Can I legally buy Bitcoin in the UK?

The rapid appreciation of cryptocurrency has many investors wondering if stocks should be in their portfolios.
Bitcoin exchange
There’s no time limit on when you can make a profit in the world of DeFi, as cryptocurrency markets are open 24/7. Transactional freedom, security, and improved liquidity are among the most important considerations for investors, who can buy and sell directly in a spot market or invest indirectly in a futures market. Bitcoin (BTC) is the most recognisable cryptocurrency owing to its longevity and credibility. The number of cryptocurrency users has surged since 2018, with ownership levels significantly higher among the very wealthy.

The question is now, can you buy BTC legally in the UK? Yes. You can purchase Bitcoin or any other cryptocurrency, but the experts recommend not investing more than a small percentage of your holdings in digital assets. The Financial Conduct Authority (FCA) doesn’t regulate cryptocurrencies. Still, you can find a list of cryptocurrency exchanges that are registered with it. It’s estimated that 6.1 percent of Brits own cryptocurrency at the moment, putting the UK behind as far as adoption is concerned. Unfortunately, there remains a sceptical core of naysayers.

Buying Bitcoin in The UK Is a Simple Process

Digital assets are classified as property, meaning that any website or exchange selling them is regulated by the FCA. Among the companies that have received FCA registration is Binance. You can invest successfully as long as you undertake analysis and understand what you’re investing in. If, like many others in the UK, you’re looking forward to buying virtual coins, this guide is for you.

Select A Cryptocurrency Exchange

Beginners can invest in Bitcoin by purchasing it online from an exchange. Acquiring coins via mining is possible, but it’s not feasible unless you have lots of time or technical expertise. You’ll want something more convenient. When picking where to buy cryptocurrency, consider safety, fees, user-friendliness, payments, minimum deposit required, etc. Equally important is to check the number of coins that you can trade. Even if you’re primarily interested in BTC, you might want to trade Ether and other leading DeFi tokens. To register, you provide personal details, the platform sends you a confirmation email, and you add a payment method.

Fund Your Account Before You Begin Investing

Once your identity has been verified, you can fund your account with pounds sterling via bank deposit, credit/debit card, cash balance, or P2P trading. If you’re making your first deposit to the cryptocurrency platform, send a small amount of money to familiarise yourself with the process and make sure everything works smoothly. Not only does the online platform make it easy to buy and sell digital assets, but also to monitor your movements and the performance of your holdings. Simply put, you gain more intelligence over the transactions.

Place An Order and Buy Bitcoin

Cryptocurrencies tend to be very liquid, which translates into the fact that trades occur promptly. When you submit a buy order, a seller is matched with your order, and the transaction is executed without delay. When investing, consider your portfolio goals, risk appetite, and personal convictions. If you want to know what is the price of Bitcoin, don’t fret because exchanges update prices in real-time. When the transaction is finalised, you’ll have a bunch of virtual coins, which you can withdraw to your own cold wallet. If your BTC is just lying there, you’re safe.

What’s The Minimum Amount to Buy Bitcoin?

Did you know that you can buy less than a Bitcoin? It’s true for all digital assets, particularly for BTC. The smallest unit of Bitcoin is 1 Satoshi, which is the equivalent of 0.00000001 Bitcoins. You can buy BTC using GBP, or any other fiat currency, the amount you want, so you don’t need to buy an entire Bitcoin. As far as the maximum amount is concerned, there’s no legal maximum to the number of coins you can purchase. Attention must be paid to the fact that buying large amounts of cryptocurrency means paying a premium over the spot price. Large transactions are more challenging to fill than small ones.

You’ll Pay Capital Gains on The Profits You Make

You can make money with Bitcoin if you actively engage in day trading, but you must be able to determine when the token will rise or fall. From a tax standpoint, digital assets are treated kike shares, so they’re taxed accordingly. In other words, you need to pay tax on the profit you make on BTC trading. You can use the HM Revenue & Customs (HMRC) online services to pay. You’ll need the details of how much you bought and sold the crypto for, when you took ownership of it, calculations for capital gains, and so on.

How To Choose a Bitcoin Wallet

A Bitcoin wallet doesn’t store your coins but your public and private keys, offering digital signatures that authorise transactions. The coins are stored in the blockchain. Some wallets allow buying and selling or interacting with decentralised applications (DApps). There are different types of crypto wallets, such as physical devices, software, and even paper wallets. To set up a wallet for BTC, install the client software or app following the manufacturer’s instructions. Your funds are as safe as your wallet, so you should better be careful. Don’t use public Wi-Fi, turn off auto-updates for apps and your operating system, and always use 2FA.

Conclusion

To sum up, regulations in the UK allow individuals to buy and sell cryptocurrencies. The sale of crypto derivatives, which derive their value from an underlying asset, whether Bitcoin or Ether, to retail customers has been banned by the FCA since 2021. Despite the fact that the UK cryptocurrency market fails to keep pace with other vibrant markets, investing and trading aren’t nearly as complicated as people think it is. Keep in mind that you’re liable for capital gains tax on profits that exceed £12,000. Bitcoin ATMs have shut down, so if you come across a withdrawal machine, it’s illegal. It’s very unlikely you’ll have protection if something goes wrong.