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Finding the best cryptocurrency exchange in the U.K. depends largely on your needs and the type of digital assets you plan to trade. Just about every U.K. exchange supports the most popular cryptocurrency, Bitcoin (BTC or XBT), although other lesser-known cryptocurrencies may not be supported.
Several great crypto exchanges are based in the U.K., so pick the 1 that best suits your needs. If you have no experience with cryptocurrencies (even if you have prior experience with forex, stocks or futures), you would be well-advised to learn how to trade cryptocurrency before you open an account with an exchange.
You can learn cryptocurrency trading involves opening a free demo account with an online broker like XTB. Regardless of your trading results in a demo account, remember that they could differ significantly when using a live funded account at a crypto exchange or online broker.
Your success as a trader typically depends on your trading skills, including how you deal with the inherent volatility of digital assets. Learn how you get get started with our review of the best cryptocurrency exchanges in the U.K.
Overview: Cryptocurrency Exchanges in the U.K.
If you plan to exchange one altcoin for another, opening an account at a cryptocurrency exchange might make sense. These exchanges allow you to purchase and sell coins for other digital currencies or for national currencies like GBP, USD or EUR.
Most of these exchanges require identification verification in order to open an account. If you want to make an occasional altcoin transaction, you can use a bitcoin ATM that requires you to have a crypto wallet or you can create 1. In addition to exchanges, peer-to-peer trading platforms can also be used to exchange altcoins.
These usually match buyers and sellers in a similar location and take a fee off the top of each transaction. Other exchanges consist of platforms that offer direct person-to-person trading between people in different countries. Peer-to-peer trading platforms generally do not place a fixed price on transactions, but instead allow each seller or buyer to set their own rate of exchange.
Another exchange option consists of cryptocurrency brokers you can physically visit to buy or sell cryptocurrencies at prices set by the broker, much like local cambios do with foreign currencies.
What Makes a Great Cryptocurrency Exchange?
Before placing your 1st order, do a little research on the different exchanges. The elements listed below can help you find the best.
Reputation
Reputation is 1 of the most important factors to consider when choosing an exchange. To research a cryptocurrency exchange’s reputation, visit trusted industry websites and read reviews.
You can also go to cryptocurrency forums such as Bitcointalk and find out what other traders have experienced. Has the exchange been hacked in the past? If so, what action or inaction has been taken on behalf of clients who may have been hacked?
Furthermore, an exchange that does not insure or segregate client funds could subject your money to theft. If you choose to leave your coins or other digital assets in an exchange, make sure that the exchange has a reliable “cold storage” facility to reduce the likelihood of hacking.
Fees and Payment Methods
To avoid unpleasant surprises after you’ve started to make transactions, be aware of all the fees the exchange charges. Fees can vary considerably depending on what exchange you use.
Does the exchange let you fund purchases with a credit or debit card? Can you PayPal them the money or would you have to pay for a bank wire transfer instead? Some exchanges do not accept national currencies and only accept other cryptocurrencies to fund an account. An exchange with limited payment options could make cryptocurrency purchases quite inconvenient.
ID Verification
Generally, exchanges that accept credit cards require identity verification and charge higher fees due to the higher risk of fraud or theft. They may also charge higher processing and transaction fees. In addition, purchases made through wire transfers can take considerably longer to process.
Almost all U.K. exchanges require some form of ID verification in order to make deposits and withdrawals. Nevertheless, some exchanges do allow you to remain anonymous, so check with the exchange if anonymity matters to you.
Exchange ID verification can often take up to several days, but it helps weed out money launderers, fraudsters and other scammers.
Exchange Rates
Different exchanges can offer varying rates of exchange for cryptocurrencies quoted in national currencies, as well as wider or narrower bid offer spreads. Before you open an account, inquire about the prospective exchange’s dealing spreads.
Exchange rates have also been known to fluctuate widely in fast markets, with the actual volatility observed depending on the currency and cryptocurrency involved. Below, we’ve rounded up 4 of the most popular exchanges based in the U.K.
Best Crypto Exchange Platforms in the UK
- Best for Active and Global Traders: Interactive Brokers
- Best for Inexperienced Traders: CoinJar
- Best for Sign-Up Bonuses: Crypto.com
Take a look at the list below and get started buying, selling or trading cryptocurrency today.
Best for Active and Global Traders: Interactive Brokers
With no added spreads, markups or custody fees, Interactive Brokers makes it much easier to build a crypto portfolio. There are low commissions and a range of crypto assets that will help you build the crypto side of your portfolio with no trouble. Plus, you can buy into many other assets that allow for an expansive and full portfolio that can sustain you for many years to come.
Listmaker of Benzinga's FinTech Awards for Best Day Trading Software, Best Broker for Short Selling & Winner for Best Paper Trading Platform.
Pros
- This platform is powerful enough that you can manage your own portfolio, learn how to trade or even invest a portfolio on behalf of a client
- There are many options on this platform that go beyond a traditional investment portfolio, and there are
Cons
- While this platform is affordable and robust, some people who are still learning might feel overwhelmed and not know where to start
Best for Inexperienced Traders: CoinJar
**Disclaimer: 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.
CoinJar puts an intuitive trading platform in the palm of your hand. You can learn on the go, invest in crypto, pay lower fees and get used to the dashboard quite quickly. Perfect for beginners and advanced traders, you can begin building your crypto portfolio using CoinJar without feeling as though you need to relearn how the crypto space works.
Pros
- The platform is designed to be easy for beginners to use, meaning that you can “dip your toes” in the crypto market safely
- There are several assets available, allowing you to study each new asset before investing
Cons
- Anyone who trades every day or handles a large portfolio might want to look elsewhere
Best for Sign-Up Bonuses: Crypto.com
Crypto.com is a full-featured cryptocurrency exchange that offers its users several services other than just the ability to buy and sell cryptocurrencies. The trading platform also lets you earn interest on your digital assets with interest rates as high as 10% on stablecoins like USDC. And, by staking Crypto.com's native token, CRO, on the platform, you can earn interest rates as high as 14%.
The trading platform also has a debit card that earns crypto-back on all purchases made with the card. Since the debit card works with VISA, you can use the card anywhere VISA is accepted. This is a great option for those looking to increase their cryptocurrency portfolio without needing to spend any extra money.
Read also: BEST BUSINESS CRYPTO ACCOUNTS
Pros
- Staking can help you save for the future and generate income, much the same way you would in something like a CD
- You can get the Crypto.com debit card and tie your finances even more to crypto rewards and spending
Cons
- The platform has received some bad press in the past
Trade Cryptocurrency Now
Finding a great cryptocurrency exchange in the U.K. is far easier than you might imagine. There are a number of exchanges available locally, as well as on the international and semi-international exchanges, so it’s only a matter of determining your needs and finding an exchange that best fits those needs.
Take into account exchange reputation, transaction fees, other costs, exchange rates, dealer spreads and customer service. Don’t forget to consider the time needed to open an account, as well as how long it takes for you to receive the cryptocurrencies you purchase. Get started with 1 of our top cryptocurrency platforms now.
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About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.