Beginner’s Guide to Buying Crypto UK
With a growing number of user-friendly, FCA-regulated platforms, cryptocurrency investment is no longer the preserve of early adopters or tech experts. Investors can buy and sell cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) from a range of crypto exchanges, including the popular eToro. After registering with the exchange of their choice, they can deposit GBP in pounds to fund their account and place orders for purchasing specific amounts of BTC or ETH. Beginner’s Guide to Buying Crypto UK also allows users to purchase fractional token shares, enabling them to invest in higher-priced crypto assets that would otherwise require a significant investment.
Beginner-Friendly Guide to Crypto Buying in the UK
Once they have bought their crypto, investors can choose to leave their holdings on the exchange or move them to a ‘hot’ or ‘cold’ wallet for more security. Leaving holdings on an exchange can be risky, however, as they are not protected by the UK’s financial lifeboat scheme, the Financial Services Compensation Scheme, in the event of a firm failure or security breach.
Alternatively, investors can choose to invest in companies that produce or use crypto assets through exchange-traded funds (ETFs). These products are subject to regulatory oversight and offer the opportunity for diversified exposure to the cryptocurrency market without the need for individual investment in each individual coin. Investors should always be sure to carry out thorough research and fully understand the technology behind each coin before making an investment decision. It is also important to remember that profits from the sale of crypto assets are taxable by Her Majesty’s Revenue and Customs (HMRC), and it is essential to keep accurate records of all transactions to avoid potential complications.…
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