Dec 07, · 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. Fortunately, Bitcoin trading in the UK is absolutely legal and unrestricted. All you need is a trustworthy broker and the minimum amount of trading required. The minimum deposit and trading amount varies enormously depending on the type of platform. Basically we have to distinguish between 2 types of Bitcoin Brokers. "Real" Bitcoin Brokers. Dec 09, · Based on the level of platform and account security, Coinburp, Binance, and Coinbase are the three safest Bitcoin exchanges for UK traders. All three comply with AML and CFT policies and perform KYC checks on their customers (except for Binance where there are additional withdrawal limits for unverified customers).5/5(15).
Bitcoin platform ukThe Best Cryptocurrency Exchanges in the UK - Comparison
Incredible, right? Based in the UK, Coinfloor has built a solid reputation among high volume traders for its affordable fees. The fees vary between 0. For example, volumes over , GBP qualify for a 0. The largest crypto exchange is the one with the largest daily trading volume. If you visit the official website of any crypto exchange, you would typically find a box that counts the daily trading volume and website visits.
Unfortunately, most of the data is either false or has been manipulated before with wash trading. One of the few reliable organizations that still try to combat and filter the spread of fake information, as well as to bring some more frankness to the industry, is the Blockchain Transparency Institute. Coinmarketcap has live statistics of which exchanges have the largest trade volumes which is a good place to start.
These trustworthy sites have found out that Binance and Coinbase have the highest number of website clicks. They have been continually praised for their efforts to popularize crypto trading in the UK and make it seem less intimidating for novices. They offer account customization, live market data, and charts for market analysis.
Are you more interested in trading cryptocurrencies rather than making a simple buy or sell order? First of all, you need a variety of digital assets to make your trading more versatile. You want to choose a platform that offers advanced features such as margin trading, limit and stop offers, over-the-counter OTC services, different market charts, customizable portfolio, futures, etc.
Most of these features will be available to you if you create an account with Binance. For traders drawn to futures investments, Kraken offers up to 50x leverage on returns. It has the same OTC option as Binance, with one-on-one service for high volume traders.
One of the biggest challenges for crypto exchanges is dealing with hacker attacks and illegal trading. Investing in sophisticated cybersecurity measures is crucial in the development of any online platform that stores sensitive data and provides financial services. To elevate the security standards, reliable crypto exchanges obtain licenses and register as money businesses with local or international financial regulators based on the markets and countries they provide services for. Current regulatory frameworks require mandatory KYC checks for every single customer, monitoring and identifying suspicious trading patterns, reporting illegal activity, conducting third-party audits, mandatory two-factor authentication method, etc.
Our candidates for the safest crypto exchange that have shown a satisfying level of security with consistency are Coinburp, Binance, and Coinbase. The three of them apply encryption protocols to sensitive data and keep the funds in air-gapped cold storage.
By now, you already know that Binance has the highest trading volumes which means that their SAFU reserve vault could cover any unfortunate money losses. As we said in the previous section, KYC checks are mandatory on almost every well-known and respectable exchange.
However, not all traders approve of this verification method. If you belong to this group and privacy is of key importance to you as well, you definitely want to learn about the best platforms that require zero documentation to let you purchase cryptocurrencies — Paxful and LocalBitcoins.
These exchanges only ask for your email address to let you access their trading platform and search for a matching order. They let buyers and sellers find each other and agree on the payment method that works best for them. Some users might ask to see your ID before completing the deal, but it will be up to you to accept or deny their offer.
Another platform to have in mind if you want to avoid disclosing your identity is Binance. If you want to purchase cryptocurrency with cash, the first option is to look for a Bitcoin ATM if there happens to be one near you. If you prefer paying with a credit or debit card, use Coinbase or CEX. Unfortunately, card purchases incur the highest fees. Coinbase charges a 3. On CEX. The option to pay via card is also available on LocalBitcoins and Paxful.
You can even arrange to meet with your partner in person and pay for your coins in cash. This is a much riskier option so never agree to meet with that person alone. If none of this works for you, you can buy a Flexpin or Neosurf prepaid voucher that can be spent on exchanges such as Bitit. Another possible classification of cryptocurrency exchange is into custodial and non-custodial.
The former decides to store customer information or even their funds providing their own digital wallets , the latter provides no such services. The most common solutions are smart contracts or atomic swaps. One such decent option is Bisq, a platform where you can purchase Bitcoin with any fiat currency without providing your ID.
Sadly, the long waits and slightly higher expenses can put off a lot of traders. If your crypto trading portfolio focuses on ERC tokens, you can check out the decentralized Ox and Airswap protocols. Before you start looking for the right crypto exchange, you need to be confident with your investment plan and strategy. Do you need fiat to crypto exchange to make the deposits for your first purchases or are you going to trade cryptos only?
Are you satisfied with choosing from the top five cryptos or do you need a high liquidity platform that supports altcoins too? Does the exchange have the payment method that works for you? Finally, are you okay with disclosing your identity and providing an ID? If not, simply look for decentralized exchanges. Based on the level of platform and account security, Coinburp, Binance, and Coinbase are the three safest Bitcoin exchanges for UK traders.
They encrypt sensitive data and store funds in offline cold wallets. Similarly to a reserve vault, SAFU can be used to repay customers in case of security breaches. Binance offers the lowest trading fees on crypto to crypto trades. The fees start at 0. If you own some Binance tokens, you can pay the fee with these coins to get an additional discount.
In saying that, the most popular Cryptocurrencies are Bitcoin, followed by Ethereum and Ripple. Although for most cryptocurrencies mainstream usage remains an unattainable goal, Bitcoin is getting more and more recognition and acceptance across various industries. The key to their success is continually investing and updating their security measures with the newest technology e. It has a strict digital coin framework that assesses the performance of crypto candidates. The most popular type of cryptocurrency wallet is the digital wallet provided by custodial crypto exchanges or other online platforms.
Since cryptocurrencies are intangible virtual money, these wallets actually store the private keys to your wallet address.
We recommend using an online digital wallet only temporarily, as they can easily get hacked. At the moment, Binance supports over 1, different digital tokens. Starting with the most popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Ripple, all the way to some lesser-known low cap altcoins, Binance satisfies the appetite of each and every trader.
Traders are often torn between the two largest crypto exchanges, Binance and Coinbase, as both are reliable and fully-fledged platforms with a range of trading features. If you look for fiat to crypto pairs, choose Coinbase instead.
James is the main editor. With a passion for finance and anything blockchain, cryptocurrency is right up his alley. He's responsible for most of the content on the site, trying his best to keep everything up to date and as informative as possible. Last Updated on December 9, These days there are a huge amount of cryptocurrency exchanges, so which one should you be using? Our rating is based on factors such as ease of use, fees, trading features and support. Featured On. James Crypto Head.
This might play a factor, especially in certain exchanges that require you to be in a specific geographic area. Have they been involved in any scandals in the past?
Do they generally get high ratings and glowing reviews from satisfied users? These are a good guide to help you decide if it is the right cryptocurrency for you. Check which coins the exchange supports. The Best Altcoin Exchanges More and more traders turn to altcoins these days, mostly because they like speculating on the price of these volatile coins and making small investments. The Cheapest Cryptocurrency Exchanges Sometimes, looking into the fee schedule of a crypto exchange can help you make a better assessment and decide whether it works with your investment plan or not.
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. As such, by trading crypto-to-fiat pairs, you will be trading the exchange rate between Bitcoin and a mainstream currency. 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. As such, if you feel more comfortable trading Bitcoin against the pound, then eToro is going to be your best option. The best UK Bitcoin trading platforms also offer crypto-cross pairs. Put simply, this means that you will be trading Bitcoin against another cryptocurrency.
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. An additional learning curve that you need to get your head around is that of the Bitcoin trading price. 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.
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 covers Bitcoin trading robots, third-party signals, and Copy Trading. 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. 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. 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.
Once you follow the above instructions, the automated Bitcoin trading robot will begin placing buy and sell for you. 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. 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. 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. 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.
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. 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. 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!
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. 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.
Margin trading — otherwise referred to as leverage, allows you to trade with more money than you have in your account. Although the UK has technically left the EU, these rules still remain in place. This means that the most you can apply is major forex pairs , with other assets coming with lower limits. In order to access these markets, you need to use a CFD broker. 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. There are many benefits — as well as risks, of using Bitcoin trading platforms to buy and sell crypto assets.
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.
In addition to the above, Bitcoin is decentralized. 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 s. But of course, there is no guarantee that you will make money by trading Bitcoin, so do bear this in mind.
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. 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.
When you trade traditional assets like stocks and shares, you can only do so during standard market hours. 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. 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 , and Bitcoin trading platforms collectively see billions of pounds worth of activity each and every day.
The best Bitcoin trading platforms in the UK allow you to get started with ease. Best of all, you can trade Bitcoin with small amounts.
This ensures that you can trade Bitcoin online without needing to risk large amounts of money. 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. This was the go-to avenue to short-sell cryptocurrencies like Bitcoin. The good news is that you can still short-sell Bitcoin if this is something you want to achieve. This means that you will be trading Bitcoin against Tether — which is pegged to the US dollar.
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. Bitcoin is a new and often volatile digital currency — meaning that you stand the chance of losing more than you had hoped.
This is much more likely to happen than a blue-chip stock — so do bear this in mind. 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. 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. This is because eToro will safeguard your digital coins in their own wallet. 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. This entails buying Bitcoin and then holding on to the investment long-term. This might be for several months or even years. The reason that this strategy is useful for newbies is that you do not need to worry about short-term volatility. 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 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. Bitcoin 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. 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. 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.