A Quick Guide to UK Exchanges

At first glance, the UK seems well positioned to benefit from the rapid changes in the world of cryptocurrency. As a nation with a solid background in the tertiary sector, the UK is also at the forefront of European fintech developments and is currently developing its digital banking options. However, these factors don't necessarily mean that getting hold of cryptocurrency is an easy thing to do and for those in the British Isles the following options are all available.

Exchanges 

Large international exchanges such as Coinbase and Kraken are open to UK customers, and Coinbase has a facility for UK users to purchase bitcoin using both credit and debit cards, while Kraken offers customers the option to make deposit in pounds sterling. Additionally, there are also exchanges that cater specifically to British investors.

Coinfloor is one of the best options for buying Bitcoin, the London based company is the UK's longest standing bitcoin exchange and puts a solid focus on trust and reliability. Coinfloor chooses to hold all customer Bitcoin in cold storage in underground vaults and uses Multi-Signature Pay 2 Script Hash (P2SH) to insure security. This increased security all comes at a premium and customers are expected to deposit a minimum of 1000 GBP/EUR/USD. Companies with lower deposit rates include Bitstamp, Coincorner and Luno, though as with all exchanges, customers must go through an account verification process that includes sending in government-issued photo ID in order to be able to buy and sell Bitcoin long-term.

Bitstamp is a Slovenia-based exchange with an office in the heart of London's financial district and allows cash deposits via SEPA,  eCheck and credit and debit cards from UK customers. Coincorner is based in the Isle of Man-and operates as both an exchange and a peer-to-peer (p2p) marketplace. Users can deposit funds in a CoinCorner account and then buy and sell bitcoin with other users. Fiat currency deposits are to be made via SEPA bank transfer. Luno is a leading global digital currency company based in South Africa and operates offices in London, Singapore and Cape Town.  

Bittylicious and Cryptomate provide customers with almost instant access to cryptocurrency, providing they have a UK bank account with online banking that allows payments via the Faster Payments method. When using these services customers can expect to pay slightly more than the going market price but do not need to register or submit any ID.

Peer to Peer Trading Sites 

Another option is to sign up with Local Bitcoins or Bitsquare, these decentralized peer to peer platforms allow users to negotiate their own prices and organize payment terms. Here users are dealing directly with other individuals and the level of safety and security depends very much on the people involved. The sites do allow ID verification and online banking payment options, however, all online trades are protected by escrow. This provides an extra level of security as the funds for a trade are automatically reserved from the seller's wallet and if the seller does not deliver as agreed the support teams can release the Bitcoins to the buyer from escrow. 

Bitcoin ATMs

Bitcoin ATM machines represent the easiest way to obtain Bitcoin in the UK, with any buyer only needing a compatible mobile wallet and enough local currency in order to make a purchase. Fees can be higher than online exchanges with rates ranging from around 5% to 10% depending on the vendor. Coin ATM Radar do a great job of compiling all the Bitcoin ATM machines operating in the UK. 

Unfortunately, a slight caveat comes with the majority of these options as the UK's more traditional banks have chosen to frown upon cryptocurrency and are prone to closing bank accounts that engage in dealing with cryptocurrencies. Therefore, despite the wealth of options that exist, purchasing Bitcoin in the UK remains a somewhat risky activity.