Bitcoin has been in the headlines recently more than ever, and due to the rapid advancement of the cryptocurrency sector, more people than ever are interested in getting to know how to buy and sell Bitcoin in the United Kingdom. It is worth noting that buying bitcoin in the UK is very similar to buying bitcoin in the US.
However, the bitcoin market in British pounds is not one of the most liquid ones, as it ranks typically around the bottom of the top 10 most volatile markets in the world, but UK residents wishing to trade actively or occasionally buy some of the digital currency have many reputable options to choose from.
If you are just making your first steps in the world of cryptocurrency, then you need to know that before you can purchase any Bitcoins, you will need a place to keep them. The most reliable option for storing your coins is creating a digital Bitcoin Wallet. Many online sites like Mycellium, Coinbase, and Blockchain offer digital wallets, often with software for Windows, Linux, macOS, iOS, and Android.
The essential things to look out for when choosing a digital wallet is ease of use and security. The more secure, the better, as cryptocurrency theft has been a serious concern in the past. This was proven spectacularly in 2014 when hackers brought the most famous exchange in the world to its knees by looting it of 850,000 Bitcoin. Be sure to get a wallet provider that provides two-step authentication and make sure your password is secure.
Most of the wallet providers nowadays offer high-levels of security but bear in mind that your bitcoin wallet is like an actual wallet. If your wallet is stolen and you lose your cash, you’re never getting it back. The same goes for Bitcoin. So, protect it judiciously.
After creating your digital wallet, you’ve got to buy bitcoin. There are many ways to do this. You could head to a formal exchange, or you could go down the peer-to-peer route.
Among the top UK-registered exchanges are Coinfloor and CEX. Both demand trader identification and seem more inclined towards active traders and businesses than the small retail investor.
Some non-UK exchanges like Coinroom, an exchange based in Poland, and Kraken based in the United States, can also exchange bitcoin for British pounds with good liquidity.
If you’re more drawn towards the marketplace, Bittylicious and BitBargain will link you with a seller in the United Kingdom. Although, here you can only buy bitcoin with PayPal UK or any other online or mobile payment methods.
And if you are interested in buying bitcoin with cash, then LocalBitcoins is your best chance, or you can try to locate a bitcoin ATM near you.