Quick Guide to Purchasing Cryptocurrencies in the UK, but getting started can be intimidating. This article breaks the process down into easy-to-understand steps, explains important ideas like wallets and exchanges, and highlights the many options available for UK investors.
Step 1: Choose a Regulated Bitcoin Exchange
The UK is home to several cryptocurrency exchanges, including the FCA-approved eToro and CoinCorner. Before deciding on an exchange, research the platform’s fees and features to find one that meets your needs. Choosing a reputable exchange will help protect you from scams and other risks associated with the crypto market.
After registering and verifying your identity, deposit funds into your exchange account using a supported payment method. Many exchanges accept bank transfers, credit cards, and digital payments like PayPal. Once your balance is sufficient, navigate to the trading section and select the cryptocurrency you want to buy. You can place a market order to purchase at the current price or a limit order to set a specific price at which you’d like to buy. Consider transferring your purchased cryptocurrency from the exchange to a personal ‘hot’ or ‘cold’ wallet for additional security.
While cryptocurrency is a relatively new investment, it is growing in popularity and has the potential to offer life-changing returns. To minimize risk, it is best to invest a small amount at regular intervals rather than all at once. This strategy is known as dollar-cost averaging and can mitigate the effects of market volatility.