Top 10 Best Crypto Exchanges in the UK

Cryptocurrencies have surged in popularity in recent years. This surge has driven up the demand for cryptocurrency exchanges. The UK has witnessed this trend as well, with numerous cryptocurrency exchanges now operating in the country as of 2024. However, with such an abundance of options, selecting the right one can be challenging.

As CEO David Wabinz, the founder of  DavidWabinz.com, I have curated a list of Bitcoin exchanges. This compilation considers many factors. These include security, fees, user interface, trading volume, and UK-tailored customer support.

Let's find out the 10 best crypto exchanges in the UK!

Is cryptocurrency legal in the UK?

Cryptocurrency is legal in the UK. People can buy, sell, or hold cryptocurrencies. These include Bitcoin, Ethereum, Dogecoin, and other altcoins. There are no limits on this. Still, some crypto businesses must register with the Financial Conduct Authority (FCA). They must also follow anti-money laundering rules.

Also, HMRC requires people and businesses to pay taxes on their cryptocurrency earnings. They must use different payment methods depending on the type of activity.

What are the risks of using a Crypto Exchange in the UK?

• Digital exchanges are targets for security breaches. They can lead to the loss of funds. For instance, in 2019, Binance had a breach. It caused a loss of over $40 million in cryptocurrency.
• Regulatory risks are high. Cryptocurrency regulations are changing. Centralized exchanges might face scrutiny. They could even be closed.
• Custody risks are high. Using a crypto exchange means trusting a third party with your digital assets. If the exchange faces financial difficulties or insolvency, your assets could be jeopardized.
• Crypto exchanges may face liquidity risks. This is especially true when volatility or sudden demand spikes happen.
• Exchanges face operational risks. They may have technical glitches like server outages or slow processing. These problems affect your ability to trade or withdraw funds.
• Centralized exchanges face KYC/AML risks. They must adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Failing to put in strong KYC/AML measures could lead to legal or regulatory trouble. This could hinder your access to funds.

Best Crypto Exchanges UK

1. Coinbase

Coming in first place on the list is Coinbase. This is one of the most popular cryptocurrency exchanges in the UK. It provides users with many properties and functions. The easy-to-use interface makes it a great choice for beginners. It is also good for those new to cryptocurrency trading. Furthermore, Coinbase prioritizes security. It allows users to store their assets in the company's wallet.

Coinbase helps buy, sell, and hold cryptocurrency, NFTs, and other DeFi products. It puts them all on one platform for easy management. It offers more than 240 cryptocurrencies. These include famous options like Bitcoin, Ethereum, USD Coin, Tether, Dogecoin, and Polygon. Coinbase also allows trading of rare coins not available on other exchanges. The platform adds new cryptocurrencies. It does so every few days. This widens the range of choices for users.

2. Binance

Binance is one of the top cryptocurrency exchanges. It has a daily trading volume of $12 billion and over 13.7 million active users worldwide. It lets users buy, sell, and store digital assets. It also gives access to a vast selection of 383+ cryptocurrencies and 1600+ trading pairs.

Changpeng Zhao established Binance in 2017. The exchange has won praise for its easy-to-use interface. It has low fees and advanced charting tools. These tools integrate with trading views.

The platform helps with normal trading. It also offers advanced features. These include borrowing and lending, trading with up to 125X leverage, and derivatives. These include Binance Futures, Binance Leveraged tokens, and Binance margin trading. Binance may not be accessible in some regions. But, it is available globally, including in the UK.

3. BingX

BingX founded the company in 2018. It is a platform for trading cryptocurrencies. It helps to buy, sell, and trade popular cryptocurrencies. These include Bitcoin, Ethereum, and USDT.

Like those exchanges, BingX offers many features. These include P2P and derivatives trading. They also include automated bot techniques such as mesh bot trading. I find these features unremarkable. But, I appreciate BingX for its reputation and commitment to user security.

This is an interesting development. Chelsea football team recently partnered with BingX. BingX is a leader in the cryptocurrency exchange industry. This partnership represents a multi-year agreement between the two entities. It has raised the reputation of this exchange.

This partnership is an important milestone for BingX. This is the platform's first venture into the sports and entertainment sector. As part of the deal, the BingX logo will appear on the sleeves of Chelsea FC shirts. This will last for the rest of the 2023/24 season. It will then be on the team's practice jerseys for two seasons.

4. Bybit

Bybit is another centralized cryptocurrency exchange. It is based in the UK. It provides users with a simple platform for trading crypto derivatives like Futures and Options. It also hosts Launchpad projects and an NFT Marketplace.

Bybit boasts over 15 million users worldwide. It facilitates trading across 520+ cryptocurrency pairs, including major coins like BTC, ETC, and DOT.

Operating on a tiered fee system utilizing a maker-taker model, Bybit permits users to engage in trading with leverage of up to 100x.

Also to its core offerings, the platform has many extra features. These include trading bots, copy trading, staking in PoS coins, and crypto lending. These features improve the trading experience for users.

5. MEXC

MEXC is a cryptocurrency exchange based in Seychelles. It was established in 2018. Most people see it as a secure platform. It boasts an A security rating, scoring 86.50%. It uses many security measures. These include certifications, penetration testing, bug bounty programs, and proof of funds. However, it's crucial to note that MEXC operates without regulation in the UK, which users should consider.

Despite this regulatory aspect, I find MEXC appealing for a simple reason: its trading fees are exceptionally low. With a Taker Fee of 0.2% and a Maker Fee of 0.00%, it offers cost-effective trading options. Moreover, MEXC supports many cryptocurrencies. It supports up to 610 different ones.

6. Bitget

Bitget is another esteemed exchange in the UK. It offers over 690 digital asset pairs for trading. These include popular combinations like BTC/GBP, ETH/GBP, LTC/BTC, and others. Also, traders can access a diverse range of trading products on the exchange. These include spot trading, perpetual contracts, options, and leveraged trading.

Bitget uses advanced security protocols. It prioritizes user asset safety. It does this by using measures like multi-factor authentication, SSL encryption, and cold storage for funds.

Also, the platform has many tools to improve trading. These include real-time price charts, technical analysis indicators, and order book depth charts. Traders also have the option to make and use automated trading strategies using the exchange's API. This makes their trading faster and more efficient.

7. Kraken

Kraken, established in 2013, is a cryptocurrency trading platform. It is part of Kraken, one of the UK's top crypto exchanges.

For UK investors, Kraken offers many advanced order options. These range from market orders to limit orders, stop orders, and trailing stop orders. The platform has high liquidity and trading volume. It ensures smooth transactions for traders.

With Kraken, traders can buy and sell cryptocurrencies without slippage or related issues. This is an advantage, especially for those making big trades.

Furthermore, Kraken also lets you stake. You can earn rewards by holding cryptocurrencies. This feature is a valuable avenue for long-term investors. They seek to generate passive income from their digital assets.

8. Crypto.com

Crypto.com offers users many cryptocurrency services. These include a DeFi crypto wallet, a staking platform, and a Visa debit card. The card lets users spend cryptocurrencies at merchants worldwide. All of these services are accessible through a mobile app.

Also to these features, the platform supports many cryptocurrencies. It also has an NFT Marketplace, lending, and the option for users to get crypto loans. Also, Crypto.com caters to traders. It offers automated trading strategies. They have features like Dollar-Cost Averaging (DCA) and grid trading bots.

The Exchange component of Crypto.com has a rapid trading engine. It offers many trading options for both new and advanced traders. These include spot trading, futures, and perpetual contracts. There is also Over-the-Counter (OTC) trading and leverage trading. They give users many chances to enter the cryptocurrency market as they like and can tolerate the risk.

9. Kucoin

KuCoin, a digital exchange operating in the UK, provides users with a diverse array of trading options and features.

One notable feature is margin trading, enabling users to amplify their trading positions by borrowing funds. Moreover, the platform helps with futures trading. It lets users trade perpetual and quarterly futures contracts with up to 100x leverage.

KuCoin enhances the user experience. It does this through its Pool-X staking platform. On Pool-X, users can stake their cryptocurrencies to earn rewards.

Trading on KuCoin is cost-effective. Users can get discounts on trading fees. They do this by holding and staking KCS, KuCoin's native cryptocurrency. Also, the platform supports API integration. This lets users automate their trading using popular trading bots like 3commas or Cryptohopper.

KuCoin has strong security measures. These include 2FA, SSL encryption, and hot/cold wallet storage. They protect user funds and give traders peace of mind.

10. HTX

HTX (Huobi Global) is a crypto exchange. It offers a wide range of assets for trade in the UK. These assets include digital currencies, leveraged trading options, copy trading, and futures contracts.

It has extensive support for over 611 crypto assets and more than 800 trading pairs. These include popular choices such as Bitcoin, Solana, and Ripple. The platform also supports transactions in various fiat currencies like USD, EUR, and GBP.

Huobi Global has competitive pricing. Its cryptocurrency trading fees follow a tiered system. Traders with higher volumes get reduced fees. Maker fees range from 0.02% to 0.20%, while taker fees fluctuate between 0.04% and 0.20%.

Also, the platform has a VIP program for high-volume traders. It offers them extra benefits. Also, Huobi Token (HT) holders get a 10% discount. This encourages them to use the platform more.

Types of Tax on Crypto Assets in the UK

CEO David Wabinz: ” I derived the details presented here from my research and understanding. Some information may be outdated or inaccurate. This is because cryptocurrency tax laws are flexible.”

• CGT applies to the profits from selling assets. This includes cryptocurrencies. In the UK, the rate of CGT is currently 20% for higher-rate taxpayers and 10% for basic-rate taxpayers.
• Income Tax applies to an individual's earnings. This includes income from digital currencies.
• A UK company that does crypto activities, like mining or trading, may have to pay Corporation Tax.
• VAT might apply. This would be if cryptocurrencies are used to buy goods or services.
• Stamp Duty Land Tax (SDLT) may be imposed if property transactions involve cryptocurrencies. Also, if you invest in NFTs or digital land in the metaverse and make money, you must pay taxes.
• NICs are payments by employees and employers. They fund social security benefits in the UK. Workers who receive cryptocurrency as payment may have to pay NICs.

How to Trade Cryptocurrency in the UK?

To begin trading cryptocurrency in the UK, you should follow these general steps:

• Choose an Exchange. Look at the features, fees, and user interface of the many cryptocurrency exchanges in the UK. Compare options. You can choose from sites such as Coinbase, Binance, Bitpanda, Kraken, and eToro. Do this before making a decision.
• To create an account, sign up on your chosen exchange. You will provide your name, email address, and password. Complete any captcha requirements and gain access to the platform. However, note that withdrawal may require identity verification.
• Exchanges often require users to verify their identity. This is to comply with regulations like anti-money laundering (AML) and know-your-customer (KYC). This usually involves submitting ID documents. You then await approval, which takes 10-15 minutes.
• To add funds, set up and verify your account. Then, you can deposit GBP using methods like bank transfers, cards, or other supported options. Ensure you review the accepted payment methods for each exchange before adding funds.
• To buy cryptocurrency, go to the exchange's buying and selling section. Choose the cryptocurrency you want to buy. Then, specify the amount and review the transaction details before finalizing the trade.
• You can withdraw your cryptocurrency after buying it. You can send it to an external wallet for safekeeping. Or, you can leave it on the exchange for future trading or transactions.

Frequently Asked Questions

What is the most secure crypto exchange in the UK?

The UK's most secure cryptocurrency exchange has many security protocols. These protect user funds. These measures may include multi-factor authentication. They may also include cold storage of funds and routine security evaluations. Notable UK-based exchanges are known for their security. They include Bitget, Kraken, Crypto.com, and Bitstamp.

Are cryptocurrencies regulated in the UK?

Cryptocurrencies are not regulated in the UK. But, some crypto exchanges like eToro, CoinJar, and Uphold are registered with the Financial Conduct Authority (FCA).

Can I use a crypto exchange in the UK without providing personal information?

Whether you need to go through a KYC process depends on your exchange's policies. Many don't need it for trading. But, it's often needed to withdraw funds. This requires personal details like ID and proof of address. Additionally, decentralized exchanges (DEXs) offer trading without KYC. Uniswap V3 focuses on Ethereum, while Pancakeswap caters to BSC crypto assets.

Which crypto exchange can I use in the UK?

In the UK, you should use a cryptocurrency exchange or Bitcoin trading platform. It should be registered with the country's financial regulator (Financial Conduct Authority (FCA)).

What is the cheapest cryptocurrency exchange in the UK?

Kraken stands as the most economical FCA-registered cryptocurrency exchange in the UK. Maker fees vary from 0.20% to 0.00%, while Taker fees range from 0.26% to 0.001%, contingent on your portfolio size and trading approach.

What is the best app for buying cryptocurrency in the UK?

Here are the top applications and cryptocurrency platforms for purchasing cryptocurrencies in the UK: Coinbase, Binance, BingX, Bybit, MEXC, Bitget, Kraken, Crypto.com, Kucoin, and HTX.