Of all crypto holders in the UK, more than 42% are Bitcoin holders, according to Finder.com research. Here we explain more about the crypto currency, its associated risks, and how to buy it.

In May 2016 the cost of one Bitcoin was about £400. As of 11 March, Bitcoin’s price has increased to an all-time high of £55,674, which means it’s up 13,818% since 2016 and up by over 67% on where it was at the end of January this year (£33,147).

Some analysts believe the price of Bitcoin could rise in future as cryptocurrency and blockchain technology may become a bigger part of people’s daily lives.

But of course, there are no guarantees. Bitcoin remains a highly volatile asset. For those who still want to buy Bitcoin, experts recommend investing no more than a small percentage of net worth in the leading cryptocurrency. Plus investors should only invest money they are prepared to lose. The regulator the FCA continuously warns investors about the high risks involved with cryptocurrency.

What is Bitcoin?

Bitcoin is the original cryptocurrency. Invented in 2008, it was proposed as a ‘decentralised digital currency’. That means it is not issued by any state, government or authority. Instead, it’s issued and distributed among users by the Bitcoin network itself. 

And, while a fiat currency such as Sterling depends on payment providers, banks or other third parties to transfer money from one account to another, Bitcoin is truly peer to peer.

Bitcoin holders can send funds to the digital wallets of others in return for goods, services or other currencies. There are online and offline retailers that accept Bitcoin payments and one country, El Salvador, even adopted it as its official currency.

Fiat currencies, like Sterling, operate using ledgers held by financial institutions like banks, building societies, payment platforms and so on. These ledgers record how much money people are owed. They are trusted because they have to meet regulatory obligations and, often, have been around for a long time.

Cryptocurrencies eschew these trusted institutions and instead place trust in users to hold, maintain and update their ledgers, and to do it honestly.

How to Invest in Bitcoin in the UK

How to Invest in Bitcoin

The easiest way to invest in Bitcoin in the UK is to purchase it online from a crypto exchange, such as eToro, Coinbase, or CoinJar. Crypto exchanges make it easy to buy and sell Bitcoin and other cryptocurrencies directly from your smartphone, tablet, or computer.

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After purchasing Bitcoin, you can do one of two things:

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On the one hand, you can leave your Bitcoin in the crypto exchange, where you will be able to monitor the value and exchange it for other cryptocurrencies (such as Ethereum, Solana, USD Coin, BNB, XRP, and more) or for fiat currencies (such as GBP, USD, EUR, and others). 

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On the other hand, you can move your Bitcoin and other crypto holdings to a secure Bitcoin wallet that can be separate from or owned by the crypto exchange you use.

1. Public Key: This is like an email address that you can share with others. With your Bitcoin public key, you can receive Bitcoin.
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2. Private Key: This is like a password to your Bitcoin holdings, and you should not share it with anyone. A private key is a long string of letters and numbers. It is extremely important to keep track of your private keys and keep them safe. If you lose them, you lose your Bitcoin forever.
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3. ‍Bitcoin Wallet: You need a wallet to store and manage your Bitcoin and other crypto holdings. Crypto exchanges, such as eToro, Coinbase, and CoinJar, offer a simple Bitcoin wallet for storing and securing your Bitcoin. A wallet and a crypto exchange are two separate things. Even though most crypto exchanges listed on Koody have their own wallets, you do not need to use a wallet if you prefer to leave your Bitcoin in a crypto exchange.

‍Where to Buy Bitcoin in the UK

We’ve compiled a list of the best places to buy Bitcoin in the UK. These are Bitcoin exchanges, wallets, apps and websites where you can buy Bitcoin, Ethereum, Cardano, Dogecoin, and other cryptocurrencies in the UK.
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Please remember that cryptoassets like Bitcoin are highly volatile, unregulated investment products with no UK or EU investor protection. You could lose all the money you put into them. Additionally, capital gains tax may apply to profits from cryptocurrency sales.
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Here are the best places to buy Bitcoin in the UK