How To Invest In Cryptocurrency UK

This website is dedicated to helping you UK investors buy cryptocurrency. Investing in Bitcoin and or other cryptocurrencies is very popular right now. But how does a beginner start investing? How do you actually invest in cryptocurrency and more importantly what are the best places to invest? Do you need to already own Bitcoin to buy other cryptocurrency? We explore these questions and a whole lot more. We’ll also provide the best, safest and most popular sites and platforms to buy your cryptocurrency if you’re in the UK.

How To Invest In Cryptocurrency UK

Step One

Choose the best site to invest in cryptocurrency from the UK

The best crypto investing strategies for beginners can be followed using the platforms mentioned here. The first step to buying and investing in cryptocurrency is to choose the crypto exchange you wish to use. There are many fantastic and well-backed companies that can provide this, including the likes of Paypal. However, an exchange like Coinbase, Swissborg or Revolut is certainly the easiest and best way to buy your cryptocurrency in the UK. Each platform has a selection of different features, fees and bonuses for signing up. This way you’re able to get access to the best cryptocurrency to invest in with the best rates.

Investing in cryptocurrency UK means you need to sign up to Coinbase, Swissborg or Revolut to name but three possible investing platforms. These will enable you to buy, hold and sell cryptocurrency. You will also be able to transfer your digital assets around to your digital wallet or cold storage wallet.

For those who are more advanced you are then able to swap or trade your cryptocurrency for those which you cannot buy on top exchanges. These are usually more risky but can provide life-changing returns. 

You may also buy cryptocurrency by connecting your UK debit/credit card to the exchange, giving you the option to buy your digital assets directly. This is the easiest way. By having your bank account connected you are also able to swap your cryptocurrency back to cash when you have made a profit.

Of course, online privacy is important, especially when dealing with valuable cryptocurrencies. This is why we recommend using a VPN when buying cryptocurrency. This hides your personal data and can stop any potential scammers.  

The cryptocurrency space has grown at lightning speed in recent times. There are over 2000 different cryptos to invest in. However, top crypto exchanges and investing platforms will only offer so many, usually the most popular coins by market capitalisation. Coinbase, Swissborg and Revolut offer Bitcoin, Ethereum and a growing suite of Altcoins. These three are very easy ‘on ramps’ into the world of cryptocurrency and are a great starting place for beginner investors.

Step Two

Connect your UK bank debit/credit card to the exchange  

Once you have picked your cryptocurrency exchange you will need to fill out your details and create your account. Just follow the easy steps and fill out the correct information such as, name, email and other details. 

Once the exchange has verified your identity you can then connect a payment option to enable you to start investing in crypto. Most exchanges can connect your credit or debit card directly to enable you to buy your chosen crypto with the click of a button. Likewise, if you want to take your profits back into your bank account you can do it just as fast and easy.

Step Three

Start investing in the cryptocurrency you have chosen 

Make sure to do your research on the crypto you want to invest in. On investing platforms there’s usually a blurb about each crypto, so it’s a good idea to read that first. If you visit our guides section we cover some cryptocurrencies too, to give you an idea of the best cryptocurrencies to invest in.  

When you know what you want to buy you can scroll down and click on the crypto you want. From here there will be options to ‘buy’ click that or something similar and type in the amount you wish to purchase in £. Your cryptocurrency will then go into your digital wallet on that particular exchange.

Like we mentioned before, you can either leave it on an exchange or you can send it to a more secure digital wallet or cold storage wallet. We’ll cover the best wallets to use in another one of our guides. 

Best Way To Invest In Cryptocurrency UK

Do your research

Before investing in any cryptocurrency, it is important to thoroughly research the specific coin you are interested in. Look at the coin’s technology, development team, and overall market performance. It is also a good idea to familiarize yourself with the broader cryptocurrency market cycles and understand the forces that can influence the price of individual coins.

Create a cryptocurrency wallet

In order to store and manage your cryptocurrency, you will need to create a digital wallet. There are many different types of wallets available, including software wallets that you can install on your computer or mobile device, and hardware wallets that are physical devices designed to securely store your coins.

Choose an exchange

There are a variety of exchanges where you can buy and sell cryptocurrency. Some of the more popular ones include Coinbase, Binance, and Kraken. Before choosing an exchange, consider the fees they charge, the countries they are available in, and their overall reputation.

Deposit funds

Once you have chosen an exchange, you will need to deposit funds in order to buy cryptocurrency. This can typically be done by linking a bank account or credit card to your account, or by purchasing a prepaid debit card with cash and then adding it to your account.

Buy cryptocurrency

Once you have funds available in your account, you can use them to buy the specific cryptocurrency you are interested in. Keep in mind that the price of cryptocurrency can be volatile, so it is important to carefully consider your investment strategy before making any purchases.

Monitor your investment

Once you have made your purchase, it is important to regularly monitor the performance of your investment. Keep an eye on the price of the coin and any news or developments that might affect its value.

Sell or hold

If you decide to sell your cryptocurrency, you can do so through the exchange by placing a sell order. Alternatively, you can hold on to your investment and wait for the price to potentially increase in the future.

Remember, investing in cryptocurrency carries risks, and it is important to be cautious and carefully consider your investment decisions. It is always a good idea to consult with a financial advisor before making any investments.

How To Use GBP (£) To Buy Cryptocurrency

Coinbase, Revolut and Swissborg are the best and most popular on-ramps to get into the crypto investing space. They have an easy and straightforward process for signing up, buying, holding and selling. 

Simply link your bank account to either of these and buy your cryptocurrency. Sometimes your bank account may take a few days to verify. Once bought, your crypto will sit in its own digital wallet within that exchange or app. 

What Should You Look For When Choosing A Cryptocurrency UK Exchange?

Selecting your crypto exchange or investing platform can be tricky but there are some features to look out for that can help you. 

Firstly, you need to make sure you choose a safe and secure exchange and one that has experienced no breaches in security. As investing in cryptocurrency in the UK becomes more popular these apps and exchanges are becoming much more advanced, which is great for investors. 

A secure exchange also means you can feel comfortable storing your crypto on that specific exchange. However, for larger amounts or even those who feel safer can store their digital assets in a cold storage crypto wallet or an online digital wallet. 

You should also make sure the platform you choose is easy to use, has a great app and enables you to move your crypto around without any hassle. This can be subjective as different investors like different user-interfaces. 

Some exchanges and crypto investing platforms also offer yield on your coins. What does this mean? It means that you can earn passive income on your crypto just for holding it on the exchange. The interest you earn on your cryptocurrency is usually more than you would get in a traditional saving account with a high street bank and this interest also appreciates in value over time as the value of cryptocurrency increases. 

You must also consider the type of investor you want to be as this can have an impact on the type of investing platform or exchange you choose. For example there’s a long term crypto investing strategy and then other methods within that timeframe and there’s trading. However, if we stick with the long term method you can either buy and hold, which is lump sum investing or there’s dollar cost averaging in crypto, which means you periodically invest the same amount of money over a certain amount of time.

However, for investors who have already gotten to grips with how to invest in cryptocurrency you can find the crypto picks and shovels. This is an altcoin investing strategy that’s a little more high risk but offers great returns. This is a method where the investor researchers cryptocurrencies with a lower market cap. These lower market cap coins belong to a larger ecosystem of cryptocurrencies to optimise the blockchain.