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How to Invest in Bitcoin UK Beginners Guide


How to Invest in Bitcoin

Bitcoin is an exciting digital currency that began an online currency and digital asset revolution. Bitcoin uses a triple-entry bookkeeping system that powers a decentralized system run by many participating computers around the world, known as miners. Bitcoin was first created in 2009 and reached a peak value of more than $60,000 per coin in early 2021. However, the price is highly volatile compared to other assets, such as stocks and diverse ETFs.

  • This means that as a UK investor – you are putting your capital at risk.
  • Fortunately, you don’t need to invest such sizable amounts into Bitcoin – as the digital currency can be ‘fractioned’ into tiny units.
  • More specifically, every time you execute your weekly/monthly investment, you will get a different cost price.
  • This pales in comparison to Visa, the card payments giant, which can theoretically handle 65,000 TPS.
  • Even though they promise great wealth, they come with a lot of loopholes.

Buying Bitcoin is often the first step that investors take into the world of cryptocurrency. And it can be an unfamiliar landscape for someone used to traditional financial products. The crypto exchange you use probably has an integrated Bitcoin wallet or at least a preferred partner where you can safely hold your BTC. Some people, however, do not feel comfortable leaving their crypto connected to the internet—a “hot wallet”—where hackers may more easily steal it. There are many reasons why experts believe Bitcoin and other cryptos should only be a small percentage of any investor’s portfolio.

Set Up Your Cryptocurrency Wallet

Even if you decide to go ahead, its volatility has led to many experts recommending that you do not allocate a large percentage of your funds to buying it. In the UK, the cryptocurrency market is as-yet unregulated, so if something goes wrong, you will have not access to compensation. The most common way to buy Bitcoin is by using one of any number of the popular cryptocurrency exchange sites that exist. Simply sign up to a site, top up your account using one of the methods they provide, such as a debit card, and swap your balance into Bitcoin. Western Union is a remittance services company that enables users to send money online or in-store and receive cash through pick-ups, bank account, or mobile wallet.

How to Invest in Bitcoin

As we noted in our cryptocurrency platform reviews, eToro is the number one broker to invest in Bitcoin in the UK. To recap – the broker is FCA-regulated, offers low fees, and is super-easy to use. As such, this walkthrough will guide you through the Bitcoin investment How to Invest in Bitcoin process with eToro. offers the largest selection of cryptos by market cap, so you can always invest in the latest and greatest. also offers investors access to lesser-known cryptos that have the potential to generate big profits.

Bitcoin cons

This is a fund that can be bought on the stock exchange and will track the price of bitcoin. This is why electric car manufacturer Tesla stopped accepting crypto payments in May 2021, causing the price of bitcoin to fall at the time. Like any investment, cryptocurrency comes with risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky. The price of Bitcoin fell from around $30,000 to $26,000, a 13% decrease.

  • If you had spent £310 to buy one bitcoin in April 2016, six years later your investment would have been worth about £24,000.
  • The platform supports over 50 different cryptocurrencies, including bank transfers, apple pay, and debit cards as payment methods.
  • In simple terms, this means that you can invest in Bitcoin in dribs and drabs as opposed to going ‘all in’ with more money than perhaps you can afford to lose.
  • It is also planning to move to a proof-of-stake (PoS) protocol from PoW, and this is expected to shoot the value of ETH higher further.
  • This will help you assess your portfolio composition properly and know whether to cut down on a particular asset or buy more of it.
  • If you are sending bitcoin, you must use a destination wallet address designated for Bitcoin—you can’t use one designated for Bitcoin Cash, for example.

Given its growing use case and institutional adoption, several investors are looking for the best platforms to buy Bitcoin. We’ll review those UK Bitcoin exchanges and more Bitcoin trading platforms in full in this guide. The traded price of digital tokens can fluctuate greatly within a short period of time. As with any asset, the values of digital currencies may fluctuate significantly.

What is Bitcoin?

The price of a single bitcoin fell below $20,000 (£17,250) in June 2022. In the UK, deposits held with a regulated bank or building society are protected by the Financial Services Compensation Scheme. So if say, a bank or building society goes bust, compensation of up to £85,000 will be available to customers through the FSCS.

  • Several options exist in this respect, but Coinbase is arguably the best.
  • Yes, interest in Bitcoin among United Kingdom investors remains at a high level and many exchanges such as eToro were unaffected by the ‘crypto winter’ of 2022.
  • Best of all, the exchange offers a market on GBP/BTC – so you don’t need to worry about foreign exchange fees.
  • Like many other assets, Bitcoin can be bought and sold using fiat currencies such as the U.S. dollar.

This is available via a dedicated iOS/Android mobile app that is free to download. The eToro digital wallet also allows you to buy, trade, and convert digital currencies. Bitcoin is a form of digital currency that aims to eliminate the need for central authorities such as banks or governments. Instead, Bitcoin uses blockchain technology to support peer-to-peer transactions between users on a decentralized network.

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