While cryptocurrency isn’t legal tender in the UK like most countries in the world, owning crypto is still legal as of January 2022. Of course there are a few rules and regulations in place to protect investors.
For example, crypto exchanges must register with the UK government and they can’t offer derivative trading. Even with tight rules, there are still plenty of platforms that make it easy to buy crypto in the UK.
In this blog, we’ll help you find out how you can own a piece of BTC, ETH, and other cryptocurrencies in the UK. But that’s not all. We’ll also walk you through the best crypto exchanges and wallets for the UK.
How To Buy Cryptocurrency In The UK
UK’s cryptocurrency ecosystem is still developing and isn’t as robust as it is in countries like Japan or Switzerland, but it still offers multiple ways for investors to own and trade cryptocurrencies easily.
The most popular ways to invest in crypto in the UK include exchanges and brokerages followed by gambling platforms, crypto ATMs, local crypto bidding websites, and others.
Considering a majority of the UK’s crypto investors rely on exchanges and brokerage platforms, that’s what we’ll focus on. Moreover, there’s the added benefit of convenience with these platforms.
1. Create An Account
Hop on to a leading and trusted crypto exchange or brokerage platform in the UK and create an account. You’ll have to go through platform-specific KYC to be able to access the services.
2. Add Funds To Your Account
Most platforms require you to add money to your account before you can own or trade crypto in the UK. These platforms will allow you to link your bank account to the platform to transfer money easily.
3. Get A Crypto Wallet
A crypto wallet stores your private keys that are nothing but your passwords to store your digital assets like cryptocurrencies, NFTs, and others. There are two types of crypto wallets that you can get in the UK.
One is known as a hot wallet, which is always online and connected to the internet, while the other is a cold wallet, which is a physical device like a pen drive. You can read about both in detail here.
Things To Know Before You Buy Cryptocurrency In The UK
Data suggests that there are as many as 9.8 million cryptocurrency investors in the UK. So it is safe to say that BTC, ETH, and others are becoming hugely popular in the UK.
However, it’s important to remember that cryptocurrencies are still in their early stages where the world is in the process of discovering their true price through trade.
That’s why investors must be cautious and remember these things before buying crypto in the UK:
1. Research Is Your Best Friend
The truth is that cryptocurrencies are still in their nascent stages so it’s important to evaluate multiple factors before investing in any token or coin, starting with the strength of the project and community.
2. Start Small
We’ve spoken about a lot of aspects of crypto like the fact that it is still in the price discovery phase and hasn’t really established itself as the go-to alternative to stocks or mutual funds.
This is precisely why experts from this space believe that new and even seasoned investors shouldn’t allocate a large portfolio of their portfolio to cryptocurrencies.
Starting small in this case could mean allocating 1% to 5% of your portfolio to crypto in the UK but even then it’d depend on your risk appetite.
3. Follow A Strategy
Regardless of what asset you invest in, it’s important to zero in on the “why” behind your investment and then follow a strategy that can help you achieve it.
The same applies to crypto as well. You can start by asking yourself whether you’re attracted to the lucrative profits generated by investing in crypto in the UK or its future use cases.
List Of Top Crypto Exchanges In The UK
Top Crypto Wallet Options In The UK
Note: Facts & figures are true as of 26-01-2022. None of the information shared here is to be construed as investment advice. Exercise caution when investing in unregulated assets like cryptocurrency.