Summary
Cryptocurrency is legal and regulated in the UK. The Financial Conduct Authority (FCA) oversees crypto activities. Popular payment methods include bank transfers and credit cards. The British Pound (GBP) is widely supported. Key regulations include the Money Laundering Regulations and the Financial Services and Markets Act. Here are the best crypto exchanges for UK residents:
Best Crypto Exchanges in UK
When seeking the best crypto exchanges in the UK, it’s crucial to consider factors such as regulatory compliance, supported cryptocurrencies, fee structures, and available payment methods. UK residents benefit from a range of exchanges that cater to the local market, offering GBP pairs and popular deposit options like Faster Payments and bank transfers.
The following table provides a comprehensive overview of the top crypto exchanges available to UK traders:
1. BloFin
Users:
2m
Free Demo:
Mobile App:
Bonus:
$5,000
Cryptos:
400+
Leverage:
150x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.06%
Pros
- Excellent for trading
- Very beginner friendly
- No KYC required
- 24/7 customer support
- Up to 150x leverage and deep liquidity
Cons
- Not good for passive income products
- Relatively new spot feature
Overview
Founded in 2019, Blofin is a no-KYC exchange where users can trade perpetual futures. With a recently added spot trading feature, as well as Copy trading for customers to enjoy, Blofin has earned a spot as a top contender in the crypto industry.
Blofin users can access 300+ trading pairs with leverage of up to 150x on the futures market. The exchange has a daily trading volume of $12.6 billion for futures trading, making Blofin one of the most active derivatives exchanges. The platform has integrated a user-friendly trading interface for both beginners and expert traders to navigate.
Blofin trading fees are set according to industry standards. For spot trading, a fee of 0.1% is incurred for both maker and taker, while for futures, the maker and taker fee is 0.02% and 0.06%.
What we love about Blofin is its generous VIP fee schedule, which allows traders to reduce their fees based on their 30-day trading volume.
2. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
300x
Spot Fees:
0.05%
Futures Fees:
0.01%/0.04%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 300x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 300x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
3. Bitget
Users:
23m
Free Demo:
Mobile App:
Bonus
$6,200
Cryptos:
840+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.06%
Pros
- Over 800 cryptos
- Fair trading fees
- Great for EUR SEPA transfers
- 24/7 customer support
- Very beginner friendly
Cons
- Not available in the US
- No TWAP order supported
- Mandatory KYC for new accounts
Overview
Bitget is a true powerhouse for crypto traders from over 100 supported countries. What makes Bitget special is its beginner-friendly trading platform, which has over 800 supported cryptocurrencies. With so many supported cryptocurrencies, if you are looking to trade altcoins, Bitget might be one of your best shots.
With fiat support for 6 currencies, including EUR and RUB, Bitget is a top choice, especially for European users looking to deposit and withdraw funds in their native currency with ease. The 0% fee for SEPA transactions makes Bitget stand out. Credit card payments are also supported.
Experienced crypto traders can trade futures contracts on Bitget with 125x leverage on selected assets such as Bitcoin or Ethereum.
The spot trading fees start at 0.1% for makers and takers, which is very common in the industry. For futures traders seeking leverage for their day trading activities, Bitget charges very low fees of 0.02% maker and 0.06% taker.
4. Coinbase
Users:
100m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
250+
Leverage:
5x
Spot Fees:
0.4%/0.6%
Futures Fees:
0.02%/0.05%
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed
- Great customer support
- Reputable with over 100 million users
- Comprehensive fiat deposit methods
- Great wallet for on-chain access
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
Coinbase Overview
Coinbase is one of the largest and most well-known cryptocurrency exchanges for buying cryptos.The platform currently has a user community of over 100 million users worldwide. What makes Coinbase special is its user-friendly interface. The platform is designed to be easy to use, making it accessible for beginners. Coinbase offers a clean and intuitive interface for buying, selling, and managing cryptocurrencies.
Crypto traders have access to over 250 cryptos for active trading. One downside of Coinbase is the fee structure. When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee of 0.60%, which is very expensive.
Another thing about Coinbase is that it offers a wide range of crypto services. These include wallets, NFT, crypto staking, Coinbase cards, and many more to help improve the overall trading experience on the platform. One of our favorite features is the Coinbase wallet.
It is suitable for beginners but also offers advanced trading tools including real-time charts, technical indicators, and many more for advanced traders.
5. KuCoin
Users:
30m
Free Demo:
Mobile App:
Bonus
$10,500
Cryptos:
800+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.06%
Pros
- Beginner friendly
- 800+ supported crypto assets
- 125x leverage and deep liquidity
- 20+ fiat currencies
- Great 24/7 customer support
Cons
- Lacks advanced features
- Not the best liquidity
- Regulatory issues in the US
- Variable spot fees
Overview
Kucoin focuses on offering the best spot trading experience. With over 800 supported cryptos on the spot market, Kucoin is one of the most versatile crypto exchanges when it comes to supported assets. You can trade popular cryptos such as Bitcoin or Ethereum but also less-known cryptos and even meme coins. If you are on the hunt for new and shiny coins that are not popular yet, Kucoin might be your best shop.
Spot fees on Kucoin are relatively average, ranging from 0.1% to 0.32% based on the liquidity of the asset. Futures trading on Kucoin starts at a maker fee of 0.02% and a taker fee of 0.06%.
Kucoin has integrated and ready-to-use crypto grid trading bots to automate your income. You can set up grid bots based on several parameters to trade for you 24/7.
Is Crypto Legal and Regulated in UK?
Cryptocurrency is legal in the UK, but it operates within a regulated framework. The Financial Conduct Authority (FCA) is the primary regulatory body overseeing crypto activities. As of January 10, 2020, the FCA has been the anti-money laundering and counter-terrorist financing supervisor for crypto asset businesses in the UK.
The UK government has implemented the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, which requires crypto exchanges and custodian wallet providers to register with the FCA. This regulation aims to prevent illicit activities and enhance consumer protection.
Additionally, the Financial Services and Markets Act 2000 provides the legal framework for financial regulations in the UK, including some aspects of cryptocurrency trading. While cryptocurrencies themselves are not considered financial instruments, certain crypto-related activities, such as derivatives trading, fall under FCA regulation.
Is Crypto taxable in UK?
Yes, cryptocurrency is taxable in the UK. HM Revenue and Customs (HMRC) has issued guidance on the taxation of cryptocurrencies. The tax treatment depends on the nature and use of the crypto assets.
For individuals, crypto gains are subject to Capital Gains Tax (CGT). The CGT rate for basic rate taxpayers is 10%, while higher and additional rate taxpayers pay 20%. There’s an annual tax-free allowance of £12,300 (as of 2023/2024 tax year). For businesses, profits from cryptocurrency transactions are subject to Corporation Tax.
Mining and staking rewards are typically treated as income and taxed accordingly. The specific tax rate depends on the individual’s income tax band. It’s worth noting that crypto-to-crypto transactions are also considered taxable events.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in the UK.
How to Buy Crypto in UK
Buying cryptocurrency in the UK has become increasingly accessible. This guide will walk you through the process, focusing on using BloFin, our top recommended exchange for UK residents. Whether you’re interested in Bitcoin, Ethereum, or other altcoins, the process remains similar across most platforms.
- Select a Crypto Exchange: Choose a reputable exchange that supports GBP deposits and withdrawals. Ensure the platform complies with FCA regulations and offers suitable payment methods. BloFin meets these criteria and provides a user-friendly interface for UK traders.
- Sign Up and Verify Identity: Create an account on the chosen exchange. You’ll need to provide personal information and complete the Know Your Customer (KYC) process. This typically involves submitting proof of identity (passport or driving license) and proof of address (utility bill or bank statement).
- Deposit Funds: Once verified, fund your account using GBP. Popular payment methods in the UK include:
- Bank transfer (Faster Payments)
- Credit or debit card
- PayPal (on some exchanges)
Bank transfers are often the most cost-effective option, while card payments offer quicker processing times.
- Select Cryptocurrency: Choose the cryptocurrency you wish to purchase. Popular options include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT) for stablecoin options
- Various altcoins depending on your investment strategy
- Execute Trade: Enter the amount of GBP you want to spend or the amount of cryptocurrency you want to buy. Review the transaction details, including any fees, and confirm the purchase.
- Store Funds Securely: After making your purchase, think about moving your cryptocurrency to a secure wallet. Although it’s convenient to keep small amounts on the exchange for trading, it’s advisable to store larger holdings in personal wallets to improve security.
By adhering to these steps, residents of the UK can enter the cryptocurrency market safely and efficiently. Always stay updated on market trends and invest responsibly.
Best Crypto Wallets in UK
Selecting the right crypto wallet is crucial for UK investors to ensure the security of their digital assets. There are several types of wallets available, each offering different levels of security and convenience.
Hardware wallets provide the highest level of security for long-term storage. Two popular options are:
- Ledger: Offers devices like the Nano X and Nano S Plus, supporting a wide range of cryptocurrencies.
- Trezor: Known for its Model T and Model One wallets, providing robust security features.
For those preferring software wallets, which offer a balance between security and accessibility, consider:
- Trust Wallet: A mobile wallet supporting multiple blockchains and DApp interactions.
- Exodus: A desktop and mobile wallet with an intuitive interface and built-in exchange features.
- MetaMask: Primarily for Ethereum and ERC-20 tokens, it’s essential for interacting with decentralized applications (DApps).
UK users should consider factors such as supported cryptocurrencies, security features, and ease of use when choosing a wallet. It’s also advisable to use a combination of hot (online) and cold (offline) storage solutions to optimize both security and accessibility of your crypto assets.
Bottom Line
For UK crypto enthusiasts, selecting the right exchange is crucial. Among the best crypto exchanges in UK, BloFin stands out for its robust security, competitive fees, and user-friendly interface. MEXC follows closely, offering a vast selection of cryptocurrencies. Both platforms provide excellent options for UK traders, ensuring compliance with local regulations while delivering top-tier trading experiences. Always conduct thorough research and consider your individual trading needs when choosing an exchange.
