Navigating the world of cryptocurrency trading in the UK demands reliable brokerages that align with your unique trading needs. Selecting the right cryptocurrency broker UK amid the myriad of options can be daunting. Our team of experts delved into extensive research to aid UK traders in this pursuit. We’ve meticulously scrutinised and compared various brokers, curating a list of the top contenders that have undergone rigorous testing. Below, discover the cream of the crop, chosen to simplify your cryptocurrency trading journey based on our comprehensive evaluations.
Essence
- A cryptocurrency is a digital or virtual form of currency that uses cryptography for security and operates on decentralised networks based on blockchain technology.
- UK cryptocurrency traders should choose an FCA-regulated broker to ensure compliance, user protection, and a secure trading environment.
- Choosing a cryptocurrency broker that fits individual needs is crucial, considering various factors such as available cryptocurrencies, platform features, and more.
- User opinions offer insights into platform reliability, thus influencing the best decision making.
- As TradingGuide experts, we conduct extensive research to recommend credible and suitable cryptocurrency brokers.
- The cryptocurrency market is highly volatile, meaning trading this asset comes with significant risks. Employing a solid strategy is crucial for risk management and potential success.
- Practice crypto trading with demo accounts provided by brokers before risking real capital.
List of the Best Cryptocurrency Brokers in the UK 2024
- XTB – Best Cryptocurrency Broker With no Minimum Deposit Requirement
- eToro – Overall Best Crypto Broker* in the UK
- FP Markets – Best Cryptocurrency Broker For Advanced Traders in The UK
- AvaTrade – Best Cryptocurrency Broker for Mobile Trading
- FxPro – Best cTrader Cryptocurrency Broker in the UK
- Coinbase – Best Cryptocurrency Broker With Numerous Asset Offerings
*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
How We Choose Crypto Brokers
When selecting cryptocurrency brokers in the UK, we at TradingGuide prioritise an extensive research process to ensure our recommendations meet our readers’ needs. Our commitment lies in providing trustworthy, data-driven insights and impartial reviews.
Our journey begins with a thorough search for as many cryptocurrency brokers as possible across the UK market. We strongly emphasise safety, verifying factors such as encryption technology and regulatory status to safeguard users’ security.
Once we have identified potential brokers to recommend, we sign up for trading accounts using their demo versions. This enables us to thoroughly assess performance without risking any capital. We also compare their features to ensure they align with our stringent criteria before making any recommendations.
Our research process doesn’t stop without findings from user feedback on platforms like Google Play, the App Store, and Trustpilot. We sample the comments and ratings on these platforms to gain insights into each broker’s strengths and weaknesses, ensuring our recommendations are well-rounded and unbiased. We then combine the testimonial findings with our test and comparison results to come up with recommendations on this page.
Since we aim to supply you with up-to-date information, we remain vigilant in monitoring the financial market and continuously updating our list. We also want to ensure you get up-to-date learning resources to empower your trading journey. With TradingGuide, you will receive the best recommendations tailored to maximise your trading experience and potential.
In this guide
Best Crypto Brokers in the UK
- List of the Best Cryptocurrency Brokers in the UK 2024
- Compare Best Crypto Brokers in the UK
- Brief Overview of Our Recommended Cryptocurrency Brokers’ Fees and Assets
- Our Opinion & Overview of the Best Cryptocurrency Brokers in the UK
- What do Other Traders Say?
- The Ultimate Guide About Crypto Trading Online
- Ways to Buy and Sell Cryptocurrencies
- FAQs
- Conclusion
Compare Best Crypto Brokers in the UK
After an extensive assessment of numerous cryptocurrency brokers UK, we’ve handpicked the cream of the crop just for you. Get ready to explore our comparison table below, where we’ve outlined their standout features, all aimed at assisting you in making savvy and personalised decisions.
Compare brokers
Brief Overview of Our Recommended Cryptocurrency Brokers’ Fees and Assets
Based on our hands-on experience and testing, we’re thrilled to present a concise overview of fees and assets offered by our best cryptocurrency brokers UK. We’ve delved into the depths of these platforms to provide you with real insights and practical information to aid in your decision making.
Fees
| Best Cryptocurrency Broker | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| XTB | From 0.1 pips | £0 | Free | £10 monthly |
| eToro | From 2 pips | $100 | $5 withdrawal | $10 monthly |
| FP Markets | From 0.0 pips | £100 | Free | None |
| AvaTrade | 0.03 pips | £100 | Free | £50 quarterly |
| FxPro | From 0.0 pips | $100 | Free | $15 once + $5 monthly |
| Coinbase | From $0.99 | From £1 | 1% | Free |
Assets
| Best Cryptocurrency Broker | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| XTB | Yes | Yes | Yes | Yes | Yes |
| eToro | Yes | Yes | Yes | Yes | No |
| FP Markets | Yes | Yes | Yes | Yes | No |
| AvaTrade | Yes | Yes | Yes | Yes | Yes |
| FxPro | Yes | Yes | Yes | Yes | No |
Our Opinion & Overview of the Best Cryptocurrency Brokers in the UK
After meticulous research, thorough testing, and diving deep into the nuances of various crypto brokers UK, we’re excited to present our comprehensive overview of the top options. Our mission? To guide you through the dynamic landscape of crypto trading by offering insights, practical knowledge, and our honest opinions.
1. XTB – Best Cryptocurrency Broker With no Minimum Deposit Requirement
After rigorous exploration and testing, we found XTB to be a trusted cryptocurrency broker in the UK. Established in 2002, it offers over 10 digital tokens, including Bitcoin, Ethereum, and Litecoin, catering to diverse trader preferences. Its xStation 5 and xStation Mobile platforms provide advanced market research tools, enhancing technical and fundamental analysis. Moreover, XTB’s versatility extends beyond cryptocurrencies, offering a wide array of assets without any minimum deposit requirement.
While testing XTB, we got impressed by its competitive interest rates of up to 5% on uninvested funds, specifically 3.8% for EUR and 5.0% for USD. This feature presents an opportunity for additional earnings, thus maximising user experience. From our analysis, we rate this broker with 5 stars, primarily due to accessibility, comprehensive tools, and potential passive income.
✔ Wide range of global markets
- A user-friendly and intuitive design cryptocurrency trading platform
- No minimum deposit requirement
- Fast trade execution speed
- Great research materials
- Cryptocurrency trading costs can be high for low-budget traders
- A £10 monthly inactivity fee applies after 12 months of no account activity
| Type | Fee |
| Opening an account | $0 |
| Account type: Standard: spread | 0.5 |
| Account type: Swap Free: spread | 0.7 |
| Forex | From 0.1 pips |
| Stock CFDs commission | 0% |
| ETF CFDs | 0% |
| Crypto commission | From 0.22% |
| Monthly Fee for maintaining an Account | Free of charge or up to 10 EUR |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
2. eToro – Overall Best Crypto Broker* in the UK
After extensive testing, eToro emerged as the overall top crypto* broker in the UK. We explored its 33+ cryptocurrencies and investment options in crypto shares, catering to diverse investor tastes. With only spreads as charges and a low $100 minimum deposit, it’s incredibly cost-effective. The user-friendly interface, advanced analysis tools, and social trading features heightened our trading journey.
We also noticed the broker’s demo account, which offers hands-on experience to newbies. Its diverse asset selection and rich resources cater to traders’ needs, thus earning eToro a solid 5-star rating from us. For a comprehensive understanding, feel free to read our eToro review tailored to match your trading preferences.
*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
✔Low minimum to fund an account and begin investing
- 0% commission on cryptocurrency trading
- CopyTrader platform
- Regulated by tier-one authorities, including the UK’s FCA
- Various cryptocurrencies are available
- Limited educational and research tools
- Does not feature third-party platforms like MT4, MT5, etc
| Types | Fee |
| Minimum Deposit | $100 |
| Conversion Fee | depends on your payment method, currency, and eToro Club level. |
| Overnight Fee | vary according to the value and direction (BUY or SELL) of your position |
| Withdrawal Fee | all withdrawal requests are subject to a $5 USD fee |
| Inactivity Fee | monthly inactivity fee of $10 USD (charged after 12 months) |
3. FP Markets – Best Cryptocurrency Broker For Advanced Traders in The UK
After meticulous testing and exploration, FP Markets emerges as an exceptional choice for advanced cryptocurrency traders in the UK. Offering a robust and reliable trading experience, FP Markets opens the door to prominent tokens like Bitcoin, Litecoin, Ripple, Bitcoin Cash, and Ethereum. Moreover, it enables portfolio diversification through various asset classes, including shares, forex, commodities, and more.
Advanced traders will find FP Markets particularly appealing due to its array of sophisticated trading resources. Accessible across MT4, MT5, and Iress platforms, these resources encompass powerful charting tools, technical indicators, and advanced order types. Leveraging up to 2:1 intensifies potential profitability, enhancing trading opportunities. Comparing it with other cryptocurrency brokers, we rate FP Markets with 4.8 stars.
✔Accounts can be opened fast and easy
- Advanced trading tools for expert traders’ maximum experience
- Low cryptocurrency trading fees starting from 0.0 pips
- Additional asset classes for portfolio diversification
- Features customisable alerts and expert advisors for an ultimate experience
- Low minimum deposit requirement (£100)
- Limited cryptocurrency offerings compared to what its peers host
- You can only trade cryptocurrencies as CFDs
| Type | Fee |
| Minimum deposit | $100 |
| Overnight fee | $0 |
| Deposit fee | $0 |
| Withdrawal fee | Depends on payment method |
| Inactivity fee | $0 |
4. AvaTrade – Best Cryptocurrency Broker for Mobile Trading
Following our extensive exploration and testing, AvaTrade excels as the top choice for mobile cryptocurrency trading. Highly rated on Google Play and the App Store, it offers seamless trading experiences for both Android and iOS users. Simply install the app from Google Play or the App Store and initiate trading on the go.
Renowned for its mobile trading capabilities, AvaTrade remains cost-effective, requiring only a £100 minimum deposit. With zero commissions on CFD cryptocurrency trades, the platform offers competitive low spreads. Plus, it features over 15 cryptocurrencies, and the mobile interface mirrors the web platform, ensuring a user-friendly experience. AvaTrade supports various payment methods, including PayPal, debit/credit cards, and bank transfers, enhancing transaction flexibility and convenience. These and more led us to give it a 5-star rating.
You can read about “Best Crypto apps in the UK” in our article.
✔ Quick deposits and withdrawals
- Regulated by the best authorities globally, including UK’s FCA
- Reliable mobile trading platform that is highly rated on Google Play and the App Store
- Over 15 cryptocurrencies to choose from
- DupliTrade social trading platform that connects like-minded traders
- ZuluTrade copy trading platform traders can use to follow and mirror expert traders’ positions
- Accessing the copy and social trading platforms require high minimum deposit
- It has a 50 per quarter inactivity fee that kicks in after three months
| Type | Fee |
| Minimum Deposit | £100 |
| Inactivity Fee | USD Account: $50 EUR Account: €50 GBP Account: £50 |
| Administration Fee | USD Account: $100 EUR Account: €100 GBP Account: £100 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
5. FxPro – Best cTrader Cryptocurrency Broker in the UK
As one of the leading entities in evaluating cryptocurrency brokers in the UK, our extensive testing positions FxPro as the unrivalled cTrader cryptocurrency broker. From our exploration, FxPro boasts an impressive array of cryptocurrencies, encompassing popular options like Bitcoin, Ethereum, Litecoin, and more. However, it’s crucial to note that cryptocurrency trading is exclusively reserved for professional traders, imparting an added exclusivity to the platform.
Our analysis of cTrader reveals a feature-rich environment that enhances the cryptocurrency trading experience, providing advanced trading tools and seamless execution. You can also enjoy automated trading, thus making it easier for you to focus on other trading or personal activities. Beyond cryptocurrencies, we like that FxPro bolsters portfolio diversification with an additional 2,100 securities, spanning forex, shares, indices, and more. The platform’s £100 minimum deposit, fee-free transactions, and responsive 24/5 support service contribute to a user-centric and efficient trading environment.
✔ Trustworthy broker
- FxPro offers a diverse range of cryptocurrencies, including popular options
- Access to an additional 2,100+ securities facilitates comprehensive portfolio diversification
- The £100 minimum deposit enhances accessibility for a broad range of traders
- FxPro eliminates transaction fees, contributing to cost-effective trading
- Cryptocurrency trading is only available to professional traders
- The platform’s advanced features may pose a learning curve for beginners
| Type | Fee |
| Minimum deposit | $100 |
| Withdrawal fee | $0 |
| Inactivity fee | $15 once + $5 monthly |
6. Coinbase – Best Cryptocurrency Broker With Numerous Asset Offerings
Coinbase has been in the cryptocurrency space for over a decade and continues to deliver the best trading services for users in the UK and globally. We rank it the best in this category since it lists over 200 digital tokens, including Bitcoin, Ethereum, Litecoin, Ripple, and more. Moreover, we like that this broker allows its users to get started with as little as £2 — an element that attracts budget-conscious cryptocurrency traders.
Besides desktop, Coinbase has a user-friendly and reliable trading app you can download from Google Play or the App Store to manage your crypto trades on the go. And although it doesn’t have numerous learning resources, rest assured it has quality trading tools. These include risk management resources and charts powered by TradingView. Crypto enthusiasts can also explore the broker’s “Coinbase One” section, which comes with exclusive benefits for only £19.99/month.
✔Inbuilt cryptocurrency wallet
- Lists more than 200 cryptocurrencies
- Fast trade execution speed on both desktop and mobile devices
- Allows users to buy, sell, and trade cryptocurrencies
- You can get started with as little as £2
- You can only use Coinbase to trade crypto tokens. It does not host other asset classes
- You get to pay more for lower balances
| Type | Fee |
| Minimum deposit | $2 |
| Transaction fee | 1% |
| Credit transactions | 2% |
| Inactivity fee | Free |
| Maker fee | Yes |
| Taker fee | Yes |
What do Other Traders Say?
Understanding the value of firsthand experiences, we embarked on a journey to sift through user testimonials across Google Play, the App Store, and Trustpilot. We believe in the power of collective insights and have curated a selection of positive user sentiments to shed light on these leading platforms.
1. XTB
Renowned for its extensive educational resources, XTB garners acclaim for offering comprehensive learning materials suitable for traders at every proficiency level. Users commend the platform’s educational webinars and tutorials.
-
“I have shares in other brokers, but I’m using this app to check prices and charts because it’s simply better. Flawless usability” – Kosciej
-
“Very good app. Customer service is welcoming. Lots of information for new traders available for free. Feel very valued and accepted as a beginner. Best app I have found after trying 10+ others.” – Thomas Ashley
-
“The platform is great, you can also receive a demo account for any trials first. It’s easier to use than Interactive Brokers. The main dashboard could have some favorites not just their favorites. You also can participate to their webinars demos etc as part of their community.” – Sella Abdulamit
2. eToro
Users widely praise eToro for its groundbreaking social trading tools, which foster a supportive community. Novice traders especially appreciate its intuitive interface and the ability to learn from seasoned investors.
-
“I just love this app, everything is clear, it’s perfect for all types of investor also for long term invest.” – Dibakar Barua
-
“While providing the services, they did it quickly and proactively. The provides a wide range of functions that are useful while generating monthly and yearly returns. The dashboard is designed to be easy to use and understand” – Nitesh Saini
-
“Etoro is a great place to trade with personalised support. I’m lucky to have Callum as account manager who is always a very useful point of contact which is a key part of my trading experience. Also super chuffed with the occasional VIP experiences!” – Francois Jardin
3. FP Markets
Widely appreciated for its competitive spreads across various markets, FP Markets stands out for offering favourable trading conditions, especially for experienced traders seeking diverse asset options.
-
“Customer support is really marvelous, my problem was taken seriously and solved within no time. Thanks to the team for their efforts. Great!” – Tariq
-
“The app is user friendly. Even for beginners, it is easy to use, and the customer service live chat is quick in replying.” – Wayne K
-
“Awesome! I’ve been trading with their mobile app for a while now and no issues or lags have occurred; their UI is also clean and smooth.” – Edwina G
4. AvaTrade
Resonating positively with traders, AvaTrade’s broad spectrum of tradable assets, including cryptocurrencies and forex, receives accolades for providing diverse investment opportunities with a user-friendly interface.
-
“Service was great, fast service with Alev was professional
Quick service to verify the accounts and transfer the funds with Alev .
Alev my account manager Notified Me about AVASOCIAL , Copy trading ,AVATRADEGO . Mobile phone application is a great tool use” – Customer -
“What an amazing app. Security is great, it’s also teach you how to Trade. I love it a lot I’m happy about it ?” – Mystikal Que
-
“I was assisted by Alev Nazli. She was very friendly and helpful. Made sure I understood the platform and confirmed that I’m all set to go. She followed up the next day as well. Much appreciated.” – Michael S
The Ultimate Guide About Crypto Trading Online
Venturing into cryptocurrency trading demands a mix of knowledge, strategic thinking, and well-informed choices. Here, we’ve compiled critical sections to steer you through this dynamic domain. Our aim is to furnish you with comprehensive insights and systematic guidance, enabling you to manoeuvre through the intricacies of cryptocurrency trading with confidence and success.
How to Start Crypto* Trading?
Stepping into the world of crypto trading is akin to setting sail on a captivating voyage. Here’s your compass for navigating the initial stages:
- Continuous Learning: The evolving crypto world thrives on knowledge. Immerse yourself in resources covering various cryptocurrencies, monitor market trends, and absorb diverse trading strategies. Engage with crypto communities, stay updated with industry news, and expand your expertise.
- Utilise Demo Platforms: Leverage platforms offering demo accounts. These safe environments allow experimentation with trading strategies and app functionalities without risking capital. Hone your skills and gain practical experience before venturing into live trading.
- Start Cautiously: Initiate your investments conservatively. Begin with an amount that doesn’t compromise your comfort level. Increase stakes gradually as you grasp market dynamics and boost confidence.
- Diversify Your Holdings: Spread your investments across different coins or tokens. Avoid reliance on a single asset to mitigate risks and potentially increase rewards.
- Strategise Wisely: Establish a clear trading strategy and realistic objectives. Set achievable targets while being mindful of the volatile nature of cryptocurrency markets.
- Risk Management: Safeguard your journey with risk management tools — Utilise stop-loss orders to limit losses and take-profit orders to secure gains. Never risk more than you’re willing to lose.
- Stay Agile: Keep abreast of market shifts, regulatory changes, and technological advancements. Adaptability is key in navigating the ever-evolving cryptocurrency landscape. Flexibility allows for adept course adjustments amid market evolution.
*Don’t invest in crypto assets unless you’re prepared to lose all the money you invest.
How to Choose the Best Crypto Broker in the UK
The best cryptocurrency brokers in the UK are challenging to find, and that is why we have recommended the top brokers to choose from. If our recommendations don’t suit your needs and you need to conduct further research, below and the main factors to consider.
It is only legal for you to trade cryptocurrency if you use a licensed and regulated broker by world-class authorities, such as the Financial Conduct Authority (FCA). The more licenses a broker holds, the better for proving their credibility.
If you are a beginner, we advise you to choose a broker that offers plenty of cryptocurrency instruments to invest in. This is so that you have different instruments to try before making a final choice.
The best cryptocurrency broker should be backed up with a reliable, user-friendly, and intuitive design platform. It should execute trades fast and be supported on mobile devices so that even when you are not close to your desktop, you can still keep track of your trading activities.
You are likely to incur spread charges from a broker offering cryptocurrency CFD trading. These spread charges vary, and so, we advise you to confirm your investment capital before diving straight in.
It’s good to have a broker with reliable and responsive customer service. Note that some of these services are available five days a week. However, it doesn’t mean that they are not responsive and reliable during their working days. So, choose depending on your trading needs and availability.
List of Most Popular Cryptocurrencies to Trade in 2024
When considering trading cryptocurrencies, exploring the most popular options can be a prudent start. In recent times, the following cryptocurrencies have consistently garnered attention in the trading sphere. The good news is that our best crypto brokers UK above lists them, thus making it easier for you to place your trades.
- Bitcoin (BTC): Known as the pioneering cryptocurrency, Bitcoin remains the market leader and is often considered a benchmark for the entire crypto market.
- Ethereum (ETH): With its versatile blockchain allowing for smart contracts and decentralised applications (dApps), Ethereum stands as a significant player in the crypto world.
- Ripple (XRP): Designed for quick and cost-efficient cross-border transactions, Ripple’s XRP continues to draw interest from financial institutions.
- Litecoin (LTC): Often dubbed as the ‘silver to Bitcoin’s gold,’ Litecoin focuses on faster transaction times and lower fees compared to Bitcoin.
- Cardano (ADA): Known for its focus on sustainability, interoperability, and scalability, Cardano has gained traction as a promising blockchain platform.
- Tether (USDT): Tether is a stable coin backed up by fiat currencies, including the euro, dollar, and pound. This makes its value to be more consistent, thus making it a potentially lucrative asset.
- Binance Coin (BNB): This asset is used for trading and transacting on Binance, a popular cryptocurrency exchange. It can also be exchanged for other cryptos, such as Bitcoin and Ethereum.
- Polkadot (DOT): Noted for its interoperability features, Polkadot aims to enable different blockchains to transfer messages and value seamlessly.
- Chainlink (LINK): Functioning as a decentralised oracle network, Chainlink focuses on connecting smart contracts to real-world data.
- Solana (SOL): Gaining attention for its fast and scalable blockchain, Solana focuses on high throughput for decentralised apps and crypto projects.
- Dogecoin (DOGE): This token was initially created as a joke and has since skyrocketed in popularity and value over the years, making it a popular choice for traders.
What Is Cryptocurrency?
A cryptocurrency, also known as crypto, is a form of currency that exists only in a digital or virtual form. Bitcoin is the most well-known cryptocurrency that was first launched back in 2008. There are also other cryptos/altcoins in the cryptocurrency space, including Ethereum, Tether, Dogecoin, Cardano, and more.
Cryptocurrencies use cryptography to secure transactions, verify the transfer of assets, and control the creation of additional units. These currencies circulate without the centralised authority of a government or a central bank.
Currently, there are about 21,910 cryptocurrencies out there, with a total market capitalisation of $850 billion, according to CoinMarketCap data. Cryptocurrencies have become so popular as more investors worldwide continue to invest in them.
Tax on Cryptocurrency in the UK
Navigating cryptocurrency taxation in the UK is a dynamic process due to evolving regulations. His Majesty’s Revenue Services (HMRC) categorises cryptocurrencies as property, not currency. Consequently, crypto assets are treated akin to traditional investments, subject to taxation on profits. As a UK-based investor, expect potential liabilities for capital gains and income tax.
Capital gains tax is applicable upon selling or disposing of crypto assets, levying tax on profits garnered. This covers sales, swaps, spending on goods or services, gifting, or converting to fiat currency. Exceeding the annual £12,300 tax-free allowance incurs a 10% to 20% tax rate. Note that the exempt amount was reduced to £6,000 in April 2023 and is expected to reduce even further to £3,000 in April 2024.
Income tax applies to gains from activities like mining and staking, not sales or swaps. Additional income surpassing the £12,570 personal allowance attracts a 20% to 45% tax rate. Stay informed about HMRC updates for accurate tax compliance in the ever-evolving crypto landscape.
What is the Difference Between A Broker And An Exchange?
Cryptocurrency transactions primarily occur through brokers or crypto exchanges, both serving as platforms for buying and selling digital assets. While these options may appear similar, they bear significant differences crucial for selecting the right fit.
Brokers act as intermediaries executing trades on behalf of clients, connecting them to the market. They purchase cryptocurrencies from exchanges in bulk and resell them to traders, offering various tools like technical analysis charts and trade order options.
On the other hand, crypto exchanges facilitate direct transactions among buyers and sellers. Traders engage directly with others in the exchange ecosystem, selecting assets, setting trade parameters, and even using automatic buy or sell orders.
Brokers offer convenience, tools, and enhanced security, holding greater liquidity than exchanges. Additionally, brokers extend a broader spectrum of assets for diversification. Conversely, exchanges cater specifically to crypto assets, lacking the extensive tools and asset variety provided by brokers. So, whether you invest with a broker or an exchange, ensure it meets your requirements.
Ways to Buy and Sell Cryptocurrencies
There are various secure ways to buy and sell cryptocurrencies. For instance, you can use traditional trading platforms like eToro, XTB, FP Markets and more. Brokers act as intermediaries or third parties, where they get to connect you with other buyers and sellers.
The best element about buying and selling cryptos using brokers is that you are guaranteed security in transactions. Simply ensure your broker is licensed and regulated by tier-one authorities such as the FCA. With crypto brokers, you can also explore additional securities, including forex, shares, and more. They are the best options if you are looking to diversify your portfolio across different asset classes.
Investors can also buy and sell crypto tokens via cryptocurrency exchanges like Coinbase, Crypto.com, and more. Here, you will trade directly with the buyer and seller. This means you get to incur low investment charges compared to using brokers. Plus, cryptocurrency exchanges list numerous crypto tokens. You get to explore diversified options in cryptocurrency and make the best investment decisions.
Another way to enter the crypto market is through mobile payment apps you may already use. With such apps, you can link a bank account and buy any crypto token using your mobile device. However, using these mobile apps has drawbacks. First, you might not be allowed to withdraw your crypto to a cold or private wallet. This method is also expensive compared to using brokers and exchanges. You will incur a base fee and a spread on purchases.
Crypto Trading Risk Management
When engaging with cryptocurrencies, it’s crucial to recognise that these digital assets are characterised by their extreme volatility and speculative nature. This can result in swift and substantial price fluctuations. To safeguard your crypto holdings, it is imperative to utilise reputable wallets and exchanges, prioritising the security of your investments.
Also, exercise vigilance and due diligence to guard against crypto-related scams and fraudulent schemes that can potentially threaten your financial well-being. You can also spread your investments across multiple digital tokens and avoid making decisions based on emotions.
Managing risks in crypto trading is vital due to the market’s inherent volatility and constant activity. The round-the-clock nature and unpredictable price fluctuations pose unique challenges, making effective risk management essential.
To safeguard your investments, it’s crucial never to invest more than you can afford to lose. Optimal capital allocation typically ranges between 1% and 5% of your total portfolio. For those new to crypto, a conservative approach with lower risk exposure is advisable. Plus, consider assessing the risk/reward ratio before initiating any trade to avoid surprises along the way. Trades with a higher risk/reward ratio offer the potential for greater profits relative to the risk undertaken.
Traders and investors must also apply stop-loss or take-profit orders in crypto trading as a risk mitigation strategy. These automated orders ensure positions are closed at predetermined prices, helping to limit potential losses. This practice becomes especially crucial when using leverage, preventing account liquidation during market fluctuations. Moreover, diversification across various cryptocurrencies can mitigate risks associated with individual asset volatility. Continual learning, staying updated on market trends, and refining risk management strategies are integral for sustained success in the dynamic world of crypto trading.
Pros & Cons of Using Cryptocurrency Brokers
Embarking on the journey of cryptocurrency trading often involves utilising the best cryptocurrency brokers. Understanding the advantages and drawbacks of these platforms is pivotal before diving into the realm of digital assets. Here’s a detailed exploration of the pros and cons associated with using cryptocurrency brokers.
- It’s easy to deposit and withdraw funds
- Brokers are more secure since they are typically regulated by financial authorities
- Bigger liquidity than exchanges
- Offer market analysis tools and research materials
- Often have better customer service
- Some brokers charge higher fees or spreads than an exchange, thus making the end price less favourable
- Brokers typically list fewer cryptos than exchanges
Read about Best Crypto Wallets in the UK 2024 in our guide in order to choose wallet to store your cryptocurrency.
FAQs
Starting Bitcoin trading as a beginner requires extensive knowledge about Bitcoin and how it works. You must also understand the trading method you want to use, whether buying Bitcoin and taking ownership, trading as CFDs, or investing in its shares.
The cheapest cryptocurrency to buy in 2024 is Shiba Inu, which is currently priced at less than £1. However, before investing in this cryptocurrency, understand the risk it carries and whether it has growth potential in the future.
No. Cryptocurrency is not real money and can not be used as a fiat currency. However, many countries allow it for online transactions, making it an excellent investment asset.
Yes. We have seen many traders become millionaires trading cryptocurrencies. However, becoming successful is not easy, and you need to be strategic and patient. Most importantly, be willing to learn from your mistakes and take advantage of available resources to develop the best trading strategy.
We usually advise newbies to take their time before taking the plunge into the live markets. Fortunately, many brokers, including our recommended ones above, have demo accounts that you take advantage of to practice your activities. Once you are ready, start with small amounts of upto £100. With time, you can adjust your investment and potentially enjoy high returns.
Conclusion
Navigating the volatile cryptocurrency market poses challenges for UK traders in price determination and investment decisions. Mitigating these challenges involves partnering with FCA-regulated cryptocurrency brokers. These brokers not only secure your funds but also provide robust resources for an enriched trading journey. This ensures efficient position management and fosters independence in your trading endeavours.
Moreover, exploring avenues like crypto copy trading and bots can amplify your trading strategy. Crypto copy trading allows the replication of successful traders’ positions, leveraging their expertise. Meanwhile, utilising crypto trading bots automates and refines your trading decisions, adapting to the dynamic nature of the crypto market. Embracing these tools and regulated platforms can significantly enhance your overall crypto trading experience.
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example. Find out more about our test process here.
This article about cryptocurrency is really great! I've figured out how to choose a broker without headaches. Licenses, platforms, no-nonsense issues. And the steps for a beginner are right there on the tray. Top cryptos will also come in handy. Important! And also taxes and viruses - caution does not hurt. I recommend it; it's worth the time to read.
Within the United States, the biggest and most sophisticated financial market in the world, crypto derivatives such as Bitcoin.