Buy Bitcoin UK (BTC)
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Alright, so you want to buy some Bitcoin. First things first, a quick crash course on buying crypto in general.
Cryptocurrencies are bought through exchanges. Exchanges are platforms you need to sign up for (like forums/apps or any other website with user accounts). Once you’ve signed up, you can log in, deposit credits/money (preferably GBP) into your account. And then you can use that money to buy cryptocurrencies on the platform/exchange.
Buying Bitcoin in the UK has become pretty easy since CEX.io came onto the crypto scene. Just sign up, verify your account, and buy BTC with GBP.
We’ve laid out the steps on how to get started below!
How To Buy Bitcoin in the UK
- Register for an account with CEX.io.
- Verify your account.
- Deposit GBP into your account
- Click the “Buy/Sell” link
- Select “Bitcoin” and “GBP”.
- Enter the amount of GBP you want to trade for BTC, or how much BTC you want to buy.
- Review the details.
- Click “Buy”
How To Get Started
Setup Your Account
CEX.io is definitely our go-to crypto trading platform in the UK. They offer a great range of cryptocurrencies and they are UK based so it's easy to sign up and use GBP to trade.
The first thing you'll need to do is sign up for an account from their homepage.
Verify Your Account
After you've created your account, to unlock higher limits you'll need to verify your account. You can do this by clicking on your name top right then clicking on "Verification", this will take you to a separate subdomain where you can verify your details. You will have to fill out all of your personal information including any documents required, don't worry about this, every exchange requires it. Cryptocurrency exchanges need to request this information to abide by local laws.
Fund Your Account
You can now deposit money in your account, there are a few different options which you can see below. If you have any issues you can always reach out to their support team.
Once you’ve funded your account with GBP, you’re set to buy some crypto.
CEX.io caters for all users, so they have both simple and advanced ways of buying cryptocurrency. Essentially you can just choose which Cryptocurrency you want to buy and which local currency you want to use, in this case GBP.
Where To Buy Bitcoin
We reviewed all of the exchanges available in the UK and we highly suggest using CEX. It far surpasses the other exchanges as the best option due to it's customized platform and ease of use.
CEX is by far our favourite exchange for people in the UK. Their platform is incredibly easy to use and allows you to buy Cryptocurrencies with GBP. They have their HQ in the UK so it allows from some great benefits like faster payments and localised support.
What is Bitcoin?
What Is the History of Bitcoin?
Bitcoin’s whitepaper was published in 2008 but the coin itself was launched in January the following year when the “Genesis Block” was mined. An individual under the name of Satoshi Nakamoto is the brains behind Bitcoin and the whole blockchain technology. To this day, their identity hasn’t been discovered, with some people suspecting there’s a whole group of cryptographers hiding behind the pseudonym.
Regardless of their true identity, one thing is for sure – we owe much to this genius who revolutionized the financial industry with their invention. Before Bitcoin, the traditional financial system relied on financial institutions such as banks to take on the role of the middleman and mediate in money transactions. They made sure the money you had sent arrived safely in the receiver’s account.
But Nakamoto’s payment system doesn’t need the help of such intermediaries to verify the transactions or protect the funds stored online. Instead of relying on something as relative and responsible as “trust”, the blockchain technology believes in the power of cryptography. The miners who do a validator’s job on the peer to peer network perform a cryptographic proof of work thus solving the “double-spend” problem.
Why Was Bitcoin Created?
Nakamoto’s electronic payment system and Bitcoin have a number of advantages over centralized money transfers. The first one is traders being able to have more privacy. Yes, the blockchain with the stored transactions is open and accessible to everyone, but these transactions aren’t linked with the identity of the senders and receivers. What’s shown are just encrypted addresses.
This means that you no longer have to share all kinds of private information with your bank in order to be allowed to send money to a friend, for example. You’re also free from the extra service costs, saving not only money but something even more valuable – time. Bitcoin transactions, both local and international, are almost instantaneous. If you want to learn more, we have a separate guide focused on Bitcoin transfers.
In the last couple of years, trading bitcoins and other cryptocurrencies has become not only more popular but easier as well. All you need to do is just set up an account on a crypto exchange platform and engage in buying, selling, trading, or sending digital coins. Most of them allow you to deposit British Pounds to your account and use them to purchase bitcoins. In the UK, the most popular exchange is CEX.io, followed by CoinBurp and Coinfloor.
Who Is Bitcoin For?
Bitcoin is traded on a daily basis by individual investors, small businesses, large corporations, and retail traders as well. It’s a popular investment across the globe, so for those of you who aren’t UK citizens or happen to be interested in learning about other crypto markets check out our guides on how to buy Bitcoin in Australia, Canada, and the US.
A lot of companies have benefited from investing in Bitcoin and taking that small leap of faith. Some of them have resorted to cryptocurrencies as the best alternative in case of political or social upheaval in the near future that could disrupt the financial sector. Others value their privacy and turn to Bitcoin to avoid disclosing their transaction details with another central authority.
People hold on to their bitcoins hoping that their price will continue to go up and they’ll be able to sell them for incredible sums, or if, years from now, cryptocurrencies supplant our fiat currencies, they’ll already have accumulated a small fortune. When it comes to storing these coins, this is usually done online, in a digital wallet. You can check our guide on the best Bitcoin wallets, including the newest trend – a hardware wallet for the ultimate protection.
Having said that, not all of those who have purchased bitcoins are “hoarders”. A lot of them use these coins for everyday purchases, either online or at certain retail shops, food chains, pubs and restaurants that accept bitcoins as a payment method. The US state of Ohio allows its citizens to pay their taxes with bitcoins, with a couple more states to follow. Maybe it won’t be too long before the UK chooses to do the same.
What Are Bitcoin’s Pros and Cons
The major disadvantage of Bitcoin is the volatile nature that makes it an unreliable asset for many merchants and traders. If merchants add bitcoin prices to their products and then Bitcoin’s price drops dramatically, they’ll experience great losses. In the same line, customers can rely on their bitcoin resources as their worth can change at the moment of making a purchase.
This is one of the reasons why crypto trading is still unregulated in many places around the world. On the other hand, some traders like the thrill of speculating on the price of Bitcoin and earning their share from it. Higher volatility equals higher returns in the long run.
Bitcoin definitely has a lot to offer. What other coins in the world allow you to trade pseudonymously? Why wait several days for international transfers when you can send bitcoins and complete your transaction within a few hours. Moreover, Bitcoin transactions are irreversible, stored on a digital ledger that prevents editing or deleting the data. Anyone who tries to alter a transaction would have to go and change numerous preceding transactions.
Yes, we cannot discard the fact that investing or trading with Bitcoin is a risky business, but if you do thorough research and familiarize yourself with the potential hazards and how to avoid them, it can turn into a very profitable job instead.
How Has Bitcoin Inspired Other Cryptocurrencies?
Bitcoin remains the leader among cryptocurrencies as a worldwide accepted store of value. Despite the occasional price fluctuations, it’s still comparatively steady compared to other digital coins.
However, different cryptos can be used for different purposes without unnecessary competition. For example, the second most popular cryptocurrency, Ethereum, is used to pay for the use of smart contracts on the Ethereum platform.
We’re positive that in the future the use cases of cryptocurrencies will only magnify across a range of industries.
Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.