How To Buy Bitcoin In The U.K.
Want to know how to buy Bitcoin in the U.K.? It’s not that difficult. In fact, the United Kingdom is one of the most Bitcoin friendly countries going and you have many options to buy Bitcoin there.
However, as with all countries, there are scammy exchanges operating in Britain so knowing who and where to buy Bitcoin from is important for first time buyers.
There are sporadic reports of U.K. banks not authorizing transactions to Bitcoin exchanges, but these are few and far between and most U.K. banks are accepting of Bitcoin.
However, not all banks allow credit card purchases or allow their clients to deal with certain exchanges. So you should check with your bank, and always use a reputable cryptocurrency exchange.
Once Brexit Is Done, The United Kingdom Could Become The Centre For Bitcoin
At 69 million, the U.K. is only 0.89% of the world’s population, but at $2.63 trillion the GDP is 3.26% of the world’s GDP.
The United Kingdom is still going through its divorce from the EU, but Brexit is expected to be finalized by the end of this year. It’s believed that when it is Britain will have a free reign to implement its own cryptocurrency regulations.
Many fear a severe disruption from the populist movement that has seen Boris Johnson ushered in as Prime Minister. However, the United Kingdom has always been at the forefront of innovation and it will not want to drive any emerging technology away.
Therefore, as with most other accepting nations, we expect the United Kingdom to open it’s doors to Bitcoin, and any exchange and crypto infrastructure that plays within the government’s regulatory climate.
And because it is set to release the shackles of the bureaucratic EU, who knows, Great Britain might just become the hotbed for Bitcoin innovation.
Buying Bitcoin In The U.K.
It’s believed about 5.3% of the U.K. population owns Bitcoin, but when the demographic is filtered to 25-34 year old males, the percentage is an astounding 25.5%.
There is a real desire to buy Bitcoin in the U.K., especially among the younger generations. And as with everywhere else, I expect this to grow, even with the older generations.
Buy Bitcoin In The U.K. With Kraken
The first place I would recommend for buying Bitcoin in the U.K. is Kraken Exchange.
Kraken is one of the most established, transparent and secure Bitcoin exchanges in the Bitcoin space, and it operates in the U.K. and most of the world.
Founded by Jesse Powell in 2011, Kraken is a regulated exchange based in the U.S. with a huge usership in the United Kingdom.
By trading volume, Kraken is the eighth biggest Bitcoin exchange in the world, and is arguably the easiest fiat on and off-ramp.
With Kraken exchange its U.K. users can buy Bitcoin via several payment methods, and with an average trading volume of $8 billion a month, users are safe when it comes to liquidity.
Kraken’s fees are among the lowest in the industry, and the exchange regularly passes the Proof-of-Reserves audit, which many other exchanges refuse to undertake.
As well, it being the most transparent exchange in the Bitcoin space, Kraken willingly undertakes a security audit, and has a comprehensive range of security features making it arguably the most secure exchange.
Buying Bitcoin in the U.K. with Kraken is easy. Simply sign up, create a password and your account is created.
Because Kraken is a regulated exchange, you will need to provide government approved documents to verify your account if you’re wanting to buy Bitcoin using GBP.
The process takes a few minutes if you have your passport at hand. Once you have your account, verified you can send money via a bank transfer or using your credit/debit card.
Once your transfer is complete you trade GBP immediately for BTC, and your Bitcoin will be stored in your Kraken exchange wallet.
Even though Kraken is the most secure cryptocurrency exchange, it’s not advisable to store your Bitcoin in your exchange wallet long term, and instead a good secure hardware wallet is best for hodling Bitcoin long term.
As well as buying and selling Bitcoin, Kraken offers a host of trading features for anyone in Britain. For a full review of Kraken, click here…
Buy Bitcoin With CEX.IO
CEX is a United Kingdom exchange, and one that largely goes unnoticed compared with the bigger exchanges. But CEX is a seriosu player and is a great way to buy Bitcoin in the U.K.
Based in London and with over 250 employees, CEX.IO is one of the oldest and biggest cryptocurrency exchanges.
CEX.IO has an easy to use UI and makes buying, selling and trading Bitcoin really easy.
CEX.IO is covered by regulatory standards set by the FCA in the U.K., and globally the exchange is covered with FinCEN in the US, and BaFIN in Germany among many other global regulatory bodies.
The regulatory standards which it adheres to means any user has to complete a KYC online form. Meaning, you will have to verify your account with government approved photo ID.
There are four stages of verification, so choose the level you need. Most users should be ok with the first or second stage verification.
Once signed up, CEX.IO offers its clients a platform for buying Bitcoin and other cryptocurrencies using a credit card, wire transfer, and also allows users to deposit cryptocurrencies to trade on the exchange.
As well as the cryptocurrency exchange, CEX.IO also offers its users a brokerage service. This is generally more expensive, but is easier to do if you’re completely new to buying and trading Bitcoin.
If you just want to buy Bitcoin, however, you can simply send money or purchase with your credit/debit card and buy Bitcoin with GBP.
Once you buy Bitcoin it will be sent to your exchange wallet, which is ok to keep in there if you’re trading. If you’re buying to hodl Bitcoin long term, however, it’s highly recommended that you purchase a secure hardware wallet.
CEX.IO offers many other trading features, and for a full review of its platform, click here…
Buy Bitcoin And Earn Interest With BlockFi
BlockFi is another way to buy BTC in the United Kingdom. Founded in 2017 by Zac Prince and Flori Marquez, BlockFi is more than a place you can buy Bitcoin.
BlockFi is based in America, but it serves the U.K. And as well as a platform to buy BTC, BlockFi also offers an interest bearing account and cash loans backed by Bitcoin collateral.
There are other interest bearing accounts, but BlockFi is definitely the most trusted. It has institutional backing from the likes of Fidelity Investments, Morgan Creek Digital, and Winklevoss Capital to name a few.
To buy Bitcoin with Blockfi, simply wire some cash from your bank to your BlockFi account.
It might take 24 hours to send as it’s international, and when it arrives in your account BlockFi will automatically exchange your GBP to GUSD (Gemini USD stablecoin) at the going GBP/USD exchange rate.
To buy Bitcoin with BlockFi, simply click ‘Trade’ on your account interface. Then complete the trade form for how much Bitcoin you want to buy.
The BlockFi interface is so easy to use and buying Bitcoin takes a matter of a few seconds.
You can set a target price if you like, and it will only execute once your price has been met, but there is really no easier platform to buy Bitcoin with than BlockFi.
What stands out about BlockFi, however, is that it offers its users an interest bearing account. Therefore, if you’re buying Bitcoin to hodl it, and you store it in your BlockFi account, you will receive 6% annual interest.
It’s an attractive interest rate, and to cover it BlockFi lends out your Bitcoin to accredited borrowers.
You will start earning interest from the day you deposit Bitcoin into your account. You’re paid your interest monthly, which works out at just under 0.5% a month.
The interest is compounded, so whatever interest you earn on a monthly basis earns you even more interest the following month, and the compound effect really starts to pay dividends if you keep it in there.
You can receive your interest in BTC, or if you prefer GUSD, or one of the other cryptocurrencies BlockFi serves.
BlockFi offers loans for its Bitcoin hodlers, too. If you’re a long-term hodler and you need cash for whatever reason, you can apply for a collateralised loan with BlockFi.
By using your Bitcoin as collateral, you can unlock up to 50% of your value, and BlockFi will send you the funds the same day through a bank wire or stablecoin, whichever you prefer.
Whatever your need for cash, it’s better to get a loan than have to sell your Bitcoin. There are many advantages to borrowing instead of selling, including tax benefits.
For a full review of BlockFi, click here…
Paxful, Peer-to-Peer Bitcoin Marketplace
Paxful is the world’s leading peer-to-peer Bitcoin marketplace and is a great way to buy Bitcoin in the U.K.
Unlike cryptocurrency exchanges, Paxful doesn’t have an order sheet in which you buy on an exchange. Paxful acts more like a mediator between buyer and seller of Bitcoin.
Launched in 2015 by co-founders, CEO Ray Youssef, and COO, Artur Schaback, Paxful has headquarters in New York City, and established offices in Johannesburg, Estonia, Hong Kong, and Manila.
There are millions of buyers and sellers using the Paxful marketplace from all over the world, and you can find many people willing to accept British pounds.
As well as the pound sterling, you can buy Bitcoin with almost every single currency going. So, if you have any euros left over from your holiday and you don’t want it to depreciate by the next time you hit Ibiza, you can get rid of your euros that way.
It’s not just euros or other government currencies that sellers will accept on Paxful. You will be able to find a seller that will accept gift cards, air miles, and you can even buy Bitcoin anonymously on Paxful.
Signing up with Paxful is easy, and you don’t even have to complete a KYC form if you prefer not to.
However, many sellers won’t sell to users who prefer to remain anonymous, and you might end up paying a premium for Bitcoin if anonymity is your preferred way of buying Bitcoin.
If you complete the KYC registration you will have many more options, and probably more ways to buy Bitcoin in the U.K. than any other platform.
To buy BTC on Paxful, simply click on the ‘Buy Bitcoin’ tab, and it will search for all the local sellers in your jurisdiction.
You can enter the payment of choice and it will narrow it down to all the local sellers willing to accept your means of payment.
Once you find a seller offering a fair price, click ‘Buy’ and complete the amount of Bitcoin you wish to buy.
It will automatically put the amount of BTC in an escrow from your seller and await you to make payment.
There will be a live chat opened up between you and the seller if you need to use it. All you have to do is complete payment, click ‘Confirm’.
Only do this once you are happy with terms and have checked the correct amount of Bitcoin is in the escrow.
Once you both confirm, the Paxful escrow will release the Bitcoin into your Paxful wallet, and send your payment onto the seller.
Again, it’s important not to keep Bitcoin on an exchange-type wallet, as these are susceptible to being hacked.
For a full review of Paxful, click here…
Buying Bitcoin In The U.K. Is Easy
There’s a growing demand for Bitcoin in the United Kingdom and as with the global trend we expect it to grow much more.
Britain is one of the most Bitcoin-friendly jurisdictions in the world, and with Brexit almost complete, we expect it to become a hotbed for Bitcoin innovation.
There are many local Bitcoin exchanges in the U.K., and many others not mentioned that are reputable. However there are some scammy exchanges, too, so be careful. That said, it is very easy and safe to buy Bitcoin in the U.K.
Kraken and CEX have huge liquidity, and are easy to use and buying Bitcoin is easy. You can use bank transfers, credit and debit cards, and you can trade without having to transfer to USD.
And if you’re wanting to earn interest on your Bitcoin, there’s no safer platform than BlockFi. It costs a little more with the international transaction, but if you’re going to hodl in there for a while, it’s worth it.
Paxful is a global marketplace, and you will find a seller willing to accept pretty much anything of value, maybe even some olde shillings or pound notes.
Author: Tommy Limpitlaw
Why should I buy Bitcoin?
Bitcoin is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent.
How much should I invest in Bitcoin?
Bitcoin is a new technology, and an asset that is finding its value. It has great potential, but the price is volatile, so investing in it should only be for those who understand it and have faith in it. And only invest as much as you can afford to lose.
How do you make money with Bitcoin?
There are many ways to make money with Bitcoin. The most obvious way is to mine Bitcoin. Bitcoin mining is the process of verifying transactions, and helping to secure the Bitcoin network. Bitcoin miners are rewarded with bitcoins for their work.
What price will Bitcoin reach?
There have been many price predictions ranging from $0 to tens of million per Bitcoin. But the truth is, nobody knows for sure. However, it is the soundest and hardest money ever created. Many say it is digital gold, but I believe in the digital age, it is more useful than gold. So, let’s say Bitcoin reaches the market cap of gold, which is believed to be $10 trillion, each Bitcoin would be worth $500,000. Is that reachable? Absolutely! Will it be plain sailing? Absolutely not!
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.