How to Buy Cryptocurrency In The UK (2025 Guide)
To Buy Crypto in the UK, you'll need to:
- Create an account with a crypto exchange like eToro or Coinbase.
- Verify your identity and deposit GBP into your account.
- Research cryptocurrencies such as Bitcoin or Ethereum.
- Purchase crypto via the exchange’s app or website.
- Use a crypto wallet for secure storage or keep it on the exchange.
How Can You Buy Cryptocurrency in the UK? (Step-by-Step)
Step 1 – Choosing a Crypto Exchange or Broker
Start by selecting a platform that’s FCA-registered, has low fees, a user-friendly interface, and strong security features. Consider reputation, available coins, and ease of withdrawals. Popular UK options include eToro, Coinbase, Binance, and Kraken.
What’s the Difference Between a Crypto Exchange and a Broker?
A crypto exchange lets you trade directly with other users and often has more coins and advanced features. A broker, on the other hand, simplifies buying by setting prices for you—ideal for beginners who want quick, easy purchases without market complexity.
Step 2 – Registering and Verifying Your Identity
Once you’ve chosen a platform, create an account using your email and a strong password. Next, complete identity verification by submitting proof of ID (passport or driver’s licence) and address (utility bill or bank statement). This step ensures compliance with UK regulations.
What’s Involved in the KYC (Know Your Customer) Process?
KYC involves uploading identification documents, taking a selfie for facial recognition, and verifying your address. Most UK platforms complete this within minutes to a few hours. It’s a legal requirement designed to prevent fraud, money laundering, and ensure platform security for all users.
Step 3 – Depositing Funds Into Your Account
To fund your account, log in to your chosen platform and head to the “Deposit” or “Add Funds” section. Most UK exchanges accept bank transfers, debit cards, or e-wallets like PayPal. Choose your method, enter the amount, and follow the on-screen instructions.
Step 4 – Placing Your First Crypto Order
After funding your account, go to the platform’s “Buy” section. Select the cryptocurrency you want (like Bitcoin or Ethereum), enter the amount you wish to buy, and confirm the order. Most platforms offer one-click purchases for beginners and advanced options for experienced traders.
Step 5 – Securing Your Crypto Investment
After purchasing crypto, it’s crucial to protect it. Most platforms store your assets by default, but moving them to a private wallet adds extra security—especially against exchange hacks. Choose between a software wallet (app-based) or a hardware wallet (offline physical device).
Should You Store Your Crypto on an Exchange or in a Wallet?
Storing crypto on an exchange is convenient but riskier long-term. Wallets give you full control and stronger protection. For large amounts or long-term holding, a private wallet—especially a hardware one—is the safer choice.
| Storage Option | Pros | Cons | Security Level |
|---|---|---|---|
| Exchange | Easy access, convenient for trading | Higher risk of hacks | Moderate (with 2FA) |
| Private Wallet | Greater control, enhanced security | Less convenient for frequent trades | High (especially with cold storage) |
Are There Alternative Ways to Buy Crypto in the UK?
Yes, you can also buy crypto using Bitcoin ATMs, peer-to-peer platforms like Paxful, or even via fintech apps like Revolut. However, these may come with higher fees, limited coin options, or fewer security features compared to dedicated crypto platforms.
What Should You Know Before Investing in Cryptocurrency?
Cryptocurrency can be an exciting and potentially profitable investment—but it also carries significant risks. Before you dive in, it’s essential to understand how crypto works, what influences its value, and the legal and tax responsibilities you have as a UK investor.
What Is Cryptocurrency and How Does It Work?
Cryptocurrency is a digital form of money that operates on a technology called blockchain—a secure, decentralised ledger that records transactions across a network. Instead of being issued by a central bank, crypto coins and tokens like Bitcoin or Ethereum are maintained by users and miners. These assets can be used for payments, trading, or held as investments.
What Key Factors Should You Consider When Buying Cryptocurrency?
- Volatility: Prices can rise or fall dramatically within hours. Only invest what you can afford to lose.
- Market Timing: Crypto is driven by hype cycles, news, and investor sentiment. Timing matters.
- Research: Understand what each coin does. Is it solving a problem, or just speculative?
- Regulation: Regulatory news can affect prices overnight. Stay informed.
- Security: Make sure your crypto is stored safely. Consider wallets over exchanges for long-term holding.
- Scams and Hype: Be wary of “get rich quick” schemes or anonymous coins with no clear purpose.
Is Buying Cryptocurrency Legal in the UK?
Yes, buying and owning cryptocurrency is legal in the UK. The Financial Conduct Authority (FCA) regulates firms offering crypto-related services, especially if they involve fiat on/off ramps or custody. However, crypto itself is not classified as legal tender and is not protected by the Financial Services Compensation Scheme (FSCS). Always use FCA-registered platforms to ensure compliance and safety.
Do You Have to Pay Taxes on Crypto in the UK?
Yes, cryptocurrency is subject to capital gains tax (CGT) in the UK. If you sell crypto for a profit, swap one coin for another, or use it to make purchases, you may owe tax. HMRC requires individuals to keep detailed records and report gains on their annual self-assessment. In some cases, frequent trading may be taxed as income. Using tools like Koinly or CoinTracker can help you stay compliant.
Which Crypto Platforms Are Best for UK Investors?
Choosing the right platform is crucial for a smooth, safe crypto investing experience. UK users benefit from several reputable, FCA-registered platforms offering different strengths—from low fees to user-friendly interfaces.
Which Platforms Are Most Trusted by UK Users?
- eToro: FCA-registered with strong copy-trading features, a simple interface, and built-in wallet. Great for beginners.
- Coinbase: Known for ease of use, good customer support, and strong compliance. Slightly higher fees.
- Binance: Offers a huge range of cryptocurrencies and low trading fees. UK users must use Binance UK or face limited features due to FCA restrictions..
- Kraken: Highly secure, with solid regulatory standing and advanced tools for experienced traders.
- Revolut: Popular for casual investors wanting to dabble in crypto via a familiar banking app—but limited functionality and wallet options.
How Do the Leading UK Platforms Compare?
| Rank | Platform | Min Deposit | FCA Regulated? | Platforms | Best For |
|---|---|---|---|---|---|
| 1 | eToro | £40 | Yes | Web, mobile | Social/copy trading beginners |
| 2 | Coinbase | £0 | Yes | Web, mobile | Beginner-friendly with strong compliance |
| 3 | Kraken | £0 | Yes | Web, desktop, mobile | Advanced traders and staking users |
| 4 | Binance | £0 | Limited* | Web, mobile | Low-fee access to wide crypto range |
| 5 | Revolut | £1 | Yes | Bank app, mobile | Casual investors wanting simplicity |
Final Thoughts: Is Now the Right Time to Buy Crypto in the UK?
Timing any investment is tricky—but informed decisions help. Cryptocurrency remains volatile, but interest and adoption continue to grow. If you’re financially secure, have done your research, and use a regulated platform, it may be a good time to start small.
UK regulation is maturing, which adds credibility but also tighter rules. For long-term investors, this may actually be a positive sign. The key is to invest wisely, diversify, and treat crypto as one part of a broader financial strategy.
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FAQs
How Much Should You Invest in Cryptocurrency as a Beginner?
It is wise to start with a small amount of money that you can afford to lose. The cryptocurrency market is highly volatile, so investing a small sum helps you get familiar with the market dynamics without risking a significant portion of your savings.
How Do I Acquire Crypto as a Beginners?
Begin by selecting a reputable platform. Create and verify your account, deposit funds, and choose a cryptocurrency to buy. Complete the purchase and transfer your assets to a secure wallet for safekeeping.
How Do You Cash Out Your Cryptocurrency?
You can sell it for a traditional currency, such as GBP, or choose to withdraw it to your bank account. Please be aware of withdrawal fees, which can vary from bank to exchange/broker.
Is it Legal to Buy Crypto in the UK?
Yes, buying cryptocurrency is legal in the UK. For Consumer protection always use FCA-registered platforms and be cautious of scams or phishing schemes.
What Is the Best Platform to Buy Cryptocurrency UK?
We recommend eToro, Coinbase, Uphold and OKX. For those comparing platforms focused on holding crypto, you may also want to read our breakdown of Coinbase vs. Kraken, which explores deeper tools and staking options.
What Payment Methods Can I Use to Buy Crypto in the UK?
Bank transfers, debit/credit cards, and sometimes PayPal. Bank transfers usually have lower fees, while cards offer convenience but higher costs. Select the method that best suits your preferences and transaction size.
References
- FCA (Financial Conduct Authority) – Cryptoasset consumer research
- Bank of England – What are cryptoassets?
- Coinbase UK – How to buy crypto in the UK (official guide)
- HMRC – Cryptoassets: tax for individuals
- eToro UK – Guide to crypto trading and investing
- CoinTelegraph – How to buy Bitcoin and Ethereum in the UK
- Forbes – Get Started In Investing In Cryptocurrency
- BBC News – Bitcoin: Crypto Fans
- GOV.UK – Economic Crime and Corporate Transparency act
