Cryptocurrencies in the U.K have not been welcomed with open arms yet. Though cryptocurrencies are not illegal it seems a bit unfair to say that it is all legal and open. The freedom of using cryptocurrencies has rather been carefully measured as it lacks standard money-related definitions and procedures.
In this article, we are going to discuss websites and applications you can use to create and manage your cryptocurrencies, mainly Bitcoin.
Basic Steps Involved in Buying Bitcoin in the U.K
Bitcoin owners can sell and buy Bitcoins from peers via various mobile applications and desktop websites. In some countries, buying daily essentials using Bitcoins has also taken place. People have started ordering food and paying electricity bills the Bitcoin way. To do so, one must follow the steps given below to successfully create their Bitcoin account.
- Open an Account:
Most of the websites require new users to sign up and create an account. There are, but very few, U.K. website hostings that offer discounted rates on Bitcoin. Here are some well-known websites you can check out.
- Coinfloor: Coinfloor has a special feature called auto-buy. Make the required deposit into your wallet and use the auto-buy option to automatically time the market and place your orders.
- Coinbase: Coinbase quotes itself as the most trusted place for the conversion and trading of Bitcoin. You can either link your bank account to the website or use applications like Paypal. You can also perform Bitcoin transactions with credit and debit cards.
- Coindirect: Coindirect supports forty plus cryptocurrencies including Bitcoin and Ethereum. It is a London-based company with trusted banking patterns.
- CoinJar: CoinJar, along with a website, has its own mobile application. It supports debit and credit card purchases. A 1% fee is charged as a transaction fee while buying or selling.
You can trade with cryptocurrencies like Bitcoin (BTC), Ethereum (ETC), Litecoin (LTC), Ripple (XRP) and Monero (XRM).
2. Get an online or hardware wallet:
Remember, it is not essential to purchase a wallet if you’re buying Bitcoins just for the sake of selling them or gambling in casinos. But if you choose to go for long-term investing, you need a wallet to store all of your Bitcoins. Online wallets are mostly free. After creating an account, the website will ask you for your payment details and other authorization questions.
The wallet will provide you with a public key that you will use for future Bitcoin transactions. You can opt for a hardware wallet that is nothing but a USB memory stick that you can connect to your laptop to check on your crypto portfolio.
3. Transfer money from bank accounts to your Bitcoin wallet:
If you do not have personal possession of your Bitcoin, it will always be at risk. Use your bank money to buy Bitcoins and after purchase, immediately transfer it to your Bitcoin wallet. Leaving your Bitcoin with a third-party website could make you have less control over it.
While depositing money into your crypto wallet, you will often encounter a deposit fee of $10 or £10. In general, the first time deposit amount is £250 to £500. One can pay by SEPA credit or bank transfer.
Best Bitcoin wallets
This company is currently serving more than 70,000 merchants all over the globe. It promises minimal risk and optimal security of your Bitcoins. It provides industry-low processing fees of only 0.5%. The brand has its plugins in 2000 plus websites such as Shopify and Magento. You can also use this platform to buy, convert and purchase gift cards with credit cards. It is also available as a mobile app.
Other online wallets include Exodus, Electrum.
Buy via credit cards through these websites: Paxful, Coinmama, Binance, Crypto, Coingate and Bitfinex.
Unlike the usual online Bitcoin wallets, this one is a physical version of a wallet. It has a sleek and elegant design enabling you to secure and control all your crypto. It is a Bluetooth-enabled hardware wallet in which you can store all sorts of cryptocurrencies. There are currently two versions of the hardware namely, Ledger Nano S and Ledger Nano X, the latter being the latest one. By purchasing the starter pack, you will not only get your Ledger Nano S but also a manual in PDF to start off into the world of cryptocurrency.
Other hardware wallets include Exodus, Electrum, mycelium.
Some websites also allow you to convert your application reward money into Bitcoin. You can also transfer money via IMPS from your bank account into these wallets for further transactions.
Few Rules and Regulations to Keep in Mind While Dealing with Cryptocurrency in the UK
- Cryptocurrency exchange platforms are required to register with the Financial Conduct Authority (FCA) unless they acquire an e-money license.
- Verification forms such as the KYC (Know Your Customer), KYB (Know Your Business), CFT (Combatting the Financing of Terrorism ) and/or AML (Anti-Money Laundering) have to be filled with care.
- Your bank must be a crypto-friendly bank.
- Before you buy crypto, do a complete background check of the vendor. Check whether his payment methods align with yours. You must also give their transaction history a check.
Bitcoin trading is highly volatile and risky. It is advisable not to spend your life savings on it. Enter the world of cryptocurrency only when you are debt-free or don’t owe anybody any money. There are high chances of losing more than you had invested before. Open an account in any one of the reliable Bitcoin trading platforms and get started.
When it comes to storing Bitcoins, make sure after every purchase, you transfer your Bitcoins to your private wallet. Happy trading!