Hi Crypto Network,
Buying bitcoin has become a widespread practice in the United Kingdom (UK) and other parts of the world. Whether you live in the UK or any other part of the world, buying Bitcoin is pretty much the same. Bitcoin is the most popular asset by market capitalization.
In the UK, cryptocurrency regulation is not a transparent matter. In most cases, bitcoin is treated as a foreign currency with few laws put in place to govern its operations. In January 2020, the Financial Conduct Authority (FCA) began monitoring the crypto business to ensure compliance with anti-money laundry and counter-terrorist financing. However, FCA has limited powers to what it can supervise in the industry. This, however, has not prevented people from engaging in the market space.
So far, Bitcoin in the UK has grown tremendously with new players joining the market each day. Before you can engage in the Bitcoin market in the UK, there are a few things you need to know.
What is Bitcoin?
First, as bitcoin buyers and sellers you need to understand a few key elements about the cryptocurrency. Bitcoin is a peer to peer form of digital cash or virtual currency created from Blockchain technology. The digital currency was the first of a new kind of asset called cryptocurrencies. What sets Bitcoin and other cryptocurrencies apart is that they do not require intermediaries like banks or governments to make a financial transaction.
Who invented Bitcoin (BTC)?
An anonymous person created Bitcoin, which goes by the pseudonym, Satoshi Nakamoto. His last communication was in April 2011. Satoshi is estimated to own about 1 million bitcoins. Despite numerous efforts to uncover his identity, Nakamoto has proven elusive. Several individuals have been proposed, but none are Satoshi Nakamoto beyond a doubt. Here are three candidates. Some of the known candidates include Dorian Nakamoto, Nick Szabo, and Craig Wright.
What’s Bitcoin is for?
According to the whitepaper, Satoshi clear stated that he created Bitcoin to remove the third-party intermediaries that form part of the traditional financial system. Like all currencies, Bitcoin was designed to be used in making payments. In addition to making payments, the digital currency has various use cases, including a store of value dominance and to reward miners.
Is Bitcoin worth anything?
It seems silly to some people that one bitcoin can be worth thousands of dollars. Globally, Bitcoin is among the most valued asset. Some have gone for far as to term it as the digital gold. The asset is best valued for its potential as a store of value. It has helped change the traditional financial market as you know it. In the UK market, 1BTC is worth about 7,607-pound sterling. (about $9,374). So, what makes Bitcoin so valuable? The answer is simply scarcity.
How and Why you should buy bitcoin in the UK
Digitalization is slowly transforming hoe people conduct their day to day operations. Cryptocurrencies, more so, Bitcoin is critical in the digitalized world. In the coming future, people will shift from using local fiats to Bitcoin and other altcoins.
In addition to taking part in the change, Bitcoin is a much better alternative to traditional money. The currency is cheap and faster to use for transactions compared to traditional currencies. The process, which takes days or weeks now, can be done within minutes or a day thanks to Bitcoin. The currency has helped people make cross-border payments without suffering a considerable cost burden.
The currency eliminates the long tidies processes and procedures commonly associated with banking institutions and other financial institutions. While it takes various verification documents and processes to begin transacting using financial institutions, the Bitcoin space allows one instance access by simple registration and creating a digital wallet.
What are the best places to buy bitcoins in the UK
You could go to a formal exchange, or you could go down the peer-to-peer route. For beginners, the best place to buy Bitcoin would be peer-to-peer routes such as LocalBitcoin, BitBargain, Coinfloor, and Bittylicious. This is because it is easier to navigate through the platform and learning more about the cryptocurrency.
If you know your way around Bitcoin markets, you can buy your Bitcoin form formal exchanges. Another option is to use a bitcoin ATM. There are currently over 70 ATMs available in the UK. Birmingham, London, Bristol, Brighton, Cardiff, Edinburgh, Leeds, Glasgow, and Manchester all have bitcoin ATMs.
How to Buy Bitcoin in The UK – 5 Easy Steps
Create an online wallet
The first step to owning Bitcoin is creating a safe place to keep them. This is quick and easy. There are many places where you can obtain an online wallet, including from Bitcoin exchange.
To choose the best exchange, you need to fund one that is ways to use, has the most security features, supports wide range of cryptocurrencies and reputation.
One thing to note is that while it may seem sensible to sign up for a wallet with the exchange, you plan to do business with, this is not always the best move since some are unstable.
Once you identify which wallet you want to use, you need to register with the company to create an account. You can use Bitcoin wallets like Coinbase Pro, Atomic, Guarda, Sugi, CEX.io, Localbitcoins, Binance. Jersey and KeepKey Wallet.
It is essential to store your security keys to avoid losing access to your account and funds. Security keys should also be stored away from third parties.
Verify who you are (KYC process) and secure your account
With authorities becoming strict on Know-your-client (KYC) and anti-money-laundering (AML) regulation, many exchanges require verified identification for account setup. After registration, many Bitcoin wallets will need customers to verify their identity. Identity verification is essential because it protects customers against fraud. Common identity verification steps include adding a phone number, personal details photo ID, and email address.
Choosing a trader
Once you are free for deposits and withdrawals, the right place to buy bitcoin is on a crypto exchange. This provides you with a variety of traders offering different prices. You can also buy Bitcoins from a Bitcoin ATM. The Bitcoin ATMs operate similarly to bank ATMs. To get the bitcoin, you will need to feed in the bills, hold your wallet’s QR code up to a screen, and the corresponding amount of bitcoin is beamed to your account.
Either Buy Some Immediately or wait for a preferred price.
After setting up the account, and choosing the traders, you can opt to buy the bitcoin at the current market price or wait for better future prices. You can make a wire transfer or use a credit card. When the prices are too high, you can wait for a price drop before making the purchase. Notably, different exchanges will have different prices. It is important to note that you can buy small amounts of Bitcoin depending on the amounts you want to spent.
In addition, different wallets will allow for various payment methods including bank transfers
bank account, debit cards in exchange for the Bitcoins.
Transfer to secure offline location or begin trading
Once you purchase the Bitcoin you need, you can begin trading at your convivence. If you are not planning to buy and sell more Bitcoin, it is advisable to transfer the digital currencies to an offline location. This is because having your funds on an offline location eliminates the chances of any hack or any other attacks.
You should always make sure not to lose the offline location. In addition, do not give third parties access to the funds.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Live from the Platinum Crypto Trading Floor.
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