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How to Invest in Bitcoin

Bitcoin is one of the top cryptocurrencies in terms of market capitalisation. Its increasing popularity among investors makes its proponents believe that it is the future of cryptocurrency investing. However, Bitcoin also has detractors who argue that investing in it is highly risky, and you may end up losing your investment funds. While this is true, it is crucial that you fully understand what Bitcoin is and how to invest in cryptocurrency to maximise your profit potential. Luckily, we have prepared this guide to walk you through Bitcoin trading and decide whether it is an investment worth trying. 

Top 3 Brokers for Investing in Bitcoin

Trading Bitcoin requires an online broker that suits your needs. Most importantly, it should allow you to purchase Bitcoin as a physical asset, invest in its shares or trade the cryptocurrency as derivatives. In addition, the best Bitcoin broker should be able to have access to the right exchanges where Bitcoin is listed. On top of that, ensure that the Financial Conduct Authority (FCA) regulates it to guarantee your investment funds’ safety and allow you to trade under the best conditions. 

Unfortunately, many Bitcoin traders, especially newbies, find it challenging to choose the best Bitcoin broker in the UK. This is because the research procedure can be lengthy and overwhelming, thus making you settle for the wrong broker. The good news is that we did all the legwork by comparing and testing as many Bitcoin brokers as we could. We were able to identify the best three, and we recommend them below for you to kickstart your Bitcoin investment ventures on a good note. 

1. eToro

Etoro index page
Etoro screen
Etoro
Etoro mobile
Etoro broker
Etoro index page
Etoro screen
Etoro
Etoro mobile
Etoro broker

eToro is user-friendly and hosts excellent resources for skills development. In addition, the broker has a social and copy trading platform that connects traders from diverse regions to socialise and mirror positions with high-profit potential. On top of that, you can access its demo account, which is fully loaded with £100,000 virtual funds for practising Bitcoin investment. Undoubtedly, eToro is beginner-friendly, and we advise you to consider it in your choices. 

To get started with Bitcoin trading, eToro requires all traders to make a minimum deposit of £50. The good news is that making deposits is free of charges, but you can incur withdrawal methods depending on the payment method. Furthermore, you will pay a low Bitcoin trading fee, and all your purchases can be made via PayPal, bank transfers, and credit/debit cards. 

TradingGuides Rating:
✔Copy/Social trading
✔Low minimum to fund an account and begin investing
3.3 rating
3.3
Risk Warning
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

2. Pepperstone

Pepperstone index page
Pepperstone
Pepperstone screen
Pepperstone mobile
Pepperstone broker
Pepperstone index page
Pepperstone
Pepperstone screen
Pepperstone mobile
Pepperstone broker

Pepperstone is another reliable Bitcoin trading broker that is simple in design and executes trades fast. However, the broker only allows you to trade Bitcoin as CFDs, whereby you cannot purchase and take ownership of the physical asset. So, if you like taking short CFD positions, Pepperstone is an excellent choice. In addition, it hosts other cryptocurrencies like Ethereum and Litecoin for portfolio diversification. 

Bitcoin trading at Pepperstone attracts low charges, making it suitable for low-budget traders. There are no transaction charges but only a minimum deposit requirement of £200. Also, you can access various platforms based on your skill level, including cTrader, MT4, and MT5. On top of that, there is a social trading platform for connecting like-minded investors to socialise.

TradingGuides Rating:
✔ Top tier liquidity
✔ No dealing desk intervention
4.4 rating
4.4
Risk Warning
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

3. IG Markets

IG Markets official site
IG Markets desktop
IG Markets broker
IG Markets mobile
IG Markets
IG Markets official site
IG Markets desktop
IG Markets broker
IG Markets mobile
IG Markets

We are not surprised that this pioneer broker qualifies among the top three brokers for Bitcoin trading. This is because IG Markets hosts one of the best trading resources for skills and strategy development. Furthermore, the broker offers additional cryptocurrencies and assets for portfolio diversification. The only element that makes it fall short is that Bitcoin trading is only done as CFDs, so there is no need for a digital wallet. Also, IG Markets has a high minimum deposit requirement of £300

Whether you are a newbie or an expert trader, IG Markets can be a suitable choice. It also has quality trading platforms, including MT4, ProRealTime, and L-2 Dealer. All you have to do is choose the one that will offer you the best experience. On top of that, you get to pay low spreads for Bitcoin trading, and there is also a risk-free demo account for testing the broker. 

TradingGuides Rating:
✔ Extensive range of offerings
✔ Leading broker with low fees
4.1 rating
4.1
Risk Warning
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

How to Buy Bitcoin With eToro

Based on our broker mini-reviews above, eToro allows you to invest in Bitcoin as a physical asset, purchase its shares, and trade it as CFDs. In this regard, we will walk you through the step by step procedure for investing in Bitcoin with eToro. Note that this process is the same when investing in Bitcoin using any eligible broker, and we only use eToro as an example. 

Step 1: Go to eToro’s Website
Step 2: Complete the Account Registration
Step 3: Verify Your Investment Account
Step 4: Deposit Funds
Step 5: Invest

You need an investment account with eToro to access Bitcoin. In this regard, visit the broker’s website to complete the account registration process. Note that you can click any of the eToro’s links on this page for quick access or simply google the broker and visit its website. Remember, eToro has terms and conditions that you must read and accept before signing up for an investment account. In addition, it has a reliable mobile app that operates seamlessly on all mobile devices. Therefore, ensure you install it on your mobile device to be able to invest on the go.

eToro’s Website

In this procedure, you will provide your personal details as required by the broker to sign up for an investment account. These include your name, email address, phone number, location, source of income, etc. In addition, you will have to create a username and password to sure your investment account.

Account registration on eToro

It is a standard procedure for all FCA regulated brokers to verify investors’ identities to have their accounts fully approved. Since eToro is one of the FCA regulated brokers, you must prove your identity and location. This helps keep fraudulent investors away, thus giving you the best investment environment. In this regard, eToro will request you to share a copy of your ID card, passport, or driving licence and a utility bill or bank statement, respectively.

Verifying account on eToro

After your investment account has been approved, you will receive an email notification. You are now free to make a deposit and start your investment ventures. As mentioned earlier, eToro has a minimum deposit requirement of £50, so you should make this deposit to access Bitcoin. The good news is that there are no deposit fees, and you can make the deposit using various payment methods, including debit/credit cards, PayPal, bank transfers, etc.

Deposit Funds on eToro

Now that you have made your deposit, eToro will give you access to Bitcoin. Regardless of how you want to invest in the cryptocurrency, ensure you understand the trading method for maximum profit potential. For instance, if you want to invest in Bitcoin shares, conduct the necessary due diligence and create the best strategy. This also applies when purchasing the crypto or trading it as CFDs.

investing in bitcoin eToro

Tips on Choosing the Best Bitcoin Investment Broker

There are many Bitcoin brokers in the UK but choosing the best for investment can be a challenge. While we recommend the best three Bitcoin brokers above, note that they may not be suitable for your trading needs. In this regard, you will have to go through an extensive research procedure to identify the one suitable for you. Below, we list essential factors that you should consider to find the best Bitcoin investment broker. By following this, you can streamline the research process. 

Your investment funds’ security should be paramount when looking for the best Bitcoin broker. In this regard, you must settle for a broker that is licensed and regulated by the FCA. Using such Bitcoin brokers is legal, and you can take legal actions against them in case of conflicts. Moreover, FCA regulated brokers offer the best investment conditions for a worthwhile experience.

Another element to look for in a Bitcoin broker is the availability of investment assets. Besides Bitcoin, ensure there are additional assets to try in case you want to explore a new market. These include other cryptocurrencies, forex, stocks, commodities, etc. You should also consider diversifying your investment portfolio to minimise losses.

You need to ask yourself how reliable a broker is regarding platform performance and availability of investment resources. Also, find a broker with a demo account so that you can test it out before investing your hard-earned money. On top of that, it should have a trading app and dedicated support service to help you manage investment challenges as they arise.

We usually advise investors to have an investment budget to avoid spending a lot of money. With a budget, you can easily find a Bitcoin broker that you can afford. Confirm the minimum deposit requirements and charges, including commissions, spreads, inactivity fees, overnight charges, transaction costs, etc.

Bitcoin investors should review user recommendations on Google Play, Trustpilot, and the App Store to fully understand a broker’s strengths and weaknesses. The last this you want is to choose a broker and discover that some of its features inconvenience your activities.

Bitcoin Stock Price Today

Bitcoin share price fluctuates with demand and supply. It is a volatile asset, and so you must stay abreast with its current share price to identify the best entry and exit points in your investment. Take a look below at a live chart we have prepared indicating Bitcoin’s current share. With this chart, you can also access historical information and data for better strategy development.

Top Bitcoin Stocks For 2022

Investors trying to venture into Bitcoin stocks may find it challenging to identify the best company stocks to put their money into. Below, we select the best Bitcoin stocks with profit potential in 2022.

Coinbase Global

Coinbase

Coinbase Global is one of the most popular Bitcoin shares listed on the NASDAQ exchange under the ticker COIN. Besides Bitcoin, you can also use this company to invest in other popular cryptocurrencies, including Ethereum, Cardano, etc. Investors eying altcoins investments can also do so using over 160 altcoins. 

Coinbase Global is not only an investment company for cryptocurrencies, but it also sponsors a debit card that allows its members to spend from the balances of their digital wallets. In addition, it offers asset loans for cryptocurrencies owners as they use their assets as collateral. Most importantly, the company has taken measures to minimise cyber crimes in the cryptocurrency space. 

Hut 8 Mining

Hut 8 Mining

Hut 8 Mining is a Canadian-based company specialising in mining of Bitcoin and Ethereum. It is listed on the NASDAQ exchange under the ticker HUT and prides itself as one of the largest North-America digital asset miners. Hut 8 Mining generates more cashflows than revenue through the lending of Bitcoins to shareholders instead of selling them. Furthermore, the company uses natural resources for all its productions, thus ensuring that it remains sustainable regardless of market conditions. These features make this company have excellent growth potential and is definitely worth investing in 2022.

Riot Blockchain

Riot Blockchain

Riot Blockchain was founded in 2000 and is currently headquartered in Colorado, US. The company is listed on the NASDAQ exchange under the ticker RIOT, and investing in it this year could yield profits with solid strategies. The company supports the Bitcoin blockchain through large scale mining of the cryptocurrency in the United States. Although its share price keeps fluctuating with demand and supply, it is essential that you conduct extensive research and analysis to increase your chances of succeeding. 

Note that Riot Blockchain keeps taking measures to sustain itself in the market. For instance, the company is working on improving its mining hash rate capacity to 12.8 EH/s from the current 4.3 EH/s. 

FAQs

How do I trade Bitcoin?

Trading Bitcoin requires knowledge and before you make your first investment, ensure you are completely familiar with how this investment works. Then, you should find a reliable Bitcoin broker like the ones recommended above and make the required deposits. Remember, there are various ways to invest in Bitcoin, including buying and owning the cryptocurrency, investing in its shares, and trading it as CFDs. Therefore, identify which method works best for you to maximise your profit potential.

Is it safe to buy Bitcoin online?

Yes. Many investors are buying Bitcoin online through online brokerage firms. However, ensure that the broker you invest with is regulated by the FCA since there are many scammers trying to swindle investors of their hard-earned money. We recommend some of the top Bitcoin brokers, so choose the one that complements your Bitcoin investment requirements.

How do I store Bitcoin once I make a purchase?

You will need a crypto digital wallet to store your Bitcoin once you make a purchase. Note that online brokers like eToro that support purchasing of the physical asset have crypto wallets for storing your Bitcoins.

Is Bitcoin worth investing in 2022?

Absolutely. 2022 looks promising for many Bitcoin companies, especially those that were hit hard by the 2020 COVID-19. Good examples of top Bitcoin stocks to invest in are listed above. However, ensure you conduct additional research on the companies to ensure that you are making the right investment.

Is Bitcoin taxed in the UK?

Yes. Bitcoin trading in the UK is considered federal activity, and as such, the profits you incur from Bitcoin investments must be subjected to capital gains tax.

Can Bitcoin be hacked?

Yes. Bitcoin investments can easily be hacked if you are using a Bitcoin exchange. That is why we highly advise investors to always contact their Bitcoin investment ventures on FCA regulated brokers. Not only is this the only legal way to invest in Bitcoin in the UK, but you also enjoy the best investment conditions offered by the brokers.

How do I trade Bitcoin?
Is it safe to buy Bitcoin online?
How do I store Bitcoin once I make a purchase?
Is Bitcoin worth investing in 2022?
Is Bitcoin taxed in the UK?
Can Bitcoin be hacked?

Conclusion

Bitcoin is a popular cryptocurrency, and many investors are trying to figure out how to invest in it. Remember that this asset is volatile, and without solid strategies and plans, you can lose your money in the activity. The good news is that we have recommended the best Bitcoin brokers above to get you started. These brokers host all the necessary tools you may need for creating the best strategies and building your skills. If you are a newbie, we are now confident that you can give Bitcoin investment a try and hopefully succeed. Keep in mind that losses are inevitable and when they happen, be open to learning from your mistakes and keep trying until you get it right.

Adam Jarfjord

is our leading content maker and head of the content department. For Adam, trading is not only a job but also a passion for more than 5 years. He has many years of experience in the financial sector and honestly admits that he is in love with his job.

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