How to Buy Bitcoin in the UK: A Simple Guide for First-Time Investors

Investing in Bitcoin for the first time can be daunting. Especially when coming across new terms like exchanges, wallets, and decentralization.

That said, when using the right platform, it takes minutes to enter the market. Many providers accept popular payment methods, such as debit cards and bank transfers. This makes the process seamless and safe. With over 680+ ETFs, 5,500+ stocks, and 100+ cryptocurrencies, eToro provides one of the most diverse asset selections for investors.

This guide helps beginners buy Bitcoin without needing prior experience. I cover everything there is to know, including the best places to invest, how to save on fees, and how to keep your coins safe. Read on to learn how to buy Bitcoin in the UK.

Where to Invest in Bitcoin: Best Places in the UK

Bitcoin is a hugely popular asset; not just in the UK but globally. This means buying Bitcoin has never been easier. However, the challenging part is deciding where to buy crypto and invest.

Brokers, exchanges, and wallets are the most common options, especially when using GBP. Research is needed to determine fees, purchase minimums, accepted payment methods, and accessibility. This will help you choose the best provider.

Read on to discover the top places to buy Bitcoin in the UK.

Bitcoin Brokers

The easiest option for beginners is to buy Bitcoin from a licensed broker. The process is almost identical to purchasing stocks from a share dealing platform.

Here’s why:

• You open an account with a Bitcoin broker and deposit funds
• You search for Bitcoin, choose an investment amount, and place the order
• The funds are instantly deducted from your balance, and Bitcoin is added to the account portfolio

Bitcoin brokers not only accept convenient payment methods (e.g. UK debit cards) but they process transactions in GBP. Moreover, unlike Bitcoin exchanges, you won’t need to deal with other market participants. Instead, you’re buying Bitcoin directly from the broker, which sources coins from liquidity providers.

I found that eToro is the best option when using a Bitcoin broker. I explain why in the section below.

eToro – FCA-Regulated Broker With Instant and Free GBP Payments 

eToro was launched in 2007, making it more established than Bitcoin itself. It’s an FCA-regulated broker with a solid reputation; over 35 million people use eToro to trade. UK residents can deposit GBP instantly and without paying fees. This includes debit cards and e-wallets like Skrill and PayPal. The minimum deposit of $100 (about £76) is on the high side, as is the trading commission of 1%.

However, safety and security are assured, so it’s worth paying a premium for peace of mind. eToro also offers other popular crypto coins, including Dogecoin, Solana, and Ethereum. A copy trading feature is also available. This means you can replicate a successful eToro investor automatically. eToro is simple to use, even for beginners. No prior experience of buying and selling cryptocurrencies is needed; just search for Bitcoin, choose an amount, and confirm. Note that eToro’s features helped it end up at the top of the list of how to buy Ethereum in the UK as well.

Visit eToro

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

Crypto Exchanges

Crypto exchanges are another popular way to buy Bitcoin. In general, these exchanges specialize in ‘spot trading’. This simply means you’re exchanging one asset for another via orders.

You’ll be trading directly with other market participants, where orders are matched based on demand and supply.

• That said, most crypto exchanges also support GBP payments.
• This means you can buy Bitcoin instantly with a debit card.
• Payments are handled by ‘fiat on-ramps’, which are third-party processors.
• This means debit card fees are often high.

Moreover, unlike brokers, most cryptocurrency exchanges are located outside the UK. They don’t have FCA approval, so caution is advised. However, with less regulatory demands, crypto exchanges offer lower trading commissions, more available markets, and often don’t require KYC.

Let’s take a closer look at the best crypto exchanges in the UK.

Margex – Minimum Bitcoin Purchase of £4 and Staking APYs of 4%

Margex is a great option for buying Bitcoin in small amounts. You can use Visa and MasterCard to invest instantly and the minimum purchase requirement is just £4. Based on current price quotes, a £4 investment will get you 0.00004803 BTC. Margex is also ideal for investing quickly without cumbersome KYC processes.

All that’s needed is an email address or mobile number when joining. Margex is also popular with long-term investors seeking regular interest payments. It offers 4% on Bitcoin deposits without any lock-up terms. Margex also offers Bitcoin futures with 100x leverage. Other supported coins include Ethereum, XRP, and Dogecoin.

Visit Margex

MEXC – A Great Option for Buying Bitcoin and Diversifying Into Other Crypto Markets 

MEXC is one of the most popular crypto exchanges globally. It boasts high liquidity, millions of active traders, and some of the lowest commissions available. MEXC charges just 0.02% per slide, so you’ll pay just £0.20 for every £1,000 traded. And, if you place limit orders (meaning you’re a ‘market maker), the commission is reduced to 0%.

Another benefit is that MEXC supports thousands of crypto coins, making it a great place to invest in crypto in the UK. This means you can buy Bitcoin and then diversify into other markets, such as meme coins and utility tokens. MEXC also supports instant purchases via Visa and MasterCard. Fees average 3-5% and they’re built into the quoted exchange rate.

Visit MEXC

Bitcoin Wallets

You might also consider wallets when exploring where to buy Bitcoin. Wallets enable investors to store Bitcoin away from exchanges. They provide more control over crypto assets, allowing investors to send and receive funds.

Most wallets are non-custodial, meaning investors control their ‘private keys’ and ‘backup passphrases’. Put otherwise, investors control their Bitcoin without centralized oversight.

That said, some wallets are custodial, which means the provider is responsible for securing the funds. The private keys and backup passphrases aren’t shared with the investor, meaning an element of trust exists.

Either way, many wallets allow UK investors to buy Bitcoin with GBP, ensuring a convenient experience.

Below, I cover the best wallet options for both custodial and non-custodial storage.

eToro Money Wallet – All-in-One Custodial Storage Aimed at Beginners

eToro Money Wallet is the best option for those preferring custodial storage, meaning you won’t need to worry about safeguarding private keys. After all, if you misplace the private keys, access to the wallet is often not possible. This isn’t an issue when using eToro. It keeps client-owned coins in cold storage, so the private keys aren’t exposed to online hacking attempts.

This is in addition to institutional-grade security, including machine learning algorithms. The eToro Money Wallet comes as a free mobile app and it enables users to store multiple crypto coins. Users can send and receive funds to and from other wallets and also purchase Bitcoin with GBP. Ultimately, it’s a user-friendly option that’s ideal for first-time investors.

Visit eToro Money Wallet

Exodus – The Best Non-Custodial Bitcoin Wallet in the Market

An alternative option is Exodus, which I regard as the best non-custodial crypto wallet for 2025. Unlike the eToro Money Wallet, nobody but the user has access to the private keys and backup passphrases. Users take full control of the crypto coins via a mobile app, browser extension, or desktop software.

Exodus is free and supports over 50 blockchains, including Bitcoin, Ethereum, and Solana. It enables users to send and receive funds without approval. It also supports instant GBP payments via debit cards. Fees are, however, on the high side; expect to pay 3-5%. Exodus has been around since 2015 and it’s trusted by millions of investors.

Visit Exodus

Crypto Exchange

Let’s take a look at another popular cryptocurrency exchange offering low fees and leverage up to 150x.

BloFin – Trade Bitcoin and Altcoin Futures With Leverage of 150x

BloFin is one of the best crypto futures trading platforms. It’s a good option for traders with a higher risk tolerance. Bitcoin futures can be traded with 150x leverage. So, a £200 account balance could be amplified to £30,000. However, liquidation – meaning the trade is automatically closed, can happen if the futures position declines by a certain percentage.

That said, BloFin also offers spot trading markets. Hundreds of coins are available, including Dogecoin, Shiba Inu, Solana, and Ethereum. Users can also buy Bitcoin instantly with a debit card. BloFin is another no-KYC exchange on this list, meaning you can trade without providing personal data or a government-issued ID.

Visit BloFin

Peer-to-Peer Exchanges

Peer-to-peer (P2P) exchanges connect buyers and sellers via escrow wallets. They’re a great way to buy Bitcoin with local payment methods directly from sellers.

Here’s how the investment process works:

• You choose the investment requirements. For example, you want to buy £500 worth of Bitcoin via a UK bank transfer.
• The P2P exchange lists sellers that meet these requirements.
• You choose a seller, which transfers £500 worth of Bitcoin to the escrow wallet.
• You transfer £500 to the seller’s UK bank account.
• The seller releases the Bitcoin from escrow.
• You withdraw the Bitcoin from the P2P exchange to a private wallet

I found that Bybit is one of the best P2P crypto exchanges, and I explain why in the following section:

Bybit – Buy Bitcoin From UK Sellers Without Paying Additional Fees

Bybit is best known for its spot trading and crypto derivative markets, with over 1,500 coins supported. However, it’s also a solid choice for P2P trading; no fees are charged and multiple GBP payment types are accepted. This includes UK bank transfers, Revolut, Skrill, and Wise.

Buyers are protected by Bybit’s escrow wallet. This means the Bitcoin is funded and locked before the buyer sends funds. In addition to Bitcoin, the P2P service also supports Ethereum, Tether, and USD Coin. Any of these coins can be used to trade on the main Bybit exchange. What’s more, Bybit also supports Visa and MasterCard purchases via partnered fiat on-ramps.

Visit Bybit

Beginner-Friendly Walkthrough on How to Buy Bitcoin UK (Full Guide)

I’ll now provide a comprehensive walkthrough on how to Bitcoin in the UK. I explain every step required, meaning my guide is ideal for first-time investors. This includes opening an account, completing KYC, depositing funds, and placing a Bitcoin order.

Do note that I’m using eToro for this tutorial. In my view, it’s the best place to buy Bitcoin, as it’s authorized and regulated by the FCA. What’s more, eToro was designed with newbies in mind, so the investment process takes minutes.

Step 1: Open an eToro Account

So, the first step is to visit the eToro website. Click ‘Sign Up’ and complete the account opening form.

This is similar to joining a stock broker; eToro requires:

• Full name
• Nationality
• Home address
• Date of birth
• National insurance number
• Email address
• Phone number

You’ll also be asked some basic questions about your investing experience (this is an FCA requirement).

Step 2: Complete KYC

The next step is to complete the KYC process. This simply requires two documents:

• Passport or driver’s license
• A document with your name and home address (e.g. electricity/internet bill or bank statement)

Unlike traditional brokers, you won’t need to wait days or even hours for the documents to be verified. In most cases, eToro verifies them almost instantly.

Step 3: Deposit GBP 

So, you’ve opened an eToro account and completed the KYC verification process. Next, you’ll need to make a deposit. eToro accepts everything from Visa and MasterCard to Skrill and PayPal. The minimum deposit is just $100 (about £76).

However, those opting for a bank transfer must deposit at least $500 (about £380). Nevertheless, GBP payments are processed fee-free.

Simply choose your preferred payment method, type in the deposit size, and confirm.

Step 4: Choose an Investment Amount and Research Bitcoin

eToro offers a range of analysis features; these are ideal for conducting independent research. My suggestion is to spend some time exploring Bitcoin metrics, such as pricing charts, past performance, recent trends, and volume.

It also offers social trading features. This means other eToro users share their investment thesis, which you can ‘like’ or reply to. This is a great way to evaluate broader market sentiment. eToro’s advanced filtering tools let you sort assets based on criteria like dividend yield, price changes, and sectors. The platform also integrates AI to provide insights into the top investors, daily movers, and trending stocks.

Once you’ve conducted research, assess how much you want to risk on Bitcoin. Do note that you can invest any amount from $10 (about £7). It’s wise to invest small amounts regularly rather than using your entire balance in one go.

Step 5: Buy Bitcoin

Now you can proceed to buy Bitcoin. If you’re on the Bitcoin research page, just like ‘Buy’. Otherwise, search for ‘BTC’ and click the ‘Trade’ button.

Either way, you’ll now see the Bitcoin investment form. It’s simple to use; just type the investment amount (in USD). In my example, I’m meeting the $10 minimum.

Finally, click the ‘Buy’ button to complete your Bitcoin investment.

Step 6: Decide How to Store Bitcoin

Now click the ‘Portfolio’ button from the left-hand dashboard. You’ll see the Bitcoin you just purchased, alongside the current market value.

Currently, the Bitcoin is being held in eToro’s custodial wallet, ensuring safety. If you’re happy keeping the coins there, nothing else needs to be done until you cash out.

But, if you want more control of your Bitcoin, you can withdraw the funds to a private wallet:

• eToro Money Wallet: The best option for beginners preferring custodial storage
• Exodus: The best option for those seeking full custody and control over their funds

You can request a withdrawal via your eToro account.

What to Know Before Investing in Bitcoin

The checklist below is a must-read before buying Bitcoin in the UK:

• Volatility and Risk: All assets carry investment risks, whether that’s shares, funds, or gold. However, Bitcoin is considered one of the most volatile assets, with extreme pricing swings often the norm. Importantly, the Bitcoin price could decline after you invest and never recover. This would mean a financial loss.
• Buy Fractional Bitcoin: Bitcoin’s all-time high is approximately $74,000 (about £57,000). It can, however, be divided into tiny units, so you don’t need to buy 1 full Bitcoin. For example, based on current prices, a £100 purchase would get you about 0.0017 BTC.
• 24/7 Trading: Bitcoin, like all crypto coins, trades 24 hours per day, 7 days per week. This is a huge benefit, as you can buy and sell Bitcoin around the clock. You will, however, need a broker or exchange that supports GBP payments. Otherwise, you can only sell Bitcoin for another crypto.
• Profits Over £3,000 are Taxed: UK residents get an annual tax allowance of £3,000. Any Bitcoin profits above this amount will be taxed for capital gains. The tax rate is either 10% or 20% depending on your income band. Keeping track of buy and sell orders will avoid issues with HMRC.

Bitcoin’s Thesis: Investment Potential and Risks

I’ll now take a deeper dive into Bitcoin’s investment thesis. I’ll start with the investment potential and then move on to the key risks. Then, I’ll summarize the benefits and drawbacks, ensuring you can make an informed decision.

Note: I’ll discuss Bitcoin prices in USD, as this is the primary currency when trading digital assets (similar to commodities like gold and oil).

Benefits of Buying Bitcoin in the UK

Bitcoin’s potential is all about market pricing. If the Bitcoin price increases, you will make money. Crucially, Bitcoin’s price trajectory has exploded since launching in 2009. It was originally worthless, considering nobody but the core Bitcoin developers knew about the project.

It wasn’t until 2011 that Bitcoin hit $1. In 2013, Bitcoin crossed the $100 level. As of 2025, Bitcoin’s all-time high is $74,000. So, had you invested in Bitcoin in 2013, your portfolio would be up almost 74,000%. These returns are unprecedented, especially when compared to traditional markets like shares and index funds.

According to some experts, the Bitcoin price is still worth a small fraction of its true potential. Some believe that Bitcoin will surpass $1 million by 2030. Others are even more bullish, with predictions of several million dollars. However, I must stress that predictions should be taken with a pinch of salt.

Risks of Buying Bitcoin in the UK

Bitcoin is still a nascent asset. Traditional investment markets have been around for many decades. And over a century in the case of shares. In contrast, Bitcoin has been trading for about 15 years. What’s more, only a small percentage of the global population owns Bitcoin, so whether it becomes a mainstream asset remains to be seen.

• However, the biggest risk is related to the Bitcoin price.
• It’s an extremely volatile asset, with significant price crashes potentially happening at any time.
• For example, suppose you bought Bitcoin in late 2017 at $20,000.
• The Bitcoin price was trading under $4,000 12 months later. That’s a decline of 80%.

Similar price declines were seen after Bitcoin peaked at about $68,000 in late 2021. It traded below $17,000 a year later, so that’s another huge decrease in intrinsic value of about 75%. However, losses are only encountered if the Bitcoin is sold. Historically, those holding Bitcoin through bearish markets have eventually seen new all-time highs recorded.

Pros and Cons of Buying Bitcoin in the UK

Now let’s summarize Bitcoin’s benefits and drawbacks with some pros and cons:

How to Buy Bitcoin in the UK Safely

These three tips will ensure a safe Bitcoin investing experience:

• Avoid Platforms Without FCA-Approval: Offshore exchanges typically offer lower fees and a wider selection of markets. However, they’re not licensed by the FCA. UK investors should avoid using platforms without FCA approval to ensure a safe experience.
• Only Use Excess Funds: You should only use funds that you can afford to lose when investing in crypto. This means excess money that you won’t need in the future. And most importantly, never use credit cards or loans to buy Bitcoin, or any asset for that matter.
• Be a Long-Term Holder: Bitcoin’s volatility risks can be reduced when investing long-term. Similar to shares, short-term pricing swings become less relevant. Holding for several years will provide the best chance of making investment returns, although never assume this is a certainty.

Other Methods to Invest in Bitcoin

I’ve explained how to invest in Bitcoin in the UK via brokers, exchanges, wallets, and P2P marketplaces. There are, however, other ways to access this market:

Bitcoin Futures

Many offshore exchanges offer Bitcoin futures. These track the Bitcoin price in real-time and they support leverage, meaning you can trade with a lot more than you originally deposited.

PrimeXBT is a popular choice; it offers low trading commissions and leverage of up to 200x.

• For example, suppose you deposit £100 and trade Bitcoin futures with 200x leverage.
• This means the Bitcoin position is worth £20,000.
• If the Bitcoin price increases by 4%, you’d make an £800 profit (4% of £20,000)

However, Bitcoin futures are high risk. Depending on how much leverage is used, the trade can be liquidated. For instance, 200x leverage only requires a 0.5% margin upfront (e.g. £100 > £20,000 = 0.5%). So, if the futures trade declines by 0.5%, it’s closed automatically. This means PrimeXBT keeps the original £100 margin.

Visit PrimeXBT

Bitcoin ETFs

Bitcoin exchange-traded funds (ETFs) are ideal for complete beginners. ETFs, which trade on stock exchanges, are offered by traditional brokers.

This means you can gain exposure to Bitcoin without using exchanges and wallets. The best Bitcoin ETFs are actually backed by Bitcoin. This ensures the ETF closely aligns with the Bitcoin spot price.

One of the most popular Bitcoin ETFs is the iShares Bitcoin Trust. You can invest in this ETF on eToro without paying any commissions.

Visit eToro

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

Conclusion

In summary, buying Bitcoin in the UK doesn’t have to be daunting when you use the right platform. One of the top choices for beginners is eToro, which has a user-friendly website, low account minimums, and top-notch customer support. eToro also ensures safety; it’s authorized and regulated by the FCA.

However, it’s important to consider the risks before investing in Bitcoin. It’s a highly volatile asset, so ensure you only risk amounts you’re comfortable losing. You might also consider diversifying crypto holdings into other markets, with eToro also offering stocks, commodities, and ETFs. Not to mention over 100 other crypto coins.

Visit eToro

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

See Also: What is KYC in Crypto and Why it is Used

FAQs

Who invented Bitcoin?

Bitcoin was invented by ‘Satoshi Nakamoto’ in 2008. Nobody knows Nakamoto’s identity to this day.

How much Bitcoin should beginners buy?

Bitcoin investment amounts should align with your budget and risk tolerance. Most experts recommend limiting Bitcoin investments to 5% of the overall portfolio.

What is the easiest way to invest in Bitcoin?

The easiest way to invest in Bitcoin is with a regulated broker that accepts debit/credit card payments. This allows you to buy Bitcoin instantly and securely.

Is buying Bitcoin legal in the UK?

Yes, Bitcoin (and all other cryptocurrencies) are legal in the UK. Residents can freely buy, sell, trade, and store Bitcoin.

How much does Bitcoin cost in the UK?

The Bitcoin price rises and falls like any tradable market. You don’t need to buy 1 full Bitcoin, as fractional investments are supported.

Is Bitcoin taxed in the UK?

Yes, Bitcoin is taxed in the UK, but only if you exceed your annual capital gains allowance. That’s £3,000 in the 2024/25 tax year.

Which Bitcoin wallet is best?

One of the best Bitcoin wallets for beginners is the eToro Money Wallet, as eToro safeguards the coins. Alternatively, consider Exodus if you want full control of the wallet’s private keys.

What makes Bitcoin unique?

Unlike traditional money, Bitcoin isn’t backed by any government or central bank, nor is it controlled by any single entity. This means people can buy and own Bitcoin away from centralized bodies.

References

1. Cryptoassets: AML / CTF regime – Registering with the FCA (FCA)
2. Money Laundering Regulations (FCA)
3. Capital Gains Tax: What you pay it on, Rates and Allowances (UK.Gov)
4. When Bitcoin Will hit $1 Million, According to Lyn Alden (Yahoo! Finance)
5. Investing in Crypto (FCA)