How to Invest in Bitcoin UK
With the price of bitcoin climbing this year, many savers may be thinking of investing in it for the first time. But it’s important to understand what cryptocurrency is before you jump in. How to Invest in Bitcoin UK.
Cryptocurrencies are digital tokens that enable affordable, instant, global peer-to-peer transactions without the need for central authority or banks. They are recorded electronically in a massively duplicated online storeroom known as the blockchain. People hold them in ‘digital wallets’, which can be online or mobile apps, or (for greater security) a hardware device that protects the secret keys that authorise movements of the coins under your control. You can spend them in some online or bricks-and-mortar retailers, or exchange them for fiat currencies like pounds on a crypto exchange. You’ll be liable to pay capital gains tax on any profit you make when you sell them.
How to Invest in Bitcoin in the UK – A Beginner’s Guide
The best way to buy Bitcoin is on a reputable crypto exchange. Compare fees across platforms, and focus on those that offer transparent, low-cost buying options. It’s also worth considering bank transfers for lower fees, or exploring peer-to-peer crypto exchanges for potential savings.
Investing in cryptocurrencies comes with significant risks and is not suitable for everyone. They can be highly volatile, and you could lose all of your investment. The FCA recommends that you only invest money you can afford to lose, and only if you’re prepared for the possibility of losing all of it. You are unlikely to be protected by the Financial Services Compensation Scheme, and the FCA has warned that you’re likely to be exposed to fraudulent or unauthorised activity by crypto exchanges and other market participants.…