How To Buy Bitcoin In The UK
Interested in purchasing bitcoins and getting down to trade them? What better time to start than now? “But has their heyday come and gone?” you ask yourself. Not by a long shot!
Cryptocurrencies have been taking over the financial market in the past couple of years, with Bitcoin in the lead. If you want to capitalize on their speculative price, first you need to buy them off a crypto exchange. Nowadays, you have plenty of choices, from brokerages, regular trading platforms, fiat to crypto exchanges or crypto to crypto ones with a colourful palette of altcoins. Buying and selling cryptos, or sending them to a friend has never been easier.
To make things easier for you, we suggest using CEX.io, a London-based platform launched in 2013 that has everything a full-fledged crypto exchange should have.
Where to Buy Bitcoin?
Here are some of the reasons why we think CEX.io should be your choice.
First of all, the platform supports a decent variety of cryptocurrencies. Their list includes Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ripple, Litecoin, Tron, Stellar, Dash, BitTorrent, MetaHash, and ZCash. CEX.io belongs to the first group of exchanges that we mentioned, the fiat to crypto ones, which means that it’s perfect for beginners who can fund their account using British Pounds.
The exchange allows users to link their bank accounts and pay via bank transfer or credit and debit cards. The only disadvantage is that they include a 7% service fee to the coin market price. CEX.io takes great care of its customers’ funds and employs high-tech security measures to prevent unauthorized transactions and thefts. The platform is registered with the Financial Conduct Authority (FCA) in the UK, further proof of CEX.io’s maturity and reliability.
For the more adventurous among you, the exchange doesn’t come short of advanced trading tools and options such as cross-platform and margin trading with up to 10x leverage!
What is Bitcoin?
Bitcoin is the first international digital currency, exchanged on a peer to peer blockchain-based network. It was first released for public mining in 2009, after its creator, the pseudonymous Satoshi Nakamoto mined the first block known as “the Genesis Block”.
What Is the History of Bitcoin?
Computer scientists, software engineers, and crypto enthusiasts around the world received Bitcoin and Nakamoto’s electronic payment system with open arms. Finally, someone managed to create an alternative that would counter the traditional financial system that was starting to be seen as outdated and inherently flawed.
What bothered them the most was the increased centralization of the financial industry. For instance, to send an online payment to a relative, one would have to complete the transaction with the help of his/her bank that acts as an intermediary. This adds an extra service fee to the remittance. What if the relative mentioned lives abroad? International transfers take up to several days as more than one financial institution is involved. These wait times seem ridiculous compared to the recent technological advancements.
Therefore, Nakamoto created a decentralized peer to peer network that relies on cryptographic proof and makes trust in central authorities redundant. This is made possible thanks to the new kind of technology called blockchain technology where these transactions get permanently stored, once they’ve been verified by the “miners”. These users generate a large amount of computing power on special mining hardware and perform a proof of work mechanism.
Why Was Bitcoin Created?
Alright. So we got Nakamoto to thank for saving some extra time and money when making online payments. But is there something else behind Bitcoin’s philosophy?
Yes! Privacy was held as one of the main values propagated by the crypto community even from the early pre-Bitcoin days. Thinking about all the information that you’re required to disclose to banks and other government institutions for the most basic of services can make anyone feel a little anxious and paranoid.
With Bitcoin, you don’t have to share your identity to be able to send money or exchange them for other currencies. Each trader gets an encrypted address, a public key, and a private key, and none of them state his/her name. So, even though the Bitcoin blockchain lists all the confirmed and unconfirmed transactions online in order to be transparent, they don’t disclose users’ real names.
Another reason why Bitcoin transactions have the upper hand compared to regular ones is that people feel they’re more secure. What protects them from existing threats, hacking attacks, and malware is the immutable nature of the blockchain. The technology doesn’t allow any tampering with the existing data. If anyone was to try, that person would have to generate an impossible amount of computing power to outperform the whole network.
Who Is Bitcoin For?
Choosing to invest in Bitcoin or trade it for other coins doesn’t require you to be an expert in the field. At the start, we gave you the basic instructions on how to set an account with a crypto exchange and purchase your first coins. You’ll store them in an electronic wallet and use them at your convenience. Nowadays, there are many pubs and restaurants across the UK that are progressive enough to accept bitcoins along with cash and cards.
Bitcoin was made for people who want to make long-term investments or businesses that very often have to send large amounts of money internationally. At the same time, it’s also for those who only like to speculate on its price and make small gains, or in other words, retail traders who don’t do this for a living.
Whatever category you belong to, the important thing is to sit down and think about your investment strategy with a clear head, while carefully considering all your options. Set yourself some trading limits to start with to avoid common blunders and beginner mistakes.
There’s yet another group of Bitcoin users and that’s the so-called “miners”. These are the users who decide to mine bitcoins themselves by solving a complex algorithmic problem. For this purpose, they need to generate an enormous amount of electricity. In the case of Bitcoin, this is done using ASIC miners that cost a lot of money, so not everyone can afford it.
What Are Bitcoin’s Pros and Cons
Bitcoin’s advantages are numerous. First of all, for the eleven years of its existence, its price has been continually going up. Despite the occasional slips and tumbles, Bitcoin has managed to rise back from its ashes times and times again. Starting at $0.003 in May 2010 it went up to an incredible $19,000 at the end of 2017! Unfortunately, it slid down to $6,200 in February the following year but has been in steady ever since.
If you want to stay under the radar because you value your financial privacy above all, Bitcoin is the perfect choice for you. Unless you give your encrypted address away, no one will be able to decipher your transaction. However, this “anonymity” comes at some cost too. A few years ago, a lot of people went so far as to abuse Bitcoin’s nature, using it to purchase all sorts of illegal goods.
How Has Bitcoin Inspired Other Cryptocurrencies?
Bitcoin has propelled a couple of thousands of cryptocurrencies into existence. Some of them have been created as potential stores of value, others as a digitalized form of money that might substitute government-issued currencies, or central bank currencies that should improve payments on a global level. There have been also those like Ethereum, or NEO more recently, that are seen less as tradeable assets and more as utility assets that keep the respective networks running and fuel the apps of the new “smart economy”.