How to buy Bitcoin UK – A comprehensive tutorial

You want to know the easiest way to get Bitcoins? Learn in 10 minutes all you need to know. Bitcoin is the most popular and successful cryptocurrency in the world. Almost 2 years ago Bitcoin triggered an unimaginable mass hype, hardly anything was more exciting than the digital currency. No wonder so many people want to buy Bitcoin in UK. In this article we explain how you can buy/sell Bitcoins in under 10 minutes.

For those in a hurry: Easiest way to get Bitcoins in three steps

Before you can buy/sell Bitcoin, the first step is to create an account with a trading platform that supports the currency. Our choice is eToro. Here, opening an account is particularly easy and doesn’t even require verification for trades up to $2,000. Furthermore the provider is state-regulated and therefore subject to deposit protection.

To open an account you just need to enter your personal details in the login form on the start page.

Now you will receive an email from eToro with a link that you need to confirm. Then you’re ready to buy Bitcoin in UK.

To top up your trading account with real money you have to click on the “Deposit money” button at the bottom left. This will open a window where you can select the desired payment method, such as instant bank transfer.

Depending on the chosen method, the payment can now be made and the trading account can be topped up.

If the deposit was successful, the new account balance is now displayed at the bottom of the screen.

With it now the desired currency, in this case Bitcoin CFDs, can be bought. The easiest way is to enter the currency in the search field and thus find it. Now in the purchase field the desired adjustments can be made. Here it is also determined for how many you want to buy Bitcoin.

If you do not want to trade real Bitcoin but rather Bitcoin CFDs, these can also be found via the search field. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Bitcoin: Investment or speculative object?

Before you buy Bitcoins in UK, you should be clear about what you want to achieve with your system. As with any investment, the higher the desired return, the higher the risk. It should be noted that Bitcoin and cryptocurrencies in general involve a high risk from the outset. This is due to the following factors:

  • Bitcoin is decentralized: Behind Bitcoin there is no centralized entity that hedges the currency. The whole idea behind Bitcoin is that these are generated decentrally, so anyone can participate in the generation. The algorithm is open source, so it is possible to understand how Bitcoins are generated. The problem is that this decentralization also means that no state authority steps in if the price collapses, so a total loss is theoretically possible. But Bitcoin enthusiasts see this as an advantage, because no authority can manipulate the price, but supply and demand alone determine the price.
  • Bitcoin has no material value: There is no material value behind Bitcoin as for example in shares, gold or other “physical” investments. The value of Bitcoins is derived from people’s belief in the currency – this is the same with the Euro, US Dollar or other currencies, by the way, none of the major currencies is secured by physical values. So the value is based solely on people’s belief in the states and central banks.
  • Acceptance of Bitcoin as a means of payment remains low: The biggest problem with the crypto currency at the moment is its low acceptance. Due to the high exchange rate fluctuations, many merchants shy away from accepting Bitcoin as a means of payment; Bitcoin remains a niche product from this point of view. On the other hand, however, this also means that as soon as a greater acceptance by merchants arises, the price could rise significantly.

In summary, a Bitcoin investment is always associated with risk. However, anyone who is aware of these risks can confidently start investing in Bitcoin.

Two strategies to invest in Bitcoin

Buy and HODL: The long-term holding of Bitcoin with the prospect of a price increase. If you want to hold Bitcoin in the long term, you need strong nerves above all: price drops of 40% or more are quite possible. It’s important to keep a cool head during these phases and possibly even buy Bitcoin later, instead of panic selling. If you want to hold on to Bitcoin in the long term, the best way to do this is with a paper or hardware wallet.

Day trading: If you are looking for quick profits, then trading with Bitcoin is probably the right way. But be careful: This requires a great understanding of the market, and the risk (in addition to the risks described above) is even higher. But of course the reverse is also true here: without a high risk, a high return is not possible.

The current rate

How to buy Bitcoin in UK?

If you want to buy genuine Bitcoin, you should look for a suitable crypto exchange. If you prefer to bet on Bitcoin CFDs, a reputable online broker will help you.

In both cases, you should pay attention to the transparency of the offer and the seriousness of the provider. The crypto market is booming and new offers appear on the market almost daily. For newcomers it can be quite difficult to keep track of the large offer. Unfortunately there are many fraudulent offers and scams among the many really good exchanges and brokers. For your own safety, it is important to research thoroughly before investing, what you should look out for when making your choice and what possibilities the various offers should offer you, you will find out now.

Differences between Bitcoin CFD brokers and stock exchanges

CFD brokers

  • Regulated by government & depositor protection
  • No complicated setup of a wallet necessary
  • Leveraged trading possible
  • Several deposit and withdrawal options
  • Mobile Trading: Apps for Android & iOS available
  • Demo account
  • Only possession of a certificate, not genuine Bitcoin
  • Obligation could raise to make additional contributions
  • Risky investment

Stock exchanges

  • Real ownership of genuine Bitcoin
  • Learning how to handle crypto currencies
  • (Partial) trading via leverage possible
  • (Partial) Mobile Trading: Apps for Android & iOS
  • Wide range of crypto currencies on offer
  • Whoever wants to hold Bitcoin in the long term has an advantage here in terms of fees
  • No regulation & deposit insurance
  • You are responsible for the administration of the keys yourself
  • Risky investment

The main difference between real Bitcoin and Bitcoin CFDs

Since there are two ways to trade Bitcoin, there are therefore also two different types of Bitcoin investments:

  1. Brokers trade Bitcoin CFDs, as financial instruments that use the Bitcoin price as a basis
  2. With stock exchanges, one trades with “real” Bitcoin

Benefits to use a Broker

Brokers offer so-called Contracts of Difference (CFDs). CFDs are highly speculative derivatives that are only suitable for well-informed investors.

Functionality: With a CFD Broker you do not receive real Bitcoins, you receive a certificate (CFD) from the CFD Broker. Buyer and seller agree to exchange an underlying asset (here Bitcoin). If the buyer acquires a “long” CFD, he or she receives a Bitcoin CFD at that time, and the provider receives a security in cash. At the end of the term (or sale time) of the Bitcoin CFD, the buyer “sells” the CFD back to the provider. The purchase price is now deducted from the selling price. The buyer makes a profit if the price has risen during the period. If the buyer purchases a “short” CFD, the buyer makes a profit if the CFD price falls between the time of purchase and sale.

Obligation to make additional contributions: Individual providers may be obliged to make additional contributions. Therefore, please check with your CFD broker to be on the safe side.

Top 3 Broker to buy/sell Bitcoin CFDs

Buy crypto currencies with our first choice for crypto broker 
5/5

✔ Our first choice for crypto broker 
✔ Regulated by FCA, ASIC, CySec 
✔ 2000+ trade products
✔ Easy to use and fair pricing

Trading leveraged products such as CFDs carries a significant risk of loss and may not be suitable for all investors. 76.4% of individual 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.

eToro - buy crypto currencies with award winning trading platform
4.5/5

✔ Award winning trading platform
✔ Regulated by FCA, CySec 
✔ 11 payment methods
✔ Social trading and copy trading

Trading leveraged products such as CFDs carries a significant risk of loss and may not be suitable for all investors. 66% of individual 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.

4/5

✔ Broker since 1997 and 2.2M customers 
✔ Regulated by CySec 
✔ 213 tradeable assets
✔ no spreads, but transaction fee

Trading leveraged products such as CFDs carries a significant risk of loss and may not be suitable for all investors. 83% of individual 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.

How stock exchanges work

Bitcoin exchanges offer the purchase of Bitcoin, the underlying asset. Here you can get real Bitcoins, but you are also responsible for their security. A secure Bitcoin Wallet is mandatory! Bitcoins should never be stored on an exchange, these are attractive targets and in 2018 alone, 800 million US dollars were stolen from Bitcoin exchanges.

Just storing them on a stock exchange can lead to total loss. At Bitcoin we have a saying: Not your wallet, not your Bitcoins. Find out about Bitcoin Wallets and choose a secure wallet.

Risk: Crypto currencies are high-risk and speculative assets, the price could drop to zero at any time. In the past, the Bitcoin price has already fallen six times by more than 40 percent, which could happen again at any time. A total loss is always possible with crypto currencies, the loss is (unlike Bitcoin CFDs) limited to your stake – of course only if you trade real Bitcoins and no derivatives.

There is no obligation to make additional contributions.

Top 3 Bitcoin stock exchanges

5/5

✔ Our first choice Crypto Exchange 
✔ High liquidity and low fees
✔ Secure Asset Fund for Users
✔ Binance Academy

Buy cryptocurrencies with our first choice crypto exchange
4/5

✔ High liquidity and low fees
✔ Many possibilities for trading
✔ Deposit via VISA, MasterCard
✔ Smartphone app available

Buy cryptocurrency with award winning trading platform
4/5

✔ Best known US Bitcoin exchange
✔ Emoney license in UK and US 
✔ Deposit via VISA, MasterCard, SEPA
✔ no spreads, but transaction fee

What happens after the Bitcoin purchase?

So, now you bought your ether. But now what? You face two major challenges to get the most out of your investment. First, of course, you must keep your ethers safe. At a later date, you want to sell your ethers – ideally at a nice profit. We’ll show you the best way to do that right now, right here below.

The storage

If you have bought coins, you need, as already mentioned, a digital wallet. If you have already opened an account at a so-called crypto exchange, you also have such a storage facility – but if you do not have an account at an exchange, you have to look for a wallet provider.

The problem here is that the private key with which the wallet is controlled remains in the possession of the exchange. This means that there is actually a small security risk here. Even if today’s stock exchanges are all at the cutting edge of security technology, this does not mean that a hacker cannot succeed in getting hold of the private key.

The sale

If you want to sell your coins because the price has risen, they can be offered on an exchange at any time. Due to the fact that you don’t have to offer your token on the exchange where you bought them, you can compare fees in advance. The fees charged by the exchanges differ greatly, so it is advisable to get an overview in advance.

Bitcoin - The conclusion

Bitcoin is the pioneer among cryptocurrencies and the first application to use blockchain technology. For this reason, it is still the best known and most successful digital currency worldwide. Trading with Bitcoins has long since ceased to be just a trend. The crypto currency has become a serious asset and a modern method of payment. Especially its decentralized technology makes crypto currencies a special feature. It eliminates the need for a central authority to guarantee the value of a currency.

Bitcoin is the most important and, according to market capitalization, the largest cryptocurrency in the world. Anyone wishing to invest in Bitcoin is best advised to do so via Bitcoin CFDs or a direct purchase. How this works is shown here. Safe storage of Bitcoins is only possible on your own wallet and an investment in Bitcoin is always associated with risks, the price is subject to strong fluctuations.

Frequently asked questions about buying Bitcoin

If you are toying with the idea of investing your money in Bitcoin, you will ask yourself at the beginning how secure the trade is at all. At this point it must be said that the market is extremely volatile – price jumps are simply part of it. This means that the price can rise or fall 15 percent overnight.

If you want to invest your money in crypto-currencies, especially in stellar lumens, you will need nerves of steel. It’s also important to follow the news and watch the markets – in other words, to see how they react to various events.

Basically, you have to register with a stock exchange or broker to buy Bitcoin, so registration is necessary. Alternatives are offered by Bitcoin ATMs as well as local exchanges, but these involve both risks and usually also very high fees. The only way to get access to Bitcoins without registration is mining, but this is virtually impossible for private users.

The only way to obtain Bitcoin anonymously is through mining, but this is virtually impossible for private individuals. As a rule, the exchange and purchase of Bitcoins is always anonymous, since the addresses are not publicly available. 

But you always need a broker to buy coins. Brokers do not disclose their account data to the public, so that the allocation is not visible. However, authorities could force brokers or stock exchanges to disclose their contact details. Complete anonymity is therefore not possible.

Despite the great predictions for the crypto world, you should not forget that investing in cryptocurrencies involves a high risk. The high volatility does not exist in any other speculative investment objects. Although the Bitcoin share price seems to be quite stable, even inconspicuous news can have a quite strong influence on the performance. The crypto market is sensitive, yet more and more people are abandoning conventional investments and prefer to invest in the promising crypto currencies.

Only you can decide whether or not you want to buy Bitcoin.

Best Broker

Safe Crypto Trading

✔ Extensive trading platform: choice between real coins and CFDs

✔ Depositor protection: No risk of loss in case of hacks or bankruptcy

✔ Diverse deposit options: Bank transfer, credit card, PayPal, Skrill etc.

eToro is a multi-asset platform offering CFD and non-CFD products. 66% of individual 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.

Disclaimer All content on our website is for information purposes only and does not constitute a recommendation to buy or sell. This applies to assets as well as products, services and other investments. The opinions expressed on this site do not constitute investment advice and independent financial advice should be sought whenever possible. This website is not intended for use in jurisdictions where the trading or investment described is prohibited and should only be used by persons and in a manner permitted by law. Your investment may not be eligible for investor protection in your country or country of residence. You should therefore carry out your own due diligence. This website is available to you free of charge, but we may receive commissions from the companies we offer on this website.
How to buy Bitcoin

How to buy Bitcoin UK – A comprehensive tutorial

You want to know the easiest way to get Bitcoins? Learn in 10 minutes all you need to know. Bitcoin …
Read More
How to buy EOS in 2020 – 3 easy steps to buy EOS Coins

How to buy EOS in 2020 – 3 easy steps to buy EOS Coins

If you are interested in how to buy EOS, then you’ve come to the right place. This comprehensive guide would …
Read More
How and where to buy Tezos in 2020: 3 easy steps to buy XTZ. buy Stellar Lumens (XLM)

Buy Stellar Lumens in under 10 minutes – A comprehensive guide

If you are interested in how to buy Stellar Lumens (XLM), then you’ve come to the right place. This comprehensive …
Read More
Spread the word if you like this article.
Sharing is caring, right?

Leave a Reply

Your email address will not be published. Required fields are marked *