The Beginner’s UK crypto guide helps new investors to get a foothold in the growing crypto investment space. It covers everything from what crypto is to how to buy and sell it safely in the UK.
Cryptocurrencies are digital assets that function like money but aren’t controlled by central banks or governments. Bitcoin, the most well-known cryptocurrency, is a crypto that runs on an open blockchain that records and verifies all transactions. Its limited supply means that it is more like gold than traditional money.
Beginner’s Guide to Crypto Investing in the UK
In the UK, crypto is treated as property and can be subject to Capital Gains Tax (CGT) or Income Tax depending on how it’s used. This is because crypto has a number of unique characteristics that can trigger taxes. Selling cryptocurrency for traditional fiat currency or swapping one crypto for another is a CGT event, just as spending crypto or earning it through’mining’ are.
Buying and selling crypto is easy enough, but it’s important to understand how to do so safely. The best way to do this is by using a crypto exchange with a good reputation for security and low fees. It’s also important to always use 2FA and a secure wallet for storing large amounts. The best UK exchanges include eToro, Coinbase, and CoinJar. They offer low fees, FCA registration, and built-in wallets. They also allow GBP deposits and withdrawals. Always compare trading, deposit, and withdrawal fees when selecting an exchange.
