducational materials, easy-to-use desktop and mobile apps, and copy trading tools. After registering, you will receive a US$100,000 demo account to practice your first transfers. The minimum deposit is US$100 (£80), with a 1% trading fee.

CoinJar

CoinJar is a crypto wallet app available in the UK and Australia, allowing users to trade 50+ crypto assets, inclduing bitcoin and other cryptocurrencies. It is not only a secure bitcoin wallet. One of the app’s core features is Crypto Bundle, which represents a themed basket of cryptocurrencies, similar to a crypto index fund, crypto ETF, or a ready-made stock portfolio. For example, if you buy a CoinJar Universe bundle, you will invest in a portfolio of all the cryptocurrencies available on CoinJar and purchase bitcoin as well. The minimum deposit is £10, with a 1% trading fee.

Uphold

Uphold is another user-friendly crypto exchange offering a huge selection of cryptocurrencies (250+), including majors, altcoins, and popular tokens. Uphold also allows transactions in three national currencies: GBP, EUR, and USD. Additionally, Uphold offers a free virtual crypto card that allows you to buy bitcoin and use it for purchases anywhere Mastercard is accepted. You will also receive up to 1% cashback on card transactions paid in GBP. The staking APY at Uphold reaches an impressive 13%. The minimum deposit is US$1 (£0.80), and trading fees range from 0.90% to 1.20%.

Important Reminder

Please remember that cryptoassets like Bitcoin are highly volatile and are legal but unregulated in the UK or EU. There is always a risk of losing money using crypto exchange. Additionally, capital gains tax may apply to profits from cryptocurrency sales. So don't invest unless you're prepared to lose some money.

Buy Bitcoin in the UK. Step-by-Step Guide (best payment method and storage tips)

1. Choose a cryptocurrency exchange and sign in.

• First, examine the benefits of the platforms available (see the list above) to weigh the pros and cons. Make sure the service is secure, user-friendly, and allows to buy and sell Bitcoin.
• Go to the service and sign in. 
• Enter all personal details needed (check the rules of the platform beforehand).
• Secure your account with 2FA.
• Add funds and deposit GBP.

2. Connect your bank account or credit/debit card.

Selecting the deposit type, enter GBP, enter the total, and confirm. Review the transaction fees and other conditions, including bank transfer fees, before confirming.

Wait for the transaction to be processed. The speed may depend on the payment method and other details like the type of cryptocurrency.

3. Determine the amount of BTC (don't put all the money in one basket).

It’s crucial to do thorough research before making a decision and spending all the money you invest. Learn more about Bitcoin’s history, nature and benefits. Weigh all the risks and your bank transfers conditions before investing.

4. Purchase BTC.

Now, you can make an investment. Make sure you are already familiar with the platform’s functionality and tools to ensure a safe and secure transaction. Choose Bitcoin, enter the amount of money you invest, and review all conditions (transaction fees and other commissions). Confirm your purchase, buy bitcoin and check your account to make sure the BTC is successfully bought.

5. Install a Bitcoin wallet.

• There are two types of wallets: hardware and software. Choose the wallet that suits your needs. 
• If you are planning to purchase large amounts of BTC or other cryptocurrency, then hardware is your perfect choice as it has increased security. Hard drives are not connected to the internet, so no one can hack them. However, it's important to keep your codes safe. 

• A software wallet is easier to use. Use it for a smaller amount of BTC as it is less secure due to its availability on internet-connected devices. 
• Once you've chosen your wallet, follow the installation steps (download software or buy a hardware device).
• Protect your wallet by creating a strong password, saving the recovery phrase and adding any additional security features that may be available.

NB! Make sure that cryptocurrency exchanges are not covered by regulatory protection, such as the Financial Services Compensation Scheme in the UK. This leaves all providers vulnerable to theft or hacking.

Never forget your account access codes and private keys. You're putting yourself and the money you invest at great risk, and it's your responsibility to keep your assets safe. And don't invest unless you're prepared for such problems.

6. Store Bitcoin safely

• Make sure you understand all the risks of storing Bitcoin on crypto exchanges rather than transferring it to your private wallet. 
• If you decide to buy bitcoin and transfer it to your wallet, create a receiving address. 
• After you bought Bitcoin, follow all price changes and news on Bitcoin to be fully prepared for any significant changes. 

How to buy bitcoin uk with indirect investment: focus on PayPal, Nvidia and other companies

Sometimes it is not necessary to buy bitcoin directly. There are other ways to do it, including:

Investing in cryptocurrency-related companies: You can financially support companies that own Bitcoins or other cryptocurrency. Such companies include Nvidia (NVDA), PayPal (PYPL), Square (SQ) and many more. Keep in mind that this is a more complex method, as you will need an online investment platform or trading app to buy shares in the abovementioned companies.

Investing in crypto ETFs: Many funds today are based on holding crypto. Exchange-traded funds (ETFs) are a type of 'passive' investment that tracks traditional stock market assets. It's worth remembering that this is a fresh product and is not supported in all countries. The UK still doesn't accept ETFs due to some legal issues. 

Whichever way you choose, make sure you weigh up all the risks and keep them in mind. Explore all the options and platforms, get investment advice, consult lawyers and crypto experts if you are unsure. Make your investment safe and secure and research the market thoroughly. 

Is Bitcoin a good investment in the UK?

it is obvious that bitcoin is still a high risk investment, but there are lots of advantages in buying it.

Despite its volatility, Bitcoin investment one of the most popular among all the cryptocurrencies available on the market. It has demonstrated its potential for high returns numerous times and does not depend on trends as much as other cryptocurrencies. Bitcoin has the potential to become a non-correlated asset, similar to gold.
However, it’s essential to remember that Bitcoin transactions are irreversible. Never lose or forget your passwords or codes because your funds won’t be recovered.

All in all, Bitcoin’s exponential growth proves that it’s a valuable asset to hold. However, investors must be prepared for numerous downturns, as Bitcoin is still affected by external factors such as SEC regulations, political situations, and more.

Is It Legal to Buy Bitcoin in the UK?

You can legally buy bitcoin in the UK. The UK government regulates buying crypto, including buying Bitcoin, but does not recognize them as legal tender. The UK was one of the first countries to allow cryptocurrencies and has become a leader in crypto-asset regulation, helping to develop a stable framework for all assets on the market.

In 2023, the UK updated its Financial Services and Markets Act to make the regulation of digital assets more secure and transparent. This act grants the government the ability to designate cryptoasset activities and regulate all the money circulating with reporting and operational requirements, as well as consumer protections.

To date, the UK government regulates the following assets: 

Exchange tokens (cryptocurrencies)

Asset-referenced coins

Commodity-linked tokens

Crypto-backed tokens

Algorithmic tokens

Governance coins

Fan tokens (sports-related cryptocurrencies)

Non-fungible tokens

Fiat-backed stablecoins

To sum up, buying Bitcoin legal is possible in the UK. However, it is always taxable. HMRC (the UK's tax, payments and customs authority) requires UK residents to pay Capital Gains Tax (CGT) on the profit they make from Bitcoin (and other cryptoassets). It’s the same process that happens with stocks.

So it is highly recommended not to invest unless you're prepared and know all the rules.

What Are Some Interesting Bitcoin Facts?

On 7 September 2021, El Salvador became the pioneer of accepting Bitcoin as legal tender. Today, Salvadorans can use it to pay taxes, credits, and purchase goods and services. Moreover, the government gave each citizen US$30 worth of Bitcoin to speed up adoption.

Some Bitcoins are completely lost and will never be recovered. This is because people often forget their passwords, lose their keys, or simply die. According to Chainalysis, around 20% of the total Bitcoin supply is lost forever and will never be recovered. 

One of the most popular stories is that of Stefan Thomas, a software developer and CEO who created an animated video explaining how the digital currency works and was paid 7,002 Bitcoins for it. Soon after, he lost the password to his IronKey hard wallet containing all the Bitcoins, which are now worth more than $670 million.

Another lucky man is James Howell, an Englishman from Newport, who accidentally threw away his computer hard drive containing 7,500 BTC. He has been at the forefront of Bitcoin mining since its inception and was one of the earliest adopters. He hasn't been able to find his hard drive since 2013. 

Since the launch of the Bitcoin network in 2009, nearly $10 trillion USD has been settled on-chain using Bitcoin (BTC) - and more than $7.5 trillion in payments have been processed since 2018 alone! None of these transfers required a bank.

How Has the Price of Bitcoin Grown Over the Years?

The example above is another vivid illustration of how inevitably fast the Bitcoin price changes. In early 2010, Bitcoin cost a fraction of a penny. By October 2013, it had grown to over £100. Not much, but that's over 1,000,000% in just a few years!

By December 2017, the price had skyrocketed to an impressive £15,000. By April 2022, the price of Bitcoin will be £33,000.

At the time of writing, the price of Bitcoin is already £75861! Some experts are certain that the price will double by 2025. 

The 28th of November is an important date in the history of Bitcoin.  On this day in 2013 and 2017, Bitcoin reached new ATHs, so new dates can bring new achievements and growth. Furthermore, historically, Bitcoin has seen remarkable price growth in the 12-18 months following a halving. So, we have every chance of seeing the next big price explosion in 2025. All of these factors, along with political support and the new BTC implementation, inspire confidence in BTC as the next big ATH.