What is happening in Bitcoin in the UK now?

Buying bitcoin in the UK has never been easier and if you’re new to it and looking to buy some yourself this article might be for you.

Buying bitcoin isn’t difficult and it’s becoming easier as more mainstream and new services launch each year.

That said, bitcoin is an entirely new asset class and genuinely a first of its kind which requires a decent understanding of the principles and technology that underpin it.

In this article you’ll learn how to buy bitcoin in the UK using services that allow you to exchange bitcoin for British pound sterling.

I’ll assume three things: First, that you’re new to bitcoin and have never bought it before. Second that you’re not planning to buy a large amount which requires a more secure approach. Finally, you’re not trading it and intend to hold on to it for a relatively long time.

Also, there are many other cryptocurrencies on the market. Some are good, others are terrible. This article is about bitcoin which was the first, original and by far the biggest of all them. To exchange Bitcoin, Visit: bitcoin to visa

Why buy bitcoin in the UK?

People around the world buy bitcoin for a number of different reasons. Some of which include:

• It’s a speculative asset. Bitcoin is the fastest growing asset over the last ten years
• It’s a hedge against the Bank of England monetary policy. Bitcoin has a fixed cap supply meaning it can’t be inflated unlike the British pound which has lost most of its value due to inflation
• The future of money. Many bitcoiners believe it will be the currency of the world in the future which is called hyperbitcoinization. Twitter and Square founder, Jack Dorsey believes bitcoin will be the currency of the internet

Much like why people buy gold in the UK, buying bitcoin is no different. There’s a meme in the bitcoin community which suggests most people get into bitcoin to make money but tend to stay in the space once they understand its sound monetary properties.

Is it legal to buy bitcoin in the UK?

Yes it is absolutely legal to buy bitcoin in the UK.

Bitcoin tends to get associated with being the main currency of the dark markets and while true many more people buy and hold it for the reasons mentioned earlier.

Buying bitcoin in the UK is completely and totally legal.

Do you pay tax on UK bitcoin purchases?

You don’t have to pay tax when you buy bitcoin in the UK but you may have to pay tax when you come to sell it.

Former Bank of England governor, Mark Carney, said in 2018 that cryptocurrency regulation in the UK was planned but so far nothing has materialised.

While it’s likely that cryptocurrencies like bitcoin will face the same regulation as any asset the Bank of England is generally pro the idea of them.

Bitcoin (and crypto) traders who buy and sell regularly as if they’re running a business will likely have to pay tax but for you, dear long term holder, you won’t have to on your UK bitcoin purchases.

When, or if, you come to sell it will likely go towards your tax-free capital gains tax allowance which in 2020 is £12,000 but likely to be more in years to come.

So, in short, buying bitcoin in the UK is not taxable but selling it in the future will likely be.

Buying bitcoin using an exchange

Now that you have a wallet set up you can now receive bitcoin. The main way to buy bitcoin in the UK is through an exchange.

An exchange is essentially a marketplace where you can buy or sell bitcoin (and other cryptocurrencies). Remember that an exchange and wallet are not the same although some exchanges allow you to store your bitcoin with them, but as noted earlier this is unadvisable because: “Not your keys not your bitcoin.”

There are various kinds of bitcoin exchanges you can use. Some are catered mainly to day traders where buying and selling quickly is a necessity. Others are more suited to the casual investor.

Some exchanges are internationally focussed with users all around the world whereas others are specific to the country they are domiciled in.

It’s important you do your due diligence when choosing a bitcoin exchange and to do that you should consider the following:

• How long has it been operating and does it have a good reputation?
• Is it easy to purchase bitcoin using £GBP?
• What payment methods can you use?
• Does it include an option where you can auto-invest into bitcoin?
• Is it easy to sell bitcoin and convert back to £GBP?
• What documents do they require you to submit to prove your identity?
• What fees does it charge you to buy (and sell) bitcoin?

Recommended way to buy bitcoin

As I mentioned earlier, buying bitcoin in the UK has never been easier as new services launch to help people make their first purchase.

Some of these companies are better than others however and its important you use one with a long track record and good reputation. That’s why I recommend Coinmama.

Coinmama

Coinmama is a bitcoin exchange that has been around since 2013 which is a long time in bitcoin years.

With Coinmama, you can use your debit or credit card to buy bitcoin (and other cryptocurrencies) directly from its website. The service is easy-to-use, secure and has helpful customer support.

Some cryptocurrency exchanges can be very confusing to a novice investor because they are more catered to seasoned day traders. Their admin dashboards are full of read and green charts and graphs moving every second.