Want to invest in Bitcoin UK? Is now the right time? Bitcoin is currently priced at just under $38k. Early August 2021 was the last time the Bitcoin price was this low. And then within ten weeks it rose by 70% hitting almost $66k by late October. Is Bitcoin bottoming out again, ready to spike in value once more over the coming months? Or have the interest rate rises planned for the US and the UK put the brakes on the crypto sector for the moment?

Below we make the competing views around Bitcoin simple to understand. What’s more, we show you how to invest in Bitcoin UK with minimum fees. We particularly recommend the Bitcoin brokers which boast regulation by the UK’s Financial Conduct Authority. With crypto, security must come first.

How to Invest in Bitcoin UK – Quick Guide

  • Step 1: Open an eToro account
    Head to eToro.com. Fill out a few personal details. Get verified by supplying photo ID and address ID.
  • 💳 Step 2: Deposit
    Use PayPal, bank transfer or credit card to get your eToro account charged up. No deposit fees.
  • 🔎 Step 3: Search for Bitcoin on eToro
    Just search ‘BTC’ in the top toolbar. Check out research, newsfeed and stats before you buy.
  • 🛒 Step 4: Invest in Bitcoin UK
    With eToro you can buy real Bitcoin and eToro will hold it for you. Otherwise, pop your coin into your free eToro Money crypto wallet. You can trade Bitcoin against other crypto and conventional currencies. Or you can let an expert make the tricky decisions for you by exploring eToro’s Copy Trading options.

Where to Invest in Bitcoin in the UK 

To get your Bitcoin investment strategy underway, you need to find the best Bitcoin broker UK or exchange to take your business. You want to be able to buy and sell Bitcoin in a safe, regulated environment using software that is easy to use. No hidden charges, no nasty surprises.

We review 5 brokers and exchanges to suit crypto-hungry investors of all experience levels.

1. eToro – Best Bitcoin UK Broker with Copy Trading Features

With over 23m registered users, eToro is a global broker regulated by the FCA that offers zero commission when investing in Bitcoin. You can invest as little as $10.    

eToro offers a broad selection of stocks, commodities, forex and ETFs, which is great for diversifying your portfolio. With crypto, eToro comes into its own. You can invest in Bitcoin stock in different ways to suit your needs:

  • You can buy BTC using your account balance with tight spreads. eToro will hold your Bitcoin for you, or you can transfer it as real coin to your free eToro Money crypto Wallet.
  • You can use crypto and currency pairs to invest in the price of Bitcoin versus fiat currencies like EUR, GBP and AUD as well as other crypto like EOS and XLM.
  • You can invest in one of eToro’s crypto Smart Portfolios, which allow you to buy into an expert strategic crypto position in one go. The service is free, but spread fees apply on all necessary trades.
  • You can copy more experienced crypto traders for free. First allocate some funds, review the performance stats of thousands of traders and pick one whose strategy you like the look of. eToro’s CopyTrader facility will automatically use your money to match that trader’s deals in real-time. You can pull out of copy trading at any time.

If you choose to transfer BTC out of your account, the eToro Money crypto wallet gives you powerful Bitcoin options. You can send or receive crypto to your unique wallet address. You can also swap your Bitcoin for other crypto or ERC-20 tokens, choosing from 500+ pairs available with eToroX, eToro’s dedicated crypto exchange. The only thing you cannot currently do is stake your Bitcoin, but staking options are available with eToro for ADA, TRX and ETH. 

As well as the eToro Money crypto wallet, eToro provides another piece of free software. With the massively-popular eToro smartphone app, you can invest in Bitcoin UK on the move. This app allows you to keep up-to-the-minute with newsfeeds and market news, as well as buy crypto and other assets as you would with desktop eToro. The eToro smartphone app was downloaded 10m times in the first half of 2021. Independent research confirms it is the most downloaded trading app in the UK.

eToro puts a big emphasis on social trading. This means you are never alone when it comes to deciding on the best way to invest in Bitcoin UK. You get a custom news feed with posts from other investors you are interested in. And, with CopyTrader, you can even let other traders make the tough decisions for you. Over 20m users follow the eToro Bitcoin homepage, with 33% of them holding a Bitcoin position.

eToro copy trader

With eToro’s watchlist, you can flag up other crypto and assets you are interested in and keep an eye on them over the long-term. eToro’s watchlist is a really accessible way of staying open to opportunity. In January 2022, eToro brought another 3 crypto to market – REN, FET and SNX – bringing its total offering to 45 coins.

For British investors, what also stands out about eToro is how easy it is to deposit GBP. Deposit is free, and you can use PayPal, credit/debit card, bank transfer and other payment providers. When it comes to fees, eToro charges low fees for crypto trades. Like all brokers and UK Bitcoin exchanges, eToro does charge a spread fee on crypto transactions. For Bitcoin, the spread is typically 0.75%. If you decide to buy Ethereum the spread would also be low at an average spread of 1.90%.  

Pros

  • 23m existing users
  • Regulated by the FCA, CySEC and ASIC
  • 45 crypto assets including BTC, BCH, ETH, EOS, ADA, and XRP
  • CopyTrader and Smart Portfolios
  • Free smartphone crypto app and eToro Money crypto wallet
  • Simple, easy-to-use interface

Cons

  • Flat withdrawal fee of $5

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Coinbase – Trusted Bitcoin Exchange Listed on NASDAQ

coinbase logoWhat makes Coinbase stand out for Bitcoin investment is size, security and scope:

  • Size: Coinbase was the first exchange ever to come to market with an April 2021 IPO on the NASDAQ. As such, Coinbase has a high profile and boasts 73m verified users internationally. This giant following is reassuring for newcomers to investing in Bitcoin.
  • Security: famously, 98% of Coinbase customer funds are stored offline. ‘We distribute Bitcoin geographically in safe deposit boxes and vaults around the world.’ Affirms Coinbase. Back to pen and paper then! It certainly guarantees against cyber-fraud.
  • Scope: Coinbase offers a selection of 50+ crypto, including Bitcoin. This is slightly more than eToro’s 45+ offering.

To invest in Bitcoin UK with Coinbase is as easy as it is with eToro. You get signed up, link your bank account, and trade Bitcoin using the currency in your account. You can buy Bitcoin with a credit card instantly – but watch out for the hefty 3.99% fee on credit card purchases. 

When it comes to trading fees, Coinbase offers a dual structure. This combines flat fees and commissions. Coinbase users have long complained that this fee system is both expensive and confusing. The good news is that Coinbase CEO E. Choi signalled last year that a ‘compression’ of the fee structure is on the cards.

Like eToro, Coinbase offers a smartphone app that replicates the desktop Bitcoin investing service. The Coinbase app has been well-received, receiving an average rating of 4.7/5 from 1.6m reviewers on the App Store and 4.3/5 from 632k reviewers on Google Play.

Many Brits looking to invest in Bitcoin UK appreciate the convenience of PayPal. So it is a bit of a blow for UK Bitcoin investors that you can only use Paypal for withdrawals with Coinbase. Unlike eToro, there is no social trading on Coinbase either which means you cannot get a feel for what other investors are doing, let alone copy their trading stratagems for free as you can with eToro’s CopyTrader. 

All in all, Coinbase offers a well-established service with many advantages. But it is an exchange rather than a broker, and thus not regulated by the UK’s FCA like broker eToro. Coinbase’s fees can be off-putting too.

Pros

  • Coinbase Pro upgrade option
  • Free crypto wallet
  • 98% of client funds held in cold storage
  • 50+ crypto to trade
  • Earn free crypto for completing crypto learning modules

Cons

  • Complicated fee structure
  • 3.99% commission on credit card transactions

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance – Trusted Bitcoin Exchange for Advanced Crypto Investing

binance logoBinance is an exchange that boasts the largest volume of crypto trading in the world. The upside of Binance is that it offers some of the lowest fees around, at 0.1% commission on investing in Bitcoin UK. The downsides are that the tool-filled site can be mind-boggling for beginners and, what’s more, Binance is not regulated in the UK.

With Binance, you can use fiat currency in your account or credit card to buy Bitcoin. If you are feeling a little more advanced, you can use Binance’s Peer-2-Peer trading system and trade Bitcoin with other investors. 

Generally Binance is packed with advanced trading options. This can be empowering for advanced traders but overwhelming for the beginner. The Binance smartphone app is set up to make things simple if you prefer: you can switch from the normal interface to Binance Lite. The smartphone app has received a good average score of 4.7/5 from 96k reviews on the App Store and 4.3/5 from 570k reviews on Google Play. A common complaint from reviewers, however, is that Binance’s verification protocols are sketchy.

As with eToro, Binance offers a free crypto wallet, the Binance Trust Wallet, as well as crypto staking options.

Pros

  • 400+ crypto on offer
  • Free Binance Trust wallet
  • Different ways to trade Bitcoin
  • Saving and staking options
  • Good review scores for the Binance smartphone app

Cons

  • Teething problems with verification processes 
  • Daunting for beginners

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Mode – Popular Bitcoin Trading App with Bitcoin Rewards

Like eToro, Mode is licensed by the UK’s Financial Conduct Authority. But there the similarity ends. Mode is not a traditional broker like eToro. With its digital payment/crypto wallet, Mode says it aims to provide ‘a next-generation financial ecosystem’ that combines payment technology, digital assets (specifically Bitcoin), and loyalty incentives. 

With Mode, you don’t have to worry about how to invest in Bitcoin UK. That is because Mode rewards you for your loyalty with free Bitcoin. In one handy smartphone app, Mode provides a digital wallet that gives you Bitcoin when you spend with partner outlets — as well as allowing you to buy Bitcoin yourself at a commission of 0.99%. This 0.99% fee is a competitive offering given the integrated utility as well as incentives offered by Mode. 

The Bitcoin you hold with Mode not only benefits from any rise in Bitcoin price, but you can earn interest on your Bitcoin at a rate of 5% APY. Interest is paid and compounded weekly. You can withdraw Bitcoin for a fee of 0.0005 BTC (which works out around £10) with a minimum transaction value of $10.

Mode is all about convenience. The app means you can flash your phone to pay at 31 partner outlets using either your Mode balance or your UK bank account (16 UK banks covered). You verify your payment with a few taps using Face or Touch ID technology. You then receive Bitcoin directly to your Mode account as a loyalty incentive, and you can even send and receive Bitcoin amongst friends on the Mode network.

Earning Bitcoin passively is a great way to go about investing in Bitcoin UK. That’s because you don’t need to worry about timing the market, or losing money, as you do with conventional investing. And, when it comes to security, Mode is no slouch. Your Bitcoin is stored with crypto custodian BitGo. Most of Mode’s Bitcoin is held with BitGo in cold storage, which means the storage is not connected to the internet and therefore safer from Bitcoin thieves. BitGo is insured by Lloyds of London up to US $100m.

One teething problem that faces all fintech digital wallets is users being frozen out of their account on suspicion of fraudulent activity. Judging by its Trustpilot reviews, Mode is no exception to this trend. In attempting to keep user funds safe, fintech firms are often over-zealous and freeze accounts just to make sure nothing is being stolen. Better safe than sorry.

Mode came to market in the form of an IPO on the London Stock Exchange in October, 2020. You can invest in Mode using the ticker symbol MODE. It is the only LSE-listed firm to hold both an FCA Electronic Money Institution License as well as crypto asset registration.

Pros

  • Integrated digital payment wallet
  • Buy Bitcoin at 0.99% commission
  • Bitcoin cashback
  • Earn 5% interest on your Bitcoin 
  • 71% ‘excellent’ rating on Trustpilot

Cons

  • Small range of eligible outlets for Bitcoin cashback
  • No other crypto for sale

5. CEX – Leading Exchange With Over 70+ Cryptos

CEX is a crypto exchange first registered in the UK back in 2013. Since then, it has attracted a user-base of 4m investors worldwide. With CEX, you can buy Bitcoin instantly with credit card or deposit GBP in your account and trade Bitcoin with that. If you are very confident and not risk-averse, you can buy Bitcoin on margin (which means borrowing money to do so from the exchange).

A strength of the exchange is the wide variety of deposit methods for GBP, including credit card, SWIFT, wire transfer, Skrill and Epay. Also, GB investors can deposit using credit card at a discounted commission of 1.49% rather than the standard 2.99%. Note that other brokers, like eToro, permit credit card deposit for free. Disappointing here too is the absence of PayPal deposit and withdrawal, which many GB Bitcoin investors prefer. 

Invest in Bitcoin with CEX

When it comes to trading fees, CEX follows a sliding maker-taker scale like Binance. If you buy less than $10k of Bitcoin, for example, you will pay a taker fee of 0.25%. As with all brokers and exchanges, spread fees apply on Bitcoin prices.

Generally CEX offers an impressive suite of products, with a free crypto wallet, a mobile app, a debit card with reward package, crypto staking and even loan options. 

Pros

  • Buy Bitcoin with instant credit card purchase or trade spot price
  • Trade 70+ crypto plus crypto pairs
  • Founding member of industry regulation lobby CryptoUK
  • Crypto staking and margin trading options
  • 4m existing users

Cons

  • No FCA license
  • 1.49% credit card deposit fee

What is the Best Way to Invest in Bitcoin?

Let’s review how to invest in Bitcoin UK. There are two main methods of Bitcoin investment – buying the coin as a crypto, and buying into stocks that have a relationship to Bitcoin.

Buying Bitcoin

  • You can buy Bitcoin instantly with a credit card with exchanges like Coinbase, Binance and CEX. But watch out for credit card commissions.
  • With a broker like eToro, you can deposit funds into your account and buy and sell Bitcoin at locked-in prices.
  • You can invest in the price of Bitcoin against other crypto and fiat currencies using what are known as crypto and currency pairs (available with eToro and other providers).
  • If you are feeling adventurous, you can seek out a Decentralised Exchange (DEX) and trade Bitcoin with other investors in a less regulated environment.
  • You can trade Bitcoin directly with other investors too with Peer-2-Peer trading (offered by Binance and other providers). But this can be risky, because you are trusting individuals you do not know.

Investing in Bitcoin Stocks

Blockchain ETFs (Exchange Traded Funds) allow you to invest in the stock of companies involved in Bitcoin-related technologies and business. One example is the Amplify Transformational Data Sharing ETF (BLOK), available with eToro. 

Bitcoin Exchange Traded Funds (ETFs) are just coming onto the market. Bitcoin ETFs like the Pro Shares Bitcoin Strategy ETF (available with Capital.com) allow you to invest in Bitcoin futures.

For more ideas on how to invest in Bitcoin stock, sign up with eToro and browse through the main crypto homepage.

Should I Invest in Bitcoin?

BTC price

Follow the Big Players

Financial markets aside, Bitcoin continues to be taken up in the real world as a valid currency for the future. An entire country, El Salvador, has allowed Bitcoin to be used as legal tender since September 2021. Giant payment providers PayPal, Mastercard and Visa have all said that they will support Bitcoin payments; and Apple and Amazon are rumoured to be getting involved too.

Follow the Banks

When it first came on the scene, Bitcoin was seen as an enemy to the big banks as it offered a decentralised way of doing transactions that cut the banks out. But the banks are now getting involved. 85% of institutional investors surveyed in 2021 said that they planned to begin, or increase, investment in Bitcoin over the next two years.

Hedge against Inflation

Over the long-term, Bitcoin is widely seen to offer a hedge against price inflation. That is because the supply of Bitcoin is limited, so it cannot reduce in price owing to oversupply. Cash does suffer from this problem, because governments sometimes print more money, thus increasing the supply of cash and making it worth relatively less. Currently, inflation in the US is at a 40-year high, thanks in part to pandemic pressures. 

Bitcoin’s usefulness as a hedge against inflation depends, of course, on whether its price maintains an upward trajectory. Since its launch, Bitcoin’s annual return has averaged 230%. 

Buy the Dip

Bitcoin recently reached a point at which its 50-day moving average crossed below its 200-day moving average. This means, in real terms, that Bitcoin’s price has been doing worse recently than it has over the longer-term. One theory of technical charting calls this point ‘the Death Cross’ and says that this means Bitcoin could slip into a long-term decline in price. But technical analysis like this has been proved wrong time and time again. The reality is that Bitcoin is currently priced lower than it has been for 6 months. So, if it is ever to rise in value again, which is likely, now might be a sensible time to buy when it is relatively cheap.

Spread your Risk

If you want to invest in Bitcoin UK and make sure you do not miss out on opportunities, you can minimise your risk in many ways. The best way to reduce the risk of your Bitcoin investment is to balance it with investments in other assets. Make sure no more than 1%-5% of your investment portfolio is dedicated to Bitcoin or crypto in general. 

Choosing a Bitcoin Wallet for Investing

A Bitcoin wallet is a piece of digital software that means you can invest in Bitcoin UK and then store your Bitcoin, send it elsewhere or use your coin to earn rewards with crypto staking.

eToro Money Crypto Wallet

Bitcoin wallets are generally called crypto wallets, because you can store many types of crypto in them. Your Bitcoin wallet has a unique digital address, which acts as a mailing address on the blockchain. ‘Cold’ wallets spend most of their time not connected to the internet; this makes them safer from cyber-fraud. ‘Hot’ wallets are always connected to the internet.

We recommend the eToro Money crypto wallet to invest in Bitcoin UK. That’s because it is regulated by the Gibraltar Financial Services Commission, offers many powerful options and even features an unloseable key. 

Bitcoin Investment Strategies

The best way to invest in Bitcoin UK depends on your risk appetite.

  • For investors with a high-risk appetite, there is the option to devote over 5% of your investment portfolio to Bitcoin alone. (In the UK, it is not permitted to enter leveraged trades with crypto – otherwise this would be the way to go for huge Bitcoin rewards at great risk).
  • For medium-risk investors, investing in Bitcoin with a more experienced trader making the decisions might suit. CopyTrader with eToro allows you to allocate funds to a crypto trader whose performance you rate, and the software will automatically copy their trades with your allocated funds. Make sure you spread your total investment budget across stocks, ETFs, currencies and commodities as well as Bitcoin.
  • For low-risk investors, investing in a crypto fund that features Bitcoin along with other crypto is the safest option. eToro offers 8 crypto portfolios in all, each with different strategies.

Remember the minimum Bitcoin investment with eToro is $10 with a tight spread of just 0.75%. 

How to Invest in Bitcoin & Make Money – Example

Between November 2020 and November 2021, Bitcoin rose in value by 300%. If the same rate of growth picks up again and you were to make a £1000 Bitcoin investment UK right now, with Bitcoin priced at just under $40k, you could be looking at having £3000 worth of Bitcoin this time next year.  

Many investors ponder how to invest in Bitcoin and make money: the answer is always ultimately to make the investment. But, of course, with any crypto it is only sensible to invest money you can afford to lose, thanks to the price volatility of the sector.

When is the Best Time to Invest in Bitcoin?

Best time to Buy Bitcoin on eToro

All cryptos are volatile. Their prices go up and down with a speed no other asset class can match. That makes crypto riskier than other investments, but it also means the potential gains are sky-high. Nobody can predict the future of any asset price, let alone crypto. But what we do know for certain is that when Bitcoin surged to $64k in April 2021, it became the best-performing asset class of the decade with an annualised average return of 230%. If that average return continues, the best time to invest in Bitcoin is right now, particularly as it was only this cheap (sub-$40k) 6 months ago. 

Perhaps the price of Bitcoin has further to fall before it bounces. With a minimum investment of just $10 possible with eToro, it does not cost much to benefit if the price soars once more.

How to Invest in Bitcoin UK – Tutorial

Choose a broker for your Bitcoin Investment Strategy

To make a Bitcoin investment UK, we recommend regulated global broker eToro. Over 20m investors follow Bitcoin on eToro. You can buy Bitcoin with eToro with tight spreads.

Sign up with eToro

Head to eToro.com. You will first need to enter a few contact details as well as choose a password. To save time, you can sign up using your Facebook or Google account.

Verify your ID with eToro

All regulated brokers must, according to KYC (Know Your Customer) rules, find out who investors are and where they live. This keeps everybody safe from fraud. To comply with KYC protocols, you must supply proof of ID and proof of address. 

For proof of ID, a scan of your valid passport will get you verified quickest. For proof of address, you can use scans of utility bills/council tax bills and other official documents. If you only have digital ID, rather than paper ID, eToro will accept screenshots.

Deposit Funds with eToro

Some brokers – like Binance and ByBit, for example – encourage you to make instant purchases of crypto using a credit card. With eToro, the idea is that you deposit fiat currency (GBP) into your account and then use it to make all your purchases. This saves on credit card fees.

When it comes to ways to deposit GBP, you are spoilt for choice with eToro. You can buy Bitcoin with PayPal, or fellow payment providers Skrill and Neteller. Bank transfer and credit/debit card deposit is also available, as well as Trustly and Rapid Transfer online banking. 

Depositing funds with eToro is free. Credit card deposits go through instantly. Bank transfers take longer. 

Your first ever deposit with eToro can be as little as $10. Deposits after that must be a minimum of $50 depending on your country of residence. The minimum for bank transfers is $500.

Invest in Bitcoin with eToro in Seconds

First, find Bitcoin on the eToro website. The quickest way to do this is to enter Bitcoin’s ticker symbol ‘BTC’ in the top toolbar. 

search for btc on etoro

Click on the Bitcoin logo from the list that appears. This takes you to the Bitcoin homepage. Here you can review stats on Bitcoin as well as professional research. To access powerful charting options, press the ‘chart’ button on the top toolbar, and then the arrow icon at the top right. 

Press the blue ‘Trade’ button to set down the details of your Bitcoin investment UK. 

Buy BTC on eToro

The minimum Bitcoin investment UK with eToro is just $10. In the box you set out how many BTC units you want to buy or enter the sum of money they want to spend. To finalise your trade, press the blue ‘Open Trade’ button. You will receive a notification when your trade has been executed. This usually takes seconds. You can then keep an eye on your Bitcoin purchase in your portfolio.

One of the strengths of the eToro smartphone app is that Bitcoin investing involves exactly the same simple process. You press on the Bitcoin logo, press ‘Trade’, fill out your trade details and press ‘open trade’.

Conclusion

To make a Bitcoin investment UK, you need a broker or exchange that you can trust. With 23m verified users and the most downloaded trading app in the UK, broker eToro has certainly attracted positive interest. And, with regulation from the stringent Financial Conduct Authority of the UK, eToro stands out amongst brokers and exchanges for reliability and safety. 

To invest in Bitcoin UK with low fees is also definitely a key bonus offered by eToro. And newbie investors in particular may welcome the emphasis on social trading and supportive tools like CopyTrader and crypto Smart Portfolios.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Frequently Asked Questions When Investing in Bitcoin

How do I invest in Bitcoin UK?

Is Bitcoin a good investment in the UK?

What is the best way to invest in Bitcoin?

Should I invest in Bitcoin?

Is Bitcoin worth investing in?

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How do I invest in bitcoin stock?

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If I invest £100 in Bitcoin today how much will it be worth in 2025?

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