Acquiring and trading cryptocurrency has been one of the most prevalent online activities in the financial world. In the past decade, millions of people around the world have begun to venture into buying and trading cryptocurrency. The market boom in the last few years has convinced sceptics and even nonchalant parties to join in on crypto-related activities. Some companies in the UK and around the world changed their customer-relations policies, allowing payment by cryptocurrency. Bigger organisations like Goldman Sachs, Bank of America, and even Tesla, got involved in cryptocurrency one way or another (Tesla’s involvement did not exactly end well this year, but that’s not the point).

Bitcoin stands as the most popular type of cryptocurrency as well as the most valuable. It was also the fastest growing dinar currency at least until its value became quite volatile this year and it lost nearly half its value in May 2021.

Blockchain

If you are a beginner or a relative novice when it comes to crypto assets investing, it may be relevant to note that cryptocurrency generally works by using a technological innovation called Blockchain. Blockchain is a digital decentralised tech, which is spread across many computers, often used to manage and record transactions. What you simply need to know about blockchain for now is that it is extremely useful in securing online transactions, whether monetary or not.

Exchanges and Regulations

An exchange generally refers to a marketplace where holders or owners of assets, securities commodities and other financial instruments trade with one another. This would make any platform where you can change money from one currency to another an exchange platform. 

There are numerous exchanges operating in the United Kingdom, including crypto and non-crypto exchanges. London Market Stock Exchange, International Exchange Inc., CME Group Inc., are stock and commodity exchanges in the UK. On the other hand, eToro, Luno, Redot, and FTX are primarily cryptocurrency exchanges. However, our discussion practically focuses on exchange platforms for trading cryptocurrency, so let’s get started.

Is every Exchange in the UK Regulated?

This is a common question for beginners in crypto investing and crypto trading, and sometimes it is also a concern for non-beginners, as they fear for their assets being at risk. In the UK, the top regulator for exchange organisations is the Financial Conduct Authority (FCA).

Going directly to the point, many crypto exchange platforms are not regulated in the United Kingdom. On the other hand, a good number of them are regulated as well. Taking a look at the history of exchanges in the United Kingdom, there are many examples of unregulated cryptocurrency exchanges that have cost traders and accept holders billions of pounds in total. These unfortunate occurrences have largely been due to theft from these exchange platforms. It is a constant risk that comes with a non-regulated exchange platform.

In a nutshell, while it is clear that some platforms are not regulated in the UK, there are also a lot of credible and regulated exchange platforms. eToro is one prominent example. The exchange is regulated and licensed by the FCA, as well as the Cyprus Securities and Exchange Commission (CySEC). eToro is also duly registered with the Financial Industry Regulatory Authority (FINRA), which practically opens the door to the exchange marketplace in the UK. Redot is also a properly regulated exchange, licensed by the European Union (EU), But this is just one exchange. A few others will be subsequently addressed later in this article.

Do UK crypto exchange platforms offer leverage?

Again, the direct answer is yes. Fortunately, there are a few examples of crypto exchange platforms that allow their traders engage in leverage trading in the UK, till present. For context, let’s provide a brief explanation on leverage trading.

Crypto leverage trading is a tool often used by crypto investors to open a position on an exchange platform. How this works is that the position opened (long or short) is clearly much larger than their capacity or their capital. This is why the term leverage is used, the investors clearly leverage borrowed funds to open their position. When this happens the potential earnings are incredibly maximized through the increase in the investor’s buying power.

For example, when a trader is said to have entered a trade with 100:1 leverage, this could mean that such an investor has traded a $10,000 position size with a $100 capital.

For example, a trader that enters a trade with 100:1 leverage can hypothetically trade a $10,000 position size with $100.

The following crypto exchange platforms are some of the most notable in terms of offering leverage and, alongside their corresponding ratio.

  • Bybit, 100:1 maximum leverage
  • FTX, 101:1 maximum leverage
  • Huobi, 125:1 maximum leverage
  • StormGain, 300:1 maximum leverage
  • Binance, 5:1 maximum leverage (temporarily banned in the UK)

A few other platforms exist, which offer attractive leverage trading ratios to crypto traders in the UK. Exchange platforms like Redot, Deribit, and Prime XBT, are other legitimate examples. Simply check out the existing ones and their average offers, then select which ones are the most suitable for your trading goals.

How do I buy Bitcoin in the UK?

In 2021, buying a bitcoin in the UK is not a complicated process. Simply log on to a credible exchange, fulfil their technical requirements for trading, familiarise yourself with their offers, and begin trading.

However, having considerable knowledge about the trading industry will go a long way in selecting just the right exchange. Some factors should be on your checklist to achieve this. Check out a few of them below.

  • Safety and Regulation
  • Trading Options
  • Direct Buying and Selling of Cryptocurrency from the Exchange
  • Opportunity to swap one cryptocurrency for the other on the platform.

Where to Trade Bitcoin with Lowest Fees and Best Security

After considering some of the factors above, you are good to go with your crypto trading activities. However, security remains important in dealing with your assets, especially when a third party (the exchange, in this case) is involved.

Safety and regulation remain a key factor in selecting where to trade, as well as buying access with the lowest fees possible.

Check out a few of the properly regulated, safe, and relatively cheap platforms in the UK below:

  • eToro — a top rated exchange in the UK.
  • Redot – EU regulated, lowest fees for Bitcoin and Ethereum.
  • Coinbase — equally rated, with low and affordable fees.
  • Binance — relatively new, but very effective, available globally (currently on a temporary ban in the UK).
  • CoinCorner — the “fastest” for buying Bitcoin.
  • CoinJar — suitable for newcomers.
  • Luno — a good choice for “mobile” traders, who are mostly on the move.

CONCLUSION

The Cryptocurrency industry has shown that increase in wealth and financial assets can be attained by just about anyone. At the same time, it has proven (especially this year) to be a quite volatile space. Making the right decisions, as well as being very strategic about trading remain the ultimate assets in succeeding as a crypto investor.  

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