How to Buy Cryptocurrency in the UK
Cryptocurrency adoption is rising in the UK, and buying crypto has never been more accessible.
Whether you’re new to digital assets or looking to refine your buying strategy, this guide walks you through the entire process—from selecting a platform and funding your account, to storing your crypto securely and understanding your tax obligations.
Quick summary: how to buy crypto in the UK
- Choose a crypto platform (exchange or broker)
- Verify your identity (via passport, licence, or ID card)
- Deposit GBP via bank transfer, card, or e-wallet
- Select a cryptocurrency (Bitcoin, Ethereum, or others)
- Place an order using market or limit functionality
- Secure your investment using an exchange or personal wallet
Best UK platforms for buying crypto
Not all platforms are equal. Some are built for first-time users, while others offer deep trading tools or mobile-first features.
Here’s a breakdown of platforms popular with UK users:
| Feature | eToro | Coinbase | Coinbase Advanced Trade | Best Wallet | Kraken | Uphold |
|---|---|---|---|---|---|---|
| Ease of Use | Simple, ideal for beginners | Clean interface, easy to use | Better for experienced traders | Mobile-first, intuitive | More complex, feature-rich | Very beginner-friendly |
| Fees | 1% spread on crypto trades | 1.49% per transaction | 0.4% maker / 0.6% taker | Variable, low spreads | 0.16% maker / 0.26% taker | Spread-based fees |
| GBP Funding | Bank, card | Bank, card, PayPal | Bank, card | Bank, card | Bank, card | Bank, card |
| Cryptos Available | 75+ | 240+ | 240+ | 350+ | 200+ | 250+ |
| FCA Registered | Yes | No | No | No | Yes | Yes |
| Extra Features | CopyTrading, stocks | Learn & Earn, staking | Pro charts & order types | Multi-chain support | Staking, margin trading | Auto investing, multi-asset platform |
What is cryptocurrency?
Cryptocurrency is a form of digital money built on blockchain technology. Unlike fiat currencies like GBP or USD, cryptocurrencies are decentralised, meaning no central authority controls them. Instead, transactions are verified and recorded by a distributed network of computers.
Main categories of crypto:
- Payment coins: Used for transferring value (e.g. Bitcoin, Litecoin)
- Smart contract platforms: Power decentralised applications (e.g. Ethereum, Solana)
- Stablecoins: Pegged to a fiat currency (e.g. Tether, USDC)
- Utility tokens: Offer functions within an ecosystem (e.g. BNB, UNI)
These digital assets are used for investment, peer-to-peer payments, gaming, NFTs, DeFi protocols, and more.
Popular cryptocurrencies in the UK
Here’s a snapshot of the coins most widely traded by UK users in 2025:
- Bitcoin (BTC): The first and largest crypto, often used as a store of value
- Ethereum (ETH): Enables smart contracts and DeFi; widely adopted by developers
- Tether (USDT): A stablecoin tied to USD, commonly used for trading pairs
- Ripple (XRP): Focused on fast international payments
- Solana (SOL): A fast, low-fee smart contract platform competing with Ethereum
- Cardano (ADA): Built for scalability, with peer-reviewed blockchain development
- Polkadot (DOT): Designed to connect multiple blockchains and networks
What to consider before buying crypto in the UK
Before you make your first purchase, consider these factors:
1. Regulatory status
Choose platforms that are registered or approved to operate in the UK. FCA registration doesn’t mean full protection, but it does indicate stronger compliance with anti-money laundering rules.
See our guide to the best crypto exchanges in the UK.
2. Security measures
Look for platforms that offer:
- Two-factor authentication (2FA)
- Cold wallet storage for user funds
- Email confirmations for transactions
- Audits or proof-of-reserves disclosures
3. GBP support
Avoid unnecessary currency conversion by using exchanges that let you deposit and withdraw in pounds.
4. Fees
Understand the fee model:
- Spreads (brokers like eToro)
- Maker/taker fees (exchanges like Kraken, Coinbase Advanced)
- Deposit/withdrawal fees
5. Trading tools
New users may want a basic “buy/sell” interface. Advanced users might prefer depth charts, order books, and technical indicators.
6. Wallet compatibility
Does the platform support withdrawals to third-party wallets? Can you connect to MetaMask or use a hardware wallet?
Step-by-step guide: how to buy crypto in the UK
Step 1: Choose a crypto exchange or broker
- eToro: Ideal for hands-off investors using CopyTrading
- Coinbase: Best for simplicity and trust
- Kraken: Good for lower fees and active trading
- Best Wallet: Great for mobile and multi-chain asset management
Step 2: Register and verify your identity
Complete Know Your Customer (KYC) by submitting:
- Name, address, date of birth
- Government-issued ID (passport, licence)
- Sometimes a selfie or proof of address
KYC is required to unlock full functionality on regulated platforms.
Step 3: Deposit GBP
Most platforms support the following:
- Bank transfers: Often free, processed in 1–2 days
- Credit/debit cards: Instant, but fees can be 1.5%–3%
- PayPal: Available on Coinbase, convenient for quick buys
Step 4: Choose a crypto and place your order
Decide how much to invest, choose a coin, and pick an order type:
- Market order: Instantly buys at current price
- Limit order: Executes only if price hits your target
- Recurring buy: Automate purchases weekly or monthly
Most platforms let you invest from as little as £10.
Step 5: Secure your crypto in a wallet
You can:
- Leave it on the exchange (easy, less secure)
- Move it to a hot wallet (e.g. MetaMask, Trust Wallet)
- Use a hardware wallet (e.g. Ledger, Trezor) for cold storage
| Storage Option | Pros | Cons | Security Level |
|---|---|---|---|
| On exchange | Easy access, built-in UI | Risk of platform hacks | Moderate |
| Hot wallet | Accessible, self-custody | Online, more phishing risk | Good |
| Cold wallet | Offline, most secure | Requires hardware and setup | Excellent |
Alternative ways to gain exposure to crypto
You don’t always have to buy tokens directly.
Here are other options:
- Crypto stocks: Shares in public companies like Coinbase, MicroStrategy, or Nvidia
- ETNs or ETPs: Exchange-traded products (note: banned for UK retail investors)
- Managed portfolios: eToro’s CryptoPortfolio or CoinJar Bundles
- Fintech apps: PayPal and Revolut allow basic crypto purchases and storage
- DeFi apps: Use decentralised platforms like Uniswap or Aave (requires a wallet)
Do I need to pay tax on crypto in the UK?
Yes. HMRC treats crypto as property, not currency.
- Capital Gains Tax: Applies when you sell, swap, gift, or spend crypto
- Income Tax: Applies to mining, staking, and earning crypto through work or rewards
Allowance:
- 2025 Capital Gains Tax-free allowance: £3,000
- You pay tax on profits above this, unless gifting to a spouse
Records you must keep:
- Date of transaction
- Type and amount of crypto
- Value in GBP at the time
- Wallet addresses used
- Fees paid
Is crypto legal in the UK?
Yes. It’s legal to buy, hold, and trade crypto in the UK.
However:
- Cryptocurrencies are not legal tender
- They are not protected by the FSCS
- FCA registration means the exchange complies with anti-money laundering laws, but not that your assets are insured
Final thoughts
Cryptocurrency investing is no longer limited to early adopters or tech experts. With a growing number of user-friendly, UK-accessible platforms, buying crypto is now simple and secure—if you follow the right steps.
Do your research, pick a regulated platform, and always secure your investments. Whether you’re buying Bitcoin for the long term or exploring altcoins, understanding the process is the first step to making informed decisions.
Frequently asked questions
What is the cheapest way to buy crypto in the UK?
Kraken and Binance typically offer the lowest trading fees. Kraken’s maker/taker fees start at 0.16% and 0.26%.
Is Coinbase or eToro better?
Coinbase offers more coins and better wallet integration. eToro is simpler for beginners and includes unique features like CopyTrading.
Can I buy crypto with PayPal?
Yes. Coinbase supports PayPal for deposits and withdrawals. PayPal also allows direct crypto purchases inside its app.
Should I use a wallet or leave crypto on the exchange?
For long-term holding, use a hardware wallet. For frequent trading, keeping funds on a secure exchange with 2FA is acceptable.
How much do I need to start?
Most platforms allow purchases from £10. You can buy fractions of coins, so you don’t need to afford a whole Bitcoin.
How much should you invest in cryptocurrency as a beginner?
Start with a small amount you can afford to lose—typically no more than 1% to 5% of your overall portfolio. Cryptocurrency is highly volatile, so it’s wise to gain experience before increasing your exposure.
How do I acquire crypto as a beginner?
To get started, sign up with a user-friendly platform like eToro or Coinbase, verify your identity, and deposit funds in GBP. Then you can purchase crypto directly through their app or website with just a few clicks.
How do you cash out your cryptocurrency?
You can sell your crypto on an exchange and withdraw the proceeds to your linked UK bank account. Most platforms support withdrawals via Faster Payments, though fees and processing times can vary.
Is it legal to buy crypto in the UK?
Yes, buying and holding cryptocurrency is legal in the UK. Use FCA-registered exchanges for added safety, but be aware that crypto is not protected by the Financial Services Compensation Scheme (FSCS).
What is the best platform to buy cryptocurrency UK?
eToro is best for beginners due to its simple interface and social trading tools. Coinbase is another strong option with a wide selection of coins and strong security features.
What payment methods can I use to buy crypto in the UK?
Most platforms support bank transfers, debit/credit cards, and some also accept PayPal. Bank transfers tend to have lower fees, while card payments offer instant access.
How can I buy crypto from the UK?
Choose a regulated platform, verify your identity, and deposit GBP into your account. Then select a cryptocurrency and complete your purchase through the exchange’s website or mobile app.
How do I invest in cryptocurrency in the UK for beginners?
Start by selecting a trusted platform like eToro or Coinbase. Once verified, deposit funds, choose a popular coin like Bitcoin or Ethereum, and place your first order. Use a wallet for long-term security.
How to buy cryptocurrency in UK for beginners?
Pick an FCA-registered platform, complete identity verification, and deposit funds in GBP. Use a simple interface to choose your coin and confirm your purchase—no technical skills required.
Similar guides
Sources
- Financial Conduct Authority (FCA): https://www.fca.org.uk
- HM Revenue & Customs (HMRC): https://www.gov.uk/government/publications/tax-on-cryptoassets
- Coinbase Help Center: https://help.coinbase.com
- eToro Fees Page: https://www.etoro.com/customer-service/fees/
- Kraken Fee Schedule: https://www.kraken.com/en-gb/features/fee-schedule
- Binance Fees: https://www.binance.com/en/fee/schedule
- Gemini Security & Features: https://www.gemini.com/security
- CoinJar UK: https://www.coinjar.com/uk
- Uphold Pricing: https://uphold.com/en/pricing
