Buying Bitcoins in the UK

Do you want to know where to buy bitcoins in the UK? Do you want to know how to buy bitcoins in the UK?

You are probably wondering which sites will allow you to buy bitcoins from the UK. Which exchanges you can use. How do you convert cash into Bitcoin? Which payment methods can you use to purchase Bitcoin?

If you would like to know how to begin buying and selling bitcoins in the UK, then you’ll find useful information on this site and links to services that many UK residents use.


What is Bitcoin?

Bitcoin is a form of digital currency or electronic cash system, created and held electronically. It is the first decentralised digital currency in the world. The system works without a central bank or single administrator.

The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. This anonymous creator produced a white paper called

“Bitcoin: A Peer-to-Peer Electronic Cash System”

You can read it here  https://bitcoin.org/en/bitcoin-paper  The whole document is 9 pages long and this is what started the whole cryptocurrency business now worth in excess of 500 billion dollars.


Buyer Beware!

Some things you should know before buying cryptocurrencies


Bitcoin Basics

It is your responsibility to adopt good practices in order to protect your money. The security of your wallet should be your top priority.

The cryptocurrency market is volatile.

The price of Bitcoin is volatile and can increase or decrease unpredictably in a short period of time. This is because cryptocurrency markets are in their infancy and it will be some time before these markets mature and settle down. Consequently, keeping all of your savings in Bitcoin is not recommended. Bitcoin should be seen as a high risk asset.

Bitcoin payments are irreversible.

Bitcoin transactions or transfers cannot be reversed. Once you transfer your funds that’s it, they’re gone. There is no central administrator you can go to if you want to complain and you probably won’t know who has your crypto. Only transfer through trusted markets, exchanges or merchants. If in doubt, Don’t Do It!

Never give someone else access to your wallet, passphrase, pin numbers etc.

You have been warned.

 

Bitcoin is not anonymous.

Every Bitcoin transaction ever made is stored publicly and permanently on the network. This ledger which anyone can see shows the balance and transactions of any Bitcoin address. However, the identity of the user behind an address remains unknown until this information is revealed during a purchase or exchange for cash.

Transaction times

Each confirmation takes between a few seconds and a few hours. The time depends on how busy the network is and also the stability of some exchanges.

Is it legal?

In general trading in any commodity, including digital currency like Bitcoin, game currencies like WoW gold, or Linden dollars, is not illegal.

Is the technology secure?

SHA256 encryption is endorsed and used by the US Government. This level of encryption is also used in credit card transactions and electronic bank transfers. Bitcoin has a sound basis in well understood cryptography.

Will there be enough supply of Bitcoin?

Around the year 2140, the 21 millionth bitcoin will be mined and that will be the last one.

A Bitcoin is divisible down to eight decimal places.

There are really 2,099,999,997,690,000 (just over 2 quadrillion) maximum possible atomic units in the bitcoin system.

As the value of the unit of 1 BTC grows larger, for day to day transactions people will start dealing in smaller units, right down to the smallest unit, a satoshi 0.00000001. which is one hundred millionth of a bitcoin (0.00000001) – at today’s prices, about one hundredth of a penny.

Do your legal duty

Bitcoin is not an official currency. That said, in the UK you are required to pay income, sales, payroll, and capital gains taxes on anything that has value, including bitcoins. It is your responsibility to ensure that you adhere to tax and other legal or regulatory mandates issued by our government. You should seek tax advice from a qualified person to ensure you stay within UK tax regulations.
 

 

 


Looking for a quick and easy way to buy bitcoins and other cryptocurrencies?

Coinbase

Click this referral link and sign up for a Coinbase account.
Complete your account and initiate a buy in one of the supported countries.

If you visit coinbase.com/trade and initiate a buy of 100 USD or more (or 100 USD equivalent of your domestic currency) within 180 days of opening your account, we will both will receive a 10 USD (or 10 USD equivalent of your domestic currency) referral bonus when the buy completes (subject to Coinbase approval).

 


Secure your bitcoins and other cryptocurrencies with a hardware wallet.

Ledger Nano S

When you own cryptocurrencies, you can securely protect your funds with a hardware wallet. The Ledger Nano S is an easy to use hardware wallet that can store your  crypto and your wallet can be restored even if your device is lost or stolen.


DigitalBitbox

The Digital Bitbox is a plug-and-play wallet and second-factor authenticator that combines the highest security of cold storage with the convenience of software wallets.


Keepkey

KeepKey is a hardware wallet that secures bitcoin, ethereum, litecoin, dogecoin, dash, and namecoin. Your assets are protected from hackers and thieves.


Trezor

The most trusted and secure way to store your bitcoins. Isolate your private keys into the safety of TREZOR and enjoy Bitcoin without risk. The best protection at no cost to your convenience.