Bitcoin has taken the world by storm in recent years – with the digital currency now a multi-billion dollar asset. If you’re based in the UK and wondering what Bitcoin is and how it actually works – this guide is for you.

This Bitcoin for Beginners UK tutorial will not only discuss the fundamentals in a user-friendly way – but we’ll also show you how to get started with your first crypto investment with an FCA-regulated broker!

#1 Broker to Invest in Bitcoin – eToro

Bitcoin for Beginners UK – Choose a Broker

People in the UK typically buy Bitcoin because they want to make money. The process works in a similar way to that of stocks and shares – insofar that you will need to go through a trusted broker.

Below you will find a list of the best Bitcoin brokers in the UK right now.

  • eToro – Overall Best Bitcoin Platform for Beginners UK
  • Coinbase – Great Bitcoin Investment Platform for User-Friendliness
  • Binance – Popular Bitcoin Exchange With Crypto Savings Accounts

If you’re interested in buying a bit of Bitcoin for yourself – we review the above brokers further down in this guide.

Bitcoin for Beginners UK – A Quick Guide For 2021

Completely new to Bitcoin? If so, below you will find a very quick Bitcoin for beginners UK overview to run you through the basics.

  • Step 1: Open an Account with eToro – If you want to invest in Bitcoin for the very first time – you will need to open an account with a beginner-friendly broker. eToro is a great option here – as the platform is easy to use and most importantly – is regulated by the FCA.
  • Step 2: Do some Research – Bitcoin won’t be for everyone – especially if you have a low appetite for risk. As such, spend some time researching the ins and outs of Bitcoin from an investment perspective. Guides like ours are a great start!
  • Step 3: Deposit Funds – If you decide that Bitcoin is right for your portfolio – you will need to deposit some funds into your eToro account. You can do this easily by using your Visa or MasterCard, bank account, or an e-wallet like Paypal.
  • Step 4: Invest in Bitcoin – Now that you have money in your eToro account, you can proceed to invest in Bitcoin! You simply need to search for Bitcoin, click the ‘Trade’ button, and enter your stake ($25 minimum – about £18). Finally, click on the ‘Open Trade’ button to complete your investment. Your newly purchased Bitcoin will remain in your eToro portfolio until you decide to sell.
  • Step 5: Sell Bitcoin for Cash – If your Bitcoin investment has grown by an amount you are happy with – you can instantly cash out via your eToro account. The funds will then be available for withdrawal back to the same payment method you used to make the purchase!

As you can see from the above quickfire guide, the process of investing in and making money from Bitcoin is actually fairly simple. With that said, you will be putting your hard-earned money at risk when purchasing Bitcoin – so we would suggest reading the rest of this guide to learn a bit more about this innovative asset class.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Bitcoin for Beginners UK – What is Bitcoin?



In order to understand what Bitcoin actually is – we need to start with the basics. In a nutshell, Bitcoin was created in 2009 by an anonymous developer that goes by the name of ‘Satoshi Nakamoto’. The main concept with Bitcoin is that it allows users to send and receive funds via the underlying technology – which is known as the ‘blockchain’.

  • The blockchain is what makes Bitcoin unique, insofar that it operates in a ‘decentralized’ nature.
  • This simply means that no single person or authority has control over the blockchain – which subsequently allows users to transact without requiring a third party.
  • This is unlike a traditional bank transfer – whereby you need to go through the financial institution in question.

When somebody sends Bitcoin to another person, the transaction will take 10 minutes. Fees will vary depending on how busy the network is, but typically, this is around the £1 mark. This makes Bitcoin ideal for cross-border transactions – as the technology offers fast, low-cost, and burden-free transfers. With that being said, Bitcoin is not only a framework to facilitate transactions and payments.

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On the contrary, it is also a ‘cryptocurrency’. Otherwise referred to as a digital currency or crypto-asset, Bitcoin has a real-world value that is dictated by market forces. As a result, anyone in the UK can buy Bitcoin as a means to make money.

This can be achieved in the same way as investing in shares from an online broker. For example, if you invest in Bitcoin at a price of $40,000 per token and sell when it hits $60,000 – that’s a profit of 50%. In other words, if you invested £1,000 and made 50% – your take-home gains returns would amount to £1,500.

How Does the Price of Bitcoin Work?

So now that we have covered the basics, in this section of our Bitcoin for Beginners UK Guide we are going to explore how pricing works. That is to say, if you’re interested in investing in Bitcoin with the view of making money – you need to know how this crypto asset is valued.

Furthermore, you also need to have a grasp of what drives the value of Bitcoin in the open marketplace – much like you would when investing in an FTSE 100 company.

Bitcoin is Priced in USD

Make no mistake about it – although you will find several UK-based cryptocurrency brokers that price Bitcoin in pounds and pence – this industry is actually denoted in US dollars. This is no different from commodities like gold, silver, and oil – or agricultural products such as wheat and sugar. Crucially, it is important to get your head around Bitcoin prices in US dollars because there are some important levels to be aware of.

For instance, Bitcoin hit an all-time high of $64,000 earlier in 2021. This is a key pricing point – because if and when should Bitcoin surpasses this level, this would indicate that the markets are extremely confident in this crypto asset. More on this later.

bitcoin usd price

As a UK buyer used to investing in GBP – you shouldn’t be concerned that the Bitcoin marketplace is priced in USD. This is because FCA-regulated brokers like eToro will simply perform an FX conversion for you.

For instance, let’s suppose that you wanted to invest £500 into Bitcoin. We’ll say that at the time of the purchase, Bitcoin was trading at $50,000 per token. If Bitcoin increased by 10% – its market price would then be $55,000. On your £500 investment, you would be looking at gains at £50 (10% of £500).

What Determines the Price of Bitcoin?

As we mentioned earlier, the price of Bitcoin is dictated by demand and supply. Once again, this is no different from traditional shares that trade on the London Stock Exchange or NASDAQ.

  • This means that when the markets are ‘bullish’ about Bitcoin, its price will rise. This is because more people will be buying Bitcoin than those selling.
  • On the other hand, if there is a bit of negativity surrounding Bitcoin – perhaps because of a news story reporting that a major cryptocurrency exchange was hacked, then the markets might suddenly turn ‘bearish’.
  • This means that there will be more sellers than buyers and thus – the price of Bitcoin will go down.

This is why it’s important to stay ahead of the curve by performing regular research on Bitcoin and the wider cryptocurrency arena.

How Much do you Need to Invest in Bitcoin?

Bitcoin is now a digital asset that trades for tens of thousands of dollars. As we briefly noted earlier, Bitcoin recently hit an all-time high of about $64,000. At current exchange rates, this works out at approximately £46,000. It goes without saying that as a casual retail investor – you likely do not want to buy £46,000 worth of Bitcoin.

The good news is that unlike traditional shares – Bitcoin can be fractionalized into smaller units. In fact, it’s possible to buy just a tiny percentage of one Bitcoin – which is great for beginners.

what is bitcoin UK

With that said, you do need to find a suitable FCA-regulated broker that allows you to invest in fractional Bitcoin tokens. eToro is a good option here, as the minimum investment per trade is just $25 – or about £18. This means that if the price of Bitcoin is $25,000 and you invest the GBP equivalent of $250 – you would own 1% of a Bitcoin token.

How do Beginners Make Money From Bitcoin?

In the previous section of our guide on Bitcoin for Beginners UK – we talked about how this digital currency is priced in the open marketplace. Now, we are going to explain how you can actually make money from Bitcoin as a newbie.

Capital Gains

The main way that you can make money from Bitcoin in the UK is via capital gains. Once again going back to our comparison of traditional stocks and shares, the process with Bitcoin is actually like-for-like.

For instance:

  • Let’s say that you are interested in Apple stocks – which are priced at $155 per share
  • You decide to invest a total of £1,550
  • A few months later, Apple stocks have increased to $232.50 per share
  • This represents gains of 50%
  • On your investment of £1,550 – that’s a total profit of £775

As you can see from the above, it doesn’t matter that Apple shares are priced in US dollars. The shares increased by 50% – so all you need to do to calculate your gains is to multiply this by your stake. In this example, that’s 50% of £1,550 – which amounts to a profit of £775.

Now let’s transition this example into the case of Bitcoin.

  • Let’s say that you decide to invest £1,000 into Bitcoin
  • Bitcoin is currently trading at $50,000 per token
  • A few months later, Bitcoin has increased to $150,000 per token
  • This represents gains of 200%
  • On your investment of £1,000 – that’s a total profit of £2,000

The good news is that unlike the traditional stocks and shares industry, cryptocurrencies like Bitcoin are traded 24 hours per day – 7 days per week. This means that at any given time you can cash your investment out. We walk about this later on in this guide.

Regular Interest

We should also note that it is now possible to earn interest on your Bitcoin investment. This works in a similar way to a savings account, whereby you will earn a fixed rate of interest for as long as your funds are invested. The provider behind the Bitcoin savings account will loan your digital assets to somebody that needs to borrow capital.

bitcoin savings account

The borrower will therefore pay interest on top of the loaned funds – which is distributed to you as an investor. Some platforms now pay in the region of 8% per year on Bitcoin savings accounts – which is very competitive. And of course, you will still earn capital gains as normal – should the value of Bitcoin increase in the open market.

Where to Buy Bitcoin in the UK as a Beginner?

So now that you know how to make money from this innovative digital asset, in this section of our Beginners UK Guide we are going to explore where you can invest.

This is a major part of the learning journey, as there are literally hundreds of brokers and exchanges that now allow you to buy Bitcoin from the comfort of your home. However, most of these platforms are unregulated or based in shady offshore jurisdictions – so it’s important to choose a provider wisely.

To ensure that you are aware of the best Bitcoin platforms serving UK clients, below we review a selection of top-rated brokers for your perusal.

1. eToro – Overall Best Bitcoin Platform for Beginners UK

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This Bitcoin for Beginners UK Guide found that eToro is a market leader in the cryptocurrency arena – especially if you are a newbie. This top-rated broker was first launched in 2007 and it is now used by over 20 million investors. The platform is home to a strong regulatory framework that includes authorization and licensing from the UK’s Financial Conduct Authority (FCA). For added scrutiny, eToro is also regulated in the US, Australia, and Cyprus.

The process of buying and selling Bitcoin at eToro could not be easier. Even if you are a complete novice, the end-to-end process shouldn’t take more than five minutes. It’s just a case of opening an account by providing some personal information and then making a deposit. You can do this with a UK debit/credit card, bank account, or e-wallet. Then, you just need to enter the amount of Bitcoin that you wish to buy and that’s it – eToro will carry out your investment in real-time.

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Best of all, there is no requirement to withdraw the Bitcoin tokens to a private cryptocurrency wallet. On the contrary, your investment will be safeguarded by eToro for as long as you wish. Any time that you want to cash out you just need to place a sell order from within your portfolio – and eToro will instantly convert the Bitcoin back to real money. In terms of fees and minimums, eToro allows you to invest in Bitcoin from just $25. You can do this on a spread-only basis – which for all intents and purposes, means that you will pay around 0.75% to invest.

This makes eToro one of the best-priced Bitcoin brokers in the UK. On top of Bitcoin, eToro also allows you to invest in 30+ other leading cryptocurrencies. This covers popular coins like Ethereum, Litecoin, Dogecoin, EOS, and Bitcoin Cash. If you have an interest in the wider cryptocurrency market, eToro also allows you to invest in a passive manner. This is achieved via the eToro CryptoPortfolio – which consists of multiple digital assets via a single basket. The CryptoPortfolio is managed by eToro – which is perfect for beginners.

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You might also like the eToro Copy Trading tool, which allows you to ‘copy’ an experienced investor. In a nutshell, anything that your chosen investor buys, sells, or trades will subsequently be replicated in your own account. In addition to Bitcoin and other cryptocurrencies, this top-rated FCA broker also supports alternative assets. This includes thousands of UK and international stocks and ETFs, commodities like gold and oil, indices, and forex. Finally, eToro also offers an award-winning mobile app that gives you unfettered access to your investment account.

Pros

  • Invest in cryptocurrencies on a spread-only basis
  • Buy thousands of UK and international stocks at 0% commission
  • Minimum investment per trade from just $25
  • Supports debit/credit cards, e-wallets, and local bank transfers
  • Regulated by the FCA, CySEC, and ASIC
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Coinbase – Great UK Bitcoin Platform for User-Friendliness

Buy MANA at Coinbase

Coinbase is a crypto-centric broker that is based in the US. The platform now serves over 56 million clients and has since entered the UK marketplace. This means that you can easily invest in Bitcoin via Coinbase in a safe and secure manner. Many first-time investors will choose Coinbase because it offers a simple and beginner-friendly interface. In a similar nature to eToro, all you need to do is open an account and upload a copy of your ID to get started.

If you prefer the speed and convenience of using a debit/credit card – you can invest in Bitcoin at Coinbase with Visa or MasterCard. The transaction will be processed instantly – which it makes the investment process fast and burden-free. However, we should make you aware that Coinbase will charge you a commission of 3.99% to invest in Bitcoin with your debit/credit card – which is huge. In comparison, eToro charges just 0.5% on deposits. Coinbase also supports deposits in the form of a UK bank transfer.

coinbase review

As this is executed via the Faster Payments network, the funds should arrive fairly quickly. However, you will still need to contend with a standard commission of 1.49% when you buy Bitcoin in this manner – and again when you eventually cash out. If you are happy to pay a premium to use Coinbase, you will benefit from a full range of safety nets that ensure your funds are kept secure at all times. This includes two-factor authentication, IP whitelisting, and 98% of client funds being kept in cold storage.

Pros

  • One of the most popular cryptocurrency exchanges
  • More than 56 million users
  • Supports instant debit card purchases
  • Dozens of digital currencies to choose from
  • Institutional-grade security practices

Cons

  • Debit card deposits are expensive at 3.99%
  • You will pay a standard trading commission of 1.49%

at eToro, UK’s #1 Broker

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

3. Binance – Popular Bitcoin Exchange With Crypto Savings Accounts


The third option that you might consider when investing in Bitcoin from the UK is Binance. We should note that Binance – which is the largest cryptocurrency exchange globally in terms of trading volume and registered users, does come with its pros and cons. In terms of its plus points, Binance allows you to invest in Bitcoin easily and quickly with your debit or credit card. You will pay a commission of 1.8% for the pleasure – which is cheaper than Coinbase but still much more expensive than eToro.

Binance offers a top-rated wallet that you can install on your Android or iOS phone. Or, for even more convenience, you might consider allowing Binance to store your Bitcoin for you via its centralized web wallet. Another core positive of using Binance to access the Bitcoin arena is that the platform offers cryptocurrency savings accounts. This means that you can earn both capital gains and regular interest on your Bitcoin investment. Additionally, Binance is home to hundreds of alternative cryptocurrencies.

binance review

This is ideal if you are thinking about building a long-term digital asset portfolio in a diversified way. The standard commission for trading cryptocurrencies at Binance is just 0.10% – which is very competitive. However, the overarching issue with Binance is that it has run into several problems with the FCA. This has resulted in Binance having its UK bank account facilities suspended – meaning that you can no longer withdraw GBP out of the exchange. Furthermore, Binance isn’t regulated in the UK – so you should only proceed at your own risk.

Pros

  • Facilitates billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits via debit/credit card
  • Trading commission starts at just 0.1% per slide
  • Offers crypto savings accounts
  • Ideal for both beginners and experienced traders alike

Cons

  • Not all supported cryptocurrencies can be purchased with a debit/credit card
  • No e-wallet deposits or withdrawals

at eToro, UK’s #1 Broker

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Bitcoin for Beginners UK – Storing Your Digital Assets

In the previous section of this Bitcoin for Beginners UK Guide, we reviewed the very best brokers operating in this space. With this in mind, the next part of the journey is to consider how you intend on storing your digital assets. After all, things work a little bit differently in the cryptocurrency industry, insofar that many people keep their tokens in a private ‘wallet’.

  • In doing so, this ensures that the Bitcoin investment remains decentralized.
  • In other words, you have full control of your Bitcoin and thus – nobody can gain access to your funds.
  • This is unlike keeping your money in a bank account or building society, as the respective financial institution controls your capital at all times.

Now, there are a few crucial things to know about Bitcoin wallets before you get started – so we will break these core fundamentals down in more detail in the mini-sections below.

Bitcoin Wallet Basics

As noted above, the primary purpose of keeping your Bitcoin in a cryptocurrency wallet is to keep your digital assets safe. Regardless of the wallet type you opt for – you will have a unique ‘public address’. In its most basic form, this is no different from the sort code and account number you have with your bank. That is to say if somebody wanted to send you money – these are the details that the person would need from you.

In the case of a Bitcoin wallet address, this consists of both letters and numbers. Furthermore, wallet addresses are very long at between 26 and 35 characters. In addition to your public wallet address, you will also have a ‘private key’. This is compatible with the password and PIN that you use to log into your online banking interface.

best bitcoin wallet UK

As such, your Bitcoin private key should not be shared with anyone else. If somebody did manage to get hold of your private key, they would essentially have unfettered access to your wallet and thus – your Bitcoin.

Finally, we should also note that Bitcoin wallets not only allow you to receive funds – but send crypto too. All you would need to do is enter the wallet address of the recipient alongside the quantity being sent – and the Bitcoin would arrive 10 minutes later.

Types of Bitcoin Wallets

Now that you know the basics of how Bitcoin wallets work, you also need to think about which type of storage option is best suited for your needs. Wallets can come via a mobile app, desktop software, or hardware device. Web wallets are also an option – which depending on the provider, might be the best solution for beginners.

We briefly explain each Bitcoin wallet type below:

  • Desktop Wallet: This comes in the form of software that you download to your Windows or Mac device. Although somewhat secure, desktop wallets are far from convenient. After all, you can only access your Bitcoin investment when you are on your laptop or PC.
  • Hardware Wallet: This wallet type comes in the shape of a hardware device such as a USB stick. Your private keys are stored in the device itself – meaning that they remain offline at all times. As such, hardware wallets are by far the safest option.
  • Mobile Wallet: We find that mobile wallets offer a good balance between security and convenience. The wallet will be downloaded to your iOS and Android device via an app. This will allow you to access your Bitcoin tokens no matter where you are.

Crucially, we would argue that none of the above options are suitable for Bitcoin beginners. This is because you will be 100% responsible for keeping your crypto investment safe. If you misplace your private keys or your device is hacked – you might lose access to your funds.

With this in mind, you might instead consider a web wallet that is offered by an FCA-regulated broker like eToro. In doing so, eToro will safely secure your Bitcoin tokens for as long as you want – at no extra cost. This means that after making your investment, you don’t need to worry about anything until you are ready to cash out. When you do, you can just place a sell order from within your eToro portfolio.

How to Sell Bitcoin in the UK

Thus far, this guide has explained everything from how Bitcoin works, how the digital asset is priced, and how to safely store your investment. In this section, we need to talk about how you actually cash your Bitcoin investment out. After all, you are likely thinking about buying Bitcoin because you want to make money. The only way to achieve this goal is to at some point in time – sell your Bitcoin.

How to Sell Bitcoin in the UK

As we briefly mention in the previous section, the process of selling Bitcoin could not be easier when keeping your tokens at a regulated broker like eToro.

All you need to do is:

  • Log in to your eToro account
  • Visit your portfolio
  • Locate Bitcoin
  • Click on the ‘Sell’ button

Then, within a couple of seconds, you will notice that your Bitcoin is no longer available in your eToro portfolio. You will also notice that your eToro cash balance has been updated to reflect the sale. Finally, it’s then a case of requesting a withdrawal back to your preferred payment methods – such as a UK bank account or debit/credit card.

  • On the other hand, if you elected to transfer your Bitcoin tokens to a mobile, desktop, or hardware wallet – the process is slightly more cumbersome.
  • This is because you will first need to transfer the tokens back to a broker or exchange.
  • Then, you will need to manually swap your Bitcoin tokens back to fiat money – before requesting a withdrawal.

This process can be somewhat intimidating for beginners – as if you make a mistake during the transfer you could end up losing your funds.

Bitcoin for Beginners UK – Benefits of Investing

If you are thinking about investing in Bitcoin but you are not sure if this digital asset is right for you – it’s time to do a bit of research. To push you in the right direction, below we list the main benefits of investing in Bitcoin for the very first time.

  • Growth – Put simply, Bitcoin is one of, if not the fastest-growing asset over the past decade. You could have purchased Bitcoin in its first couple of years for less than $0.01. Baring in mind that Bitcoin has since surpassed a value of $64,000 – this represents growth in the millions of percentage points. Even in the 12 months prior to writing this guide – Bitcoin has increased by over 1,000%.
  • Decentralization – If you want to invest in an asset class that falls outside of the mainstream financial arena, Bitcoin meets this criterion. After all, no single person or authority controls Bitcoin – nor is it backed by any central bank or government.
  • Limited Supply – In a similar nature to commodities like gold and oil – Bitcoin is finite. This is because the total supply of Bitcoin will be capped at 21 million tokens. This feat is expected in the year 2140.
  • Institutional Interest – The general consensus across large financial institutions in the first few years of Bitcoin was that the digital currency was nothing but a scam. Fast forward to 2021 and some of the biggest banks and organizations globally are in some way, shape, or form invested in Bitcoin. Tesla, for example, has since invested over $1.5 billion into crypto. There is also a fully regulated Bitcoin futures market in the US and an ETF is expected in the very near future.
  • Easy to Buy and Sell – Investing in Bitcoin is super-easy, safe, and cost-effective when using an FCA-regulated broker like eToro. It’s just a case of opening an account and making a deposit – which shouldn’t take you more than five minutes. The process of selling your Bitcoin investment back to cash is also fast and easy – so you will never be in a situation where you are ‘stuck’ with your digital tokens.

The benefit of investing in Bitcoin are just a few of many. Therefore, you should ensure that you conduct your own in-depth research before parting with any money.

Bitcoin for Beginners UK – Risks of Investing

Like all potential investments that you might be considering, you also need to think about the risks. In the case of digital assets like Bitcoin – there are many risks associated with this marketplace.

This includes the following:

  • Volatility – The main risk of investing in Bitcoin is that the asset is very volatile. While on the one hand, Bitcoin has generated returns in excess of 1,000% in under a year, it has also lost over 80% during the same period. As such, you will likely see the value of your investment rise and fall at a much faster pace than the likes of FTSE 100 stocks.
  • Platform Hacks and Malpractice – If you decide to invest in Bitcoin at a cryptocurrency exchange that isn’t regulated, the odds of encountering a hack are much higher. If this does happen, the hacker might be able to access your Bitcoin funds remotely. This is why you should only use an FCA-regulated broker like eToro when buying and selling cryptocurrencies.
  • Errors – We mentioned earlier that Bitcoin wallet addresses contain anywhere from 26 and 35 characters – which can be confusing for beginners. If you were to make a mistake when transferring funds on a wallet-to-wallet basis – you could lose your Bitcoin tokens forever. This would most definitely be the case if you sent the funds to an incorrect wallet address.

Consider the above risks in addition to your own research prior to investing in Bitcoin. Ultimately, you could lose some or even all of your investment – so never proceed without having first done some adequate research.

How to Invest in Bitcoin UK as a Beginner – Detailed Walkthrough

To conclude this guide on Bitcoin for Beginners UK, we are going to walk you through the process of getting started with your first-ever crypto investment.

The steps below will you show you how to:

  • Open an account with an FCA-regulated Bitcoin broker like eToro
  • Deposit funds into your Bitcoin brokerage account
  • Purchase and safely store Bitcoin

To recap, the reason we believe that eToro is the UK’s number one broker for investing in Bitcoin is that the platform is FCA-regulated, it’s simple to use, and fees are extremely competitive.

Step 1: Open a Bitcoin Investment Account

You can open an account with eToro in a matter of minutes. Simply visit the eToro website, click on the ‘Join Now’ button, and fill out the registration form. This covers basic information like your name, date of birth, and home address.

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You also need to verify your UK mobile number. To do this, eToro will send you a text message containing a unique PIN. You can then enter this PIN to complete the account registration process.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Upload ID

As a UK investor, eToro doesn’t require you to upload any ID right now if you are looking to deposit less than $2,250 – which is about £1,600. However, the identity verification process only takes 1-2 minutes and simply requires a copy of your passport or driver’s license.

Plus, until you get this out of the way, you won’t be able to make a withdrawal. With that said, if you don’t have the required document to hand and you are depositing less than $2,250 – you can complete this step at a later dater.

Step 3: Deposit Funds

You will need to deposit funds into your eToro account before you can invest in Bitcoin. If you want to complete the process instantly, deposit funds with a debit/credit card, Paypal, or Skrill, If you are happy to wait a few days for the funds to arrive, you can also deposit funds via a UK bank transfer.

Either way, eToro only charges 0.5% on deposits – which is much less than Coinbase and Binance – which charge 3.99% and 1.49% respectively. The minimum deposit is $200 – or about £145.

Step 4: Buy Bitcoin

With a funded eToro account – you are now able to buy Bitcoin. First, search for ‘Bitcoin’ and click on the ‘Trade’ button. You will then be presented with an order form.

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Don’t worry if this is your first time placing an order with an online broker – as the process at eToro could not be easier. In fact, all you need to do is enter the amount of money that you wish to invest and click the ‘Open Trade’ button to complete your purchase.

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Take note, you need to enter your investment sum in US dollars and the minimum is $25.

Bitcoin for Beginners UK – Conclusion

This Bitcoin for Beginners UK Guide has explained every nut and bolt that you need to know about this innovative cryptocurrency. We’ve discussed the basics of how the technology works and why it is so revolutionary – as well as the importance of safekeeping your Bitcoin tokens in a secure wallet.

And most pertinently – we have walked you through the process of how to invest in Bitcoin in the UK as a beginner with top-rated broker eToro. Not only is eToro authorized and regulated by the FCA – but offers some fo the lowest trading fees in this industry. Furthermore, it takes less than five minutes to get started with an investment and the minimum trade size is just $25 – or about £18.

FAQs

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters – including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.

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