Bitcoin is one of the most popular investments in the UK at the moment. Despite being very volatile, unregulated and relatively misunderstood, people want to buy it. This guide will explain how to safely buy Bitcoin in the UK, the risks, and potential rewards and also cover whether or not Bitcoin is a good investment.
In summary:
eToro: Best for regular Bitcoin trading
🏆Winner🏆
- Bitcoin Fees: 1%
- Other Cryptos: 120
- Minimum Deposit: From $50
Expert Review
Is eToro good for crypto?
Yes, I’d say that eToro is a good crypto broker. There are a couple of reasons for this.
Firstly eToro has quite a diversified range of markets to trade, so if crypto only forms a small part of your investing portfolio (as it should do) you can also invest in other things like UK and US stocks and ETFs.
Secondly, they are regulated by the FCA for these activities, unlike Binance or Coinbase which only focus on crypto).
Thirdly, you can withdraw cryptocurrency from eToro instead of keeping it on their trading platform, this is particularly important if you want to keep safe custody of your cryptocurrency so you don’t need to worry about, yet another crypto broker going bust.
There is a downside though to trading crypto through eToro and that’s the fees. Generally, eToro is quite an expensive broker for crypto. eToro is expensive for crypto because quite they do at least some vetting before (as their UK MD told me) they add them to the platform, so you have a smaller chance of being caught up in a crypto pump-and-dump scam.
I’d say that eToro is better than Binance and Coinbase for crypto trading for the average investor, but for those who want more exotic cryptos and are happy to take on more risk a specialised crypto exchange may be more suitable.
51% of retail 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 is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Pros
- 120 cryptocurrencies
- $50 minimum deposit
- 1%* commission on crypto trading
Cons
- Accounts only in USD
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Pricing
(5)
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Market Access
(5)
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Online Platform
(5)
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Customer Service
(4.5)
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Research & Analysis
(5)
Overall
4.9Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Revolut: Good for smaller bitcoin investing
- Bitcoin Fees: 1.99%
- Other Cryptos: 30
- Minimum Deposit:$50
Expert Review
Is Revolut good for cryptocurrency?
Revolut is a good choice if you are just dabbling in cryptocurrency and don’t need anything too complicated.
Yes, you can buy, sell, and send over 20 digital currencies at the touch of a button, with no hidden fees. But, Revolut’s cryptocurrency service is not regulated by the FCA, other than for the purposes of money laundering and you capital at risk.
Revolute is a good choice for cyprto if you are just dabbling in cryptocurrency and don’t need anything too complicated.
The 1.99% crypto commission for base accounts is quite high, but crypto fees are reduced to 1.5% for Metal and Platinum account holders.
Revolut Versuse eToro & Coinbase For Crypto
Compared to Coinbase and eToro, Revolut offers more mainstream cryptocurrencies and the least overall, and fees are in the middle. Revolut is far cheaper than Coinbase, but more expensive than eToro.
Fees: Crypto fees are reduced to 1.5% for Metal and Platinum account holders.
Pros
- 30 cryptocurrencies
- $50 minimum deposit
Cons
- 1.99% commission for base accounts are quite high
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Pricing
(4)
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Market Access
(3.5)
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Online Platform
(4)
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Customer Service
(3.5)
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Research & Analysis
(3.5)
Overall
3.7Coinbase: Good for Bitcoin and a range of other cryptocurrencies
- Bitcoin Fees: 3.5%
- Other Cryptos: 150
- Minimum Deposit:$50
Coinbase Review
Name: Coinbase
Description: Coinbase is a cryptocurrency exchange that lets you buy and sell various cryptocurrencies like Bitcoin, Ethereum, Cardano and Solana. Coinbase was listed on the NASDAQ exchange in 2012 and claims to have over 273 billion assets on account in over 100 countries and process $185 billion in quarterly volume.
Is Coinbase safe?
Coinbase is one of the largest cryptocurrency exchanges and is publically listed on the NASDAQ exchange (COIN). It offers access to large selection of cryptocurrencies that can be traded on it’s crypto exchange or withdrawn to a cryptocurrency wallet.
Coinbase offers the most cryptocurrencies compared to other exchanges, which makes them a great venue if you are interested in spreading your risk or looking for more volatile cryptos with a higher risk/reward ratio.
Coinbase is a US-based cryptocurrency exchange that was founded in 2012. It currently has 73 million verified users and around 7.4 million active users. Its customers include retail investors, institutional investors, and ecosystem partners. At present, there are over 100 different cryptoassets on the Coinbase platform.
Pros
- Wide range of cryptocurrencies
- Publically listed company
- Exchange and withdrawals
Cons
- Very high-risk investment types
- You can lose all your money
- Cryptocurrency still unregulated
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Pricing
(3.5)
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Market Access
(5)
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Online Platform
(4.5)
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Customer Service
(3)
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Research & Analysis
(3)
Overall
3.8- Thinking about using Coinbase? Read our expert Coinbase review first.
Compare Bitcoin Investing & Trading Account Fees & Market Access
Use our comparison table of Bitcoin accounts to compare costs and the different ways to buy and sell Bitcoin. Please Note: Investing in Bitcoin and other cryptocurrencies is very high risk and not regulated by the FCA. There is a very high chance you may lose all your money.
How to choose an account for investing in Bitcoin
Here are three tips and things to consider when deciding which provider to buy Bitcoin through:
- Regulation
- Cost comparison
- Risks & safety
Look for a regulated provider who also offers Bitcoin
Even though Bitcoin is an unregulated digital currency, many providers that offer Bitcoin investing are regulated by the FCA for other things such as stocks, bonds, bank accounts and trading. By choosing a Bitcoin account that is attached to a regulated entity, you will be dealing with a provider who is responsible for treating clients fairly (although not directly for cryptocurrency investing).
Compare the costs of investing in Bitcoin
The costs of investing in Bitcoin can vary dramatically. The key things to consider are:
- Bitcoin commission– some Bitcoin accounts will charge a fee when you buy and sell Bitcoin on their platform.
- Bitcoin currency exchange fees– if you are buying Bitcoin against the USD (BTCUSD) but depositing GBP into your Bitcoin wallet, there will be a fee for converting the GBP into USD. It is possible with some exchanges to buy Bitcoin against GBP where you do not need to convert Fiat currencies.
- Bitcoin price spread– this is the difference between the buy and sell prices. As with investing in stocks, there is always a spread between where people are prepared to buy and people are prepared to sell. The Bitcoin spread varies, depending on how active the market is (liquidity) and how much the price is moving (volatility), as well as which Bitcoin platform you are investing through.
Understand the risks involved in investing in Bitcoin
Before you start investing in Bitcoin, decide if you should be investing in Bitcoin. The major risks of investing in Bitcoin are:
- Sudden price moves– the price of Bitcoin can drop and rise quickly and for no apparent reason.
- High investment costs– compared to investing in stocks, it is still expensive to buy and sell Bitcoin.
- Bitcoin scams– there are lots of scammers using fake Bitcoin ads to scam potential Bitcoin investors, so always research Bitcoin accounts before investing.
How to get started investing in Bitcoin
If you are buying Bitcoins, then you will require a Bitcoin address. This is a code to which the Bitcoins that you buy will be allocated. You can acquire an address by downloading a Bitcoin client to your computer or setting up an online wallet.
What to avoid when you start investing in Bitcoin
When using CFDs or placing spread bets, it is possible to lose more than your initial stake. This will be amplified if you use leverage. Don’t risk more money than you can afford to lose when you take a position. Placing stop loss orders, which automatically close down your position when Bitcoin hits a particular value, are an essential way to limit the risk that you face.
Bitcoin CFDs and derivatives
You can no longer trade Bitcoin as a CFD, spread bet as the FCA has banned it. however, if you have an account with a US broker like Interactive Brokers you can trade the CME Bitcoin futures as well as buy Bitcoin ETFs and ETPs.
Bitcoin FAQ:
Here are some of the most frequently asked questions people ask before they invest in Bitcoin:
Bitcoin is a digital currency that is based on blockchain technology and can be sent from user to user on the global Bitcoin network without the need for intermediaries such as banks. It was launched in 2009 by Satoshi Nakamoto (a pseudonym) and designed to be an alternative to traditional fiat currencies.
Bitcoin works as a digital currency where a record of all transactions are kept on the block chain. Each Bitcoin is stored in a digital wallet where it can be spent or sent.
You can either mine Bitcoin or buy them through a cryptocurrency exchange platform.
Owning Bitcoin is not as safe as owning other currencies such as the USD, GBP or Euro. Bitcoin is an unregulated cryptocurrency, where investors do not get the same protection from regulators such as the FCA.
No, Bitcoin is not regulated by the FCA. However, the FCA is in the process of starting to regulated some cryptocurrency brokers and platforms in the UK.
Many Bitcoin adverts are fake. You should be extremely cautious of any advertisement advertising cryptocurrency. From Peter Jones to PSY, new scam adverts advertising get-rich-quick Bitcoin schemes are flooding the internet. Despite a global ban from Google on non-regulated brokers advertising derivatives products, they are still getting through. Amazingly, you see them in the header of the DailyMail and other mainstream media websites.
No, Martin Lewis, the money-saving-guru from Money Saving Expert very clearly states on his social media profile that he “doesn’t do ads”. In fact Martin Lewis recently sued Facebook because they failed to stop scammers using his image in scam ads for get-rich-quick Bitcoin schemes. Martin Lewis settled with Facebook for a £3m charitable donation in the end.
If you see an advert for Bitcoin investing, it may well be a scam as Google and Facebook have banned cryptocurrency advertising. If it looks like a scam, it’s a scam. And always check the FCA register for any broker you deal with.
Keep in mind too though that the cryptocurrency scammers make clone websites of real brokerages to scam you. So, double and triple-check any broker before sending money. A quick google search can save you from becoming a victim.
It is possible to make money investing in Bitcoin in the same respect that it is possible to make money investing in high-risk stocks. If you buy low, sell high, you will make money. But unlike investing in stocks where a company generates revenue and profits, Bitcoin has no underlying value so it is also possible to lose money very quickly by investing in Bitcoin.
Bitcoin is not illegal in the UK.
If you buy Bitcoin through a cryptocurrency exchange, they will have an option for you to sell it as well.
Never believe anyone who says they can make you rich or adopt trading as a career if you are a complete beginner. However, if you do want trading ideas, you can find news and analysis on Bitcoin here:
- Bloomberg
- Reuters
- TradingView provides excellent crypto charts and lots of users post trading ideas.
The current Bitcoin (CURRENCY:BTCGBP) price is £76,108.4072526991.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
