How to Buy Bitcoin in the UK With a Debit Card: Simple Guide for 2024

UK residents have many options when buying Bitcoin online, including debit cards issued by Visa and MasterCard. This is the fastest and most convenient way of investing in cryptocurrencies.

This guide explains the process of buying crypto in simple terms. Read on to buy Bitcoin with a debit card in the UK in under five minutes. Learn how fees work, what risks to consider, and how to stay safe.

How to Buy Bitcoin With a Debit Card UK: Simple Walkthrough

Here’s a walkthrough on how to buy Bitcoin with a debit card in the UK:

  • Step 1: Choose a Regulated Bitcoin Exchange: Research Bitcoin exchanges that offer a safe experience. We like eToro, which is approved and regulated by the UK’s Financial Conduct Authority (FCA).
  • Step 2: Open an eToro Account: Visit the eToro website or mobile app to open an account. Provide some basic personal information and upload a passport or driver’s license to instantly get the account verified.
  • Step 3: Deposit GBP With a Debit Card: You’ll now be prompted to make a deposit. Type in the deposit amount (minimum $100, or about £76), select debit card as the payment type, and type in the required details.
  • Step 4: Search for Bitcoin: Type ‘BTC’ in the search box and click on ‘Trade’. This will take you to the Bitcoin investment screen.
  • Step 5: Buy Bitcoin: Type in the amount of Bitcoin to purchase (minimum $10, or about £7) and click on ‘Buy’ to confirm the order.

The purchased Bitcoins will now be available in your eToro account. They can stay there until you’re ready to spend crypto or cash out. Alternatively, you can withdraw the Bitcoins to a private wallet.

Best Place to Buy Bitcoin With Debit Card UK

Still not sure where to buy Bitcoin with a debit card? We’ll now discuss the three best options for UK residents, covering eToro, Best Wallet, and Margex.

1. eToro – The Overall Best Place to Invest in Bitcoin in the UK

UK residents will find that eToro is the best place to buy Bitcoin. It supports debit cards issued by Visa and MasterCard, plus e-wallets and bank transfers. Most importantly, eToro is authorized and regulated by the FCA. This ensures UK traders can buy Bitcoin on eToro in a safe and secure environment. eToro also offers two-factor authentication and cold storage solutions.

eToro offers fee-free deposits when using a debit card issued in the UK. The minimum first-time deposit is $100 or about £76. That said, the minimum trade requirement is just $10, or about £7. This means you can easily diversify into other markets. For instance, eToro not only supports the best altcoins but also stocks, ETFs, forex, commodities, and indices.

eToro UK review

eToro charges a 1% commission when buying and selling cryptocurrencies. While this is higher than other exchanges, it’s a competitive price to pay for regulated trading services. eToro also offers smart portfolios and copy trading. These tools enable users to invest passively. eToro offers live chat support, but only during standard market hours.

Pros

  • The overall best site to buy Bitcoin with a debit card in the UK
  • Authorized and regulated by the FCA
  • Supports nearly 100 other cryptocurrencies
  • Debit card deposits are free and instant
  • Minimum Bitcoin investment of $10 (about £7)
  • Smart portfolios and copy trading enable passive investing
  • Also supports stocks, forex, ETFs, commodities, and indices

Cons

  • 1% commission is much higher than the industry average
  • Basic analysis tools won’t appeal to experienced traders

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

2. Best Wallet – Buy, Store, and Swap Cryptocurrencies in a Self-Custody Wallet

Best Wallet’s user-friendly app offers an entire cryptocurrency ecosystem. Available on iOS and Android, users have access to a self-custody wallet and a decentralized exchange. Put otherwise, UK residents can buy Bitcoin with a debit card and safely store their digital currencies away from centralized platforms.

This removes counterparty risk and ensures investors own and control their purchased Bitcoins. Debit card payments are processed by third parties, so fees will often exceed 3%. That said, the Bitcoins are immediately added to the Best Wallet balance. This makes the process fast and convenient, considering you won’t need to make a transfer from an exchange.

Best Wallet DEX

Best Wallet is also a great option for building a diversified portfolio. It supports the best cryptocurrencies from multiple blockchains, including Solana, XRP, BNB, Ethereum, Arbitrum, and Polygon. Best Wallet also offers an instant conversion tool, which connects to the wallet balance. This means you can swap Bitcoin for thousands of other cryptocurrencies.

Pros

  • Instantly buy Bitcoin with Visa or MasterCard
  • Doubles up as a self-custody wallet
  • Available as a mobile app for iOS and Android
  • Also offers instant conversion tools
  • Offers a secure and user-friendly experience

Cons

  • Debit card fees are higher than other providers
  • The KYC process is handled by third parties

3. Margex – Buy Bitcoin From Just £4 and Earn Staking APYs of 3%   

Margex is a futures trading platform that supports Bitcoin, Ethereum, and other popular cryptocurrencies. It also enables users to buy BTC with a debit card. The minimum payment requirement is just £4, making Margex an ideal choice for beginners. Purchases are also executed and settled instantly. Fees are built into the exchange rate, and quoted based on real-time market conditions.

Margex offers two options once the Bitcoins have been purchased. First, users can withdraw their Bitcoins to a private bitcoin wallet address. Withdrawals are approved daily for enhanced security. Second, users can stake Bitcoin on Margex, with interest rates currently at 3%. This provides passive income in a safe environment, considering Margex utilizes institutional-grade security.

Margex review

It also offers that all-important two-factor authentication. Margex also offers copy trading services, allowing users to mirror experienced investors. It also offers a user-friendly mobile app for iOS and Android. This supports Bitcoin price alerts, ensuring you’re always aware of key market developments. Although Margex also offers cryptocurrency derivatives, these aren’t available to UK residents.

Pros

  • Minimum debit card requirement of just £4
  • Purchased are added to the account balance instantly
  • Also supports Ethereum, XRP, and other popular altcoins
  • Offers Bitcoin staking rewards of 3%
  • Copy trading tools offer a passive investing experience

Cons

  • Its derivative products aren’t available to UK clients
  • Withdrawals are only processed once per day

Should I Use a Debit Card When Buying Bitcoin Online?

Most UK residents use debit cards for everyday spending. They can also be used to buy Bitcoin, as well as invest in other assets like stocks and ETFs. The main benefit is speed; debit card deposits are processed by Bitcoin exchanges instantly. This means you can immediately swap GBP for BTC at current market prices.

What’s more, you won’t be charged any fees by the issuing bank. And, when using a cost-effective exchange like eToro, you can also avoid deposit charges. This isn’t the case with other UK crypto exchanges like Coinbase and Gemini, which charge 3.99% and 3.49%, respectively.

Choosing Between a Debit Card and Credit Card When Buying Bitcoin

We’ve established the benefits of buying Bitcoin with a debit card in the UK. But what about using a credit card? In a nutshell, credit cards can also be used. And, just like debit cards, users benefit from an instant deposit process.

However, depositing money into a Bitcoin exchange will be viewed as a cash advance. This means that, just like withdrawing funds from an ATM, fees of 3-5% will be added to the amount. Not only that but interest will be added to the transaction immediately.

Buy Bitcoin with debit card UK

Another drawback of using a credit card is risk. This is because the full amount will be due when the next statement arrives.

  • For instance, suppose you use a credit card to buy £500 worth of Bitcoin.
  • That Bitcoin investment is only worth £300 when the statement balance is due.
  • You’d need to cover that £500 even though the investment value has declined to £300.
  • In addition to the cash advance, additional interest will be charged if the statement isn’t cleared in full.
  • This adds to the investment cost basis, making it increasingly more difficult to make a profit.

Therefore, using a debit card is the better option. After all, you’ll reduce fees and only be using the money you have in the account.

Other Ways to Buy Bitcoin in the UK

Here are some other ways to purchase Bitcoin as a UK resident:

  • Bank Transfer: Some Bitcoin exchanges accept UK bank transfers. The payment should go through the Faster Payments network, meaning it could arrive almost instantly. Just ensure the reference (provided by the exchange) is added to the payment. Otherwise, the exchange will need to manually credit the deposit.
  • E-Wallets: It’s also possible to use e-wallets when buying Bitcoin in the UK. eToro, for instance, accepts PayPal, Skrill, and Neteller. These popular e-wallet providers offer instant payment and a secure experience. Just make sure the e-wallet account is verified, as this is often a minimum requirement when investing in cryptocurrencies.
  • P2P Exchange: You might also consider using a peer-to-peer (P2P) exchange when buying Bitcoin. This means you directly transfer funds to the seller. And the seller directly transfers Bitcoin to your wallet. P2P transactions are usually protected by an escrow service but aren’t 100% risk-free.
  • Bitcoin ETFs: UK residents can also invest in Bitcoin via traditional ETFs. The iShares Bitcoin Trust (IBIT) by BlackRock, for instance, is physically backed by Bitcoin. This means the ETF closely tracks the Bitcoin price. UK residents can buy IBIT on eToro without paying any commissions.
  • Bitcoin Stocks: You can also buy traditional stocks that specifically operate in the Bitcoin sector. Coinbase – one of the largest Bitcoin exchanges globally, is listed on the NASDAQ. However, there could be a big disparity between Coinbase stock and the Bitcoin price. This is because internal factors, such as profitability, should also be considered. Nonetheless, UK traders can buy Coinbase stock on eToro without paying a commission.

Safety Considerations When Buying Bitcoin With Debit Card

Buying Bitcoin with a debit card in the UK requires some safety considerations. At the forefront is using a Bitcoin exchange that’s authorized and regulated by the FCA. Otherwise, you can’t be sure that you’re investing in a safe environment. You can search for the exchange on the FCA register to evaluate its regulatory status.

However, just remember that even FCA-regulated exchanges still prevent counterparty risk. This is because you’re trusting the exchange to safeguard your Bitcoins. If the exchange goes bust, the FSCS doesn’t cover digital assets, which include Bitcoin. As such, you might consider withdrawing the Bitcoins from the exchange to a private wallet.

More specifically, use a self-custody wallet like Best Wallet. Only the wallet owner has access to the private keys and backup passphrases, ensuring 100% ownership of crypto assets and no reliance on third-party custodians. Additionally, don’t forget about tax liabilities. Selling Bitcoin for a profit will trigger capital gains tax when you exceed your annual tax-free limits.

What Fees Will I Pay When Buying Bitcoin With Debit Card?

There are several fees to consider when buying Bitcoin with a debit card in the UK.

Some exchanges charge an ‘all-in’ fee when using Visa or MasterCard, meaning the commission is included. As mentioned, Coinbase and Gemini charge 3.99% and 3.49%, respectively. eToro does things differently. It offers fee-free deposits on GBP-issued debit cards.

You’d then need to swap the deposited GBP for BTC. This will attract a 1% trading commission, which is charged when buying and selling Bitcoin. Withdrawal fees can also be charged, but this depends on the method.

For example, withdrawing Bitcoin to a private wallet will incur network fees. Some exchanges simply replicate the network fee, while others add a markup. Similarly, you might also be charged a withdrawal fee when cashing out GBP. For instance, sending the investment proceeds back to the debit card.

Ultimately, fees will vary from one exchange to the next. You must assess these fees before you buy cryptocurrency or open an account.

The Verdict?

We’ve explained how to buy Bitcoin with a debit card in the UK. There are plenty of good options in the market, but eToro is our overall top pick. It’s authorized and regulated by the FCA and offers fee-free deposits when using a debit card.

Payments are credited instantly, and you’ll also have access to almost 100 other cryptocurrencies. However, the minimum first-time deposit is $100, or about £76.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

FAQs

Can I purchase BTC directly with my debit card?

Which UK banks banned crypto payments?

Does Binance accept UK debit cards?

Can I legally buy Bitcoin in the UK?

Can I buy Bitcoin with a debit card without ID?

References

  1. eToro (UK) Ltd [Reference number: 583263] (FCA Register)
  2. FCA bans the sale of crypto-derivatives to retail consumers (FCA)
  3. The costs and charges of credit cards (National Association of Citizens Advice Bureaux)

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Kane Pepi
Crypto Expert

Kane Pepi is a financial and cryptocurrency writer who has written over 2,000 articles, tutorials, and market analyses. Kane's expertise in specialized domains such as asset appraisal and analysis, portfolio management, and financial crime prevention has earned him a reputation for providing succinct explanations of difficult financial subjects. He holds a Bachelor of Science in Finance, a Master of Science in Financial Crime, and is currently working on his Doctorate degree, which will focus on the challenges of money laundering in the cryptocurrency and blockchain technology industries. Kane's wealth of industry experience make him a valuable resource for traders and…

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