By
Tim FalkUpdated
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
1. You could lose all the money you invest
2. You should not expect to be protected if something goes wrong
3. You may not be able to sell your investment when you want to
4. Cryptoasset investments can be complex
5. Don't put all your eggs in one basket
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
If you want to buy cryptocurrency with GBP, using a crypto exchange that accepts bank transfers can be one of the cheapest and most convenient solutions. But if you’re new to cryptocurrency, it can be tough knowing where to get started.
Read on for a list of which exchanges accept bank transfers and how you can buy crypto with your bank account.
To make comparing even easier we came up with the Finder Score. Fees, features and asset-support across the most popular platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the exchange – simple.
There are two ways you can buy crypto with your bank account:
Depending on the exchange you choose, the exchange may support one or two of these payment methods.
Buying crypto with your bank account is actually quite easy. To show you how to do it, let’s look at an example of how to buy Bitcoin (BTC) with GBP.
For security reasons, you shouldn’t store digital coins or tokens on an exchange for an extended period of time. Instead, before buying any crypto, you should set up a secure wallet where you can store your private keys.
Check out our guide to the best Bitcoin wallets for more info on how to choose and use a wallet.
Uphold is a leading digital currency exchange. To register for an Uphold account, you’ll need to provide your email address and create a password.
Before you can start trading, you’ll also need to verify your identity to meet Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements. This means you’ll also need to supply the following:
Remember to also enable 2-factor authentication on your account for an extra layer of security.
Click the “Deposit GBP” link from your account dashboard and choose your payment method.
Enter the amount of GBP you wish to deposit and choose the bank account you will be depositing the funds from.
Once the transaction has been processed, remember to move your Bitcoin off the exchange and into your private wallet.
Under the “Send Bitcoin” heading, specify the amount of BTC you want to send and then enter the address of your private wallet. Double-check that you’ve entered the correct address before you click “Send”.
There are a number of platforms to choose from when purchasing crypto with your bank account, so compare your options to see how each exchange performs across a range of key areas:
Answering these questions should help you narrow down your choices and find a platform that will work for you.
If you want to store your newly acquired crypto coins on the exchange where you bought them, you can. However, this is not recommended for a couple of reasons:
With this in mind, the safest course of action is to move your digital coins into a secure wallet that allows you to retain control of your private keys. From desktop and mobile wallets to online and hardware wallets, there are plenty of options to choose from. Make sure you do your research before picking one that’s right for you.
Buying crypto with a bank account offers a safe and secure way to exchange GBP for digital currency, but only if you’re certain you’re dealing with a reputable exchange provider. With this in mind, it’s essential that you thoroughly research the credentials of any platform before transferring any funds.
You’ll need to find out the following:
Of course, if you plan on buying cryptocurrency from someone through a peer-to-peer platform, you’ll need to be certain you’re dealing with a reputable seller before transferring any funds. This is why it’s a good idea to set up the trade through a marketplace that uses some sort of reputation system and has security measures in place to protect against fraud.
From a broader point of view, you should also be fully aware of the risks associated with buying cryptocurrency before you make a purchase. Cryptocurrencies are complicated and volatile assets, so there’s a risk of losing some or all of the money you spend.
If you want to buy crypto with your bank account, the first thing you need to do is start comparing a range of cryptocurrency exchanges. Compare their features, accepted payment methods, transaction limits, fees and level of community trust to find a platform that’s right for your needs.
Yes, at the time of writing, it’s legal to buy crypto with your bank account in the UK.
Yes. If you’re using an exchange that supports your payment method, the GBP you deposit should arrive on the exchange straight away. However, bank transfers can take between one to three business days to be processed.
If you’re making a peer-to-peer trade, it may be possible to buy crypto with your bank account without providing proof of ID. However, if purchasing through a crypto exchange or broker, you will need to provide your personal details and proof of ID before you’ll be allowed to buy cryptocurrency using your bank account.
For those looking to buy Bitcoin anonymously, it’s worth pointing out that your bank account will be linked to your ID, so paying for your crypto via bank transfer won’t allow you to protect your identity.
Yes. There are several platforms that accept credit and debit card payments from British customers, most notably Coinbase. Other platforms, such as peer-to-peer marketplace Paxful, welcome deposits made via PayPal and other money transfer services, or you can use a Bitcoin ATM to turn your cash into crypto.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
Images: Shutterstock
Disclosure: At the time of writing, the author holds ADA, ICX, IOTA and XLM.
Tim Falk is a freelance writer for Finder. Over the course of his 20-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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