Best Coinbase Alternative UK – Top Crypto Exchanges with Cheapest Fees

If you’re thinking about buying cryptocurrencies online in the UK – you might be tempted to use Coinbase. After all, the exchange is known for making the crypto-investment process super-easy, not least because it supports debit card and bank account deposits. However, Coinbase is arguably one of the most expensive cryptocurrency exchanges in the UK.

Taking the above into account, this guide will review the best Coinbase alternatives UK.

Best Coinbase Alternatives UK 2021

Looking to start buying crypto at the best Coinbase alternative right now? If so, check out which UK crypto exchanges we think you should consider!

1. Binance – Best Coinbase Alternative UK for Trading
2. Coinjar – Best Alternative to Coinbase UK for Inexperienced Traders
3. Kraken – Best Coinbase Alternative UK for Leverage and Margin Trading
4. CoinCorner – Best UK Alternative to Coinbase for Buying Bitcoin Quickly

Another crypto exchange that didn’t make the list, but is equally as popular is Crypto.com. You can explore all the key metrics from fees and payment options, to security and its proprietary mobile app by reading our handy Crypto.com review right now.

Best Coinbase Alternative UK Reviewed

One of the main reasons why UK crypto investors are looking for an alternative to Coinbase UK is because the exchange is super-expensive. With that said, you shouldn’t choose a Bitcoin trading platform just because it offers low fees.

On the contrary, you also need to look at important metrics surrounding regulation and safety, supported cryptocurrencies, and payment methods.

We spent countless hours in our search for the best Coinbase alternative UK – which you’ll find below.

1. Binance – Best Coinbase Alternative UK for Trading

If you are looking for the best Coinbase alternative to deploy short-term trading strategies – Binance is great.

The platform is one of the largest cryptocurrency exchanges for trading volume and liquidity. It offers hundreds of cryptocurrency pairs of all shapes and sizes. For example, while you can trade major coins like Bitcoin and Ethereum, Binance also supports heaps of ERC-20 tokens.

This Coinbase alternative is also attractive in the fee department. This is because Binance will charge you a commission of just 0.10% per trade. You can get this commission down even further if you trade large volumes and hold a minimum quantity of Binance Coins (BNB).

Binance is also a popular Coinbase alternative because you have the option of trading anonymously. This is only the case if you do not plan on making a deposit with ‘real’ pounds and pence. Rather, you would need to deposit and withdraw funds with a cryptocurrency to avoid uploading ID, as well as trade less than 2 BTC per day.

If, however, you want to deposit funds with a UK payment method, Binance has you covered. With that said, it’s best to stick with a UK bank transfer, as the exchange will charge you 2% to use a debit or credit card. There are many other features offered by Binance that in particular – will appeal to experienced crypto traders.

For example, Binance is one of the few exchanges to offer crypto-based derivatives. This includes heaps of markets that are backed by futures and options. These crypto derivatives also allow you to trade with leverage, meaning you’ll have access to more capital than your Binance account permits.

Pros

Cons

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

2. Coinjar – Best Alternative to Coinbase UK for Inexperienced Traders and Investors

While Binance is a great platform for experienced traders, Coinjar is suited for those of you that want to buy a little bit of crypto in a safe and simple environment. The platform – which is based in Australia but now super popular in the UK, allows you to buy cryptocurrencies with ease.

All you need to do is register an account and provide a copy of your passport or driver’s license. After that, you can purchase Bitcoin by transferring funds from your UK bank account.

As the transaction is facilitated by the Faster Payments Network, the funds should arrive in your Coinjar account in a matter of minutes. Once you have completed your purchase, you can then withdraw the coins out to a private Bitcoin wallet. Although you also have the option of storing your crypto on the Coinjar platform, this is best avoided.

After all, the provider isn’t regulated by the FCA. Perhaps the biggest drawback with Coinjar is that you will be required to pay a commission of 1% on all buy and sell orders. For example, if you bought £2,000 worth of Bitcoin, this would cost you a fee of £20.

Then, if you sold your Bitcoin when it was worth £3,000 – the 1% fee would amount to £30. On the flip side, if you decide to trade cryptocurrencies via the Coinjar exchange, the commission is much lower at just 0.1%

Pros

Cons

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

3. Kraken – Best Coinbase Alternative for Leverage and Margin Trading

As you may well know, the FCA recently introduced a ban on crypto-derivatives. In turn, this means that you can no longer trade cryptocurrency CFDs and thus – won’t have access to leverage. However, if you still want to trade leveraged crypto products in the UK, Kraken can facilitate this.

This is because Kraken is not offering cryptocurrency derivatives in their truest form, not least because they are not backed by fiat currency.  This workaround will allow you to buy Bitcoin with leverage of 1:5.

This means that by funding your account with just £200, you would be able to trade with £1,000. Furthermore, if you are interested in trading Bitcoin futures, Kraken we’ll offer you even more leverage. This stands at up to 1:40, meaning you can trade with 40 times what your account balance permits.

In terms of tradeable markets, it could be said that Kraken is both a broker and an exchange. Regarding the former, you can buy Bitcoin and several other cryptocurrencies directly from the platform. You can do this by transferring funds from your bank account fee-free and at a minimum of just £1. Or, you can deposit funds with a UK debit card, albeit, this costs a whopping 3.75% + €0.25.

This fee includes the commission to buy Bitcoin. If you also decide to use Kraken to trade cryptocurrencies, the platform offers a reasonable selection of pairs. Fees start at 0.16% per trade, which is competitive. You can get the commission down further, but this will require a minimum 30-day trading volume of $50,000. Our Kraken review gives a more in-depth look at the cryptocurrency exchange.

Pros

Cons

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

4. CoinCorner – Best UK Alternative to Coinbase for Buying Bitcoin Quickly

If you have one specific goal – to buy Bitcoin online in the UK, you could consider CoinCorner. This popular platform allows you to complete your purchase in less than 10 minutes – should you opt for a debit/credit card or Neteller. Bank transfers are also supported, but this will delay the process.

With that said, CoinCorner does everything by the book, so you first need to upload a copy of your ID before you can make a purchase. CoinCorner is also a really good option if you only want to invest a few pounds into Bitcoin.

This is because the minimum purchase amount is just £10. CoinCorner also allows you to set up recurring Bitcoin investments. For example, you decide to buy £25 of Bitcoin per week or £200 per month. We also like the cashback feature that CoinCorner has implemented into its platform.

This allows you to earn Bitcoin every time you buy something from one of its partnered merchants – such as Boots or Currys. As convenient and burden-free as CoinCorner is, it must be noted that this UK Coinbase alternative is rather pricey. This starts at the very offset when you make a deposit, as the exchange changes  2.5% and 3.2% on debit and credit cards, respectively.

Trading commissions are on the high side, too. For example, anything Bitcoin purchases over £300 attract a 1% fee. But, if you invest less than this, the commission is even higher. For instance, if you purchased £10 worth of Bitcoin, you’d pay a fee of £1.50 – which amounts to 15%.

Pros

Cons

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

Coinbase Alternatives Fees Comparison

When searching for the best Coinbase alternative UK, you are likely to do so because you want to find a cheaper exchange. As such below we have compiled a table comparing the main fees charged by our selected alternatives to Coinbase UK.

As per the comparison table above, if you are looking to buy Bitcoin with a debit card, credit card, e-wallet, or bank transfer – Coinjar is by far the best alternative to Coinbase UK.

How to Choose the Best Coinbase Alternative UK

There are hundreds of alternatives to Coinbase UK, so you’ll want to spend some time thinking about what your priorities are.

To help you along the way, below you will find the most important metrics that you need to cross-off before choosing an alternative to Coinbase UK.

Fees

The obvious starting point is, of course, fees. After all, Coinbase is one of the most expensive cryptocurrency exchanges in the UK. As we discussed earlier, there are several fees that you need to look out for.

This includes:

• Deposit Fee: Most exchanges in the UK offer free, or near-free, bank account deposits. However, debit/credit card deposits can be costly. At Coinbase, this will cost you 3,99%. CoinCorner and Binance are also expensive, at 2.5% and 2%, respectively.
• Trading Commission: You will always need to pay a trading commission when you buy and sell crypto online. Coinbase charges a commission of 1.49%, but Binance is very competitive, with the platform charging just 0.10% per slide.

Regulation and Safety

Although you might want to find an alternative to Coinbase UK to save on fees, it is crucial that you only use a platform that is safe. In all fairness to Coinbase, the exchange does have an excellent reputation in the safety department.

This is, however, completed countered by the excessive fees it charges.

Payments

The best Coinbase alternatives in the UK will offer a range of payment methods at competitive fees. The best option on the table is a debit card, as your deposit will be processed instantly. E-wallets like Paypal and Skrill are also useful, as these provide a fast and secure way of getting money into your trading account.

However, a lot of alternatives to Coinbase UK only allow you to deposit funds via bank account transfer. If this is the case, it can take several working days for the funds to arrive. You should also check to see what the minimum deposit is and how long the exchange takes to process withdrawal requests.

Supported Cryptocurrencies and Altcoins

Although most investors in the UK are seeking a Coinbase alternative to buy Bitcoin, there are many other cryptocurrencies that you might be interested in. For example, you might want to dabble in Ethereum, Ripple, or even Bitcoin Cash.

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

Either way, it’s best to choose an alternative to Coinbase UK that gives you access to heaps of markets.

Wallet Security and Storage

When you buy crypto from an online exchange, you are normally given two options in terms of storage.

• First, you have the option of leaving the coins at the exchange until you decide to cash out. As most exchanges in the UK are unregulated, this isn’t advisable. After all, if the exchange was hacked, our funds are at risk.
• Secondly, you’ll have the option of withdrawing the crypto coins to a private wallet. Although this is typically a much safer way of doing things, digital wallets can be imitating if you don’t quite know how they work.

As such, the conundrum of storing digital currencies is often what prevents newbies from entering the market for the first time.

This is because the platform will safely store your crypto investment until you decide to sell. As the broker is regulated by the FCA, ASIC, and CySEC – you can be sure that the provider will keep your digital currency safe at all times.

Automated Crypto Trading and Investing

Coinbase offers a skin and bones service in terms of automation. That is to say, you will be required to buy and trade cryptocurrencies on a do-it-yourself basis.

This can be challenging if you are a complete newbie, as cryptocurrencies operate in a highly speculative and volatile ecosystem. As such, we find that the best alternatives to Coinbase UK offer automated trading solutions.

Conclusion

As we have covered throughout this guide, Coinbase is an expensive cryptocurrency exchange. Not only does it charge a commission of 1.49% every time you buy or sell a digital currency, but you’ll need to pay a whopping 3.99% when depositing funds with a debit card.

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

FAQs