How to Buy Cryptocurrency UK – With Low Fees

Updated 9th Feb 2022.

In the space of just over 12 years – Bitcoin has gone from a developer’s pipedream to a global marketplace that is now worth over £1 trillion. And as such, you can now invest in thousands of different cryptocurrencies from the comfort of home.

If you’re thinking about entering this marketplace today – this beginner’s guide will explain how to buy cryptocurrency in the UK in under five minutes with an FCA-regulated broker.

How to Buy Cryptocurrency UK – Quick Guide

To get the ball rolling, the quickfire walkthrough below will show you the basics of how to buy crypto in the UK via FCA-broker eToro.

If the above quickfire guide is a bit too brief for your skillset – you will find a more comprehensive walkthrough further down in this article.

Where to Buy Cryptocurrency in the UK

Where can I buy cryptocurrency? A question that runs through most crypto-hungry investors. With so many crypto exchanges out there, choosing the right one for your needs can be like trying to find a needle in a haystack.

Some of the key metrics to consider before making a decision include, payment methods, fees, supported cryptocurrencies, and customer service.
If you need pointing in the right direction – below you will find a list of pre-vetted brokers and exchanges that allow you to buy cryptocurrency in the UK.

Note: Brokers allow you to buy cryptocurrency in the UK directly from the provider, while exchanges offer a platform for you to trade with other market participants.

1. eToro – Best Place to Buy Cryptocurrency UK (FCA Regulated)

In terms of regulation, fees, supported markets, and many other important metrics – eToro stands out as the best place to buy cryptocurrency in the UK. The platform was first launched in 2017 and is largely favored by inexperienced investors. You can open an account in under two minutes here and instantly deposit funds with a UK debit/credit card or an e-wallet like Paypal.

When you have completed the registration and deposit process – you will then have access to over 40+ cryptocurrencies. Some of the most popular tokens hosted at eToro include Ethereum, Ripple, Cardano, Dogecoin, and of course – Bitcoin. All of the digital currencies available at eToro can be traded from just $10 – and all orders are executed on a spread-only basis.

In simple terms, this means that you only need to cover the difference between the ‘bid’ and ‘ask’ price of the respective cryptocurrency. In addition to digital assets, eToro also offers thousands of commission-free shares and ETFs, as well as forex and commodity markets. Best of all, eToro allows you to invest passively through its CopyPortfolio and Copy Trading tools.

The former allows you to gain exposure to diversified portfolios that are managed by the eToro team. The CryptoPortfolio, for example, covers more than a dozen leading digital assets – which you can invest in through a single trade. The Copy Trading tool, on the other hand, allows you to copy the portfolio of an experienced trader. Finally, eToro is regulated and authorized by the FCA.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Coinbase – Popular Place for Beginners to Buy Cryptocurrency UK

In a similar nature to eToro, Coinbase is a popular place for beginners to buy cryptocurrency in the UK. The Coinbase website is simple and free of complex jargon – and you can typically open an account in less than 15 minutes.

However, many UK users have reported that the verification process can be challenging – as Coinbase will often state that it cannot validate uploaded documents. Nevertheless, once your account is verified, you can proceed to buy cryptocurrency in the UK with your Visa or MasterCard.

The transaction will be processed instantly at a rather high fee of 3.99%. UK bank transfers are an alternative option – as this deposit method is fee-free. But, once the money arrives, you will still need to cover the 1.49% standard commission.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance – Largest Exchange to Trade Cryptocurrency in the UK

With more than 100 million using this popular cryptocurrency exchange, Binance is a market leader in this industry. The platform offers huge levels of liquidity too – not least because it facilitates trading volumes in the billions of pounds – each day.

Furthermore, UK residents can buy and sell cryptocurrency here at a commission of just 0.10%. Another benefit of using Binance is that you will have access to over 1,000 digital currency markets. However – there are also drawbacks with Binance.

At the forefront of this is the FCA’s ongoing investigation into the exchange – which has resulted in Binance being unable to directly accept UK debit/credit cards or bank transfers. Instead, you need to go through a third-party processor – which can result in fees of up to 10%.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Mode – Buy Bitcoin in the UK via a Bank Transfer

Mode is a UK-based broker that offers a safe and relatively simple way to invest in cryptocurrency. However, we should note that Mode only supports one digital asset – Bitcoin.

As such, this won’t be a good option if you are looking to diversify across several different coins. Nevertheless, if you do want to buy Bitcoin via Mode – the broker allows you to deposit funds fee-free via a bank transfer.

In most cases, the payment will arrive in your Mode account in less than a minute. In terms of fees, Mode claims that it charges 0.99% per Bitcoin trade. However, you also need to keep an eye on the spread – which Mode doesn’t advertise.

5. Huobi – Buy Cryptocurrency UK With MasterCard

Another cryptocurrency exchange to consider is Huobi – which is home to hundreds of tradable markets. This platform is arguably more suited to MasterCard holders – as Huobi does not support Visa.

You can, however, also deposit funds with digital currency. Either way, once your Huobi account is funded and ready to go – you can trade cryptocurrencies from just 0.20% per slide. For large-scale traders, this commission is reduced once you surpass certain 30-day volume thresholds.

At Huobi, you can also deposit your crypto assets into a savings account – which allows you to earn interest.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Should I Buy Cryptocurrency?

Many first-time cryptocurrency investors will jump straight into this industry without having a firm understanding of the basics. This is a high-risk approach to take – not least because cryptocurrencies are both speculative and volatile.

As such, in the sections below, we explain some of the fundamental points you need to be aware of when learning how to buy cryptocurrency in the UK.

Benefits of Buying Cryptocurrency

In terms of the benefits, many investors in the UK look to buy cryptocurrencies for the following reasons:

Cryptocurrency Growth vs UK Stock Markets

The overarching objective of investing your hard-earned money is to make a profit. Plenty of options exist in this respect, albeit, many investors in the UK will turn to the traditional stock markets.

However, in comparison to cryptocurrencies, growth in the UK stock market has been virtually non-existent in recent years.

For instance, the FTSE 100 – which is the UK’s primary index that covers the largest 100 domestic companies, has grown by less than 3% over the prior five years. This is potentially less than what you would have made by keeping your money in a conventional savings account.

However, over the same period, Bitcoin has increased in value by more than 4,000%. Other cryptocurrencies have grown by an even more impressive rate – with the likes of Shiba Inu and Safemoon up in the millions of percentage points since they were launched.

Although cryptocurrencies are undoubtedly much riskier than the UK stock market or a savings account – there is no denying that this asset class offers huge upside potential.

Asset Diversity

When you invest in the stock markets – you have thousands of companies of all shapes and sizes to choose from. This ultimately allows you to create a diversified portfolio. This sentiment is also true in the cryptocurrency industry – with more than 16,000 digital tokens now available to buy, sell, and trade online.

This means that you can attempt to reduce your exposure by investing in a wide range of cryptocurrencies – as opposed to only buying one or two.

Decentralization

Not all cryptocurrencies are decentralized – but many are. For those unaware, this simply means that the cryptocurrency project is not and cannot be controlled by any single person or entity.

This also means that no central bank or government can influence the supply of a decentralized cryptocurrency. Bitcoin is a perfect example of a decentralized project – not least because its total supply will be capped to 21 million tokens by the year 2140. And much like gold – this finite supply of Bitcoin gives the cryptocurrency intrinsic value.

This is why many people invest in Bitcoin and other leading cryptocurrencies as a store of value.

Beginners are Welcome

In a nutshell, since cryptocurrencies have become mainstream, the investment process is now fully catered to the Average Joe. That is to say, in less than five minutes – you can open an account with an FCA-regulated broker like eToro and buy cryptocurrencies from just £7-ish.

Not only does this mean that the investment process is straightforward – but you don’t need to risk a large sum of money to get started. Furthermore, when you use an FCA-regulated broker, you don’t need to worry about the safety of your funds.

Cryptocurrency is Still in its Infancy

Both cryptocurrencies and blockchain technology are still defined as emerging phenomena that are still in their infancy. As such, you still have the opportunity to invest in the cryptocurrency landscape early.

In theory, this gives you the best chance possible of entering the market at a favorable price. In many ways, this is no different from buying shares in Apple or Tesla when they were first starting out.

Easy to Cash Out

Oftentimes, inexperienced investors that are just learning how to buy cryptocurrency in the UK are hesitant because they are worried about being able to cash out in the future. After all, this is the primary goal of investing in digital assets – as, at some point, you will hope to withdraw your profits.

This sentiment is, however, a misconception – as cryptocurrencies can be sold for pounds and pence on a 24/7 basis. And, as cryptocurrencies now operate in a trillion-pound industry, you will never need to worry about finding a buyer.

The selling process is made even easier when you use a broker like eToro – as the digital tokens remain in your portfolio until you are ready to cash out. When you do, the cryptocurrency will instantly be converted to real money – which you can withdraw back to your UK bank account or debit/credit card.

When to Buy Cryptocurrency

Experienced cryptocurrency investors will often look to ‘time to market’ with the view of maximizing their returns. In simple terms, this follows the age-old thesis of buying a cryptocurrency when it is going through a market dip.

For example, during the pandemic in early 2020, Bitcoin went from highs of $10,000 to lows of $5,000 in the space of a couple of weeks.

Had you purchased Bitcoin at this level, and held on until April 2021, you could have cashed out at a market price of over $63,000. After hitting highs of $63,000, Bitcoin then hit lows of $31,000 in July 2021.

Again, had you invested at this level, you would have been able to sell at almost $69,000 in November 2021. However, unless you are a seasoned investor with a solid understanding of technical and fundamental analysis – timing the market in this manner is no easy feat.

With this in mind, the best strategy that you can take when learning how to buy cryptocurrency in the UK is to dollar-cost-average your investments.

Buy Cryptocurrency via a Dollar-Cost Average Strategy

Dollar-cost averaging isn’t unique to just cryptocurrencies – it’s a strategy that has been used in the traditional stock markets for many decades.

In its most basic form, the process involves buying cryptocurrency at set intervals, at fixed investment stakes. As a basic example, you might decide to invest £100 into cryptocurrencies at the end of every month.

On each purchase, you will invariably be buying digital assets at a different cost price. That is to say, when the markets are going well, you will be investing at a higher price and vice versa.

With time, this will allow you to forget about short-term market volatility – as you will be averaging your investments out across many different cycles. Ultimately, as long as cryptocurrencies continue to increase in value on a long-term basis – dollar-cost averaging is potentially the best strategy to take.

What are the Best Cryptocurrencies to Buy?

We mentioned earlier that when you learn how to buy cryptocurrency in the UK – you will have thousands of digital tokens to choose from.

This can, of course, make it very difficult to know what cryptocurrency to buy for your portfolio. To fast-track the process for you, below we discuss five cryptocurrency projects that you might want to consider in 2022. Always do your own research, however, before parting with any money.

Bitcoin

   If you’re a complete newbie in the world of digital currencies and want to keep things as simple as possible – it might be worth just sticking with Bitcoin.

In doing so, you will be investing in the original and still de-factor crypto asset of choice – with Bitcoin since surpassing a market capitalization of over a trillion dollars.

This digital asset is not only held by millions of people around the world – but even hedge funds and companies like Tesla.

Those that invested in Bitcoin when it was first launched would have paid less than $0.01 per token. Since then, the digital currency has grown to highs of nearly $69,000. This translates into growth of almost 700 million percent.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Ethereum

In addition to Bitcoin, Ethereum could also be one of the best crypto to buy now if you are a complete beginner in this industry. Etehreum was launched in 2015 – six years after Bitcoin.

Since then, this digital currency has grown in value by over 25,000% and it has solidified its status as the world’s second-largest crypto asset in terms of market capitalization.

Ethereum is, however, different from Bitcoin in terms of what the underlying blockchain can do. For instance, while Bitcoin focuses on decentralized payments, Ethereum can facilitate smart contract technology.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Binance Coin

Another digital asset to think about purchasing when learning how to buy cryptocurrency in the UK is Binance Coin. As the name implies, this is the native cryptocurrency of the previously reviewed exchange Binance.

Initially, Binance created its digital token as an incentive to its users to save money on trading commissions. Although this commission structure is still in place, Binance Coin has since opened to new markets. In particular, users that buy and sell digital tokens on the Binance Smart Chain have to pay their transaction fees in Binance Coin.

As such, this increases the use case by a considerable amount – especially when you consider that the Binance Smart Chain hosts billions of dollars worth of trading activity on a day-to-day basis.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Shiba Inu

All digital tokens carry a significant amount of risk – not least because pricing trends are often based on hype and FOMO (Fear of Missing Out). This sentiment is especially the case with Shiba Inu – which was one of the best-performing cryptocurrencies of 2021.

In fact, this digital currency went from a price of $0.0000000001 in January 2021 to $0.00008 by November of the same year. This means that in just 11 months of trading, Shiba Inu grew in value by almost 80 million percent.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

XRP

XRP is the native digital currency of Ripple – a cross-border payments system launched in 2012. Since then, Ripple has partnered with over 200+ financial institutions which are now trialing or using the Ripple network to send funds overseas.

The overarching selling point of the Ripple framework is that cross-border and cross-currency transactions take just 4-5 seconds to process. Moreover, fees amount to less than $0.01 per transfer – which is significantly cheaper than any other network in the market.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Ways of Buying Cryptocurrency

This beginner’s guide has so far discussed where to buy cryptocurrency in the UK, alongside a discussion on the best digital tokens in the market right now.
Next, we can talk about the many different ways to buy cryptocurrency in the UK – based on your preferred choice of payment method.

Buy Cryptocurrency With PayPal

If you’re looking at how to buy cryptocurrency in the UK with Paypal, the best way to do this is with FCA-regulated broker eToro. This is because you only need to deposit $10 or more to get started – and fees are super-competitive at just 0.55. Your Paypal deposit will be processed securely, as eToro offers institutional-grade encryption protocols.

Buy Cryptocurrency With Credit Card or Debit Card

If you want to use your credit or debit card to buy cryptocurrency in the UK, the process is fast and simple when using eToro. Once again, you only need to deposit $10 and your payment will be processed instantly.

With that said, it is important to note that some financial institutions have since banned cryptocurrency purchases with a credit card. The reason given for this is that buying digital tokens on credit is extremely risky – due to the volatile nature of the industry.

Note: While Coinbase charges 3.99% on debit/credit card deposits – and Binance up to 10%, eToro is one of the cheapest options in the market at just 0.5%.

Buy Cryptocurrency With Neteller or Skrill

Once you have opened an account with FCA-regulated broker eToro – you can also buy cryptocurrency with Neteller or Skrill. The same deposit minimums and fees as mentioned above apply.

Buy Cryptocurrency With Bank Transfer

Many brokers in the UK also allow you to buy cryptocurrency via a traditional bank transfer. If your chosen provider supports the Faster Payments network – the funds should arrive relatively quickly.

How to Buy Cryptocurrency Safely

Over the past decade, billions of pounds have been stolen from cryptocurrency exchanges. Moreover, during the same period, significant amounts of money have been extorted via scams and malware attacks – with Bitcoin seemingly the preferred currency of choice for cyber-criminals.

You then have the threat of cryptocurrency wallets – which are vulnerable to hackers when sub-par security practices are undertaken. To ensure you understand the risks – below we explain how you can buy cryptocurrency in the UK safely.

Unregulated Brokers and Exchanges

As you now know – the best way to buy cryptocurrency in the UK is to use an online broker or exchange. However, although there are hundreds of platforms active in this industry – the vast majority operate without a regulatory license. And as such, you can never be 100% sure that your money is in safe hands.

Without a doubt, the most effective safeguard here is to only use an online broker that is authorized and regulated by the FCA. Ultimately, this is why we argue that eToro is the best place to buy cryptocurrency in the UK – as its FCA-regulated status will ensure that you can trade in a secure environment.

Cryptocurrency Wallets

When learning how to buy cryptocurrency in the UK – you also need to think about wallets. This is because digital tokens are stored in wallets that either come in the form of software or a hardware device.
Unfortunately, wallets can be a complex thing to understand if you’re a complete newbie – which further adds to the risk of buying cryptocurrency.

After all, if your cryptocurrency wallet is hacked or you lose your private keys – you will likely never see the funds again. The good news, however, is that by using an FCA-regulated broker like eToro to buy cryptocurrency in the UK, you don’t need to worry about wallets.

This is because upon making your purchase, the digital tokens will be kept secure by eToro. Therefore, the tokens will remain safe and sound until you decide to cash out.

Cryptocurrency Regulation UK

Although the first cryptocurrency – Bitcoin, was launched back in 2009, the UK is yet to enact any cryptocurrency-specific legislation.

With that said, online brokers and exchanges that are regulated by the FCA must still follow anti-money laundering regulations. This is why you are required to upload a copy of your passport or driver’s license when you sign up with eToro.

Furthermore, FCA-regulated platforms are also required to make the risks of investing clear and restrict access to cryptocurrency derivatives – such as CFDs or futures.

How to Buy Cryptocurrency UK – Tutorial

This beginner’s guide has explained everything you need to know about investing in digital currencies in a safe and risk-averse manner. And to conclude, we are now going to show you how to buy cryptocurrency in the UK with FCA-regulated broker eToro.

Simply follow the walkthrough below to invest in your chosen digital asset in under five minutes.

Step 1: Open an eToro Account

The process of registering an account with eToro is extremely easy and should take you no time at all. First, click on the ‘Join Now’ button via the eToro homepage to populate a registration form like in the image below.

Enter your personal information and contact details as prompted – and choose a suitable username and password.

Step 2: Verify Your eToro Account

Once you have opened your account, UK residents can actually deposit up to €2,000 (about £1,600) without uploading any ID.
However, you won’t be able to make a withdrawal until you meet this requirement – so it’s best to get the KYC (Know Your Customer) process out of the way now.

Crucially, all you need to do is upload a clear copy of your passport or driver’s license – alongside proof of address, and eToro will verify the documents in 1-2 minutes.

Step 3: Deposit Funds

Before you can buy cryptocurrency on the eToro website, you must first make a deposit. Your choice of payment method includes:

• UK Bank Transfer
• Debit Card
• Credit Card
• Paypal
• Neteller
• Skrill
• WebMoney

In avoiding a UK bank transfer, your eToro deposit will be processed instantly. The minimum deposit required is $10 and you will only pay a transaction fee of 0.5%.

Step 4: Search for Cryptocurrency

At this stage, you should now have an eToro account that is funded. If so, you can now click on the ‘Discover’ button followed by ‘Crypto’. This will bring up every digital token that the eToro website supports.

If, on the other hand, you know which cryptocurrency you want to buy – you can use the search box at the top of the page. In our example above, we are searching for XRP.

Step 5: Buy Cryptocurrency UK

Once you have decided which cryptocurrency to buy on eToro – click on the ‘Trade’ button. In doing so, you will see an order box like in the image below.

To complete the process – enter the amount of money that you want to risk. Take note, this needs to be entered in US dollars and the minimum trade size allowed at eToro is $10.

Finally, once you click on the ‘Open Trade’ button – eToro will debit your account balance and subsequently add your newly purchased cryptocurrencies to your portfolio.

Conclusion

If you’re looking at how to buy and sell cryptocurrency in the UK – you first need to ensure that you have considered the risks. You also need to do some research in terms of choosing the best cryptocurrencies for your financial goals and risk tolerance.

To get the ball rolling right now – you can buy cryptocurrencies in the UK at an FCA-regulated broker in less than five minutes. The minimum deposit and trade size required is a very affordable $10 (about £7) and the platform offers over 40+ digital tokens.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Frequently Asked Questions when Buying Cryptocurrency

How do I buy cryptocurrency in the UK?

You buy cryptocurrency in the UK at eToro with a debit/credit card, e-wallet, or bank transfer. The minimum deposit requirement for UK residents is just $10 – or about £7.

What is the best platform to buy cryptocurrency in the UK?

eToro is the best place to buy crypto in the UK for its FCA regulation, low fees, and small deposit requirements. Did you know eToro lets you buy crypto with credit card, e-wallets and bank transfers? As a bonus there are also no deposit fees to pay.

Where can I buy crypto without fees?

All brokers and exchanges charge fees, albeit, eToro is one of the cheapest options in the UK – as you only need to pay the spread when buying and selling crypto.

Where is the safest place to buy cryptocurrency UK?

If you’re wondering where to buy cryptocurrency in the UK in a safe way – consider an FCA-regulated broker like eToro.

Which is the best cryptocurrency to buy now?

There are thousands of cryptocurrencies to choose from – so do some research to assess what crypto to buy for your financial goals.

How do I sell cryptocurrency in the UK?

If you buy cryptocurrency from an online broker like eToro – you can sell instantly from within your account portfolio 24/7.

What can you buy with cryptocurrency?

Very few places in the UK accept cryptocurrency as a means of payment. Instead, most people buy cryptocurrency with the view of making money.

When is the best time to buy cryptocurrency?

The best time to buy cryptocurrency is arguably when the market goes through a brief dip. Alternatively, you can adopt a dollar-cost averaging strategy to avoid the complexities of trying to time the market well.

What is the best app to buy crypto with Paypal?

The best way to buy crypto with Paypal on your mobile phone is to download the eToro app. In doing so, you can buy your chosen digital token with Paypal safely and in a low-cost way.