Fortunately, Bitcoin trading in the UK is absolutely legal and unrestricted. All you need is a trustworthy broker and the minimum amount of trading required. The minimum deposit and trading amount varies enormously depending on the type of platform. Basically we have to distinguish between 2 types of Bitcoin Brokers. "Real" Bitcoin Brokers. Best Cryptocurrency Trading Platforms in the UK Here you have the answer to where you, as a UK trader, can trade cryptocurrency. The following are solid brokers, that can be trusted and offer trading in both bitcoins and other major cryptocurrencies such as Ethereum and Litecoin. 28 rows · Jan 02, · The easiest way to buy Bitcoin in the UK is to use a trusted Bitcoin broker. These services make it as simple as possible to get your hands on some BTC. Their platforms are easy to use, you can pay with GBP using everyday payment methods like your credit card or a bank transfer, and transactions are generally processed quite quickly.
Best bitcoin trading platform ukThe Best Cryptocurrency Exchanges in the UK - Comparison
Nevertheless, the fee structure at CoinCorner varies depending on the payment option. This costs 2. In terms of Bitcoin trading fees, this depends on the amount you buy.
In terms of trading volume, Binance is by far the largest Bitcoin exchange platform. Binance is popular with Bitcoin traders in the UK for several reasons. First and foremost, you will pay a very small trading commission of just 0. Even lower fees are on offer if you add some Binance Coins to your wallet. Binance is also popular with UK traders because of the size of the trading platform. In fact, you will have access to hundreds of cryptocurrency pairs — most of which contain Bitcoin.
These are small cryptocurrency projects that are a lot more volatile — which does appeal to some traders. In terms of deposits, you have a couple of options.
Binance allows you to transfer your cryptocurrency from an external wallet and straight into your trading account.
When it comes to security, Binance is home to institutional-grade safeguards. This includes its SAFU offering, which is a reserve pot put in place to reimburse users in the event of an external hack.
Finally, we should note that Binance is best suited for experienced traders — as you will have access to heaps of advanced analysis tools. Coinjar is the largest Bitcoin trading platform in Australia. Its popularity Down Under has since seen the provider enter the UK market. As such, you can easily open an account in minutes and deposit funds with a UK bank account.
If opting for a Faster Payments bank transfer, there are no fees to deposit or withdraw funds. However, once you have obtained Bitcoin at the platform and you head over to the trading exchange, the fees are a lot more competitive.
This starts at just 0. The lowest fee possible is just 0. In terms of tradable markets, Coinjar offers over 49 digital currency pairs.
On top of crypto-cross pairs, you can also trade Bitcoin against the British pound and Australian dollar. This is useful, as most Bitcoin trading platforms only offer a market against the US dollar, with the exception of eToro. Luno is an FCA-regulated cryptocurrency broker. The provider also offers trading services, with the platform coming jam-packed with technical indicators and other advanced tools.
On the one hand, we really like the 0. This makes the platform one of the cheapest in the cryptocurrency trading scene. However, if you are planning to deposit funds with a UK debit card, you will need to pay a whopping 3. When it comes to tradable cryptocurrencies, Luno only supports Bitcoin, Litecoin, Ethereum, and Ripple. As such, this is somewhat limited. Finally, we really like the cryptocurrency savings account that Luno offers.
The former simply means that you will be buying Bitcoin, keeping hold of the investment for several months or years, and then hopefully — cash out at a higher price. This is no different from investing in traditional shares. However, Bitcoin trading is a completely different kettle of fish to investing in the long-term. This is because you will be looking to actively buy and sell Bitcoin pairs — making small, but frequent profits from ever-changing prices.
As you can see from the above, you kept your Bitcoin trading position open for just a few days. However, some traders will often keep a position open for a matter of hours or even minutes. This is known as day trading — and it involves placing several positions throughout the day. It is also important for us to explain that there are two types of pairs that Bitcoin trading platforms in the UK offer.
This covers crypto-to-fiat and crypto-cross pairs — which we explain in more detail below. As such, by trading crypto-to-fiat pairs, you will be trading the exchange rate between Bitcoin and a mainstream currency. This pair benefits from the largest amount of trading volume, tightest spreads, and huge amounts of liquidity. As such, this is the best Bitcoin trading pair to focus on. With that said, Bitcoin trading platforms like eToro offer several other crypto-to-fiat pairs that contain Bitcoin.
As such, if you feel more comfortable trading Bitcoin against the pound, then eToro is going to be your best option. The best UK Bitcoin trading platforms also offer crypto-cross pairs. Put simply, this means that you will be trading Bitcoin against another cryptocurrency. As you can see from the above, there is no fiat currency involved in the pair.
This can make it difficult to quantify your profits and losses. An additional learning curve that you need to get your head around is that of the Bitcoin trading price. The good news is that the value of Bitcoin works no different from any other asset class. That is to say, the Bitcoin trading price will go up and down on a second-by-second basis — fully dictated by market forces. So, if the demand for Bitcoin is high, more people will buy it.
In turn, the price of Bitcoin will naturally go up. And of course — the same is true when demand for Bitcoin is low — meaning its price will decline. As you can now see, this is exactly the same as stock trading or forex trading. Crucially, Bitcoin is traded on public exchanges.
This means that its value will rise and fall naturally — depending on where the money is. Make no mistake about it — generating profits by buying and selling pairs at a Bitcoin trading platform is no easy feat.
After all, you need to have a firm understanding of how technical analysis works — especially if you are trading in the short-term. Learning how to read charts effectively will take months or even years to master. This covers Bitcoin trading robots, third-party signals, and Copy Trading.
Automated trading is big business in the traditional stock and forex trading scenes. In fact, the vast majority of hedge funds and financial institutions utilize advanced robots to buy and sell assets on their behalf. After all, automated robots have the capacity to perform at a significantly faster rate than the human brain.
Fortunately, these automated Bitcoin trading robots are not reserved just for large institutions. On the contrary, there are thousands of robot providers active in the space — some good, some bad, and some very ugly. As such, you need to perform lots of research on the robot provider before signing up. Nevertheless, in order to make use of a Bitcoin trading robot, you will need to use an online broker that compatible with MT4. This is a third-party trading platform that sits between you and your chosen Bitcoin trading platform.
Once you follow the above instructions, the automated Bitcoin trading robot will begin placing buy and sell for you. While Bitcoin robots do all of the bidding for you — some investors in the UK find the phenomenon somewhat uncomfortable.
This is because you will be allowing software to use your hard-earned trading capital. Put simply, signals are trading suggestions sent out by a third-party. In most cases, this will be an experienced human trader that spots a profit-making opportunity.
Then, the trader will tell you what orders to place to capitalize on their findings. This will usually come via Telegram, email, or SMS. As you can see from the above, the best Bitcoin trading signals will provide you with all the required orders need to not only access the trade — but to do so in a risk-averse manner.
The underlying concept of automated Bitcoin robots and signals are great. After all, you can sit back and make money without needing to do any of the legwork. However, there are thousands upon thousands of providers active in this space — most of which are scams.
But, rarely do these guarantees come to fruition. As such, if you like the sound of automated Bitcoin trading but want to ensure that you avoid unsavory scam-artists, we would suggest checking out what eToro has to offer. Regarding the former, this allows you to select an experienced Bitcoin trader that has a long-standing track record of making monthly gains at eToro.
Then, your personal eToro portfolio will be mirror your chosen Copy Trader like-for-like. As per the above, you made a profit without needing to lift a finger.
Best of all, you can rest assured that you are automating your Bitcoin trading endeavors in a safe and secure environment — as eToro is FCA-regulated! This works in a similar way to the former, albeit, these are professionally managed portfolio investments.
In other words, eToro will determine which assets to add to the CopyPortfolio, when to buy and sell, and when to rebalance. In particular, eToro offers a CopyPortoflio that focuses exclusively on cryptocurrencies. This is as close to a traditional index fund as you will get in the Bitcoin trading space — as the portfolio is weighted based on factors like market capitalization, coin value, and recent performance. Margin trading — otherwise referred to as leverage, allows you to trade with more money than you have in your account.
Although the UK has technically left the EU, these rules still remain in place. This means that the most you can apply is major forex pairs , with other assets coming with lower limits. In order to access these markets, you need to use a CFD broker. With that in mind, the only way that you will be able to engage with Bitcoin margin trading is to use an unregulated, offshore broker that offers crypto derivatives.
It will come as no surprise to hear that we strongly suggest avoiding such platforms, as your capital is at risk. After all, if the broker collapses — it will likely take your funds with it. There are many benefits — as well as risks, of using Bitcoin trading platforms to buy and sell crypto assets. The obvious starting point here is that Bitcoin — albeit, 12 years old, is still a new and exciting technology that is still well in its infancy.
The underlying technology — the blockchain, can do things that we have never seen before. In addition to the above, Bitcoin is decentralized. All in all, the above characteristics mean that by trading Bitcoin, you can enter the crypto market at a very early stage. This is no different from investing in top-rated internet stocks like Amazon back in the s.
But of course, there is no guarantee that you will make money by trading Bitcoin, so do bear this in mind. As we briefly covered earlier, the best UK Bitcoin trading platforms offer heaps of markets. This covers both crypto-to-fiat and crypto-cross pairs. This ensures that you can take full advantage of short-term price movements.
For example, you might think that Bitcoin is undervalued against the British pound — and place a trade accordingly. On another occasion, you might think that Bitcoin is underpriced against Ethereum. Whatever your prediction, Bitcoin trading platforms offer heaps of pairs and markets that you can access at the click of a button. When you trade traditional assets like stocks and shares, you can only do so during standard market hours.
As such, anything trades outside these hours must wait until the market reopens. However, Bitcoin trading platforms in the UK operate 24 hours per day, 7 days per week. Sure, you might not have a requirement to buy and sell Bitcoin during the early hours of Sunday morning.
But, knowing that the markets never close is a handy safeguard to have. After all, you might want to cash out your position instantly and not want to wait until Monday morning to be able to do so. Back in the early days of Bitcoin trading, volume was minute. This went from a few hundred dollars a day, to thousands, and eventually millions. However, fast forward to , and Bitcoin trading platforms collectively see billions of pounds worth of activity each and every day.
The best Bitcoin trading platforms in the UK allow you to get started with ease. Best of all, you can trade Bitcoin with small amounts. This ensures that you can trade Bitcoin online without needing to risk large amounts of money.
This means that you can speculate on the price of Bitcoin rising, as well as falling. However, there is a slight caveat to this benefit. This was the go-to avenue to short-sell cryptocurrencies like Bitcoin. The good news is that you can still short-sell Bitcoin if this is something you want to achieve. This means that you will be trading Bitcoin against Tether — which is pegged to the US dollar. It goes without saying that any asset class can lose you money when trading it online.
This is no different from trading Bitcoin. As such, you need to understand the financial risks involved. As we cover shortly, you can mitigate these risks by deploying a sensible risk management strategy.
To decide which broker is best for you check out all of our broker reviews. The answer is, of course, yes and no. You can make money trading Bitcoin, if you buy low and sell high. Or, if you're a bear, sell high, buy low. The majority of people who trade highly volatile products like Forex tend to lose money. In fact, the recent regulatory changes have forced forex brokers to publicise the percentage of the clients that make money trading.
But just because most people lose money trading, it doesn't mean you will. But you probably will, especially if you are trying to make money trading Bitcoin, because unlike Forex trading , index trading or investing in the stock market , where the markets have fundamental value and are swayed by economic events, crypto trading is driven entirely by sentiment.
Which of course makes it harder to predict. And being such a volatile asset class means that crypto prices can move dramatically. But a crypto can double or half in the blink of an eye. So, if you do think you can make money trading Bitcoin, be prepared to lose all your money doing so Despite a global ban from Google on non-regualted brokers advertising derivatives products , they are still getting through. Amazingly you see them in the header of the DailyMail and other mainstream media websites.
What's shocking about this is that they all seem to point to the same scam and no-one has been able to shut it down yet? Martin Lewis, the money-saving-guru from Money Saving Expert, recently sued Facebook because they failed to stop scammers using his image in scam ads for get rich quick Bitcoin schemes. The answer is of course yes. There are many traders who trade Bitcoin. Some do it through spread betting where profits are tax-free.
They will not, I repeat not, be marketing their services as a get rich quick scheme. In fact they are not allowed to advertise at all. Further reading: Should you enrol on a trading course to learn trade forex, spread betting or CFDs?
We're already written about how not to get scammed in crypto trading so won't go into that again. But suffice to say, if it looks like a scam. It's a scam. Keep in mind too though that the scammers make clone websites, of real brokerages to scam you. So, double and triple check any broker before sending money. You can compare FCA regulated Bitcoin trading brokers here. Never believe anyone who says they can make you rich or adopt trading as a career if you are a complete beginner.
Trading CFDs and spread betting are high-risk forms of investment and should only really be used for hedging and a small percentage of a self-managed investment portfolio.
All content copyright Good Money Guide. VAT registration number: Data protection registration number: ZA Please Note: If you want to buy cryptocurrency rather than trade it you need a Cryptocurrency exchange like Revolut Featured Cryptocurrency Broker What Cryptocurrencies can you trade? How much does Crypto trading cost?
Or get broad exposure in a single trade with our Crypto 10 index via CFDs or spread bets. Trade Bitcoin with min 30 point spreads. Overnight funding is charge on top as are fees for social trading. Saxo has three pricing tiers. Pay less as you trade more. Bitcoin spreads from 40, Ethereum from 4 and Ripple from 1. No commission is charged. Overnight financing is charged on held positions. Coming Soon Open Account City Index claim to offer the lowest cost Cryptocurrency trading, with market-leading pricing on Bitcoin, Ethereum, Litecoin and Ripple.
Profits are tax free through spread bet trading on cryptocurrencies including Bitcoin, Ethereum, Ripple and Litecoin.
What's in this guide to Bitcoin trading brokers? How do you trade in Bitcoin? How Bitcoin trading works. How to get started.
What to avoid. What to look for. A trading example. Who offers the tightest Bitcoin CFD spreads and pricing? IG Bitcoin Spreads:. Plus Bitcoin spreads:. Can you make money trading Bitcoin? Don't get scammed by Bitcoin trading adverts. So, are there any genuine Bitcoin traders in the UK? Where can you get Bitcoin trading ideas and analysis online? Good Money Guide Featured Brokers. The FCA closes the door on Crypto derivatives for retail clients.
The New CFD? Has Bitcoin Trading had its day? What does a financial trader do? We spoke to David Corben at Spreadex to find out….