How to Invest in Cryptocurrency in the UK

August 22, 2024

How to invest in cryptocurrency UK at a breakneck pace, with new currencies being launched regularly and existing assets branching out in various ways. The term “cryptoasset” is usually used to describe cryptocurrencies, but the industry is much wider and can also encompass non-fungible tokens (NFTs), utility tokens, stablecoins and other digital asset classes.

As with all investments, it’s important to understand the risks associated with investing in crypto. Markets can be extremely volatile, with prices fluctuating widely and often without clear reason. Investors should only commit capital to positions that they can afford to lose, and should be prepared for the worst-case scenario.

Investing in crypto can be tricky to navigate, especially for first-time investors. The FCA regularly issues warnings about the sector, advising would-be investors that crypto exchanges are unregulated and offer little in the way of financial protection if things go wrong. Despite this, more than two million adults currently hold cryptoassets in the UK.

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Before you can start buying and selling crypto, it’s necessary to open a cryptocurrency account with either a broker or an exchange. To do this, you’ll need to verify your identity using official paperwork such as a passport or driving licence and may be required to upload a selfie that matches your face. This process can take a few days to complete, so be patient.

Once you have an account, you can deposit funds by linking it to your current bank account or making a payment via a credit or debit card. It’s worth bearing in mind that, depending on the funding method and your bank’s policies, you could face transaction fees.