Best Bitcoin Trading Platform UK – Cheapest Platform Revealed

Best Bitcoin Trading Platforms with the Best Rates UK

Before we review the best bitcoin trading platforms in more detail here’s a quick look at the top trading platforms in the UK right now. You can compare the features and fees of the UK’s best bitcoin trading platforms, and you can even change the investment amount and cryptocurrency you’re investing in to see how much each platform charges.

If you’re based in the UK and looking for the best Bitcoin trading platform – you have heaps of providers to choose from. While some focus on extremely low feeds and commissions, others are known for offering hundreds of Bitcoin-denominated pairs.

To help clear the mist, this guide will review the Best Bitcoin Trading Platforms in the UK. We also explain what metrics you need to look out for when choosing a provider yourself and outline the steps required to join a UK Bitcoin Trading Platform today.

Best Bitcoin Trading Platforms Reviewed 

By performing a quick Google search of ‘Best Bitcoin Trading Platforms UK’ – you are going to be inundated with hundreds of potential results. This is because interest in the online cryptocurrency trading scene has sky-rocketed in recent years. As such, knowing which Bitcoin trading platform to join can be a daunting task.

To help you along the way, we have reviewed the best Bitcoin trading sites in the UK market right now.

1. eToro – Overall Best Bitcoin Trading Platform UK (FCA Regulated)

etoro logoeToro is without a doubt the best UK Bitcoin trading platform. Firstly, you might have heard that the Bitcoin trading scene is fraught with rogue providers. This isn’t something that you need to worry about eToro – as the platform is regulated on three fronts. Not only does this include the UK’s FCA, but ASIC (Australia) and CySEC (Cyprus), too.

Being regulated in the UK means that you can easily deposit funds with a traditional payment method. This includes the likes of debit/credit cards, e-wallets, and a bank transfer. Before we get to the specifics of funding your crypto trading account, we should note that eToro is a 100% commission-free broker. This means no trading fees whatsoever.

eToro Bitcoin Price Chart

Instead, it’s only the spread that you need to consider – which is usually very competitive when trading Bitcoin at eToro. In terms of tradable markets, eToro offers various Bitcoin instruments. If you simply want to buy Bitcoin and hold onto your investment for several years, you can do this with ease. Or, if you want to trade Bitcoin against fiat currencies – there are BTC pairs containing the US dollar, British pound, Euro, Japanese yen, and more.

In addition to this, eToro also allows you to trade crypto-cross pairs. For those unaware, this means that you will be trading the future price of Bitcoin against altcoins like Ethereum, Ripple, Dash, NEO, BNB, BCH and Litecoin. If you’re more of an all-round investor, you’ll be pleased to know that eToro also offers stocks from 17 marketplaces.

etoro crypto copyportfolios

ETFs are also available, as is CFD trading on commodities, forex, indices, and more. The Copy Trader feature at eToro is also worth considering, as this allows you to invest passively. Your portfolio will mirror that of your chosen trader, like-for-like. In terms of getting started, eToro has a $200 minimum deposit. But, you can buy and trade Bitcoin from just $25 per transaction. Finally, eToro is available online or via its native investment app.

Pros

  • Offers Bitcoin and 15 other top cryptocurrencies
  • Buy Bitcoin 100% commission-free
  • More than 13 million people using the platform
  • Accepts debit/credit cards, e-wallets, and bank transfers
  • Minimum investment of just $25
  • Supports copy trading to automate your Bitcoin trades
  • Fully regulated in the UK by the FCA
  • Over 1,700 stocks and 150+ ETFs

Cons

  • Small withdrawal fee  of $5
  • Platform operates in US dollars

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

2. Coinbase – User-Friendly Bitcoin Trading Platform With Over 35 Million Customers

coinbase logoCoinbase is the largest cryptocurrency trading platform globally. Based in the US, the broker is home to over 35 million users across more than 100 nations. In the UK, this Bitcoin trading platform is licensed by the FCA.

As such, your money is safe when you trading cryptocurrencies at Coinbase. Now, Coinbase does come with both its pros and cons – like most platforms. Regarding the good points, Coinbase is a superuser-friendly way to trade Bitcoin. This is evident from the moment you visit its website – as everything is laid out so clearly and free from jargon.

Coinbase Bitcoin Exchange

Additionally, Coinbase is strong when it comes to security. It keeps 98% of client funds in cold storage – which makes it virtually immune to external hacks. It also offers security controls like two-factor authentication and the ability to lock your Bitcoin away for 48 hours after a withdrawal request is made.

In terms of tradable markets, Coinbase offers a good selection of cryptocurrencies that you can buy – including Bitcoin. It also offers a sister-platform that is dedicated to short-term trading. Coinbase Pro, as it is now branded, offers heaps of crypto pairs – many of which contain Bitcoin.

coinbase uk review

Now for the negatives. The main drawback with Coinbase is that it charges huge fees. For example, you will need to pay 3.99% to deposit funds with your UK debit card. Bitcoin trading fees amount to 1.49% – which again, is expensive. You will pay even more if you trade with a small amount of money, as the variable fee turns into a flat rate. Ultimately, while Coinbase is great for newbies and top-notch security, this does come at a cost.

Pros

  • Over 35 million customers and a great reputation
  • Very user-friendly
  • Deposit funds with a debit card or via bank transfer
  • Ability to withdraw your coins out to a private wallet
  • Handy mobile app
  • Holds a license from the FCA

Cons

  • 3.99% fee on debit card deposits
  • 1.49% Bitcoin trading fee

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

3. CoinCorner – Best UK Bitcoin Trading Platform for Fast Account Set-Up

CoinCorner LogoCoinCorner is more of a Bitcoin broker than a conventional trading platform. That is to say, you will be using the website to purchase Bitcoin and employ a long-term ‘buy and hold’ strategy.

This means that you will be investing in the future value of Bitcoin, as opposed to trading it for short-term gains. This particular approach to Bitcoin trading is suitable for newbies – as you don’t need to have an understanding of technical or fundamental analysis.

On the contrary, you simply need to believe that Bitcoin will continue to grow in value over the course of time. So, CoinCorner makes the process easy by offering a fast sign up process that is accompanied by a range of instant payment methods.

coincorner buy bitcoin

This includes UK debit cards, credit cards, or popular e-wallet Neteller. Unfortunately, you can’t buy Bitcoin with Paypal or Skrill. Nevertheless, the fee structure at CoinCorner varies depending on the payment option. For example, a UK bank transfer costs £1, and the minimum funding amount is just £5. Debit/credit cards and Neteller, however, are expensive. This costs 2.5% and 3.2%, respectively.

coincorner fees

Withdrawals are competitive though, with debit/credit cards costing just £0.80. In terms of Bitcoin trading fees, this depends on the amount you buy. This starts at £1 from purchases of £10 or less. Anything above £300 will cost you 1%. This is cheaper than Coinbase but much more than eToro – which charges 0%.

Pros

  • Very fast to start trading
  • Supports a wide variety of payments
  • Set up recurring cryptocurrency investment
  • Reward program with 1,000+ businesses

Cons

  • Extremely high trading fees
  • Minimal charting and trading tools

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

4. Binance – Popular Bitcoin Trading Platform With Hundreds of Cryptocurrency Pairs

Binance LogoIn terms of trading volume, Binance is by far the largest Bitcoin exchange platform. Although the provider was launched as recently as late 2017, it’s often facilitated over $2 billion worth of daily trading activity.

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 0.1% on buy and sell orders. This means that a £1,000 trade would cost you just £1.

binance buy bitcoin uk

Even lower fees are on offer if you add some Binance Coins to your wallet. This is the native cryptocurrency backed by Binance, and it allows you to reduce your trading fees by a further 25%. 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. Not only does this include major digital assets like Ethereum, LTC, EOS, and Bitcoin Cash – but heaps of ERC-20 tokens. These are small cryptocurrency projects that are a lot more volatile – which does appeal to some traders.

binance trading platform

In terms of deposits, you have a couple of options. This top crypto exchange allows you to transfer your cryptocurrency from an external wallet and straight into your trading account. Or, if you don’t currently own any cryptocurrency, you can buy Bitcoin with a debit/credit card. This does, however, come with a 2% transaction fee.

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.

Pros

  • Largest cryptocurrency exchange in terms of trading volume
  • Hundreds of cryptocurrency pairs supported
  • Trading commission of just 0.1%
  • Supports UK debit/credit cards and bank transfers
  • Great reputation in the cryptocurrency scene
  • Ideal for advanced traders that seek sophisticated tools and features

Cons

  • Not great for newbie investors
  • Standard charge of 2% on debit/credit card deposits

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

5. Coinjar – Best for Long-Term Bitcoin Investing

Coinjar LogoCoinjar 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. When it comes to transaction fees, buying and selling digital currencies at Coinjar will cost you 1%.

Coinjar Trading Platform

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 0.20% and goes down to 0.15% when you trade more than £6,000 in a 30-day period. The lowest fee possible is just 0.08%, albeit, you’ll need to trade over £6 million!

coinjar fees

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.

Pros

  • Offers ready-made cryptocurrency portfolios
  • Faster Payment bank transfers are free
  • Relatively inexpensive fee structure
  • Excellent cryptocurrency trading platform
  • Regulated by Australian Transaction Reports and Analysis Centre

Cons

  • Doesn’t include any technical indicators

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

6. Luno – Best Bitcoin Trading UK Platform for Mobile Usage 

Luno LogoLuno 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 0.1% commission fee charged by Luno.

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 3.5%. When it comes to tradable cryptocurrencies, Luno only supports Bitcoin, Litecoin, Ethereum, and Ripple.

luno trading platform uk

As such, this is somewhat limited. In terms of security, Luno keeps 95% of client balances in cold storage. Finally, we really like the cryptocurrency savings account that Luno offers. Depending on the specifics you set up, you could earn up to 4% per year in interest.

Pros

  • 0.1% commission
  • Lots of trading tools and indicators
  • Cryptocurrency savings accounts
  • Keeps 95% of client funds in cold storage

Cons

  • High debit card fee
  • Limited choice of coins

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

What is Bitcoin Trading UK?

bitcoin logo If you’re new to the world of cryptocurrency speculation – then it important that you understand the difference between ‘investing’ in and ‘trading’ Bitcoin.

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.

Here’s a quick example of how Bitcoin trading works in practice:

  • You deposit £500 into a Bitcoin trading platform
  • You want to trade BTC/GBP – which is the exchange rate between Bitcoin and the British pound
  • The pair is currently priced at £14,500
  • You think that the exchange rate will rise, so you place a £500 buy order
  • A few days later, BTC/GBP is worth £16,000 – representing an increase of 10.3%.
  • You close your Bitocin trade – so on a stake of £500 you made £51.50

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.

Crypto-to-Fiat Pairs

The term ‘fiat’ refers to a traditional currency like the British pound or US dollar. As such, by trading crypto-to-fiat pairs, you will be trading the exchange rate between Bitcoin and a mainstream currency. The vast majority of this space is dominated by Bitcoin and the US dollar – with the pair represented as BTC/USD.

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.

This includes the following:

  • BTC/GBP – Bitcoin and the British pound
  • BTC/JPY – Bitcoin and the Japanese yen
  • BTC/AUD – Bitcoin and the Australian dollar
  • BTC/EUR – Bitcoin and the Euro

As such, if you feel more comfortable trading Bitcoin against the pound, then eToro is going to be your best option.

Crypto-Cross Pairs

The best UK Bitcoin trading platforms also offer crypto-cross pairs. Put simply, this means that you will be trading Bitcoin against another cryptocurrency. Popular pairs include BTC/ETH (Ethereum), BTC/XRP (Ripple), and BTC/EOS (EOS).

Here’s an example of how a crypto-cross pair works at a Bitcoin trading platform in the UK.

  • You want to trade BTC/ETH – which is the exchange rate between Bitcoin and Ethereum
  • The pair is currently priced at 31.50
  • You think that the exchange rate will rise, so you place a £200 buy order
  • A few days later, BTC/ETH is worth 40.30 – representing an increase of 27.9%.
  • You close your trade – so on a stake of £200 you made £55.80

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. As a result, if you have little knowledge of how Bitcoin trading works, it’s best to stick with crypto-to-fiat pairs.

Bitcoin Trading Price

An additional learning curve that you need to get your head around is that of the Bitcoin trading price. After all, this digital currency does not exist in physical form, so a lot of newbie investors can’t quite comprehend how its value is derived.

bitcoin trading price uk

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.

Automated Bitcoin Trading

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 shouldn’t dishearten you, however, as there are several ways you can bypass the need to perform in-depth chart analysis. This covers Bitcoin trading robots, third-party signals, and Copy Trading.

Let’s explore how each of these Bitcoin trading strategies works and whether or not they are suitable for your financial goals.

Bitcoin Trading Robots

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.

This means the robot can operate 24/7 – subsequently scanning thousands of markets at any given time. 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.

bitcoin price now

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.

The process is as follows:

  • You perform research on an automated Bitcoin trading robot provider and decide to buy it
  • You download the robot to your desktop computer via a software file
  • You also also download third-party trading MT4 and log in with your brokerage credentials
  • You install the previously downloaded Bitcoin trading robot software file into MT4
  • You give the robot authority to trade on your behalf

Once you follow the above instructions, the automated Bitcoin trading robot will begin placing buy and sell for you. You will get to choose your preferred stakes and risk/reward targets – and you can switch off the robot at any given time.

Bitcoin Trading Signals

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. As such, if you’re interested in automated Bitcoin trading but want to retain control over your account balance – then you might want to consider signals.

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.

Below you will find an example of what a Bitcoin trading signal looks like:

  • Pair: BTC/GBP
  • Order: Buy
  • Entry: £14,200
  • Stop-Loss: £13,100
  • Take-Profit: £15,900

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. This is because you are provided with the required buy/sell entry price, as well as stop-loss and take-profit orders.

Copy Trading and CopyPortfolios via an FCA Bitcoin Trading Platform

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.

copy trading etoro

After all, it’s pretty easy to create a website offering Bitcoin robots/signals that come with huge ‘guaranteed’ returns. 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. As we noted earlier, this FCA-regulated broker offers Copy Trading and CopyPortfolio features.

etoro copy trading

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. This will be at an amount proportionate to what you invested ($200 minimum).

Here’s an example of the Copy Trading feature works at eToro:

  • After doing lots of research, you decide to invest $1,000 into an experienced Bitcoin trader
  • A few hours later, the Bitcoin trader risks 5% of their portfolio on a BTC/ETH buy order
  • As such, 5% of your portfolio mirrors the same trade – so that’s $50
  • The trader closes the position – making gains of 10%
  • On your personal stake of $50 – your 10% gains amount to $5

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!

In addition to the Copy Trading feature, eToro also offers something called CopyPortfolios. 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.

copyportfolio crypto at etoro

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.

For example, at the time of writing, the eToro CryptoPortfolio looks like this:

  • Bitcoin: 31.65%
  • Ethereum: 13.62%
  • Cardano: 8.63%
  • Stellar: 7.34%
  • Ripple: 5.87%
  • Other: 32.72%

Take note, the above portfolio requires a minimum investment of $5,000. If this is too much for you, it might be best to opt for the Copy Trading feature, which requires just $200.

Margin Trading Bitcoin

Margin trading – otherwise referred to as leverage, allows you to trade with more money than you have in your account. In the UK, the amount of margin that you can trade with is dictated by ESMA. Although the UK has technically left the EU, these rules still remain in place.

This means that the most you can apply is 1:30 (major forex pairs), with other assets coming with lower limits. In order to access these markets, you need to use a CFD broker.

Now, up until January 2021, Bitcoin trading platforms in the UK could offer cryptocurrency CFDs with leverage of 1:2. This meant that a £100 stake would give you £200 in trading capital. However, the FCA has since announced that come the new year, crypto CFDs are no longer available to UK residents.

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.

Benefits of Bitcoin Trading

There are many benefits – as well as risks, of using Bitcoin trading platforms to buy and sell crypto assets.

Let’s start with the benefits:

Innovative and Revolutionary Technology

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.

For example:

  • It allows people to send and receive Bitcoin without needing a third-party
  • Transactions are not tied to the real identity of the sender or receiver
  • It takes just 10 minutes for fund transfers to arrive – irrespective of location
  • Transactions fees are super-low

In addition to the above, Bitcoin is decentralized. This means that the government or central bank can’t own or take control of it.

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 1990s. But of course, there is no guarantee that you will make money by trading Bitcoin, so do bear this in mind.

Lots of Bitcoin Trading Markets

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.

BITCOIN POUND STERLING EXCHANGE RATE

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.

24/7 Trading

When you trade traditional assets like stocks and shares, you can only do so during standard market hours. For example, the London Stock Exchange operates between 8 am and 4 pm, Monday to Friday. 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.

Huge Trading Volumes

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 2021, and Bitcoin trading platforms collectively see billions of pounds worth of activity each and every day.

In fact, in the 24 hours prior to writing this guide, there has been more than $31 billion worth of activity on BTC/USD alone. Across the entire cryptocurrency trading industry, this figure stands at over $138 billion in the past 24 hours.

Low Barrier to Entry 

The best Bitcoin trading platforms in the UK allow you to get started with ease. It typically takes just minutes to open an account, and brokers like eToro allow you to instantly deposit funds with a UK debit/credit card or e-wallet. Best of all, you can trade Bitcoin with small amounts.

For example, the aforementioned Bitcoin trading platform has a minimum deposit of $200 and a minimum trade size of just $25. This ensures that you can trade Bitcoin online without needing to risk large amounts of money.

Go Long or Short

When you trade Bitcoin pairs like BTC/USD, this allows you to go long or short. 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.

As we noted earlier, the FCA introduced new regulations that mean that from January 2021, UK residents can no longer trade crypto CFD products. This was the go-to avenue to short-sell cryptocurrencies like Bitcoin.

btc usdt at binance

The good news is that you can still short-sell Bitcoin if this is something you want to achieve. In order to do this, you will need to trade a crypto-to-crypto pair like BTC/USDT.

This means that you will be trading Bitcoin against Tether – which is pegged to the US dollar. As such, this works in the same way as trading BTC/USD via CFDs.

Bitcoin Trading Risks

Now that we have covered the benefits, we should discuss the risks of Bitcoin trading.

Risk of Loss

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.

High Volatility

Bitcoin is a new and often volatile digital currency – meaning that you stand the chance of losing more than you had hoped. This is because the cryptocurrency can move by more than 10% in a single day of trading. This is much more likely to happen than a blue-chip stock – so do bear this in mind.

Wider Spreads

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 0.2% to 0.25%, with Bitcoin it is usually 0.75%.

Understand Crypto Wallets

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.

Fortunately, if you use a regulated broker like eToro, you won’t need to worry about knowing the ins and outs of crypto wallets. This is because eToro will safeguard your digital coins in their own wallet.

Bitcoin Trading Strategies

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.

Buy and Hold

If you’re looking to trade Bitcoin as a complete novice, then it might be best to stick with a simple buy and hold strategy. This entails buying Bitcoin and then holding on to the investment long-term. This might be for several months or even years.

btc gbp buy and hold

The reason that this strategy is useful for newbies is that you do not need to worry about short-term volatility. In turn, this also means that you don’t need to have a grasp of technical analysis – which is the art of reading charts.

Swing Trading

If you’re prepared to learn the ins and outs of technical and fundamental analysis, then you might want to consider swing trading. 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

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.

Is Bitcoin Trading Safe?

bitcoin fca safeBitcoin 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. For example, eToro is regulated by the FCA (as well as ASIC and CySEC). 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. On the other hand, there are hundreds of cryptocurrency exchanges in the space that still operate without a license, so be extra careful when picking a platform that we haven’t discussed on this page.

Risk Management

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.

  • Stop Loss Orders: This is an order that allows you to limit your potential losses. For example, you might decide that you do not want to risk more than 5% of your trading capital. As such, you simply need to place a stop-loss order 5% above or below your entry price – depending on whether you are long or short.
  • Take Profit Orders: This order type allows you to set a clear profit target before you enter the trade. For example, if you place a take-profit order at 10%, the UK Bitcoin trading platform will close the position if this target is met. This also ensures that you don’t need to spend hours at your computer waiting to close the trade manually!

Crucially, these orders, although not compulsory, should always be added to your trade.

How to Get Started on a Bitcoin Trading Platform

If you’ve made it through our guide on the Best UK Trading Platforms all of the way through, then you should now be ready to start buying and selling crypto pairs. If so, we are now going to walk you through the process of getting set up with eToro.

Step 1: Open a Trading Account at eToro

Visit the eToro website and look out for the ‘Join Now’ button. You will need to create an account by entering some personal information.

eToro sign up

This includes the basics – such as your name, home address, and date of birth. You will also need to create a username and password.

Step 2: Quickly Upload ID

You can actually upload a copy of your ID at a later date if you’re not planning to deposit more than $2,250.

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.

All you need to do is provide a copy of your passport or driver’s license, alongside a recently-issued bank account statement or utility bill. In doing so, eToro should be able to verify your account instantly!

Step 3: Deposit Funds

Now it’s time to deposit some funds. You can use a UK debit/credit card for an instant deposit, as well as Paypal, Skrill, and Neteller. Bank transfers are supported but this can take several days to process.

The minimum deposit is $200 and if using a UK payment method, this comes with a small FX fee of 0.5%.

Step 4: Search for a Bitcoin Trading Market

eToro offers heaps of Bitcoin trading markets, so search for the one you want to access. You can head over to the ‘Trade Markets’ section of the website and then click on ‘Cryptocurrencies’. This will display each and every Bitcoin trading market available to you.

Buy Bitcoin on eToro

However, as we noted earlier, newbies should probably stick with a traditional buy and sell strategy. With this in mind, all you need to do is enter ‘Bitcoin’ into the search box and click on the ‘Trade’ button.

Step 5: Trade Bitcoin

This is where you will need to set up an order. By default, this is set as a ‘buy’ order, meaning that you are hoping the price of Bitcoin will rise.

Buy Bitcoin on eToro

To keep things simple, all you need to do is enter your stake into the ‘Amount’ box. This needs to be entered in USD and at a minimum of $25. If, however, you are looking to swing or day trade Bitcoin, you should also set up a stop-loss and take-profit order. This will mitigate your risks in the event of short-term volatility.

Finally, click on the ‘Open Trade’ button to complete your commission-free Bitcoin trade!

Conclusion

There are hundreds of Bitcoin trading platforms in the UK, so knowing which provider to trade with can be a time-consuming process. After all, you need to check that the platform is regulated, that it offers your preferred payment method, and that it allows you to trade in a cost-effective manner.

Taking all of this into account, our in-depth research process concluded that eToro is by far the best Bitcoin trading platform in the UK. The broker is regulated by the FCA, allows you to trade Bitcoin commission-free, and the minimum stake is just $25.

eToro – Best Bitcoin Trading Platform in the UK

 

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

FAQs

What is the Bitcoin exchange rate in the UK?

The exchange rate of Bitcoin in the UK will change on a second-by-second basis - as per demand and supply of the wider marketplace. At the time of writing, this is just over £13,800.

How can I trade Bitcoin anonymously?

If you are using a regulated Bitcoin trading UK platform - which you should be, you won't be able to trade anonymously. On the contrary, you will need to upload some ID before you can make a withdrawal. However, there are hundreds of Bitcoin trading UK platforms that allow you to remain anonymous, albeit, they are unregulated. Plus, you won't be able to deposit or withdraw funds with a traditional payment method - as only cryptocurrencies are supported!

Are Bitcoin trading UK platforms regulated?

Some Bitcoin trading platforms in the UK - such as eToro, are regulated by the FCA. This means that you can trade in a safe and secure manner. However, many platforms are not licensed by the FCA - or any regulator for that matter, so tread with caution.

Do Bitcoin trading platforms in the UK accept Paypal?

Most regulated Bitcoin trading platforms in the UK accept debit/credit cards and bank account transfers. The only platform that we are aware of that accepts Paypal is eToro.

Do UK Bitcoin trading platforms offer leverage?

Up until January 2021, you could have traded Bitcoin with leverage of 1:2. This would have doubled your initial stake. However, the FCA has since banned crypto CFDs, so you won't be able to trade with leverage (unless using an unregulated platform, which you shouldn't).

What is the minimum Bitcoin trade UK?

The minimum Bitcoin trade will vary from platform to platform. At eToro, for example, the minimum is just $25 - or about £18.

Kane Pepi

About Kane Pepi PRO INVESTOR

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.

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