The crypto world is probably one of the most dynamic (or volatile) markets today. Chances are, cryptocurrencies will get even more popular over the following years as more and more of their technology finds its way in our daily lives.
Bottom line, if you are not already in this niche, it’s definitely not too late to get involved. Even though the market for cryptocurrencies in British Pounds is not the highest ranking one in volume, UK residents wishing to trade actively or to intermittently purchase some crypto have various options to choose from.
Since starting out in the crypto world as a UK investor might seem a bit daunting, we have created this list of some of the best exchanges and crypto merchants from where you can buy cryptocurrencies using GBP.
First on our list is Coinfloor, a UK-registered exchange and one of the major players in the country’s crypto space. The exchange boasts a 100% cold storage policy, which should, at least in theory, make it one of the safest cryptocurrency exchanges in the UK. The crypto exchange is currently ranked 104th on CoinMarketCap with a 24-hour volume of $2,067,346.
Coinfloor provides its users with the possibility of trading fiat currencies against a few crypto coins, even though the main volume and liquidity are concentrated around Bitcoin trading against the GBP. The complete list of trading pairs includes XBT/GBP, XBT/EUR, XBT/USD, BCH/GBP, ETH/GBP, ETC/GBP, XRP/GBP, and LTC/GBP.
The exchange has a decent structure for fees, but the minimum fiat currency deposit of GBP (5,000 GBP) may be viewed as exaggerated, especially by investors who want to start with a small sum. Even though Coinfloor declares that it has 0% fees for trading, there are various fees when making a withdrawal or a deposit. These fees might seem unusual, as the flat deposit fees are as follows: 5,00 GBP, 1,50 EUR, and 10,00 USD. Finally, Coinfloor accepts blockchain and bank transfers, but trading on leverage is not supported.
Another good option when it comes to buying cryptocurrencies in the UK is Cryptomate. For starters, it’s worth noting that Cryptomate is a different type of service that one might expect, working more like a peer-to-peer network that connects buyers and sellers of cryptocurrencies. In order to use the website and become a vendor, one must meet various volume requirements.
Other interesting aspects are represented by the fact that Cryptomate only accepts UK bank transfers as a payment method, as well as by the fact that the company doesn’t offer a wallet. Since it’s dependent on the FPS (Faster Payment Service) to operate, Cryptomate follows the working hours of most UK banks.
Be that as it may, Cryptomate is still a very valid alternative to most crypto exchanges since it offers a lot of variety. According to CoinMarketCap, the exchange is ranked 185th, and investors can purchase Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Ethereum Classic, Dash, Ark, Dogecoin, Monero, Zcash, Stellar, Cardano, EOS, TRON, and NEM. Other aspects to consider are the daily limits of 100 GBP for unverified clients and 1000 GBP for the verified ones.
The story of CEX.IO started in 2013, when it was a mining pool. The London-based company was later converted into what is today one of the best cryptocurrency exchanges in the UK space. Currently, the exchange is ranked 59th on CoinMarketCap, with a 24-hour volume of $13,743,228.
CEX.IO offers a decent array of digital assets that can be traded for fiat currencies. For example, traders can buy BTC, ETH, DASH, ZEC, for GBP, EUR, and USD. The exchange offers 1:3 in leverage and a very competitive fee structure. Makers don’t have to pay any fees, while taker fees usually start at 0.20% and go down as monthly volumes increase. Another advantage of this exchange is the fact that it accepts credit cards and bank transfers. Lastly, it also offers negative balance protection for margin trading, which might prove to be very useful for experienced traders.
Bittylicious is another good place where UK traders can buy cryptocurrencies. Not really an exchange, Bittylicious is more a cryptocurrency trading venue that is mainly selling Bitcoins for UK bank transfers and UK credit cards.
At the time of this writing, the service was ranked 163rd on CoinMarketCap, with a 24-hour volume of $117,662. Probably the most impressive aspect of Bittylicious is the variety of provided assets, all of which can be purchased with GBP, EUR, and USD. Traders can use GBP to buy Bitcoin, Ethereum, Litecoin, Bitcoin Cash, DigitByte, Stratis, Vertcoin, Dogecoin, Dash, as well as other non-mainstream altcoins.
Since it’s a peer-to-peer service that has no coins stored in a centralized environment, it also means that Bittylicious is very secure. Furthermore, it means that the execution of the trades is not instant, as well as the fact that traders will require a wallet to receive the coins, as Bittylicious does not offer one. Another disadvantage is the fact that it doesn’t offer trading on margin.
Other non-UK exchanges
UK investors also have a lot of other options since there are a plethora of non-UK exchanges and cryptocurrency market places that can also exchange GBP for various cryptocurrencies such as Coinroom, Kraken, Bitit, HiveEx, VirWox, CoinJar, Coinbase, CoinCorner, Paxful, and Cubits, among others.
Other tips worth considering
Regardless of the cryptocurrency exchange or marketplace of your choosing, and regardless if it offers native wallets or not, any serious crypto trader should consider getting an electronic wallet. Traders can choose between various types of wallets such as hot storage and cold storage wallets. Hot wallets are usually free and very user-friendly, and they offer quick access to one’s cryptocurrency.
We hope that this guide will offer you the much needed guidance in regards to how to buy cryptocurrency in the UK and will help you take your first steps as a successful crypto investor.