Sep 29, · To buy Bitcoins in the UK, you need to have a proper bitcoin exchange market. The bitcoin UK market has some of the best exchanges for crypto conversion. However, there are certain regulations enforced by these exchange platforms to ensure quality trading services to its customers. The Bitcoin exchange regulations in the UK are quite liberal. Coinbase is the world's largest Bitcoin (BTC) broker. They represent an easy and fast way for new users to purchase bitcoins. Coinbase supports customers in over 30 countries, including the United States, Europe (besides Germany), UK, Singapore, Canada, and Australia. 11 rows · Dec 08, · Prime XBT is a popular Bitcoin-based cryptocurrency trading exchange that 5/5.
Best bitcoin trading ukBest Bitcoin Trading Platform UK - Cheapest Platform Revealed
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. Bitcoin is a new and often volatile digital currency — meaning that you stand the chance of losing more than you had hoped. This is much more likely to happen than a blue-chip stock — so do bear this in mind.
When you trade established, stable stocks — you will find that the spreads on offer are super competitive. However, as Bitcoin trading platforms experience high levels of volatility throughout the day, this often results in wider spreads. For those unaware, this is the difference between the buy and sell price of Bitcoin. The wider the spread, the more you indirectly pay in fees.
For example, at eToro, while the spreads on major stocks average 0. Depending on which Bitcoin trading platform you sign up with, you might need to have an understanding of how crypto wallets work. This is because cryptocurrencies like Bitcoin are stored in a digital wallet on your desktop or mobile device.
This means that you need to have an understanding of private keys, public addresses, and backup phrases. This is because eToro will safeguard your digital coins in their own wallet. Trading Bitcoin and expecting to make a profit from day one is wishful thinking. After all, you need to understand what drives the price of Bitcoin and thus — how to capitalize from this. To help you along the way, below we have listed some of the most utilized Bitcoin trading strategies.
This entails buying Bitcoin and then holding on to the investment long-term. This might be for several months or even years. The reason that this strategy is useful for newbies is that you do not need to worry about short-term volatility.
This is a short-term approach to Bitcoin trading, as you will be looking to stay with wider trends. For example, if Bitcoin is on a prolonged downward trend, then you will want to short-sell the digital currency.
Skilled swing traders will look to keep this sell position open for as long as the Bitcoin trend is bearish.
When it appears the trend is coming to an end, the swing trader will exit the position. Then, if and when a new upward trend kicks in, the swing trader will once again capitalize.
Only this time, with a buy order. Day trading is the process of buying and selling Bitcoin pairs throughout the day. In fact, as most positions remain open for just minutes or hours, rarely do day trading keep an order open overnight. As you can imagine, keeping hold of a position for such a small amount of time will result in minute profit margins. However, it is important to remember that day traders will usually place heaps of trades every day — so these small profits can quickly add up.
Take note, day traders rely almost exclusively on technical indicators. As such, if you like the sound of day trading Bitcoin, you will need to understand how to read charts and perform in-depth analysis. Bitcoin and the wider cryptocurrency scene has been the victim of several wide-scale scams in the past.
This includes Ponzi Schemes, bogus funding raising projects, and exchange hacks. Plus, Bitcoin is often the preferred currency for criminals — due to its anonymous characteristics. With that being said, Bitcoin trading can be safe if you follow a crucial rule — only use regulated platforms.
This means that the platform is required to keep your funds in segregated bank accounts, ID all account holders, and have its books regularly audited. As such, by using regulated Bitcoin trading platforms in the UK, you can ensure that you are able to buy and sell cryptocurrencies safely.
Irrespective of which of the above Bitcoin trading strategies you decide to deploy, it is crucial that you have a risk management plan in place. As the name suggests, this will ensure that you are able to trade Bitcoin in a risk-averse manner.
In its most basic form, you can achieve this goal by ensuring that you always set up stop-loss and take-profit orders on each trade. If so, we are now going to walk you through the process of getting set up with eToro.
You will need to create an account by entering some personal information. This includes the basics — such as your name, home address, and date of birth. You will also need to create a username and password. However, as this needs to be done before you are able to make a withdrawal out of your eToro account, we would suggest doing it now. In doing so, eToro should be able to verify your account instantly!
Bank transfers are supported but this can take several days to process. This will display each and every Bitcoin trading market available to you. If you are a newcomer and want a fast and easy platform, then eToro will be a good choice. Let us now look into some of the best Bitcoin exchanges in the UK.
We have shortlisted 7 best united kingdom based exchnages to buy Altocin of Bitcoin in UK. These platforms are listed below:.
Coinbase is one of the leading Bitcoin exchanges in the world. Recently, Coinbase has partnered with Barclays, a major UK bank as a result of which Coinbase has been offered e-money license. The deal with Barclays has proved to be fruitful for Coinbase and now payments have been a lot easier. Read Coinbase Review. Signup for Coinbase. Based in China, Binance has grown into one of the largest crypto exchange markets over the years. The interface is simple and easy hence is favoured even by new investors.
Verified users can withdraw up to bitcoins per day which is definitely a major benefit of this platform. So, Binance is extremely beneficial for experienced traders who withdraw a high volume of coins. Read Binance Review.
Signup for Binance. LocalBitcoins allows you to interact face-to-face with your local traders. The platform is more secure and buyers and sellers get the best rates available in the market. Read Localbitcoins Review. Create Localbitcoins Account. Changelly is another quite popular crypto exchange platform to buy bitcoin in UK.
You can exchange any supported crypto for Bitcoin almost instantly using Changelly. Calculate your USD equivalent amounts through the easily available exchange rates of the platform. Read Changelly Review. The restrictions vary according to the region you are operating on and the fee is also high.
Create Changelly Acount. Sign up for EXMO. Margin trading is based on the differences in the values between a pair of cryptocurrencies. CEX is the best option for beginners. You can simply log in and choose the option and make payments within minutes. Signup for CEX. Founded in , Bitstamp is one of the leading Bitcoin exchange platforms. The platform aims to provide bitcoin exchange on a low-fee basis and is suitable both for experienced and regular crypto users. Bitstamp accepts fiat currencies like Euro and US dollars.
Bitstamp allows wire transfer or you can make deposits through SEPA. Signup for Bitstamp. WE have listed a few popular crypto exchanges to buy cryptocurrency in Europe.
We have also published a separate article on the best crypto exchanges in the world. You can get more information on how to buy cryptocurrency in Nederland at MrBitcoinExhcange.
Share your experience with us in the comment section below. Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Genesis Mining Review — Is it Profitable? Easy and fast transactions. Secure platform. Drawbacks: A considerably high transaction fee of about 4. Does not support a lot of crypto coins. Read Binance Review Benefits: High payment limits for seasoned traders. Bright and easy interface.
Multiple crypto coins are available for trading.