Bitcoin Trading UK How To Trade Bitcoin in the UK
The Bitcoin revolution has hit the UK, becoming a topical discussion amongst veteran traders and inspiring many others to join the trading world. Luckily, UK regulations allow for the exchange of Bitcoin, so we are here to get you set-up.
This Bitcoin Trading UK review aims to give you a greater insight into trading the #1 cryptocurrency, the legitimacy of the coin and how to buy your first Bitcoin. We also discuss four cryptocurrency trading strategies you can use within the market and how our Zeply platform can accommodate all of this.
What Is Bitcoin? A Brief Introduction
Bitcoin is a digital asset that can be traded peer-to-peer with no central point of control. Bitcoin is the #1 cryptocurrency in the market currently and has a 24-hour trading volume of over £54,931,881,540.
Launched back in 2009, UK Bitcoin traders have seen this coin go from strength to strength, battling through scare-mongering and negative publicity. 2021 has seen Bitcoin reach an all-time high, investment from Elon Musk and UK Bitcoin Trading platforms explode onto the market.
With such positive growth, interest from Banking associations and bigger corporations will soon follow. The security and privacy of Bitcoin are enticing for those working in the financial sector, removing the intermediaries and extra third-party costs. In the UK, Bitcoin is not classed as legal tender. However, it is home to over 250 Bitcoin ATMs, the most in Europe, proving that the acceptance of Bitcoin as a form of payment is already here. The FCA regulates all cryptocurrency providers and measures have been put in place to maintain the integrity of the UK financial system, meaning all financial institutes must now adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance rules.
Could Bitcoin replace the GBP? In theory, yes, but it will take several changes for this to be a possibility (Not just the economic and regulatory side of things, but also the transactional side of Bitcoin). Currently, it takes 10-minutes to process a Bitcoin transaction. To become a recognised and well-used form of payment, Bitcoin would need to reduce this to become instant, like VISA.
We at Zeply provide an innovative platform that enables just this; the instantaneous execution of any GBP or BTC transaction, and, unlike other platforms, we have no exchange fees.
Is Bitcoin A Scam? Things To Keep In Mind When Bitcoin Trading UK
Without fully understanding Bitcoin’s real-world use or reading through the Bitcoin whitepaper, it is easy to get wrapped up in some of its negative press.
In the beginning, scare-mongering from larger financial corporations was enough to suppress its growth within the UK. However, with large companies such as Tesla, and even some UK banking associations supporting Bitcoin, it would be safe to suggest that Bitcoin is around for the long-haul. We at Zeply have created an exchange that will help Bitcoin become a standard form of payment.
Although Bitcoin itself may not be a scam, there are Bitcoin scammers out there. Waiting for users to slip up, send email addresses, Bitcoin private keys, or leave account passwords vulnerable and easy to crack. At Zeply, we keep hold of your private keys, ensuring they are never lost, stolen or compromised.
As with any type of trading, there are risks involved. The Bitcoin trading world’s volatility is one key reason many UK investors viewed Bitcoin as a scam. The movement was simply too erratic and did not adhere to traditional market analysis. At Zeply, we are transparent with our customers, explaining the real risk involved with Bitcoin trading and for our users to only trade what they can afford.
Our users’ security is a key priority, and one of the many reasons we recommend they add two-factor authentication to their account. This extra layer of protection ensures no transactions can be made through your wallet without your permission.
Bitcoin Trading Strategies For UK Investors
Before you start trading Bitcoin in the UK, it is worth taking time to consider how you are going to be successful, what limitations you may have and what style of trader you are going to become. Will you trade full-time? As a second income? Or, just for fun?
Below, in our Bitcoin Trading UK Review, we look at four different trading styles, highlighting the pros and cons of each.
If you have been researching how to trade Bitcoin in the UK, we are confident you will have stumbled across the phrase “holding on for dear life” (HODL). HODLer’s tend to be long-term investors who will buy Bitcoin and hold onto it, regardless of its volatility, as they believe it is a worthy investment.
Most HODLer’s will keep their Bitcoin in cold storage, an offline device that is hack-resistant and incredibly secure. We at Zeply aim to add our own spin to cold storage, keeping your funds separate in a bank account whilst allowing you to still trade GBP to Bitcoin instantaneously. Our KYC process also ensures the risk of fraud, terrorism and money laundering is kept to an absolute minimum.
Hedging is a slightly trickier one to explain. In its simplest form, a hedge is made to reduce the risk of loss by opening an opposing position. A basic example would be opening separate buy and sell orders on GBP:BTC whilst the price of Bitcoin is depreciating, in the hope that the price will not continue in a downward trend. However, if it does continue, you can still capitalise on some profit before closing the position. Although hedging can appear as a “sure thing”, there are plenty of risks involved and, depending on which way you look at hedging, a successful hedge only prevents a loss.
We like to keep it honest at Zeply and believe hedging is done when you do not fully believe in an asset. We believe in Bitcoin, and we plan to help bring Bitcoin into the real world as a standard form of payment. Our innovative platform allows for the instant transfer of GBP to BTC, removing the usual 10-minute waiting time.
This trading style will appeal to those of you who are looking to trade full-time, although it can be utilised in small stints as a hobby also. Scalping relies on making short, quick trades, and you must understand that this is not about how large your profit, but how many successful trades there are in one interval.
If you are looking to trade Bitcoin in the UK, it is also worth noting that this trading style is most effective during calmer periods of market movement. With the sheer volatility of the Bitcoin market currently, we would advise against scalping for now.
As we previously mentioned, our Zeply platform is ideal for a range of trading styles, and scalping is no different (when market movement is calmer). You can instantly transfer between GBP and BTC, allowing for fast, secure and reliable trades with no fees – the price you see is what you will receive.
To be a successful trend trader, you will need to have an unparalleled knowledge of trading Bitcoin in the UK. This involves understanding the use case of Bitcoin, the roadmap, who has invested, who plans to invest, follow any media coverage, etc. Researching is a full-time job in itself but will be critical in your trading journey. This style of trading relies heavily on the GBP:USD chart analysis and following the general momentum.
When you sign up to our Zeply platform, not only are you offered a one-of-a-kind exchange with its own secure wallet, you are also provided lots of learning material. Our “News” tab offers material covering all things Bitcoin, including “What is Bitcoin”, “why Bitcoin is here to stay”, and “Spending Bitcoin in the Real World”.
Hopefully, the above breakdown has given you a better insight into the different approaches to trading you can take. Regardless of style, you will need to ensure you have a secure wallet to store your funds when you trade Bitcoin. We go into more detail on how best to keep your Bitcoin here.
The Difference Between An Exchange And A Wallet
A Bitcoin exchange is a platform that allows for the conversion of GBP into digital currency, such as Bitcoin. With some exchanges, you then have the opportunity to trade your chosen currencies in the market or hold your asset as an investment. You can find out more about Bitcoin and crypto trading platforms in our “Crypto exchange review”, where we dive deeper into the intricacies of selecting the right exchange for you.
On the other hand, a wallet is a software program that allows you to store your Bitcoin. These wallets contain private and public keys that will enable you to send and receive Bitcoin through the blockchain. Bitcoin wallets are generally categorised into hot and cold storage. Hot storage refers to a wallet that is kept online, providing a more accessible way to access your funds. Cold storage refers to keeping your Bitcoin wallet completely offline. This wallet appeals mainly to long-term investors or those who have a substantial amount of Bitcoin as it is inaccessible by hackers.
Some exchanges, like Zeply, offer both an exchange and a wallet. Another bonus of our Zeply platform is that we also offer instant transactions, plus any deposits, withdrawals, exchanges or purchases you look to make will be free of charge.
Buying Your First Bitcoin With Us
Once your Zeply account has been verified, card accepted, or Bitcoin address set up, you are now ready to start trading Bitcoin in the UK!
Head to your dashboard (where you will find all exchange related tasks) and, if you are looking to buy some Bitcoin, select “buy”. This then reveals a drop-down and a chance for you to choose your payment method. Once you have selected your method, input the total value in GBP, and select “buy”. You are now the proud owner of some Bitcoin, and your total will be visible in your wallet.
Hopefully, you have chosen your Bitcoin trading strategy by now and, with Bitcoin in your wallet, you can get ready to re-analyse the market for your next opportunity or hold on for dear life!
Conclusion - Speedy and reliable Bitcoin Trading in the UK
As we come to the end of our Bitcoin Trading review UK, we want to cement some of the key takeaways for you. First, distinguish your trading style, be realistic with the amount of time you can research and be “live” trading within the market. Next, your asset security is your main priority. Do not share any of your account details (unless we can prove we are a representative of Zeply), only trade what you can afford to lose and be sure to set up two-factor authentication to ensure only you can exchange your GBP or BTC.
Our platform appeals to all trading styles, whether you want to learn cryptocurrency trading for beginners, or you are already a veteran, HODLer or scalper, and we pride ourselves on offering the most secure platform to trade off. Our exchange is inked directly to your wallet, so you never have to worry about withdrawal or deposit fees or about when your Bitcoin will arrive.
Dedicated Customer Service agents are on standby should you encounter any problems whilst trading Bitcoin, and our handy self-help “Support” pages are accessible if your query is less urgent. Build-up your knowledge of Bitcoin with our easily digestible blog, uncovering some fascinating features of the blockchain technology along the way.
We hope this review has filled you with enough confidence to trade Bitcoin in the UK, and we wish you a successful time doing so.
Bitcoin Trading UK FAQ
To begin buying, sending or exchanging Bitcoin with Zeply, you must fill out our simple registration form, have your identification verified and your card details authorised. Once you have followed these steps, you can head to your dashboard and begin the Bitcoin trading process.
Our web-based platform is accessible by desktop, laptop and mobile device allowing for instant access to your Bitcoin. We at Zeply, appeal to all trading styles, whether you are a beginner, veteran, HODLer or scalper, and pride ourselves on offering the most secure platform to trade off of.
Although Bitcoin is not classed as legal tender, the UK is home to over 250 ATM’s proving the steady acceptance of the cryptocurrency. Bitcoin exchanges are regulated by the FCA and adheres strictly to the Know Your Customer (KYC), Anti Money Laundering (AML) and Counter Terrorist Financing (CFT) compliance rules.