Find out how to invest in cryptocurrency in the UK, from choosing a platform to understanding what to look for.
Cryptocurrencies like Bitcoin are digital tokens that enable people to make payments directly to each other through an online system. They get their value from being traded on the market – this means their price can go up or down, just like shares and other investments. The value of cryptocurrencies is often volatile, which is why they’re not appropriate for everyone. They’re not guaranteed to grow in value and you can lose all the money you invest if you buy or sell at the wrong time. You can try to mitigate this risk by investing in stablecoins, which are pegged 1:1 to the value of an external factor, such as a fiat currency or commodity like gold.Find out how to invest in cryptocurrency in the UK
Find Out How to Invest in Cryptocurrency in the UK: Best Practices
If you do decide to trade, you need to choose a trusted cryptocurrency exchange that’s regulated in the UK. The best ones use multi-factor authentication and cold storage (storing your coins offline) to protect your funds. They also publish Proof of Reserves reports to demonstrate that they have the assets they’re claiming to have in-store. They may charge a fee to use their service, though you can save on fees by using a cash back website or app like MoneySuperMarket.
You should also keep in mind that if you’re buying and selling crypto in the UK, you might be liable for taxes. You should check with a tax advisor or accountancy firm before making any decisions about how to invest in crypto in the UK.