How to Invest in Bitcoin in the UK in 2025
Bitcoin is the most widely known cryptocurrency, and buying it in the UK is easier than ever.
But smart investing requires more than signing up to a crypto app. You need the right platform, a secure wallet, and an understanding of the risks involved.
This guide explains everything you need to know—from how Bitcoin works to the best places to buy and store it safely.
What is Bitcoin?
Bitcoin is a digital currency that allows people to send money over the internet without using banks. It runs on a public, decentralised network called the blockchain, where all transactions are recorded and can’t be changed.
Only 21 million Bitcoins will ever exist. That limited supply makes it more like gold than traditional money. It’s not controlled by any government or central bank, and it can be sent anywhere, at any time.
How to invest in Bitcoin in the UK
Step-by-step guide
- Choose a crypto exchange: Pick a trusted UK-friendly platform like eToro, Coinbase, or CoinJar. These platforms let you buy and sell Bitcoin with pounds and offer built-in wallets.
- Create your account and verify your ID: Most platforms ask for a photo ID and proof of address. This helps them comply with anti-money laundering rules.
- Deposit funds: You can fund your account via bank transfer or debit card. Bank transfers often have lower fees.
- Buy Bitcoin: Use your funds to buy Bitcoin. You can buy a whole coin or a small fraction—whatever suits your budget.
- Store your Bitcoin: You can leave your Bitcoin in the exchange or move it to a private wallet for better security.
Best places to buy Bitcoin in the UK
eToro – Best for beginners and copy trading
- Minimum deposit: £40
- Fees: 1% trading, £4 withdrawal
- Supported cryptocurrencies: 70+
- Wallet: eToro Money
- FCA registered: Yes
eToro is simple to use and has copy trading tools that let you follow experienced investors. It supports multiple asset types, including stocks and ETFs. The eToro Money app also works as a crypto wallet and lets you convert pounds to dollars for free.
Best for: new investors and those who want an all-in-one platform.
Coinbase – Best for user experience and coin variety
- Minimum deposit: £0
- Fees: Up to 0.60% per trade
- Supported cryptocurrencies: 240+
- Wallet: Coinbase Wallet
- FCA registered: No
Coinbase offers a clean interface, mobile app, and access to hundreds of cryptocurrencies. It also has a debit card that lets you spend your crypto like cash. Its separate wallet app supports DeFi apps and NFTs.
Best for: users who want ease of use and a wide range of crypto options.
CoinJar – Best for crypto bundles and spending options
- Minimum deposit: £10
- Fees: 1% (app), 0.1% (exchange)
- Supported cryptocurrencies: 50+
- Wallet: CoinJar Wallet
- FCA registered: Yes
CoinJar is beginner-friendly and offers ready-made “crypto bundles” that work like index funds. It also has a prepaid card that automatically converts Bitcoin to pounds when you spend. There are no monthly fees for the card.
Best for: simple crypto investing and spending.
Gemini – Strong on security and advanced features
- Minimum deposit: £0
- Fees: Up to 1.49% (lower on ActiveTrader)
- Supported cryptocurrencies: 100+
- Wallet: Gemini Wallet
- FCA registered: Yes
Gemini is built with security in mind. It offers both a standard trading app and an advanced platform called ActiveTrader. It also supports a clearing service for large trades between two parties.
Best for: users who want security and advanced trading tools.
Uphold – Best for staking and multi-currency use
- Minimum deposit: £0.80
- Fees: 0.9%–1.2% spread
- Withdrawal fee: £3.22
- Supported cryptocurrencies: 250+
- Wallet: Uphold Wallet
- FCA registered: Yes
Uphold lets you earn staking rewards on your crypto and offers a prepaid card that earns cashback. It also supports forex trading and stocks. The platform has a wide range of assets and transparent pricing.
Best for: users looking to stake crypto or diversify into other assets.
How to store Bitcoin safely
When you buy Bitcoin, you get access to a secure balance on the blockchain. You manage this balance using a crypto wallet.
Key terms
- Public key: Like an account number. You can share this to receive funds.
- Private key: Like a password. Never share it. If you lose it, your Bitcoin is gone.
- Wallet: A tool that stores your public and private keys.
Wallet types
| Type | Description | Best for |
|---|---|---|
| Hot wallet | Connected to the internet | Daily use and trading |
| Cold wallet | Offline hardware or paper wallet | Long-term storage |
| Custodial wallet | Managed by an exchange | Beginners |
| Non-custodial | You control your private keys | Experienced users |
Most platforms offer built-in wallets, but you can move your crypto to a cold wallet for extra safety.
Bitcoin price history
Bitcoin’s price has grown dramatically, but it’s also very volatile. Here’s how it has changed over the years:
| Year | Price (approx.) |
|---|---|
| 2010 | Less than £0.01 |
| 2013 | £100 |
| 2017 | £15,000 |
| 2022 | £33,000 |
| 2025 | £63,600 |
Prices can rise or fall by 20% or more in a short time. Never invest more than you can afford to lose.
Which wallets are recommended?
Top options include:
- Coinbase Wallet – Easy to use, supports NFTs and DeFi
- eToro Money – Comes with your eToro account
- CoinJar Wallet – Free, simple, and supports 50+ coins
- Uphold Wallet – Stores keys for you
- Bither Wallet – Offers hot and cold storage
Bitcoin remains the most widely used and accepted.
Common Bitcoin investing mistakes (and how to avoid them)
Even experienced investors can make simple mistakes when buying Bitcoin. Here are the most common missteps to watch out for—and how to avoid them.
Buying during hype without research
Price spikes often draw in new investors. But chasing short-term trends can lead to big losses if the price crashes.
Tip: Always research the market and understand Bitcoin’s long-term value before buying.
Leaving Bitcoin on the exchange
While exchanges are convenient, they’re also targets for cyberattacks. If the exchange is hacked or goes bankrupt, you could lose your funds.
Tip: Use a private wallet for long-term storage.
Losing access to your wallet
Private keys are the only way to access your Bitcoin. If you lose them, your Bitcoin is gone forever.
Tip: Store backup phrases offline and never share them.
Ignoring fees
Different platforms charge different fees—and these can add up, especially with small trades.
Tip: Compare trading and withdrawal fees before you choose a platform.
Forgetting about taxes
In the UK, profits from Bitcoin are taxable. Not tracking your gains can lead to problems with HMRC.
Tip: Keep records of all transactions and check your Capital Gains Tax obligations.
Bitcoin investing strategies: long-term vs short-term
Before you invest, it helps to know your strategy. Bitcoin can be part of a long-term portfolio or a short-term trading plan.
Long-term (HODLing)
This strategy involves buying Bitcoin and holding it for years. Many investors believe the limited supply will drive prices up over time.
- Pros: Simpler, less time-consuming, lower trading fees
- Cons: Volatile ride, no way to benefit from short-term moves
- Best for: Investors with high risk tolerance and long-term outlooks
Short-term trading
Some users buy and sell Bitcoin frequently, hoping to profit from daily or weekly price changes.
- Pros: Potential for quick gains
- Cons: High risk, more complex, subject to trading fees
- Best for: Active traders with technical knowledge
How to pick the best Bitcoin exchange for you
Not all crypto platforms are the same. Here’s what to look for when choosing a Bitcoin exchange:
| Factor | Why it matters |
|---|---|
| FCA Registration | Offers more credibility and better compliance with UK rules |
| Trading Fees | Lower fees mean more of your money goes into the investment |
| Deposit Options | Look for GBP bank transfer or debit card support |
| User Experience | Beginners benefit from clean, simple interfaces |
| Security Features | Choose exchanges with 2FA, cold storage, and insurance |
| Withdrawal Limits | Important if you plan to cash out larger sums later |
How to protect your Bitcoin investment
Security is essential in crypto. Follow these steps to keep your Bitcoin safe:
- Use two-factor authentication on your exchange and wallet accounts
- Write down your wallet recovery phrase and store it in a safe, offline location
- Avoid using public Wi-Fi when managing your crypto
- Keep your apps and devices updated to reduce the risk of malware
- Don’t share your private key or recovery phrase with anyone
If you’re holding a large amount of Bitcoin, consider using a hardware wallet for cold storage.
Bitcoin and taxes in the UK: what to know
Profits made from buying and selling Bitcoin are subject to Capital Gains Tax in the UK.
Here’s what you need to know:
- HMRC treats Bitcoin as an asset, not currency
- You may owe tax if you:
- Sell Bitcoin for fiat (GBP)
- Exchange Bitcoin for another crypto
- Use Bitcoin to buy goods or services
- You don’t pay tax if you buy and hold Bitcoin without selling
Tax-free allowance
As of 2025, UK residents can earn up to £3,000 in capital gains tax-free each year (check the latest threshold on gov.uk).
Recordkeeping tips
- Track the date, amount, and GBP value of every transaction
- Use crypto tax software or an Excel sheet to stay organised
- Declare any gains on your self-assessment tax return
Final thoughts
Investing in Bitcoin is legal, accessible, and easy to get started in the UK. But it’s also high risk. Prices are volatile, and your investment is not protected by the FCA or FSCS.
Before you invest:
- Choose a secure, reliable exchange
- Understand the platform’s fees
- Store your Bitcoin safely
- Know your tax responsibilities
Bitcoin can be a valuable part of a long-term investment strategy—but only if you go in with clear goals and understand the risks.
Frequently asked questions
Is Bitcoin legal in the UK?
Yes. UK residents can legally buy, sell, and own Bitcoin. However, the Financial Conduct Authority (FCA) does not regulate cryptocurrencies. There’s no government protection if a platform fails.
Do I pay tax on Bitcoin?
Yes. Profits from selling Bitcoin are subject to Capital Gains Tax. HMRC requires you to report gains and keep records of your transactions.
Is Bitcoin safe?
Bitcoin is secure by design, but how you store it matters. Use two-factor authentication, a strong password, and a trusted wallet. Cold storage is safest for large amounts.
What’s the minimum I can invest?
You can invest as little as £10. Bitcoin is divisible, so you can own small fractions.
How to buy Bitcoin UK?
To buy Bitcoin in the UK, create an account with a crypto exchange like eToro, Coinbase, or CoinJar. Once verified, fund your account in GBP and place your order for Bitcoin.
Best site to purchase Bitcoin in UK?
eToro is one of the best platforms for buying Bitcoin in the UK due to its ease of use, FCA registration, and built-in wallet features. Coinbase and CoinJar are also strong options depending on your experience level.
Easiest way to buy Bitcoin in UK?
The easiest way is through a beginner-friendly app like eToro or Coinbase. You can sign up, verify your ID, and buy Bitcoin in minutes using a bank card or transfer.
Buy Bitcoin in UK with debit card?
Most UK exchanges accept debit cards for instant GBP deposits. eToro, Coinbase, and Gemini all support debit card purchases, but fees may vary by platform.
Cheapest way to buy Bitcoin UK?
The cheapest way is usually via bank transfer to a low-fee exchange like CoinJar or Gemini. Always compare trading, deposit, and withdrawal fees before choosing a platform.
How to buy Bitcoin on Revolut?
To buy Bitcoin on Revolut, open the app, go to the ‘Crypto’ section, and select Bitcoin. Confirm your identity, add funds, and make your purchase directly within the app.
How do beginners buy Bitcoins in the UK?
Beginners should use a trusted platform like eToro or Coinbase. These exchanges offer user-friendly interfaces, educational tools, and secure wallet options.
Is it legal to buy Bitcoin in the UK?
Yes, it’s legal to buy, own, and sell Bitcoin in the UK. However, crypto is not regulated by the FCA in the same way as traditional financial products, so investor protections are limited.
Is Bitcoin a good investment in the UK?
Bitcoin can be part of a long-term investment strategy, but it’s highly volatile. Only invest if you understand the risks and are prepared to handle price swings.
Is it worth it to buy Bitcoin now?
That depends on your goals and risk tolerance. If you believe in Bitcoin’s long-term potential, buying during a dip or setting up regular investments may be worthwhile.
How much should I invest in Bitcoin as a beginner?
Start small—many platforms let you invest as little as £10. Only invest what you can afford to lose and consider spreading risk across other assets.
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
