If you are a UK trader and not yet in on the action, you will have no doubt been wondering how to buy Bitcoin in the UK recently. With Bitcoin and the wider crypto market experiencing a very positive run of late, there are more and more people looking for the best places to buy.
Here we will run through everything you need to know. This can be applied whether you are brand new to the sector or an experienced trader and cover some of the best services for buying bitcoin in the UK. Alongside charting our top 5 we will also give you a closer look at things to think about before choosing a service, and the taxes and regulation surrounding Bitcoin in the UK.
Points to Consider Before Buying Bitcoin in the UK
It always helps to have as much knowledge as possible on the environment you are entering before you actually start trading. Particularly if you are new to buying bitcoin, here are a few important considerations to weigh up before deciding on the best service for you:
Secure Trading Environment: Trust and reputation are paramount here. You will want to make sure not only that the service you choose to spend your money with are following any local regulations (UK crypto regulations mentioned at the bottom of the article), but that they are also as secure as possible in terms of trading, their systems, and overall transparency for your funds.
Commissions & Fees: Though all of the services we feature typically have excellent value fees, it is always worth looking deeper to make sure you are getting the best deal possible considering your payment methods, and purchase volume of choice.
Trading Features: Depending on your experience level you will undoubtedly look for different features from a broker or service. At an entry-level you may prioritize usability while at higher levels look for more unique features.
Best UK Places to Buy Bitcoin (BTC) & Other Crypto
Wirex is a UK-based crypto wallet and payment service that also incorporates an exchange which is one of the best places to buy Bitcoin in the UK. Not only Bitcoin but the company supports numerous other cryptocurrencies and base currencies for you to make payment. They have been operating since 2014 and are now one of the most widely used services in the world with availability in more than 100 countries, their own secure Visa & Mastercard, and more than 3 million users worldwide.
Added to this, you will find an extremely well-regulated business and one of the only crypto-related services to be FCA regulated with an e-money license. They also take your security extremely seriously with 99% of assets in cold storage and the use of multi-signature wallet technology. You will not find a safer place to buy or store your Bitcoin.
They operate a largely fee-free environment where the only cost of significance you will find is a 1% fee to make a deposit and top-up your account. With the GBP and more than 20 other fiat currencies supported to make your purchase, Wirex is a trusted and easy to use option with an app available on Android or iOS devices and their contactless card working at more than 54 million locations worldwide for you to also pay with Bitcoin and a number of other cryptocurrencies.
Kriptomat is a European-based cryptocurrency exchange and wallet service that has been operating from Estonia since 2018. This is a location of choice for many top projects in the sector and so provides an extremely trusted and supportive environment for Kriptomat to operate. From here, they have developed quickly and now offer crypto trading and secure storage services around the world to more than 80 countries including the UK.
Kriptomat is top-rated when it comes to security and compliance with all local and international regulations. This is illustrated largely by the fact they are based in Europe and have maintained a stellar reputation in the industry for trust. They also utilize cold storage for up to 98% of holding to make sure all of your funds are completely safe.
There are a number of methods available for you to buy bitcoin with Kriptomat as well as other cryptocurrencies. As a UK client, you will have no problem in making purchases with your credit or debit card as well as a selection of popular eWallets. The transaction fee for a card purchase is very competitive at 3.65% while the eWallet fee may be a little more.
In all, you can expect the most secure of services with excellent value on offer and a wide range of useful features from Kriptomat to help you buy Bitcoin in the UK or around the world with ease.
At Kriptomat you will also find: Dozens of other major cryptocurrencies and many altcoins to choose from.
Paybis is an excellent choice if you are looking to buy Bitcoin in the UK or some of the numerous other cryptocurrencies they have on offer. Since starting out in 2014 they have steadily built on a strong reputation and are now the choice of many for convenient Bitcoin purchases by credit or debit card.
As they simply facilitate your transaction, you will require another third-party wallet for storage but the entire process can be completed very quickly with guidance available at every point. Paybis also take security very seriously and to that end implement stringent security procedures and follow all the required KYC and AML checks.
When it comes to fees and charges Paybis remains good value compared with the rest of the industry and you will find fees from their lowest point of 1.5% if you make a SEPA transfer, up to credit and debit card transaction fees that start from 6.99%.
You will get for that not only a broker that is well known and offers services in the UK but around the world in more than 100 other countries. If you are new to the industry Paybis may also be an ideal choice since they offer a dedicated range of educational content that can help you develop at no additional cost.
At Paybis you will also find: Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Bitcoin Cash (BCH), and Stellar Lumens (XLM), Tether (USDT), Binance (BNB), Neo (NEO), Tron (TRX).
Since being founded in 2017 by Changpeng Zhao, Binance has become one of the most reputed cryptocurrency exchanges in the world. They are regulated in Malta and trusted by traders around the world on a daily basis with a huge volume of transactions.
As they continue to evolve their offering to meet trader needs, you can now buy bitcoin in the UK instantly and directly from Binance using your credit, debit card or number of other safe payment methods. You will find the fees for this style of crypto purchase are a little higher than their industry-leading exchange fees, but they still rank among the best for value. You can expect a transaction fee of 1.5%-3.5% depending on the payment method you use.
The sign-up and verification process at Binance is also one of the fastest and most convenient in the sector. Within just a few minutes the needed documents can be electronically uploaded and automatically verified for you to start trading. As one of the biggest names around, you can look forward not only to buying Bitcoin but also hundreds of other cryptocurrencies in a selection that is growing all the time. Also offered is their own hugely popular Binance Coin (BNB).
At Binance you will also find: More than 200 cryptocurrencies including major cryptos and altcoins with more being offered all the time.
Kraken is another name with a long and respected history in the industry having been around for more than a decade. They offer an extensive range of trading in Bitcoin and a variety of other cryptocurrencies for both clients in the UK and around the world.
The competitive fee environment at Kraken is a big positive point for many traders and if you decide to buy your Bitcoin here you can expect a fee of 3.75% + 0.25 EUR on the transaction. This is higher than the exchange fee but still extremely low for an instant card purchase.
At Kraken, the range of available markets extends not only to the regular spot market but you can also trade crypto futures. Bitcoin futures are popular particularly among more experienced traders who can also take advantage of margin trading with a leverage of up to 50:1 on certain markets.
The innovative Kraken trading platforms can be customized to suit your level of experience and trading skills with an easy-to-use experience available to new traders and a great depth of more complex features available to those at an advanced level.
At Kraken you will also find: 40+ other cryptocurrencies to trade including Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and more.
UK Bitcoin Regulations
Particularly following the UK exit from the EU, the question of is Bitcoin legal in the UK? has become a more common one.
Bitcoin and cryptocurrencies, in general, are all legal to buy, sell, and trade in the UK though there are certain rules in place from the UK financial regulator the FCA, and others.
Primarily these rules focus on the status of cryptocurrency in the UK where it is not classed as legal tender with the majority of coins not being classed as eMoney, or a security.
Regulators have put in place KYC checks and AML procedures in the UK that include needing to show a real photo ID and proof of address to trade though this is standard practice in many places.
The only meaningful UK crypto restriction is the ban on any cryptocurrency derivatives trading. This means no crypto futures trading in the UK.
UK Taxation of Crypto
Irrespective of not being considered a form of money in the UK, your cryptocurrency gains on the majority of crypto including Bitcoin is still taxable by HMRC in the UK.
The tax is applied on your profits at a lower rate of 10% moving to a higher rate of 20% if your personal earnings are above £50,001. You have a tax-free allowance of £12,300 but all profits above this point are liable for tax.
We are not tax advisors. Tax regulations are always evolving. It is important you do your own due diligence and speak with a qualified tax consultant on matters related to tax.