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.
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 |
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.
These digital assets are used for investment, peer-to-peer payments, gaming, NFTs, DeFi protocols, and more.
Here’s a snapshot of the coins most widely traded by UK users in 2025:
Before you make your first purchase, consider these factors:
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.
Look for platforms that offer:
Avoid unnecessary currency conversion by using exchanges that let you deposit and withdraw in pounds.
Understand the fee model:
New users may want a basic “buy/sell” interface. Advanced users might prefer depth charts, order books, and technical indicators.
Does the platform support withdrawals to third-party wallets? Can you connect to MetaMask or use a hardware wallet?
Complete Know Your Customer (KYC) by submitting:
KYC is required to unlock full functionality on regulated platforms.
Most platforms support the following:
Decide how much to invest, choose a coin, and pick an order type:
Most platforms let you invest from as little as £10.
You can:
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 |
You don’t always have to buy tokens directly.
Here are other options:
Yes. HMRC treats crypto as property, not currency.
Yes. It’s legal to buy, hold, and trade crypto in the UK.
However:
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.
Kraken and Binance typically offer the lowest trading fees. Kraken’s maker/taker fees start at 0.16% and 0.26%.
Coinbase offers more coins and better wallet integration. eToro is simpler for beginners and includes unique features like CopyTrading.
Yes. Coinbase supports PayPal for deposits and withdrawals. PayPal also allows direct crypto purchases inside its app.
For long-term holding, use a hardware wallet. For frequent trading, keeping funds on a secure exchange with 2FA is acceptable.
Most platforms allow purchases from £10. You can buy fractions of coins, so you don’t need to afford a whole Bitcoin.
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.
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.
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.
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).
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.
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.
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.
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.
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.