How to Trade Cryptocurrency UK

How to Trade Cryptocurrency in the United Kingdom and in the EU?

Are you wondering how to start investing in crypto? First, in order to understand how to trade cryptocurrencies, we first need to understand what cryptocurrencies are.

The cryptocurrency Bitcoin was created as a protest against governments having more and more influence over its citizen’s lives. It was a solution to the privacy problems that many can experience today online, and at the same time, it filled a need for a modern method of payment.

Cryptocurrency Trading for Beginners

Make use of our resources that are written for beginners and advanced day traders. Below, you will find all you need to get started with your cryptocurrency trading.

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Find the best trading platform. You capital is at risk when trading. Be careful.

We want to clarify that cryptocurrency is also called digital currency because of its digital nature. They do not actually exist in physical form, or even in an electronic form, as with the more common currencies. They are completely unique, and there are big changes underway which you can read more about below. The idea behind the first crypto exchange was to create an anonymous payment method that could be used online, and that was not tied to a country or a regulatory authority.

Day Trading Cryptocurrency

Day Trading Crypto? easy. Most of the leading brokers now offer investment opportunities in Bitcoin and other types of cryptocurrencies. This could be CFDs, pure currency trading or even stock trading on companies that operate Bitcoin-related activities. Some brokers have also begun to accept Bitcoin as a means of payment.

There are also online casinos that accept Bitcoin as payment. This is especially common in the United States where Bitcoins operate in the grey area between legal and regulated payments for betting and online casinos.

How to Day Trade Cryptocurrency

Whatever particular type of investment you want to focus on, we promise that there is something that will suit you. In order to help you find the right service, we have recommended the best cryptocurrency brokers.

On that page, we discuss what is required of a cryptocurrency broker, what the brokers offer, and why we have recommended each service. Consider it your go-to solution for anything regarding cryptocurrency brokerages.

Best Cryptocurrency Exchange

As mentioned, there are a couple of ways that you can trade cryptocurrencies and the above-mentioned brokers are only one way. The “traditional” way of trading cryptocurrencies is on a platform called a cryptocurrency exchange. You have probably heard of exchanges such as Binance and Hodly before, but there are many more.

The problem with the cryptocurrency industry right now is that there are so many cryptocurrency exchanges that it can be hard to figure out which one is the best. Because of that, we decided to evaluate all of them and figure out a top list of the best cryptocurrency exchanges.

In addition to listing the top 5 best exchanges, we also discuss why they are the best, what services they offer, which cryptocurrencies you can trade, etc.

Best Crypto Trading Platform and Software

By now, you’ve probably realized that there are many ways that one can trade cryptocurrencies but maybe you’re not sure of whether you want to use a broker or an exchange. Or maybe you want to learn more about the different cryptocurrency software that is currently on offer.

In an attempt to answer those questions and provide a better idea of how most people trade cryptocurrencies, we have listed the best cryptocurrency trading platforms and software. In that particular guide, you’ll find a range of cryptocurrency brokers and exchanges as well as detailed descriptions about their platforms and tools. It’s a very useful guide that we suggest all cryptocurrency traders spend the time to read through.

e-Wallets For Cryptocurrencies

e-Wallets are the current tools used to buy and sell cryptocurrency. The most common e-Wallet used today, as you probably know, is PayPal. PayPal can certainly not be used for trading in cryptocurrencies, only common currency, but the principle is exactly the same.

How these online payment services offer cryptocurrency will differ slightly. Some sell cryptocurrencies and let you store them on their servers. Some do not sell cryptocurrencies but allow you to use their servers for storage. Others sell and buy cryptocurrencies but will not let you store them at all.

What you choose to use is up to you, but we clearly feel that the most practical option is the e-Wallet. It offers an all-in-one solution for the purchase, sales, and storage of your cryptocurrency.

  • Coinbase is the worlds most popular choice for everything concerning the sale and storage of bitcoin, Ethereum, and Litecoin. We ourselves have been using Coinbase and would recommend them to anyone. They are extremely professional and all of their services work flawlessly. If you want to buy cryptocurrency today, then Coinbase is your best option.
  • BitcoinWallet is one of the oldest options on the market and one of the easiest methods to buy, sell and store bitcoin cryptocurrency. It is a popular choice that is preferred by many.
  • is one of the largest payment services, with over 15 million active wallets and several hundred million transactions. We will let those numbers speak for themselves. Blockchain is undoubtedly a safe choice for anyone who wants to shop with cryptocurrency.

NOTE: We would also add that you are able to store your digital coins on your computer. This can be particularly handy if you have difficulty relying on other services. However, be extremely careful and always keep copies of everything. If you accidentally get rid of your bitcoin cryptocurrency then you can not get them back.

Crypto Trading


Bitcoin (BTC / XBT), contrary to popular belief, was not the first digital currency. When bitcoin was launched in 2009, there were already a few other options. However, bitcoin is arguably the greatest, most valuable and leading cryptocurrency on the market. We do not know who or what is behind the currency since it was launched by Satoshi Nakamoto which is an invented name.

Bitcoin is the digital currency that most people are familiar with, and it is also the currency that has been at the forefront throughout the development of cryptocurrency. During 2017, Bitcoin grew with over 1,300% from starting the year at $1,000 and finishing at around $13,000. Although, Bitcoin did a top of at just above $19,000 on December 17th, 2017.


Ethereum (ETH) is the world’s second-largest digital currency. It was launched in 2015 and has already grown enormously. Ethereum is actually named after the blockchain that controls the currency, whose name is Ether. This cryptocurrency has become extremely popular lately and has grown by more than 1000% in 2017. In addition, the currencies blockchain has attracted attention from Google, Microsoft, and Vladimir Putin, who have all invested huge amounts in the system.

In recent months, the ether has become one of our new favorites, and we are following the developments of this cryptocurrency with great commitment.



Litecoin (LTC) was launched in 2011 by a former employee of Google, and in our view, is one of the more interesting currencies on this list. Both the cryptocurrency and its blockchain are inspired by bitcoin, and in many ways are identical. Litecoin was actually created through one of the first Bitcoin forks. One of the biggest differences is that Litecoin is almost completely free of charge and that transactions can be carried out up to four times faster than bitcoin.


The Monero (XMR) is another of today’s leading cryptocurrency, launched in 2014. Unlike many other digital currencies based on bitcoin, Monero was created using a unique protocol called cryptoNote.

Monero experienced a large price increase in 2016 after AlphaBay adopted Monero as a means of payment. AlphaBay has since been closed down by the authorities, and the Monero cryptocurrency has subsequently lost much of its momentum.


Ripple (XMR) is a network of inspection protocols, a currency exchange, and a cash flow system developed by the Ripple company.
The company has also developed its own cryptocurrency, popularly known as ripples, but whose official name is XRP. XRP is different from other cryptocurrencies because it was created in a limited number, and that number will never increase. Other currencies like bitcoin and ether, are constantly increasing in size as new coins are created.


Broadly speaking, today’s cryptocurrencies are here because there is a demand for them. Their value and exchange rate is entirely based on the existence of customers who are interested in dealing with them. Without this demand, the currencies will lose their value, collapse, and eventually disappear. Several currencies have already collapsed, and more will surely join them. The major variants like bitcoin and Ethereum will most likely remain, although nothing is certain when it comes to online cryptocurrency.


Transactions with cryptocurrency are conducted peer-to-peer (P2P), i.e. between two users without any interference from third parties. It is therefore entirely up to the users to verify that transactions are secure and that no money is lost. It is simply a bank free payment system. Although all transactions are conducted between two people without interference, all the transactions are saved with a technology called the blockchain.

Regulation Of Cryptocurrencies

Lately, there has been much talk about countries wanting to start developing their own cryptocurrencies, Sweden included. The problem with this is that it would oppose the basic idea that the currencies should be unregulated. For example, in Japan, there are plans to launch its own cryptocurrency for the 2020 Olympics. It would obviously be a huge advance in progress for the digital payments industry, but because the currency will be linked to a country, it can not function as a traditional digital currency.

The Blockchain

Blockchains are the systems by which cryptocurrencies are checked. It is through these blockchains that the currencies are created, the exchange rate is determined, and all the transactions are stored. A blockchain is the very backbone of the cryptocurrency. The best description we can give is that the blockchain serves as a central bank. It is important that you also understand that all of the digital currencies have their own blockchains with unique functionality. Bitcoins blockchain, for example, is completely different from the Ethereum blockchain. Litecoin, on the other hand, has been inspired by bitcoin and is similar in many ways.

Using Cryptocurrencies

The main function of cryptocurrency is as a means of payment for products and services online. The transactions work just like regular payments where the buyer transfers the specified amount to the seller. In the beginning, payments of cryptocurrencies were only available for electronic products. However, in recent years, more and more land-based businesses have begun to accept the digital currency as a payment method.

It is now common to use bitcoin to pay for food and drinks in cafes and restaurants, and it is not unusual to be able to pay for a hotel room with cryptocurrency. Recently, you have even been able to buy homes and cars with bitcoins, which is incredible when you consider that these currencies did not even exist a few years ago.

Another reason to buy bitcoins is purely for investment purposes. Since Bitcoin was created in 2009, the value of this cryptocurrency has risen by several thousand percents, creating some great investment opportunities.

A currency that is rising as fast as bitcoin can also plummet just as quickly, and it has already happened on a couple of occasions. For example, in August 2017, when Bitcoin lost half its value overnight before recovering in less than a week. And at the beginning of 2018, when Bitcoin lost two-thirds of its value in a matter of weeks.

Trading With Cryptocurrencies

If you want to trade with cryptocurrency, you basically have two options. You can either go the “classic” way and see the digital currencies as a traditional investment. That is, you buy a certain number of coins and then keep them until they have risen in price when you then sell them to make a profit. Many services that sell bitcoins will allow you to keep your coins in an account with them, and when they go up in price, are more than willing to buy them back from you. The latest cryptocurrency prices can be found in our market overview platform.

You can also sell your digital coins to private individuals and others who use cryptocurrencies. Just be careful when you deal with other people because it is easy to be fooled. Bitcoins can, for example, be used by anyone who has a copy. This means that you risk buying coins from a person who uses them before you do. Personally, we would never buy cryptocurrency if it was not through a reliable service or from a really good friend.

Your other option is to buy cryptocurrency as a financial instrument or an underlying asset. Many of today’s leading brokers offer opportunities to buy and sell bitcoins and Ethereum as a common currency in the foreign exchange market. This means you can buy digital currencies in pairs of currencies, just like with regular Forex Brokers.

It is also possible that you decide to speculate on the price of the currency using CFD. So far, not all brokers offer the opportunity to invest in cryptocurrency as an underlying asset, but it is becoming more and more common.

What is interesting about cryptocurrency is that they fluctuate so much in price. They do not work at all like usual currencies and create much more interesting, and possibly extreme, investment opportunities.

Country-based Cryptocurrencies

We mentioned earlier that the latest development of these digital currencies is a regulated version. Japan will most likely be the first in 2020, when they plan to release the J-Coin, in connection with the Olympic Games in Tokyo. J-Coin will be entirely based on the Japanese Yen and will, therefore, be the first cryptocurrency of its kind.

Even our own government have discussed the possibilities of their own cryptocurrency. Sweden is, of course, one of the countries with the least use of cash in the world, and the logical next step from the Swish payment system is clearly a digital currency.

Our Author:

Our editorAdam Jarfjord is a Swedish day trader, investor, and copywriter. He works as head of content at and has been providing editorial content within the financial sector for more than 5 years.

Read more about him by visiting his LinkedIn profile or contact us directly to learn more about the team.

Between 73-89% of retail investor accounts lose money when trading CFDs.