With the recent increase in scam rates, figuring out how to buy cryptocurrency safely in the UK is a real talking point. And as much as cryptocurrency platforms try to ensure safety, there’s still work to do on your part.
According to Action Fraud, scams involving crypto rose by 57% in 2020. With numbers like this, learning how to buy crypto safely is crucial in your crypto journey.
Staying safe when buying cryptocurrency isn’t just about making sure your Bitcoin wallet is secure. You also have to be wary of scam crypto projects. These projects lose value very fast. In a matter of minutes, a hundred quid investment can bottom out to zero.
Why Should I Buy Crypto if It’s Not Safe?
Whether you’re looking to trade or buy, cryptocurrency holds potential. But because the industry is still new, there are numerous issues, discussions, and restrictions in the market.
Despite these drawbacks, all indicators are that cryptocurrency is the future of money. Asking why you should buy crypto is like asking why you should use online banking services when it allows scammers to steal your account details.
In 2009, cryptocurrency’s king, Bitcoin, came into existence. As of then, the reception wasn’t what it is now. There has been a lot of change and acceptance in the past twelve years of crypto’s existence. At inception, crypto looked nothing more than the average nerd’s fantasy. In 2021, cryptocurrency has a reputation as a value, transactional, and investment asset store.
Crypto now has the attention of world leaders and business moguls. The rising interest contributes to the soaring valuation of the market. Owing to crypto’s soaring value, now is the best time to invest in crypto.
Buying and selling goods and services with crypto is possible but currently not common. Hence, people buy crypto as assets for the long term or short term.
Now, “can I buy cryptocurrency safely?” Yes, you can, and you should. Cryptocurrency is a worthy investment. A $100 investment in Bitcoin in 2011 is worth tens of millions now.
If the world’s crypto adoption continues at this same rate, the same reality — or close — awaits some of the 6,000+ cryptocurrencies we currently have.
Is it Legal to Buy Cryptocurrency in the UK?
The UK government pays attention to cryptocurrency now, with different regulations guiding the market and its players. As of 2020, there were no specific crypto laws in the UK, despite declaring them an asset. Post-Brexit, the government’s approach to cryptocurrency is taking a different turn.
The Bank of England does not classify cryptocurrency as “money.” Hence, crypto poses no systemic liability to the banking industry. However, the Bank of England has some guidance about crypto’s use as an asset. The regulations from the Bank of England can help you buy cryptocurrency safely in the UK.
According to these regulations, cryptocurrencies are legal to purchase. However, you must ensure that the exchange platform you buy cryptocurrency from in the UK has proper registration with the country.
Binance is a top crypto exchange that’s currently not accessible to residents in the UK. Though, as a UK resident, you can still trade crypto on the platform, you can’t do so with British Pound. The whole ban situation remains murky, but the good news is there are other platforms you can leverage.
Best Place to Buy Cryptocurrency in the UK
The exchange you use to buy crypto is vital to the security of your crypto experience. Before putting your money in any exchange, ensure they have a UK support license.
Here is a list of exchanges where you can buy cryptocurrency safely in the UK:
Coinbase ranks as one of the exchanges with the largest trading volume. They have a platform that’s easy to use while maintaining high transactional speed. In addition, they have a lengthy list of cryptocurrencies tradable on their platform.
As a crypto newcomer, Coinbase is one of the best ways to buy crypto. They support customers in about 30 world’s countries, including the UK. You can also make instant buy options on the website; all you need is your debit card.
BC Bitcoin is a UK company that focuses on fast deposits and withdrawals. They are also great with customer support. The quality of service they offer makes them rank as a top platform to buy cryptocurrency safely.
The only issue is they have a concise list of cryptocurrencies they support. On BC Bitcoin, you can only buy Bitcoin (BTC), Ripple (XRP), Ethereum (ETC), Monero (XRM), and LiteCoin (LTC). Plus, you need a minimum of £500 deposit to start trading.
Coinmama is a global crypto exchange platform that offers residents in the UK a way to trade safely. Coinmama offers the highest limit for crypto purchases with credit cards.
Coinmama, as a crypto trading platform, has built a reputation of reliability and trust. The slight drawback to their service is that Coinmama has an unattractive system of charging high fees.
Coinfloor is another UK company that makes it possible to trade with different country’s currencies. They have a not-so-long list of cryptocurrencies they support and employ a fair fee structure.
Unfortunately, though, the minimum deposit requirement is $5000. For new traders, the minimum deposit is on the high side. However, the flexibility and safety Coinfloor provides can make the high deposit worth it.
Going to a bitcoin ATM is another way to buy crypto safely. Though bitcoin ATMs have high fees of about 5-10%, they offer convenience and total privacy.
Buying from a bitcoin ATM helps you maximise the anonymity that bitcoin provides while buying with cash. Ensure you have a bitcoin wallet set up and ready for use before visiting the Bitcoin ATM.
How to Safely Buy Cryptocurrency
The two most crucial infrastructures you need to buy cryptocurrency safely are your wallet and an exchange platform. Think of a crypto wallet as your physical wallet. Though most exchange platforms have in-built wallet features, it’s safer to have a dedicated digital or physical wallet.
Cryptocurrency wallets you can choose from in the UK include Trust Wallet, Meta mask, Ledger Nano X (Hardware wallet). However, if transfer from one platform to another isn’t your thing, you can also trust the in-built wallets on platforms like Coinbase, Coinjar, and Coinmama.
From cash to crypto, here is a step-by-step to buy cryptocurrency safely in the UK.
- Begin by opening an account with a cryptocurrency exchange. Safe exchange platforms will require identity verification. So only go for a reputable crypto exchange platform.
- Register for a crypto wallet (software) or buy one (hardware). Register for a dedicated crypto wallet you can quickly transfer to from your exchange platform. Your crypto’s safety is guaranteed when you remove the coins from the source.
- Before or after you buy cryptocurrency, set up two-factor authentication. In addition to the in-built double authentication present on most exchanges, use Google Authenticator. Added layers of security can never be too much.
- Withdraw to a wallet. When using a wallet different from your exchange platform, you can watch instructional videos on making transfers between both platforms. The general underlying process is that you’ll paste your wallet’s address in the “deposit” or “send” text box. Then, whenever you need to receive crypto from anywhere, your wallet address does the trick.
- Secure your crypto. The more security measures you can take, the better. Use different passwords, do not share devices and avoid clicking on unknown links.
Tips to Safely Buy and Invest in Crypto in the UK
One of the characteristics of the cryptocurrency ecosystem is anonymity. Whether you’re looking to buy for trading or investment purposes, you can’t overstate safety. If you fall victim to hacking or fraud, it’s hard to trace the culprit.
The volatility of cryptocurrency is another factor that should guide safe, smart investments. Basically, the value of individual currencies premises primarily on perception. Cryptocurrencies have communities and projects they represent. A negative perception can quickly translate to a drop in the value of your crypto holdings.
Owing to these, here are some tips to safely invest and buy cryptocurrency in 2021 in the UK:
Diversify Your Purchase
There is an unwritten rule of thumb in crypto — don’t put all your eggs in one basket. Whether you’re buying to trade or to hold for the long-term, make diverse purchases.
You shouldn’t put your money on a single coin because it may dip — fall in value. Diversity purchases are core to buying cryptocurrency safely.
Secure Your Computer
You can buy cryptocurrency safely with either your phone or computer. How safe your crypto stays depends on how well you secure it. Ensure your anti-virus software is up-to-date.
Share as little personal information online as possible, especially if it ties to your crypto portfolio. For maximum safety, it’s best to have a physical Bitcoin wallet. These devices are more like USB drives but with better security. It may cost you a few pounds, but the security it offers is worth it.
Always Research In-depth
In-depth research is critical to cryptocurrency investment strategies. Even if you’re looking to buy Bitcoin, which has a solid reputation in the UK, do your research. With proper research, you can discover better investment practices, amongst other things.
Research becomes critical if you are looking to buy altcoins — cryptocurrencies that are not Bitcoin. Many of these coins are in the Pre-ICO or ICO stages. They are more volatile and can lose value quickly.
Before you buy altcoins in the UK, do your due diligence. Understand the project behind such a coin. An in-depth understanding of the project can help you predict the scalability and viability of the coin.
Don’t FOMO into a Purchase
FOMO stands for Fear of Missing Out. It’s when you buy a cryptocurrency because it’s currently spiking in value. When the market pulls back, you may end up losing value.
Cryptocurrencies are currently the rave. Even those who aren’t investing in crypto talk about it. The trend of Bitcoin and its peers on social media shouldn’t inform your decision.
FOMO pushes people to make purchases that end up in losses. Do proper research and make an informed decision before buying cryptocurrency.
You can buy cryptocurrency safely and make gains when you take the necessary measures. The global cryptocurrency boom is thrilling and can turn the average citizen into a self-proclaimed investor or trader.
To trade crypto successfully, you need a secure wallet and a reliable exchange platform. Be careful about sharing the details of your crypto wallet online. With these tips, your crypto investments will stay safe and untouched.
You can also find more cryptocurrency-related news, signals, and trading help on this website. Safe trading and investing in cryptocurrency is a learning journey.
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