Bitcoin broker license

Demo account: yes the process works largely the same regardless of which platform you sign up with.

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How to Buy Bitcoin UK: A Beginner’s Guide, bitcoin broker license.

You’ll need to open an account, deposit some funds, and then specify how much you wish to buy. After that, most brokers allow you to withdraw your newly purchased bitcoin out to a private wallet.

How to buy bitcoin UK: A beginner’s guide

There are number of online platforms and methods to buy bitcoin in the UK and figuring out where to get started can be daunting. In this beginner’s guide, we explain the ins and outs of how you can buy bitcoin in the UK, as well as the best platforms for doing so. We also explain some the factors that you need to look out for prior to parting with your money – such as regulation, fees, spreads, and withdrawals.

Our recommended UK platform

Don’t have time to read through our guide and simply want to buy bitcoin right now?

If so, we would suggest the broker listed below. Our top-rated platform is regulated by the UK’s FCA, so your funds are safe at all times. You can also deposit funds with heaps of everyday payment methods, and you won’t pay any fees other than the spread.

Etoro: best UK platform for 2020

Buy physical bitcoins or trade bitcoin cfds

Copy trading available

Cysec, FCA and ASIC regulated

Bitcoin in the UK

Consumer demand in the UK for bitcoin took off in late 2017 when the cryptocurrency went on a parabolic run to $20,000. This amounts to an all-time high of around £16,000. To put this into perspective, bitcoin was worth less than 1p back in 2009. Those that were fortunate enough to jump on the band-waggon early are now looking at unprecedented profits.

In terms of availability, the UK is home to a number of popular cryptocurrency brokers. Moreover, a number of regulated CFD brokers now offer markets on bitcoin – including heavyweight firms like plus500, etoro, CMC markets, IG, and even city index. Some brokers even offer a dedicated bitcoin market against the pound sterling.

This is unusual, as the vast majority of the industry is marked-up against the US dollar. Outside of the traditional brokerage space, there are also a number of bitcoin atms scattered around the UK. This allows you to insert cash into the machine, and in return, bitcoin will be transferred to your digital wallet.

What is the best way to buy bitcoin in the UK?

There are heaps of way to invest in bitcoin – such as a bitcoin ATM or peer-to-peer exchange. With that said, the easiest way to get your hands on cryptocurrencies as a first-time buyer is to use an online broker.

The process works largely the same regardless of which platform you sign up with. You’ll need to open an account, deposit some funds, and then specify how much you wish to buy. After that, most brokers allow you to withdraw your newly purchased bitcoin out to a private wallet.

This operates much like a bank account, albeit, you retain full control over your private keys. When it comes to payments, most UK brokers allow you to fund your account with an everyday payment method. This includes the likes of a debit card, credit card, or an e-wallet such as paypal or skrill.

You can also deposit funds via a local UK bank transfer. Finally – and perhaps most importantly, UK brokers must hold a regulatory license. As noted above, this will usually be with the UK’s FCA. As such, client funds will be held in segregated bank accounts. This means that were the broker to collapse, your funds should be protected.

Where to buy bitcoin in the UK

Etoro is our top pick from the best trading platforms to buy bitcoin with a debit card in the united kingdom for several reasons. Firstly, etoro is the largest social trading platform in the world with more than 4.5 million users from more than 140 countries. Then, this broker offers a wide range of assets including stocks, commodities, cryptocurrencies, indices, etfs, and currency pairs. But after all, the greatest advantage you can see in our etoro review, is when you compare it to other platforms, is that investors can interact with other members and use the copytrade feature that enables users to copy trades of other successful traders.

Bitcoin trading on etoro can be done through etoro's own cryptocurrency exchange (etorox), or through cfds. As of 2018, etorox is also available in the united states. Investors in the united kingdom on the etoro platform can buy and short-sell bitcoin with a leverage ratio of 2:1. On top of that etoro offers trading on 94 other cryptocurrencies if you choose to buy crypto through cfds.

Founded in 2006, etoro is regulated by top tier regulators such as the financial conduct authority (FCA) in the united kingdom, cysec in europe, and ASIC in australia. Etoro stands out among other exchanges and bitcoin brokers by allowing you to buy and hold digital coins 'physically' or to trade cfds, meaning you speculate on bitcoin price movement without owning the currency.

Assets: cryptocurrencies (cfds and exchange), stocks, forex, etfs, commodities, and indices.

Demo account: yes

Educational material: daily blog & podcast, and video tutorials

Fees: BTC/USD spread - 0.75%, no deposit fee, $5 withdrawal fee, $5 inactivity fee.

Minimum deposit: $200

Special features: social trading platform, copytrade, copyportfolios. Etoro offers its own cryptocurrency exchange and a digital wallet.

Regulation: FCA, cysec, ASIC, mifid

Payment methods: credit/debit card, paypal, sofort, rapid transfer, skrill, wire transfer, neteller, webmoney, unionpay

How to be a bitcoin broker & make money

Owner, editor, and lead writer for cryptorials.

Cryptocurrency writer and trader since 2014.

Many people who get hooked on digital currency become so passionate about the subject that they want to change their entire career to work in this industry. Of course there are many different ways you can go about doing that, but one of the most accessible and profitable career choices is to set yourself up as a bitcoin broker.

Becoming a broker does require you to have some capital behind you, but if you are willing to start small in your spare time and build your business up gradually this shouldn’t be a stumbling block for most people – if you have enough to buy or sell a bitcoin or two for your first trade then this may well be enough to get started. Of course if you have more than that, then things will be a lot easier for you.

The risks of being a bitcoin broker

There are three main risks associated with becoming a bitcoin broker: the risk of being scammed, the risk of breaking the law or contravening regulations and getting prosecuted, and the risk of losing money due to fluctuating exchange rates.

Compliance: do you need a license to be bitcoin broker?

Whether or not you need to obtain a license to legally operate as a bitcoin broker is something of a disputed question. It will also depend on the legal jurisdiction in which you are operating (which includes the location of your clients as well as your own). The safest course of action for anybody considering getting into this business is to consult a legal adviser who can give you expert guidance.

If you live in the united states, for example, it is usually recommended that you obtain a ‘money transmitter license’, but with little legal precedent and regulators in individual states taking differing positions, the situation is still unclear. In many other countries, such as the UK for example, the situation is even less clear, as the government is taking a ‘wait and see approach’ to regulation; this usually means that people do not bother to get a license.

Being licensed usually means that you need to comply with certain requirements, such as taking the personal details of clients and keeping records for a certain amount of time.

Even in countries like the US where certain authorities state that digital currency brokerages do need a license, many trades take places on peer-to-peer websites; since ordinary users are free to buy and sell coins without registering as a business, this creates a blurred line for solo traders who are just testing the waters to get started – at which point do you cross the line from being a regular user buying and selling with other users, to becoming a brokerage business that needs to be registered? There is no hard and fast answer to questions like that and you will have to determine for yourself whether your activities may have crossed this blurred line and what your appetite for risking prosecution and fines may be.

Don’t get scammed

Scammers do target brokers and you need to take this into consideration. When you take payment using a method through which payments can be reversed or cancelled, and in return for bitcoins whose transactions cannot be reversed, you are taking a risk. A customer may try to reverse a payment themselves in order to get free coins (which you can usually challenge) or they may be a criminal who pays you with a hacked account, in which case the payment processor themselves may reverse it.

To mitigate against this you need to be well versed in the policies for each of the payment methods you choose to accept and make sure that your prices reflect the comparative risk that you are taking. You can also reduce your risk by requiring ID verification from customers.

Reducing currency risk

A broker is often ready to either buy or sell at any time, taking a profit from the difference between bid and ask prices. This does mean, however, than you risk losing money if the price changes significantly. For example, if you buy bitcoin with the intention of selling it, then the price falls by 20%, then it is highly unlikely that you will be able to sell it without taking a loss.

There is no way to mitigate against this 100%, so you need to make sure you are making enough profit to cover potential losses. But you can reduce the risk in the following ways:

Reduce your trade volume or even stop trading during periods of high volatility.

Identify trends: if you think the price is falling then reduce your buy orders or place them further from the going rate.

Peer to peer marketplaces

The easiest way to get started as a bitcoin broker is to use a peer-to-peer marketplace services where anybody can register and start buying and selling coins immediately. Most of these sites will allow you to choose between multiple fiat payment methods, including national bank transfers and digital wallets like paypal or okpay.

As both professional traders and individual bitcoiners use these sites in a very similar way there is no minimum capital requirement – as long as you have enough cash or coins to make a trade you can use a service like this, although there may be a small minimum bitcoin balance for creating your own adverts. You also don’t need to go out looking for customers – you just create an offer or respond to somebody else’s offer.

Of course the other side of that same coin (pun not intended) is that there is a lot of competition when you use something like this. It is also true that reputation – having an established history or trades through that particular site or service – is important. This means that beginners may have to start off by making trades with no profit, or even at a small loss, in order to build up a reputation and perhaps a few regular customers, before they can start getting any significant amount of business at more profitable prices.

The most popular peer-to-peer marketplace is localbitcoins. This site has a good number of users in most countries around the world, and enables trades using a wide range of different payment methods. There is also an active forum where you can network with other brokers and pick up tips and information or ask questions of more experienced traders.

Another interesting service is multisigna. The technology behind this exchange is more advanced than local bitcoin and is more secure; because it uses multi-sig security users holding coins on the site do not take the same risk, of being hacked or of the site going out of business and taking users’ balances, that you take with a centralized escrow service like localbitcoins. But there are fewer payment options and they have significantly fewer users as well.

‘over the counter’ sales

Another way to operate your business is to conduct ‘over the counter’ sales. These are larger sales negotiated with individual buyers and sellers, rather than through placing publicly viewable offers on an exchange.

The advantages of operating like this are that you make a smaller number of larger trades, meaning more profit per trade, and that you will probably not have to pay commission to work through a third party service.

The disadvantage is that you will have to find your own clients, rather than tapping into a large and established client base through on an existing exchange.

You can set yourself up as an ‘OTC’ broker by creating and advertising your own website, or through using something like the bitcoin OTC web of trust. Creating your own site comes with an additional opportunity to act as a broker for alternative cryptocurrencies as well as BTC.

Operating an exchange

White label exchange services such as the one operated by leverate allow brokers to set up their own exchange website / app with full trading platform, and even to aggregate liquidity from other exchanges.

This is a highly competitive market which will probably require a significant investment as well as a lot of work to make a success out of, but arguably offers a much greater potential profit than the other options listed here.

And also…

The lakebtc exchange is advertising the opportunity to become a ‘lakebanker’ on their website. They give few details, however, as to exactly what this entails and what terms they are offering. When I contacted them they replied swiftly asking for more details on my personal experience and circumstances, but when I replied saying that I wanted further information for this article they didn’t get back to me. I will leave it to the reader to decide if it is worth pursuing more information about this opportunity.

Best binary trading sites

Licensed bitcoin brokers list with the best platforms platforms. Today we will provide you with broker-dealer that have the quality you are looking for. Though, to find the legit cryptocurrency brokers with a licensed number, might be very challenging. This is because cryptocurrency has become one of the most lucrative online business that provide financial liberation unlike before. But the more cryptocurrency get popullar, the more scammers flood the online market. Therefore we dedicate our time to exposing these scammrs. And in this page, we give you the legit cryptocurency trading companies. We advice you to go ahead and choose from any of these regulated bitcoin brokers listed. Now check them out below and trust them. Remember, what we give you here is short review of bitcoin brokers usa worldwide. You can see more through the bellow link

Why you must choose from the list below

Above all, the revolutionary expert advisors are dubious because they don’t give a decent win rate. Most of them have an awful win rate which is way below the 50% mark.
Still they are advertised by their owners as the highest revolution that ever happened in the retail trading industry.

However this is why we want to let you know that all scams in this niche often use ostentatious claims to fool traders. They are not part of the licensed bitcoin brokers nor reliable at all. And that is why you should not be tricked with their offer.

On the same note, we are advising to traders who want to use licensed bitcoin brokers; binary options brokers; forex brokers/robots or some kind of training to look in the right places. However we spare you the rat race by searching for all expert advisors, then reviewing them and listing them down on a table. So do not panic because whatever you see here is noting but the true efforts with proven results to give you the bitcoin otc brokers.

Broker touts exotic bitcoin bet to wring income from crypto

As cryptocurrency pushes into mainstream finance and attracts billionaire tycoons, one U.K. Brokerage is offering the merely wealthy a potentially safer way to play bitcoin. The price: giving up any hope of the kind of stratospheric gains the digital coin is famous for.

London-based marex spectron group ltd. Is selling a structured product known as an autocallable to people with at least $200,000 to invest, according to a term sheet. If the cryptocurrency stays relatively stable for awhile, marex claims investors could reap an annualized return of as much as 70% via monthly coupons.

If bitcoin keeps multiplying in value, autocallable investors don’t get to participate in that upside: they’ll just get their capital back early, plus their coupons. And if bitcoin crashes again -- as it did three years ago -- investors would lose, but less than they would by trading bitcoin directly.

“the idea that you want to sell out all the upside in order to get a coupon and 30% downside protection seems pretty unintuitive -- but these kind of structures in general are wildly popular,” said benn eifert, chief investment officer of hedge fund QVR advisors . “I imagine they’ll find demand.”

Marex solutions began marketing the autocallables this week, according to nilesh jethwa, who heads the division. Marex spectron, which is active in the commodity and energy markets, is owned by JRJ group, the private-equity firm of former lehman brothers bankers jeremy isaacs and roger nagioff.

“bitcoin is becoming mainstream,” said jethwa. The marex product is reserved for professional investors and is being distributed via private banks and family offices.

The popular autocallable structure gained notoriety about two years ago when natixis SA lost $200 million on the products in korea after mismanaging the risks of equity market turmoil. Still, the products are a mainstay of the structured products universe, and attract retail investors, especially in asia, who have large piles of savings and seek regular income.

Bitcoin surpassed $40,000 for the first time on thursday before falling to $38,685 at 8:30 a.M. Friday in london. It has more than quadrupled in the past year, with prominent money managers like guggenheim investments’ scott minerd predicting the gains have just started.

That kind of return far exceeds what marex’s autocallable can provide. But that’s a reasonable trade-off for the reduced downside, jethwa said.

“we are transforming the risk from a speculative investment,” he said. “investors can decide how much appetite they have for a crash and the yield they want.”

The development highlights how bitcoin’s months-long rally is luring new investors far from its roots in the tech community, day-traders and people of an ideological bent that sought an alternative to conventional currency. Last year, the chicago mercantile exchange started offering options contracts on bitcoin futures.

Hedge funders like alan howard are becoming involved in an asset class that was once too fringe for the mainstream, betting that crypto is a gold-like hedge against pandemic-driven loose fiscal and monetary policy debasing fiat currencies.

”the reason to own bitcoin is because things like this can always go up a lot more than they can go down,” QVR’s eifert said. “they’re quite unlikely to remain stable over any material period of time.”

— with assistance by donal griffin

Bitcoin broker license

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4 things you should ask A bitcoin broker

I asked an expert from a leading financial services company what he thought of bitcoin trading and here was his reply: "since a lot of bitcoin is used for illicit activity, I don't trust it."

While I can't verify the "illicit" part of that statement, I'm on the skeptical side of cryptocurrency trading and speculation. We're still in the wild west phase.

There's little question that we need to know more about cryptocurrencies. While I'm optimistic that the blockchain technology will disrupt financial services in a good way, a little regulation would help.

The russian finance ministry, for example, said it would regulate cryptocurrencies by the end of the year. The country, which doesn't exactly wear a cybersecurity halo, said there was "no point in prohibiting" cryptocurrency trading.

China, on the other hand, recently shut down initial coin offering operations.

Here's what reuters was reporting on the chinese action:

"bitcoin fell sharply on friday after chinese financial publication caixin reported that china was planning to shut down local crypto-currency exchanges, although analysts said this was just a temporary setback.

The news follows china's move earlier last week to ban so-called initial coin offerings, or the practice of creating and selling digital currencies or tokens to investors in order to finance start-up projects. Reuters was not immediately able to verify the report."

There are countless reasons to be cautious with cryptocurrencies. They are not transparent and uregulated. They are also incredibly volatile.

Here are some trading questions offered by forexlive:

-- do you hedge? We all want to make money on our investments, but with cryptos there's a lot of downside. You should be able to hedge your position to stem your losses.

"the reason hedging is important is it provides clarity on a broker's risk management policies. Due to volatility in bitcoins and other cryptos, brokers that are unhedged are more exposed to large losses caused by their client base."

-- can you trade on the weekend? Despite crypto exchanges being open, a broker and their market data providers may not want to be. Therefore, not every broker supports weekend trading.

As a result, if the bitcoin and ethereum market is moving during the weekend, traders may not be able to react if their broker is closed."

-- what will trades cost you? All brokers charge commissions and offer margin accounts.

"when trading cryptocurrencies, traders should keep in mind that they are priced more similarly to equities than forex. Therefore, in addition to wider spreads, many brokers also charge a commission on crypto trades.

This increases the overall cost of trading and shouldn't be overlooked. Therefore, leverage on bitcoins and similar products is often 10 times or lower. Depending on a trader's strategies and risk tolerance, margin rates could be an important factor of which broker they use."

-- does the broker offer short sales? This is a way of protecting yourself and making money when the price drops.

"does a broker offer short trades of their cryptocurrency products? Due to only a handful of hedging solutions for opening short trades, many brokers limit their crypto products to 'long' only.

As shorting is an important strategy, for many, trading with a broker that doesn't allow shorting cryptocurrencies is a non-starter.

This is especially the case with bitcoins and other cryptocurrencies that are viewed to be in a bubble and prone to sharp 10-15% intraday drops where shorting would be profitable."

I speak and write about innovation, investor protection, retirement, money management, history and social issues. My latest book is "lincolnomics." all told, I've written

I speak and write about innovation, investor protection, retirement, money management, history and social issues. My latest book is "lincolnomics." all told, I've written 19 books including "keynes's way to wealth" and "lightning strikes." I've also been a contributor to the new york times, the wall street journal and other global publications. I've appeared on CNN, FOX, NBC, MSNBC, NPR, PBS and radio stations from australia to israel. I've spoken across north america.

Best bitcoin brokers – learn 2 trade full 2021 guide!

Bitcoin brokers, looking to join the cryptocurrency revolution by buying some bitcoin of your own? If so, the easiest and most-effective way of doing this is through a bitcoin broker.

In a nutshell, the best bitcoin brokers allow you to quickly open an account, deposit funds with a debit or credit card – and then buy as much or as little bitcoin as you like.

With that said, there are hundreds of platforms active in the market, so knowing which broker to sign up with is no easy feat. As such, we would suggest reading our guide on the best bitcoin brokers.

Not only do we unravel our top 5 bitcoin broker picks of 2021, but we also explain why opting for bitcoin cfds is the safest, cheapest, and most convenient way of making an investment.

Table of content

Etoro - buy and invest in assets commissions-free

Buy over 800 stocks, cryptocurrencies, and etfs without paying any commissions

Trade thousands of cfds

Deposit funds with a debit/credit card, e-wallet, or bank account and paypal

Perfect for newbie traders

What are bitcoin brokers?

A bitcoin broker is simply an online trading platform that allows you to buy and sell cryptocurrencies. Much like a traditional online stockbroker, the process requires you to open an account, deposit funds, and then decide how much bitcoin you wish to buy. Brokers typically allow you to use everyday payment methods like a debit/credit card, bank account, or e-wallet, which makes the buying process super-easy.

In return, bitcoin brokers will charge you a fee. This can come in a range of shapes and sizes, so your costs will depend on the broker that you use. For example, while popular bitcoin brokers like coinbase charge fees to deposit funds and make a purchase – platforms like crypto rocket and etoro do not. As such, you need to understand the broker’s fee structure prior to taking the plunge.

With that being said – there are two types of bitcoin brokers active in the online space – so the one that you opt for will depend on your long-term investment goals. Crucially, this will either be a broker that requires you to store your bitcoin in a private wallet, or a broker that facilitates your investment via a regulated CFD.

Types of bitcoin brokers

It’s super-important for you to understand how your choice of broker can have a major say on the make-up of your bitcoin purchase, so we explain this in more detail in the sections below.

✔️ buying ‘actual’ bitcoin

Bitcoin is a decentralized currency – meaning that it is not controlled by any single person or authority. As such, those holding bitcoin in a private wallet are 100% responsible for keeping it safe. In other words, if your bitcoin wallet was hacked – or you transferred funds to an invalid address, your bitcoin would be lost forever.

Unlike a traditional investment, you would not be able to pick up the telephone and ask the broker to investigate the loss. On the contrary, this is the risk of buying ‘actual’ bitcoin, as you need to ensure that you keep it safe at all times.

Now, this isn’t necessarily an issuer per-say if you know how cryptocurrency wallets work. However, if you’re a complete newbie entering the bitcoin space for the first time, the thoughts of having to store your own coins is nothing short of petrifying – especially if large amounts of capital are involved.

Nevertheless, if you do want to own ‘actual’ bitcoin, the broker in question will facilitate your order via an everyday payment method. Once the coins have been purchased, you will then need to withdraw them to a private wallet. Some platforms allow you to store the coins within the broker’s ‘web wallet’ – albeit, this is extremely risky.

✔️ buying bitcoin cfds

So that leaves us with option 2 – buying bitcoin cfds. For those unaware, a CFD (contract-for-difference) is a financial instrument that allows you to invest in an asset without you taking ownership. Instead, you are simply speculating on whether the price of the asset will go up or down.

Not only does this include assets like bitcoin, but literally any financial instrument that is traded in the traditional markets. Think along the lines of gold, oil, stocks, indices, gas, wheat, and etfs. On the one hand, buying a bitcoin CFD will mean that you do not actually own the underlying asset.

However, does that really matter? Essentially, if you are looking to buy bitcoin because you think its value will increase in the future, then cfds can facilitate this. For example, if you buy a bitcoin CFD when it is valued at $6,000 – and sell it two years later at a price of $10,000 – you still make the very same profit that you would have done by owning ‘actual’ bitcoin’.

In fact, the benefits of using bitcoin brokers that specialize in cfds are four-fold – as we explain below.

1. Fees are much lower

One of the most popular bitcoin brokers in the online space is that of coinbase. The overarching reason for this is that the platform makes it super-easy to buy bitcoin with an everyday debit or credit card. However, coinbase charges handsomely for its services.

For example, you need to pay 3.99% to deposit with a debit/credit card, and then a further 1.5% every time you buy or sell bitcoin. These fees are huge in comparison to bitcoin brokers that specialize in cfds.

In fact, most of the bitcoin brokers that we recommend on this page not only allow you to deposit funds for free – but you can trade bitcoin without paying any commissions.

2. CFD brokers are heavily regulated

Much of the wider cryptocurrency broker space operates in an unregulated manner. This is mainly due to the fact that very few countries have yet to install crypto-specific legislation – meaning that platforms are able to trade without holding a license.

On the contrary, the CFD broker space is heavily regulated – which means that your funds remain safe at all times. For example, all of the top-rated bitcoin brokers listed on this page hold a tier-one regulatory license. This includes bodies such as the UK’s FCA, australia’s ASIC, or cyprus’s cysec.

3. Storage and selling is seamless

As we briefly noted earlier, buying ‘actual’ bitocin is a logistical nightmare. For example, you are required to withdraw the coins out of your chosen broker, and then keep them safe in a private wallet. When it comes to offloading your bitcoin investment, you then need to transfer the coins back into an online broker, and exchange them for cash. This is a highly cumbersome process that is fraught with risk.

With that said, by using a bitcoin broker that specializes in cfds, you do not need to worry about storage at all. This is because cfds merely track the underlying asset – meaning the financial instrument does not exist. As such, there is no fear of your bitcoin being lost or stolen!

Furthermore, this also makes it a breeze when it comes to cashing your investment out. As your bitcoin is stored at the broker via a CFD instrument, you simply need to place a sell order to exit your trade. As soon as you do, you can then withdraw the funds back to your debit/credit card, bank account, or e-wallet.

4. Ability to apply leverage and short-sell

Unlike a conventional bitcoin broker, those offering cryptocurrencies in the form of cfds allow you to apply leverage. For those unaware, this means that you will have the option of trading more than you have in your account.

In the UK, for example, investors are able to apply leverage of up to 2x when trading bitcoin, meaning that a £500 investment would allow you to buy £1,000 worth. In other regions, you can trade well up to 100x – meaning a £500 balance would allow you to trade with £50,000!

Similarly, CFD brokers hosting cryptocurrencies also allow you to short-sell bitcoin. This means that you can make gains in the event bitcoin goes down in value.

Payments at bitcoin brokers

So now that you know the two types of bitcoin brokers currently active in the market, we are now going to discuss payments. After all, you will be buying bitcoin with real-world money – so you need to think about how you intend getting funds in and out of the broker.

Payment methods

Most bitcoin brokers allow you to deposit and withdraw funds with a range of payment methods. This might include:

Debit cards

Credit cards

Local bank transfer

International bank wire

Paypal

Skrill

Neteller

Western union

It’s best to check whether or not your preferred payment method is supported prior to opening an account with the broker.

Deposit/withdrawl fees

In some cases, bitcoin brokers will charge you a fee to deposit and/or withdraw funds. As we discussed earlier, the likes of coinbase charge a whopping 3.99% on debit/credit card deposits.

This means that a £1,000 deposit would cost you £39.99 in fees. At the other end of the spectrum, the likes of etoro charge nothing on deposits, and a mere $5 on withdrawals.

Bitcoin broker fees

Bitcoin brokers are in the business of making money, so you need to have a firm grasp of the platform’s fee structure. This can include:

Trading commissions

This is a commission charged by the broker every time you place a trade. This includes a fee when you buy bitcoin, as well as when you sell it. If a trading commission is charged, then you will pay a percentage of the amount you wish to buy.

For example, let’s say that the broker charges a fee of 1.5%, and you wish to buy £2,000 worth of bitcoin. This would translate to an initial fee of £30. However, when it comes to selling your bitcoin you will also need to pay a commission.

For example, let’s say that your £2,000 bitcoin investment is now worth £3,000. This means that you will pay 1.5% on the current market value of £3,000 – which equates to £45. As noted earlier, most of the bitcoin brokers that we recommend on this page charge no trading commissions at all.

Spreads

All bitcoin brokers will charge a spread. Much like the traditional investment space, this is the difference between the ‘buy’ and ‘sell’ price of the asset.

For example, let’s say that bitcoin has a ‘buy’ price of $6,000, and a ‘sell’ price of $6,060. By calculating the difference between the two prices, we get a spread of 1%. This means that you need your bitcoin investment to increase by at least 1% just to break even.

There is often a trade-off between the spreads and commissions charged by bitcoin brokers, so you need to check this before signing up. For example, while a broker might not charge any commissions, you might find that its spreads are somewhat uncompetitive.

How do bitcoin brokers work?

Still confused how the investment process works at a bitcoin broker? If so, you’ll find a simple step-by-step guide outlined below. This unravels the end-to-end process of opening an account, depositing funds, buying bitcoin, and crucially – cashing out your investment.

Step 1: find a bitcoin broker

To get the ball rolling, you’ll need to find a bitcoin broker that meets your needs. If you like the sound of investing in bitcoin via cfds, you’ll find our top-five picks listed towards the bottom of this page.

If you want to own ‘actual’ bitcoin, it might be worth using etoro. This is because the platform is regulated, it accepts heaps of payment methods, and ultimately – you don’t need to withdraw your coins out.

Etoro - buy and invest in assets commissions-free

Bitcoin brokers

Finding a bitcoin broker is definitely something every bitcoin trader needs to consider in order to actively engage with the cryptocurrency market. However, it’s challenging to identify the best bitcoin brokers because there’s just too many of them.

There are a few things you’d have to look out for when reading bitcoin brokers reviews. These include:

Location – you need to be very well aware of the current legislation of your country on the matter of cryptocurrency. Even if you’ve found the best bitcoin broker in terms of sheer functionality, if it doesn’t operate in your particular region there’s no use of it.

Trading fees – given that this is likely to be your main expense when trading, fees are particularly important to consider. Upon examining a bitcoin trading platform, be it a bitcoin exchange, you need to make sure that their trading fees are aligned with the industry’s average.

Volume – looking at the order book volumes is also something that you might want to keep in mind. Regardless of whether you want to buy or to sell bitcoin, you have to guarantee that there is enough liquidity on the bitcoin trading site that you’ll be able to execute your positions.

Deposit and withdrawal conditions – one of the main things that you should keep an eye out for is the limitation in terms of deposit and withdrawal. You have to know how much mone yyou’re able to put in or withdraw from the platform in order to tailor a strategy.

We at newsbtc provide insights on some of the best bitcoin brokers in order to facilitate our readers in making a rather tough choice.

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Popular crypto brokers

Crypto investing has become very popular recently, especially since many brokers are listing bitcoin, litecoin, dash and ripple as available assets.

Although every broker you find, will give you the opportunity to trade bitcoin contracts, many brokers have ridiculously wide spreads. A recent comparison of brokers, found spreads ranging as wide as $150, to as narrow as $10, with the price of a BTCUSD at $16,240.

Reminder: only invest with a licensed and regulated broker!

How to compare bitcoin brokers

Here is a quick checklist of items to compare between bitcoin brokers.

Verify the bitcoin broker is licensed and regulated.

Signup for their free demo account.

Check minimum trade size

Check minimum deposit requirement.

See how tight the spread is on bitcoin.

Regulated crypto brokers

Pepperstone is the best CFD broker for trading crypto, because they have the tightest spreads!

They are a popular globally licensed and regulated broker, offering a choice of trading apps, see here.

Start with a free demo account, signup here.

Plus500 is a very popular CFD broker, that is licensed in multiple countries, look here.

Offering tight spreads on bitcoin and crypto currency trading, plus their unique trading platform, makes plus500 a popular choice.

Try a free demo account at: plus500.Com.
Disclaimer: crypto trading availability is subject to regulations. 76.4% of retail CFD accounts lose money.

If your broker is not regulated… you will be scammed!

How to avoid crypto scams

There are two types of scams that are now very common with crypto currency investors.

The first one being “trading robots” which are suppose to make you a lot of money by automatically trading on your behalf. You should read about real trading software, see here.

The second are the brokers who are not licensed or regulated. Every financial company must be licensed by the government. Popular brokers are licensed in australia by ASIC or in cyprus by cysec. The FCA in the united kingdom recently banned brokers from offering CFD’s on crypto currency to U.K. Residents.

If you go with a broker who promises to make you rich, and they are not licensed, you can read the complaints page now, so you understand what you will be dealing with.

So, let's see, what we have: how to buy bitcoin in the UK ✔️ UK regulated platforms ✔️low spreads ✔️high leverage ✔️advanced trading tools ✔️paypal, credit and debit card at bitcoin broker license