There’s no second thought that crypto is word of mouth these days! And let’s not get started with the fact that it has shown some significant returns over the past few years. Also touted as the magical digital assets, investors who had faith in cryptos like BTC are currently a million billionaires.
Fast forward to 2022, the number of people interested in acquiring crypto is booming at an unprecedented rate! So much so that 7% of the UK’s population own cryptos.
Fancy joining them?
Well, here’s a catch! You can’t simply go to any financial institution to buy cryptocurrencies. Instead, to get into the crypto action, you’ll need to register with a crypto exchange, a platform where you’ll have complete access to digital currencies.
Given the hundreds of crypto brokers that we currently have in the UK, it won’t be easy to find the one that perfectly suits your needs. And if you’ve found yourself in a similar situation, this is the blog that leads you to your solution.
This blog discusses some of the significant factors you need to understand to get started with cryptocurrencies via the top brokers in UK. Let’s get started!
How To Get Started With Cryptos In The UK
Kicking off your crypto journey is a matter of selecting the ideal crypto brokers. Once you’ve found your best crypto broker in UK, here are the five easy steps to get you started with crypto investments.
- Choose a Broker or Crypto Exchange
You must first choose a crypto exchange or a broker to purchase cryptocurrency. A cryptocurrency exchange is a marketplace for buyers and sellers to trade digital currencies. These exchanges are often regulated by FCA and offer lower costs for any given digital assets.
On the flip side, they can have more complicated interfaces with many transaction kinds and detailed performance charts, frightening to beginning crypto investors. Therefore, go with the hidden terms, pitfalls, and other relevant platforms before you finalize one.
- Create and Verify Your Account
Once you’ve decided on the crypto broker or exchange to move ahead with, the next step is to create and verify your account with them. Here, you may be required to prove your identification, depending on the platform and the funds you wish to invest in the account.
Additionally, you’d also want to ensure that your registered platform is quick with registering users. For example, if your provider is slow, you might be unable to trade or invest in cryptos until your documents are verified. Adding to the list of documents, you may also need to verify your identity via a copy of your passport or driver’s license, and a selfie to match your document’s photos.
Note: This is a necessary step in preventing fraud and complying with regulatory standards. Always ensure that you’re using genuine documents.
- Deposit Funds To Get Started
The third step is adding funds to your platform! To purchase cryptocurrency, you must first ensure that you have the required funds present in your account. You may fund your crypto account via bank transfers or credit or debit (with the credit card option, be aware of hefty costs from your card issuer).
Here’s one takeaway note for buyers: While some brokers or exchanges enable you to fund your account using a credit card, doing so is exceedingly dangerous and costly. Purchase of cryptos via credit cards is treated as cash advances by credit card companies. This implies you’ll have to pay more increased interest rates, in comparison to other ordinary purchases, adding to the additional costs of cash advance.
- Place Your Crypto Orders
Once your account highlights the added funds, it’s time to place your first order. Remember, there are hundreds of crypto to invest in. Therefore, before you decide to invest all your money over one token, try diversifying your portfolio from some well-known cryptos like Bitcoin & Ethereum to more obscure cryptos like Holo or Theta Fuel.
- Go For A Dedicated Storage Method
While relevant safety measures back them, crypto exchanges aren’t protected by laws like the FSC (Financial Services Compensation Scheme) in the UK. This leaves them vulnerable to hacking and theft. Additionally, if you lose or forget the codes to access your account, you risk losing your entire investment. That’s why it’s better to have your investments secured over safe locations with a physical wallet to store your funds.
So those were some of the key pointers that you need to know of, especially if you’ve just begun your crypto journey. However, that’s not all! So before you move ahead and jump to the section where we’ve discussed the nearest crypto, it’s essential to understand the different factors you need to look after when selecting the best crypto broking platform in UK.
What To Look After In The Best Crypto Broking Platforms UK
Choosing a reliable crypto exchange can be a challenging task! To begin your selection journey, you’ll first need a secure exchange.
- Are they reliable enough?
As cryptocurrency continues to rise in terms of value & popularity, it has also become a target for hackers, swiping away millions of dollars from reputed crypto exchanges.
While exchanges are known to back their customers via reliable funds and security measures, ensuring the security of your customers should be your first factor to look into.
2. Does your crypto exchange provide spreads?
Spreading your crypto is another measure to ensure the safety and diversification of your portfolio! Although distributing your overall funds across different exchanges or moving your funds off the exchange’s default wallet to store them in a “cold” wallet might count as a reliable measure, the exchanges charge a dedicated fee.
Therefore, before registering yourself with a crypto exchange, ensure that they have low spread charges. This way, you could quickly move your funds to different locations without losing much over the withdrawal costs. Additionally, these charges also differ based on the coin type; ensure that you understand the fee structures carefully.
3. What are the available cryptos on the platform?
When registering yourself over a crypto exchange, you need to ensure that your provider has all the coins you need. Therefore, you must consider all the cryptos available over the given exchange.
If you simply want to invest in a single cryptocurrency, you might be OK registering with that exchange. On the flip side, if you’re a crypto enthusiast, you might want access to all of the cryptos accessible to you.
4. What’s the rate of liquidity over your exchange platform?
Let’s face it; there’s no point in investing thousands of Euros on your platform if you can’t liquidate it as and when required. You’ll want to go with a crypto exchange platform that has a regular inflow of transactions worth millions of pounds to ensure you real-time liquidity. This way, you could seamlessly exchange your cryptocurrencies and GBP whenever needed.
5. Does your crypto exchange have the required advanced tools?
Whether you’re a beginner or an advanced crypto trader, you may want to ensure that your desired platform has some advanced tools on offer. For example, you might wish to access features like trigger or limit orders to purchase cryptos at a given price. Further, the presence of advanced, interactive charts allows you to track and theorize the future movements of your selected crypto.
Lastly, if you’re new to cryptocurrencies, search for a simple platform with comprehensive instructional tools to help you comprehend this complicated, constantly evolving market. When you’re still learning to trade in the market, paying a premium for a simple interface may be acceptable, but more extensive fees cut into your long-term profits. Therefore, you need to ensure that your desired crypto platform has a reliable fee structure.
List Of Best Crypto Trading Platforms In the UK
Based on our thorough research of the best crypto broker in UK, we came up with Crypto.com. The platform stands at the top position of our chart as it brings you the perfect balance between fee, functionalities, and safety ratings. Talking of the platform, Crypto.com has recently burst into the scene, and thanks to its recent acquisition of over 10+ million users, it now stands among the top crypto brokers in UK.
The platform brings its users a slew of over 250+ cryptos to trade and invest into. So you could quickly diversify your portfolio with the top choice of financial tools like Decentraland, EOS, and Litecoin to Cardano, Ethereum, and AAVE.
The platform offers a free crypto wallet app, supporting over 100 digital coins. Users can send crypto to other wallets listed on Crypto.com. The funds are transferred at various speeds, adding to the scope of savings on network fees.
Users registered to the platform can invest or trade in these digital assets at a cost-effective rate of 0.4% maker/taker fee per slide, which is flexible with more significant funds. Interestingly, users can also reduce this if they opt for paying fees in CRO.
In terms of its approach, Crypto.com caters to both beginner and advanced level traders and investors with its simple to use web-based exchange and a reliable mobile application, backed by its dedicated ‘University’ section for beginner education.
Besides, you can begin your investment journey with a minimum funding of £20 without attracting any transaction fee if you opt for a bank transfer. Lastly, you can also earn a commission off your funds via staking Crypto.com’s native CRO.
Next up on the list of our best cryptocurrency brokers in UK, we have Coinbase – which (in our opinion) is a reliable Bitcoin broker UK for beginner investors and traders of cryptos and other digital currencies. The platform has been around since 2012 and is backed by millions of active users in its platform. Adding to Coinbase’s security feature is its US-license and the fact that you can find it on the NASDAQ exchange, listed as a public stock.
The platform introduces over 100+ cryptos for its new users, which they can trade or invest in to diversify their portfolio overtime via Coinbase’s mobile and web-based exchange. The interactive and straightforward UI plays a significant part in everyday trading as it allows users to have a seamless experience across iOS and Android. The platform also provides you with a free, fully-fledged crypto wallet which you can download over your mobile devices.
Funding your account over Coinbase is easy; you can use a debit or credit card for the purpose. However, both methods would attract a transaction fee of 3.99%. Other options include bank transfers via your UK bank account for free, paying a standard commission of 1.49%. While the funding options are simple and easy, they are expensive compared to the others in the UK.
Additional features for the users of Coinbase include its educational guides and highly comprehensive research facility, which makes it a perfect fit for beginner and experienced investors alike.
Lastly, users can also avail the ‘recurring buy’ feature present on the Coinbase website. This feature allows you to automate crypto purchases over a set timeframe and specific amount, allowing you to make purchases within your budget.
Launched in 2017, Binance stands at the third spot on our list of the best crypto exchange in UK. Binance enjoys its popularity as the world’s most popular crypto exchange, giving competition to other players in its high trading volume, liquidity, and registered account users.
Used by over 100+ million active wallets across the globe, this exchange brings you access to over 1,000 crypto markets, including a massive selection of several low-cap tokens. This makes the platform a reliable spot for investors and traders who want to invest in upcoming crypto projects.
Besides, the platform also brings in a slew of advanced charting tools and necessary educational resources for all types of users in its platform. The fee structure for Binance is where it stands out from all the other crypto brokers in UK. Users need to pay a considerably low amount of 0.10% per slide. For instance – you need to pay £1 for every £1,000 you trade.
What’s more? You can significantly reduce the transaction costs by trading in more significant amounts or owning BNB tokens. Other options to fund your account in Binance include your UK credit and debit card debit, where the fee would be around 2%.
However, users cannot initiate bank transfers over the Binance platform as it no longer has a direct support service for GBP withdrawals and deposits.
Lastly, the crypto savings account feature of this popular Bitcoin broker UK is what adds to its unique appeal. The feature functions like a standard bank where account holders get interest in return for their deposited tokens.
Note: Binance is currently under many regulations due to the ongoing FCA investigations over them. Since there’s a question of the uncertainty of its operations in the UK, we suggest you invest wisely.
Next on our list of the top UK brokers, we have eToro, a global crypto trading platform that currently holds over 23+ Million active wallets. Launched in 2007, the platform has gained the position of a leading trusted broker with its FCA authorization.
Other global regulatory licenses also back the platform in other jurisdictions, including Australia and the US. Additionally, eToro’s fast & secured access allows users to get verified and start their trading journey in less than five minutes.
Besides, the platform also brings in a slew of options for beginner and trader investors alike. For example, you can get started with over 50+ cryptocurrencies, including Bitcoin, Ethereum, Cardano, Dogecoin, and more, via a single click of a button. Moreover, the platform allows users to access all this at zero commission on trading. What’s more? eToro charges you a minimal spread fee, and you can begin investing with funds as less as $10 in any given crypto.
Users can add funds to their accounts via their debit/credit card or e-wallet. Another option to add funds also includes bank transfers which demand them to wait for a few days for the funds to highlight in their account. Interestingly, users who like to go with the latest trends can also move ahead by investing in the trending meme coins at a 2.5% average spread.
Lastly, eToro’s CryptoPortfolio is what makes it stand out from the other competitor brokers. This feature allows assistance to new investors, allowing them to diversify and strengthen their portfolios. In a nutshell, the CryptoPortfolio feature functions like a traditional ETF, managed by professionals on your behalf.
Headquartered in Singapore, Huobi is another leading crypto exchange that calls itself a ‘digital asset exchange.’ Its function, similar to that of Binance, is a reliable option for investors who want to earn some passive income from their crypto funds or facilitate loans.
Founded in 2013, Huobi functions differently from any traditional crypto broker as it believes that the development of Blockchain in the future will lead to new categories of digital assets. With over 10+ million active wallets in its user base, the platform brings top-rated cryptos, ranging from ERC-20 tokens to large-cap projects and DeFi coins. This way, users of all categories can explore different digital currency projects and curate a highly diverse portfolio.
Huobi attracts a meager 0.20% at both ends of any trade you carry out on the platform regarding fees. Funding options over the platform include credit and debit cards allowing you to purchase over 20 different cryptos (including the likes of ETH & BTC ) instantly with GBP. Other options to fund your Huobi account include trading in P2P.
Talking a bit about earning passive income over the Huobi platform, it functions similarly to Coinbase. Users of the platform need to lock in their tokens over the platform to earn an attractive interest in return. For instance, Huobi provides you with a 2.88% interest when depositing BTC into their Huobi crypto savings account over a 90-day lock-in period. However, users could also do crypto staking to earn passive income over the platform.
Lastly, while the platform is currently unregulated in the UK, users can rest assured that the platform introduces advanced security aspects like cold wallet storage, multi-signature, and a Security Reserve Fund of 20,000 BTC.
Standing sixth on our list of the top Bitcoin broker in UK, we have Margex, which also happens to be the latest entrant in the crypto broking platform. Initially a derivatives trading platform, Margex later started supporting cryptos over its platform. One of the most appealing factors about the platform is its 100x leverage over BTC.
Given the ease of use and seamless support over deposits and withdrawal of crypto and stablecoins, Margex offers extensive diversification options for both new and experienced traders in the field. However, the margin trading aspect of the platform is a feature limited to the experts as users are entitled to select their own explicitly and leverage to trade and liquidate their funds at a given price level.
The slew of offerings that Margex brings to its fellow users makes it appealing for every type of user. They have access to advanced trading platforms packed with traditional and advanced charting tools for Bitcoin trading.
Additionally, you can also access over a dozen customizable charts, technical indicators, and drawing tools. Other features to simplify crypto trading over the platform include limits, price alerts, stop-loss orders, etc.
Users can start their crypto journey at a competitive fee of 0.019% for liquidating their BTC. On the other hand, they’ll need to pay a fee of 0.060% when withdrawing it from the market. Talking of the minimal investments, you can start your journey with minimal funds of £1 at a time.
Lastly, while you might be worried about the UK’s ban on crypto derivatives, we ask you to rest assured! Since Margex works in a similar fashion to other types of margin trading, it doesn’t fall under the ban.
Moving ahead; we have Uphold, a UK-based multi-asset brokerage platform that initiated its operations in 2015. Marking its presence in over 184+ countries, users can expect a unique financial experience over the Uphold platform, making it a bit different from all the other brokers present on our list.
With over 115 cryptocurrencies in its repertoire, investors and traders of all shapes and sizes can start their journey over Uphold. To diversify your portfolio, you can start investing in some prominent cryptos like BTC or ETH or access the trending meme coins, DeFi, and other stablecoins.
While the platform doesn’t charge any commission for trading cryptos, users need to pay some fee for the variable spreads on their transactions. Of course, this varies as per the cryptos and the market conditions. However, it’s placed between 0.8% and 1.2% for popular cryptos to give you a fair estimate.
Talking of the platform’s uniqueness, it does a few things that differentiate it from the other exchanges. For instance, to ensure that it has reliable goodwill and security of its customers, it is very transparent in its operations. Users of the platform can know the amount of cash Uphold has in its reserves. In addition, Uphold also goes out for routine inspection via third-party security audits.
Lastly, users can also opt for trading in stocks and commodities, making it an all-in-one option for traders who want to diversify their investments in various assets.
Last on our list of the best cryptocurrency brokers in UK is Capital.com, a platform that has established itself around strong educational tools, an innovative web-based platform, and quality research. These features make Capital.com a reliable platform for both beginner and experienced investors.
The list of offerings under this particular crypto trader is exhaustive as it brings you the options to deal in cryptos, CFDs, shares trading, and several other asset classes. Being an investor, you could begin your journey with over 477 cryptos, 138 forex pairs, 5,000 shares, 29 commodities, and more than 6,000 assets.
Users can begin their journey at a minimal investment of $20. Overall, the pricing at Capital.com stands equivalent to the industry average. In addition, the different account options are attractive! Users can opt for either a universal account for retail trading or a professional account based on their experiences.
The platform has a 0% trading fee and charges no hidden cost for users to continue with their trade. In terms of security, Capital.com is authorized and regulated via FCA and CySEC. Moving to the other features provided by the platform, users can access its mobile application, which leverages AI to improve the overall trading experience, making it one of the selective few traders on the list.
Lastly, while the platform is a great start for beginner investors, you might want to watch out for the overnight fees that it attracts.
Here’s a quick comprehensive overview of the different platforms:
|Stock trading Fee||0
|Forex trading Fee||2.1 pips for GBP/USD
|Crypto trading Fee||0.75% for BTC|
|Inactivity Fee||$10 a month after a year
Risks Associated With Cryptocurrency
Being a beginner, you need to be aware of the risks associated with trading or investing in cryptocurrency. Even someone with little to no industry knowledge understands how unpredictable and volatile the markets can be.
Significant price swings have been a greater part of the crypto landscape. In fact, between July and October 2021 alone, BTC fluctuated from a low of £22,000 to rising above £48,000.
These pump and dump phases can be hard to predict and can take away your investments.
Besides, if you’re an investor in the UK, you need to adjust your yearly returns with the changing policies against the profits incurred via crypto trading.
Yet all of these factors leave no investors under the regulatory security in case of theft or cyber-attack! Due to this, whichever way you decide to invest your crypto, ensure that you’ve done your homework around cryptos and know your ways around minimizing mistakes to maximize profits.
Best Crypto Broker UK
Given the multiple crypto brokers you have come across in the blog, we understand how difficult it can be to go with any one of them. Our suggestion of the best crypto broker in UK goes with eToro.
The platform isn’t only backed by regulations for its users, but also backs them via several technical tools and educational articles. Adding to it, eToro also has a reliable fee structure that can help you make the most of your trades without losing much of your funds.
However, since there’s no one fit for all traders, we suggest you do your own extensive research on the best crypto platform in UK, before you decide to register yourself with any one of them.
Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.