How to Buy & Invest in Bitcoin in 2023

Looking to purchase Bitcoins but unsure of where to begin? You've arrived at the right page. You'll have all the information needed to buy Bitcoin swiftly and securely by the time you finish reading this article.

Top Tip 💡: Binance, although the world’s largest bitcoin exchange, is not available in the UK, so we have provided other recommendations. 

What is Bitcoin and How Much is it?

Bitcoin is digital money that has elements of decentralisation. Bitcoin crypto is based on blockchain technology, which keeps a record of all transactions for every BTC unit. Since it employs cryptography to make itself safe, bitcoin falls under the term cryptocurrency.

Through a method called “mining” enormous amounts of computational power verify payments. A single coin is not technically considered a commodity and it’s not minted nor guaranteed by any governments or banks.

Indeed, bitcoin was the first crypto coin ever established. It’s widely acknowledged and accepted by a lot of individuals and companies. One of the best-performing digital assets available today, it went from having a value of a few pennies to more than £53,000 ($65,000) in February 2021, before crashing a year later.

Bitcoin’s supply, the demand for it in the market, its availability, conditions in the general economic market, and the price of rival cryptocurrencies are some of the variables that influence the price of bitcoin at any given time. At the beginning of December 2022, bitcoin was valued at almost £13,000. 

What You Need to Register and Know

Although anonymous cryptos like Monero exist, most people buy bitcoin transparently. This gives an audit trail for tax, policing, and regulatory purposes. Before you start purchasing bitcoin, you will need to have a few things as part of the registration process (certain exceptions exist, such as buying coins using an ATM).

The general criteria are stated below, while there could be some specifics depending on the platform where you make your purchase.

• Passport, driving licence, or national ID card
• Recent bank statements, utility bills, or other proof of address
• Photos to also prove your identity

Choose Where to Get Bitcoin

We cover that later in this guide. For a variety of reasons, cryptocurrency trading platforms like Binance, eToro, CEX (which is a British exchange), and Coinbase rank as preferred options.

Before registering, take into account your state or country of residency, the platform's features, and its rules.

Validate Your Account

You will be prompted by exchange platforms to confirm your identification, address, and occasionally your form of payment. A passport, a driver's licence, or a copy of some other proof of ID may be requested. Some exchanges additionally ask for information regarding your funding source.

Place Your Order

Once you have been properly validated, you are finally able to place a Bitcoin order and pay for it using a variety of payment options.

Consider Storage

Although most do, not all bitcoin exchanges provide wallets. You must make plans to move your coins to a secure location if the platform of your choice does not offer crypto storage services.

Top Tip 💡: If you already use a crypto-friendly banking app like PayPal, you won’t need to complete additional verifications — you can instantly start buying bitcoins. 

1. Buy Bitcoin With UK Exchange CEX.IO

Have you heard of this platform? Because CEX.io is a British-based exchange, we’ll start off with how to buy bitcoins using this provider. In fact, CEX.io was also one of the earliest cloud mining companies.

Today, it’s thought to be a safe, well-governed, and officially licenced cryptocurrency exchange. Despite strict legal requirements, London-based exchange has expanded its reach to almost 200 nations, including most U.S. states.

Visit CEX.IO

Over four million people have used it since it launched in 2013. It offers over 100 cryptos, including Ethereum, Uniswap, Litecoin, Bitcoin, and other well-known coins — letting crypto lovers from over the world make money, buy bitcoin and sell, borrow, and generally trade too. 

• Guide 📗: Bitcoin price history (2009-2022)

The network separates its user base into three groups and then adjusts its product offerings correspondingly.

The first segment is “Everyone”, which offers straightforward alternatives for buying cryptocurrency using fiat currency, exchange stakes, a cryptocurrency wallet, and a service for lending cryptocurrency. 

Next are the “Traders”, who profit from various kinds of bitcoin using live market prices. Businesses can also get enterprise-grade crypto trading services through CEX.io PRIME if they opt for the last category, “Businesses”. 

Overall, CEX.io allows easy access and payments with CEX Direct. It can be a bit overwhelming to use all of its features, so here is a simple guide for buying bitcoin on CEX.io:

Buying Steps (CEX)

Step 1: Sign Up 

As a regulated cryptocurrency trading platform, CEX.IO has strict requirements for user authentication. The service only allows authenticated users to buy cryptocurrency. Personally-identifying information is needed from you during the registration phase — your email, full name, birthdate, and proof of citizenship. You must attach selfies of yourself holding each document once it has been submitted as a picture.

Step 2: Get Fully Verified 

After completing identification, users can quickly buy BTC with a daily investment limit of £2,500 and a withdrawal maximum of £8,000. Additionally, the user can make payments through Skrill and Epay. You must submit to an address authentication process in order to extend your limits and utilise the money transfer payment method.

Step 3: Place an Order

Head to the “buy/sell” area on CEX’s main site or mobile app to place a BTC order. On that screen, choose Bitcoin and the fiat money you want to use to make a payment from a drop-down menu. You will be offered bitcoin in pre-packaged amounts that the platform finds are typically purchased.

Each set’s fixed price is determined using the spot (current) market rate, which holds for 120 seconds, and then gets recalculated — the possibility of price volatility in bitcoin is reduced thanks to this freeze.

You may choose from any of the ready-made packs or create a bespoke order by inputting whatever quantity you like. You should be aware that it must be at least 20 GBP (same for EUR/USD) of bitcoin. The commission for the service is already included in the computed purchase value.

Step 4: Choose your Payment Method 

A credit card, debit card, or your CEX.io balance are all ways of purchasing bitcoin there. You must first link your cards to your user profile, regardless of the method. You only need to enter card details on the site, which takes MasterCard or Visa.

While UK customers need to provide their postcodes, addresses, and some other bits and bobs, US individuals only share their zip code and state — it should just take five minutes for card verifications.

Now, to load your account, head to the finance page of CEX.io and select the currency you’re depositing in (click the deposit button). You can add money in any domestic currency. Don’t worry, it automatically gets translated to the depositing currency you want — EUR, GBP, USD, or RUB. After paying by card, you can use that deposit to buy bitcoin.

Select a verified card as the form of payment and input the CVV or CVC code to pay with it. After that, click “buy now” after agreeing to the TOCs. Within a few moments, the BTC ought to appear on your account balance.

And wallah… 

2. Buy Bitcoin Using Coinbase

Officially, the second-largest cryptocurrency exchange in the world is Coinbase, a well-known platform for exchanging digital currencies. The technology makes purchasing bitcoin as simple as buying stocks from an online broker.

• Ultimate guide 📙: What is Coinbase?

When someone is fresh to the cryptocurrency world, this is frequently their first choice of how to buy bitcoins in 2023.

Visit Coinbase

For experienced traders who think the standard Coinbase interface is too simple, there is Coinbase Pro — a version of the platform that has better transaction fees.

With more than 70 million users and £200 ($255) billion worth of assets on the platform, Coinbase has a lot of power — it operates in more than 100 countries. The portal assists around 9,000 financial organisations and logs trades worth about £270 billion every three months.

Users can trade 100+ different cryptocurrencies, including Bitcoin, Dogecoin, and Ethereum.

What’s more, the business offers a unique bitcoin wallet solution in addition to the main Coinbase and Coinbase Pro systems. You most likely have all you need to handle a portfolio. Coinbase is accessible over the web as well as through an app for iOS and Android smartphones. Because Coinbase employs state-of-the-art security measures, users don't need to worry as much about the protection of their funds.

Buying Steps (Coinbase)

Step 1: Open a Coinbase Account 

Naturally, if you're brand-new to the service, you will be required to create a Coinbase login using your email — it’s a fast and easy sign-up process. Either install the Coinbase application or register on the Coinbase site.

Step 2: Verify Your Account 

As with CEX.io, to use Coinbase you must be at least 18 years old. You need a permitted ID like a passport or driver’s licence, and, depending on where you reside, proof of address in addition to personal contact details.

The validation stage on Coinbase is the longest part of the process — the good news is that restrictions on trading and buying cryptocurrencies get removed from your account as soon as authentication is complete.

Step 3: Add a Payment Method 

It's time to set up your chosen payment option now that your account has been validated. Debit cards and bank/transfers to checking accounts are among the options. Apple Pay, PayPal, and Google Pay are other options. Be aware that although the rest of the payments are handled promptly, wire transfers and banking transfers take between one and three days to process.

When you purchase Bitcoin with Coinbase, a processing fee of between 0.5% and 4.5% is imposed; the amount depends on your payment option and location.

Step 4: Find BTC

Go to the homepage and type “Bitcoin” into the search bar once the paying option has been chosen and set. When it appears in the findings, touch on it and choose “buy” from the menu — the system will automatically translate the amount you want to buy into BTC using your local currency as input.

Step 5: Complete Your Purchase 

When you hit “preview buy”, you will see the specifics of your order and be able to finish the purchase. When you verify your order and everything is in order, the money will be taken out using the form of payment you previously chose. Recognize that Coinbase takes a percentage of the transaction.

3. Buy Bitcoin Using eToro

On eToro, first-time purchases of Bitcoin usually take ten minutes or less. But occasionally it could take several days to establish your account and confirm your identification.

Below, we discuss each phase of the process in order to help you understand how to buy bitcoins in 2023.

• Guide 📘 : eToro review

Buying Steps (eToro)

Step 1: Create a New Account

You will have to create an eToro login in the first step if you haven't already. Hit the “Join Now” option while you are on the eToro site.

Your full name, mobile number, email, username, and password must all be entered in the pop-up window that appears — fill it out accurately, then select next.

Visit eToro

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.

You are prompted to provide further private information on the following page, including your birthdate, place of residence, address, and tax information. A unique code will then be sent to your phone through SMS by eToro at this moment.

You must input the code when requested to do so on the signup in order to finish the registration process.

Step 2: Upload ID

Customers are subject to the same legal requirements as eToro. As a result, you must participate in the required identity verification process. If you don't currently have all the relevant paperwork, you can momentarily skip this stage. But you'll have to finish it later — else, you won't be able to make transfers of more than £1,800 ($2,250). 

Digital versions of recent bank statements, utility bills, and passport/driver's licences are required by eToro. The majority of the time, your identification is verified within minutes after the processing of your identity-verification papers — that’s because it’s all automated. 

Step 3: Put Money Down

Since eToro does not support bitcoin-to-bitcoin transactions, you must first credit your account. Credit and debit cards, as well as third-party e-wallets like Sofort, Skrill, iDEAL, PayPal, and Rapid Transfer, can be used to deposit money into the account. 

Local bank payments and multinational wire transfers are available for select particular nations. All other payment options, except bank transfers, ensure that the money will show up in your eToro account fairly instantly.

For US and UK citizens, you’ll need to make a commitment worth a tenner in Sterling (or $10) is the least amount that may be made on eToro. People from other nations can be subject to a minimum deposit of anywhere between £40 and £1,000.

Step 4: Look for Bitcoin

After a valid deposit, you may now purchase Bitcoin. In the search field at the top of the website, just type “BTC”. When the Bitcoin trading screen displays, click on “Trade” to bring up an ordering box. At this stage, you should decide what kind of order you need. 

Step 5: Purchase Bitcoin

The last stage is to actually buy BTC by typing the quantity of your commitment (at least £25) into the “Amount” box. To finish your transaction, click the “Open Trade” option at the end.

Related Guides: 

• What Is a Bear Market?
• Types of Cryptocurrencies — 2023 Guide
• How to Sell Your Crypto & Cash Out
• How to Buy Ethereum