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.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
We extensively review and test crypto exchanges and trading platforms which are registered with the UK’s financial watchdog, the Financial Conduct Authority (FCA), to decide our top picks. We’ve compared more than 10 platforms on aspects such as user experience, fees, payment methods and selection of coins.
The right crypto platform for you will depend on what you want to use it for. Some people use several to benefit from their different stand-out features – one could be best for its range of coins and another for its low fees.
Here are 3 of our top crypto exchange picks, with a full list further down.
Our selection of the best crypto exchanges is based on the same criteria as our annual Crypto Trading Platform Awards, but is updated by our editorial team throughout the year to reflect changes in the market.
The platforms we’ve picked are those we’ve evaluated to be the best for certain product features or categories – you can read more in our full methodology. If we show a “Promoted” pick, it’s been chosen from among our commercial partners and is based on factors that include special features or offers and the commission we receive.
Finder’s best crypto exchanges and trading platforms in the UK for 2024
Crypto.com – Best overall exchange & best for altcoins
Our selection of best crypto exchanges is based on the same criteria as our annual Crypto Trading Platform Awards but is updated by our editorial team throughout the year to reflect changes in the market.
The platforms we've picked are those we've evaluated to be the best for certain product features or categories – you can read more in our full methodology. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers and the commission we receive.
Keep in mind that these picks are suggestions and that the exchange that is best for you will depend on your individual needs. There are other products on the market not included in our picks.
Crypto.com has one of the largest lists of cryptocurrencies available for Brits to trade - over 350 coins - and is constantly looking to add more.
If you're looking for less-common altcoins, Crypto.com will have you covered. It has an extensive range of low-market-cap coins and you can see the latest releases in its 'Showroom'. Just remember that coins with a market cap can be even more volatile than the top cryptos, so do plenty of research before plunging in.
Crypto.com also offers other useful services to its 80 million customers worldwide. For example, you can get a crypto card, explore its NFT marketplace or set up your own DeFi wallet.
Pros
Buy and sell 350+ cryptocurrencies
Clean, user-friendly mobile app
Earn cashback and rewards with a Crypto.com Visa Card
Cons
Staking CRO is required for the highest-yield rewards
Poorly rated customer service on Trustpilot
Deposit methods
Credit card, Cryptocurrency, Debit card, SEPA, Faster Payments (FPS), Apple Pay, Google Pay
eToro uses its experience as an investing platform to make things easy for crypto newbies. Its beginner-friendly interface makes buying and selling crypto quick and simple for someone just starting out.
eToro pioneered the concept of copy trading back in 2010. This feature, known simply as CopyTrader, allows you to view and mirror trades made by experienced investors. Getting started is easy – simply choose a trader you want to copy and then set your account to follow their trading moves.
With a minimum of US$200, you can automatically repeat trades from some of eToro's top-performing crypto traders - although there's no guarantee they'll keep making profit. There is no additional fee charged for this service.
Meanwhile, if you want to try before you buy, you can practice with $100,000 using eToro's virtual portfolio. This allows you to learn about the market and hone your trading skills before doing it for real.
Withdrawals and deposits are made in US dollars instead of pounds, so you’ll have to pay a conversion fee. You can avoid this fee by becoming a Diamond-tier eToro Club member, but that requires a huge account balance of $250,000
I like that eToro's app interface is easy to navigate and lets you see the biggest movers and trending cryptos at a glance. Having the option to copy the portfolios and trades of top cryptocurrency investors in just a few clicks is also a highlight.”
Pros
Unique copy-trading feature
Trades UK and international stocks
Tiered membership options for advanced traders
Cons
Picking the right trader to copy can be difficult and risky
Foreign exchange fees on GBP deposits
Higher spreads than other exchanges
Deposit methods
Bank transfer, Credit card, Debit card, eToro Money
CoinJar makes it simple to get started on your crypto journey. It’s one of the few exchanges that lets you instantly buy crypto using your debit card. There is a fee attached to this, but it’s comparatively low.
If you’re not in a rush, then UK users can make GBP deposits and withdrawals without incurring any sort of charge. Trading on CoinJar comes with a small percentage fee, but it has low spreads - a fee often hidden by crypto exchanges.
You can also take advantage of CoinJar Bundles. These are themed baskets of crypto which help you get started if you’re unsure which crypto to buy first. You can also set up dollar cost averaging, which is an automated weekly, fortnightly or monthly purchase at your chosen rate. This is a tool to help you buy in at an average price over time instead of forking out a one-off lump sum.
My CoinJar highlight is its Bundle feature. You can diversify your portfolio in one single purchase, all through the app.”
Pros
No deposit or withdrawal fees on the most common payment methods
Easy-to-use platform
Instant card payments
Cons
Limited services for active trading
Wait time for withdrawals
Deposit methods
Bank transfer, Credit card, Cryptocurrency, Debit card, SEPA, Faster Payments (FPS), Apple Pay, Google Pay
Deposit fees
Cryptocurrency: Free FPS: Free Visa / Mastercard purchase: Free (2% for Instant Buy) Apple Pay / Google Pay purchase (Instant Buy): 2%
Kraken is one of the longest-running platforms in the industry and has maintained its legacy by constantly improving its services.
You can start building a cryptocurrency portfolio today from 200+ supported coins. Kraken is popular with over 10 million users, which makes it one of the world's largest exchanges. But for overall features and trading tools, Kraken blows most crypto exchanges out of the water. It's clearly made for traders but it doesn't leave novices behind either.
Kraken Pro, which is free, has a broad range of advanced trading features. It prides itself on offering low spreads and providing deep liquidity across markets so you don't need to worry as much about slippage (which is when the price changes quickly during your order and you feel short-changed). Its interface is also fully customisable, so you can include as many data-displaying tabs and panels as you’d like.
While new traders may feel daunted by the exchange at first, the large variety of guides can help anyone become knowledgeable about cryptocurrency, its underlying technology and the different forms of trading. You'll find these under the 'Learn' tab. It's worth reading the deposit and withdrawal guides in particular - if you use SWIFT, your withdrawal could cost you up to £35. See the 'Fees & deposits' tab in this guide for more about fees.
Meanwhile, more experienced traders will appreciate Kraken's high-quality system and easy-to-use user interface (UI). They'll be pleasantly surprised by how straightforward it is to trade, move crypto and manage assets.
I'm a fan of Kraken’s clean and simple app interface. However, it's frustrating that Kraken Pro is free and has lower fees, but you have to access it as a separate app.”
Pros
250+ supported coins
Launches in 2013: one of the longest-running exchanges
High quality educational guides and tools
Cons
Some trading features unavailable to UK users
High fees on certain payment methods
No crypto debit card available for spending, unlike some alternatives
Deposit methods
Bank transfer, Credit card, Cryptocurrency, Debit card, PayPal, Faster Payments (FPS), Apple Pay, Google Pay, SWIFT
Deposit fees
Cash: Free up to £21 depending on method of deposit Cryptocurrency: Mostly free but requires a minimum balance to deposit
Withdrawal fees
Cash: Free up to £35 depending on method of withdrawal (min. withdrawal £1) Cryptocurrency: Minimum withdrawal requirement and flat-rate withdrawal fee that varies for each cryptocurrency
Uphold offers a seamless user experience and a straightforward fee structure. Plus, it has several exciting features like its debit card.
The card lets you spend crypto and national currencies wherever Mastercard is accepted. On top of this, you can benefit from 0% foreign transaction fees and low exchange rates, making the Uphold Card the perfect travel companion.
The ability to use crypto or national currencies gives you flexibility. You can also track your spending with real-time analytics and, if you misplace your card, you can freeze it using the app.
Pros
Access the value of your assets easily
Switch funding sources as often as you like
No fiat deposit fees
No foreign transaction fees
Cons
Likely to pay a spread if funding source is not the same
Fees of up to 2.95% on crypto trades
Prices not locked in pre-trade
Cash withdrawals at ATMs incur a fee (£2.50 in UK/EU, £3.50 rest of world)
Deposit methods
Bank transfer (ACH), Debit card, Apple Pay, Google Pay
Deposit fees
Free
Withdrawal fees
Debit card: 1.75% (min. £1) Apple Pay/Google Pay: Free Bank (FPS, SEPA): Free + Fee equivalent to $0.99 on selected blockchain networks + Fee equivalent to $0.99 on selected smaller trades (under $500)
Revolut is steadily becoming a one-stop shop for all things crypto. Since it was accepted into the FCA's full register of crypto asset firms, we've seen a series of new features.
The user-friendly digital app marries its e-money banking account services with its cryptocurrency features to create a seamless user experience. Customers can buy, hold and exchange 150+ cryptocurrencies in-app within seconds. Using funds from your Revolut account, you can start investing almost immediately.
From the app, you'll be able to choose which cryptocurrencies to invest in, set up recurring buys, send crypto to other Revolut users and take advantage of performance analytics to help you understand how your portfolio is performing. You can also add a crypto spending mode to your existing Revolut prepaid card, which allows you to pay for purchases with instantly converted tokens. Revolut also offers you a discount on your tax report from Koinly, making your self assessment that much easier.
Plus, if you're an advanced trader, Revolut now has its own standalone platform, Revolut X. Not available through the app, the desktop platform has lower maker and taker fees than Revolut's standard offering. It also offers full-stack protection and advanced trading analytics.
I like that Revolut’s crypto trading platform sits within its app alongside banking services. If you’re just starting out, it means that you can easily keep an eye on your portfolio while completing your other banking tasks.”
Pros
Educational resources
Earn free crypto by watching videos and completing quizzes
Swap multiple fiat currencies for crypto and vice versa
Cons
Paid monthly plans can add up over time
Revolut fee on top of network fee on withdrawals
Deposit methods
Bank transfer, Debit card, Apple Pay, Google Pay
Deposit fees
Free
Withdrawal fees
Fees vary, from £1
Trading fees
0.49% (Ultra plan), 0.99% (Premium or Metal plans), 1.49%/min. fee of £1.49 (Standard or Plus plans) plus spread Revolut X - 0% maker fees, 0.09% taker fees
You might not have heard of Solidi before, as it’s a comparatively small exchange - but we found it has the lowest fees of all the exchanges we reviewed. It charges just 50p for withdrawals on larger transactions.
There’s an important caveat in that Solidi only supports a handful of cryptocurrencies. Bitcoin, Ethereum, Litecoin and Ripple can be bought and sold at Solidi but there’s no extensive list of altcoins or advanced trading features. The look and feel of the site are as simple as they come, and the limited options match the look.
The emphasis on straightforward transactions and low fees may suit beginners, but is extremely limiting for more advanced users or anybody who’s looking to learn how to trade on a bigger exchange. You can set up an autobuy, but there’s not much beyond that.
Despite the small number of supported cryptos, Solidi’s low fees will appeal to traders of all levels as an off-ramp option when it’s time to cash out.
Pros
Easy-to-understand exchange
Low withdrawal fees
Funds held in cold storage
Cons
Tiny number of coins
Limited features
Deposit methods
Bank transfer
Deposit fees
No fee for crypto deposit. £0.50 for GBP deposit.
Withdrawal fees
Variable fee for crypto withdrawal. £0.50 for GBP withdrawal.
Trading fees
No transaction fees
What “best” means: How we choose our top crypto exchanges
All exchanges must be registered with the FCA before we consider them for this list. We rate the exchanges on 6 key factors:
Fees. We look at what fees an exchange charges for deposits and withdrawals, as well as its maker and taker fees, and whether there are any additional fees for inactivity on the account.
Choice of crypto. Exchanges usually deal in both cryptocurrencies and fiat currencies. We look at the number of altcoins on offer and how many different fiat currencies you can trade with.
Tools, resources and features. Exchanges typically have trading tools, educational resources and additional features in order to bring extra value to their services. The larger, more established exchanges tend to offer services like recurring buys or bundles.
Account types. This is all about the different services on offer, like whether an exchange has a pro trading function or offers a wallet to store your cryptoassets.
User experience. What is the app like? Does it have good reviews? How can you contact customer service? All of these contribute towards a negative or positive experience using an exchange.
Safety & security. What security features does the app have? Does it have any additional insurance to reimburse you if there is a hack?
Our comparison tables are completely free to use. We link you directly to the platform's secure sign-up page and often have offers you won't find elsewhere.
We're experts
We've researched and rated dozens of exchanges for our Crypto Trading Platform Awards and are often called upon to comment in media.
We're independent
We're not owned by an exchange or investment firm. Our opinions are our own and we put our users first to help you find the product that's right for you.
We're here to help
We're a team of crypto nerds with extensive experience in investing, trading and decentralised finance but we also remember how it feels to be a beginner.
How to choose the best crypto exchange in the UK
It's important to research a wide range of crypto platforms and compare the pros and cons of each option. The best crypto exchange for you depends on what you're looking for, so consider the following:
If you're a crypto novice, getting started buying and selling coins and tokens can be complicated and confusing. On the other hand, experienced traders may want a platform with special features such as advanced charting and order types, plus the option to trade on margin.
If you're a beginner at crypto trading, look for a platform with a straightforward user interface that's easy to understand.
Can you deposit funds into your account via bank transfer, debit card and/or PayPal? The more payment options an exchange has, the more convenient it generally is to use. Make sure your exchange has deposit and withdrawal options that work for you. Remember to check the fees associated with different methods.
First, consider the type of trades you want to place. Some exchanges offer these trading options:
Fiat-to-crypto
Crypto-to-crypto
Both fiat-to-crypto and crypto-to-crypto
For example, if you want to buy BTC with pounds, you'll need to find a platform that allows you to buy coins via bank transfer or card. Alternatively, if you want to exchange your BTC or ETH holdings for another cryptocurrency, you'll want a platform that offers direct crypto-to-crypto trades.
Consider which currencies you want to trade and which platforms list those currencies in one or more trading pairs:
Cryptocurrencies. There are thousands of different cryptocurrencies in existence, so don't expect to find them all listed on any single platform. Major cryptocurrencies such as BTC, ETH, XRP and others in the top 20 coins by market capitalisation are listed on an extensive range of exchanges. However, rarer altcoins may be much harder to find.
Fiat currencies. If you want to buy crypto with pounds, check which currencies the platform accepts.
You can find an overview of the crypto assets and fiat currencies that each exchange supports in the table. Read the full review for a more detailed analysis.
From depositing to trading and withdrawing funds, how much will it cost you to buy and sell crypto on each platform? Consider your payment method, the currencies you want to use and any discounts you may be entitled to when completing these calculations.
You can find detailed information on fees for each exchange by clicking on the "View details" text in the table.
Are there any limits on the amount you can deposit into your account or the amount of cryptocurrency you can buy or sell per transaction or per day? This question typically only applies to what some colloquially call "crypto whales" or people who make transactions ranging in value from hundreds of thousands to millions of pounds.
Most exchanges that require the Know Your Customer (KYC) process allow you to deposit and withdraw tens of thousands of pounds per day. This is more than most average traders deposit and withdraw on a daily basis.
How can you access your trading account? Certain platforms only allow you to trade through a web browser, but some have mobile apps. If trading on the go is important to you, it's worth reading up on whether or not the exchange has a mobile app and how easy it is to use.
Lending involves loaning out your cryptocurrency to other users or businesses who pay you a fee for doing so. Staking involves locking up your assets to help them secure a blockchain network.
Before using any exchange to generate yield, make sure you understand the risks involved, what type of earning the exchange offers and whether it's appropriate for your needs.
The price of a digital asset is determined by whatever people are willing to pay for it.
Most brokers or instant buy services charge a fee as part of the service it provides. This means you will pay anywhere from a fraction of a percent to a few percent more than the going rate of the asset when you make the purchase.
If you purchase your asset in the spot market, you can set the price that you want to pay and then wait for your order to be filled. For example, if you are willing to pay US$21,000 for 1 BTC, then you can set a limit order to buy BTC at that price in hopes that someone is willing to sell it to you at that price.
The level of liquidity on an exchange affects the ease and speed with which you can complete trades. If there's a high level of liquidity – in other words, if the exchange has a high trading volume – then trades should be completed quickly and easily.
One of the biggest benefits of trading on larger crypto exchanges is they get enough orders to match buyers and sellers without any difficulty. However, low liquidity can lead to substantial price fluctuations.
You can check websites such as CoinGecko or CoinMarketCap to get a better idea of an exchange's level of liquidity.
Most centralised crypto exchanges these days require you to complete a KYC or identity verification process.
But some exchanges still let you deposit crypto and trade crypto-to-crypto without completing the KYC process.
The said exchanges may not be properly regulated, so please proceed with caution if you choose to use these, especially if they are located offshore.
Keep in mind that these exchanges may limit the amount of crypto you can withdraw from the exchange on a daily basis.
For exchanges that require the KYC process, verification requirements vary. You will likely need to provide some or all of the following:
Your name
Your email address and phone number
Your address
Proof of ID
Proof of address
A photo of yourself holding a signed declaration
If you need to provide a wide range of personal information, it's important to be sure you're dealing with a trusted exchange.
It's also a good idea to research how long you can expect the verification process to take. For some exchanges, it can take up to 2–3 business days while others are near-instant.
Finally, be aware that some exchanges require you to complete additional verification tasks to unlock full account features and permit higher transaction limits.
What is the difference between a brokerage and an exchange? How long will it take for your transaction to be completed? Is one better than the other?
Broker. Brokers buy and sell cryptocurrency to you. They typically charge a convenience fee for this, which may be hidden as a spread or markup on the going market rate.
The advantage of using a broker is your transactions should be instant. When you purchase crypto using either the fiat you've deposited into your account or with a card, that crypto should be available to you right away.
The same goes for when you decide to sell your crypto for fiat. You sell the broker your crypto in exchange for fiat and the fiat should instantly register in your account.
Exchange. An exchange has a spot market, which is where users come to place buy and sell orders on the open market. Doing so allows you to set a specific price for an asset. For instance, if you think the price of Bitcoin will go down from US$23,000 to US$21,000, you can set an order for US$21,000 and wait for it to be filled. Likewise, you can set an order to sell your assets for a higher price than what is being offered.
Exchanges may also offer brokerage services.
Most exchanges allow you to withdraw crypto to your own wallet. This is sometimes not the case with brokers.
Whether you use an exchange or broker will come down to your own needs and whether you plan to trade regularly or make a few one-off purchases now and then.
Security is a crucial factor to consider when choosing a crypto exchange.
There have been more than a handful of cases in which exchanges have been hacked in crypto's history, so do your research on what security measures are in place to protect your funds.
Questions you should ask include the following:
Is the exchange ld and regulated by the proper authorities?
Is 2-factor authentication (2FA) – a code sent to your phone each time you log in – supported?
What percentage of customer funds are stored offline or in cold storage? Cold storage refers to storing the private keys to digital assets somewhere offline to greatly reduce the ability for hackers to access the assets.
What level of verification is required to open an account?
Have you checked the exchange's trust score on CoinGecko or CER?
Though authorities across the globe are starting discussions around how to regulate the crypto industry, cryptocurrency and crypto exchanges are not regulated in the UK. However, to operate in the UK, an exchange needs to be registered with the Financial Conduct Authority (FCA).
It is important to do your research and find out whatever information you can about the platform operators, including whether they are registered as a cryptoasset business with the FCA. You can find this information in our crypto exchange reviews. It's also worth noting that due to some local requirements, UK users will not be able to access certain exchanges or specific features. So make sure to check the fine print to find out whether any geographical restrictions apply to you.
This is a crucial but often overlooked factor when comparing crypto exchanges. If you ever have a problem with an individual transaction or with your account, how will you access a platform's customer support team?
You'll need to consider the following:
Is customer support available through email, phone and/or live chat?
Is support available 24/7 or only during specific hours?
How quickly does the support team respond to inquiries?
Is support offered in a language you are comfortable speaking?
Does the exchange have a reputation as a secure and reliable platform? Finder has reviewed a number of crypto exchanges to craft a list of the best crypto exchanges in the UK.
In efforts to assess the soundness and reliability of crypto exchanges, we look at whether or not exchanges are properly regulated, how they secure the private keys to the crypto they hold and the level of customer support they provide, among other factors.
You can also read our dedicated review for each exchange or see what other users think of the platform using a third-party service like Trustpilot.
Using FCA-registered exchanges to buy cryptocurrency
There are plenty of places to buy crypto, including platforms founded here in the UK or based in locations all around the world. Exchanges headquartered locally are required to register with the FCA and comply with requirements that don't apply to global platforms. Depending on your goals, this may have some benefits or drawbacks.
Pros
UK-based exchanges must comply with the FCA's anti-money laundering (AML) and counter-terrorism financing (CTF) reporting obligations.
You can usually buy crypto with GBP.
Exchanges in the UK typically support local payment methods.
You may be able to access local customer support.
Subject to local laws.
Cons
You'll need to provide your personal details and proof of ID – a disadvantage if you want to trade anonymously.
Overseas trading platforms may provide better liquidity.
GBP-to-crypto prices are sometimes slightly higher than USD-to-crypto prices, meaning you sometimes pay a premium for buying directly with pounds.
Some features are simply not available on FCA-registered exchanges. For example, margin trading, DeFi features and some altcoins.
Compare more crypto trading platforms and apps in the UK
Use the table to compare crypto exchanges and platforms on fees, range of cryptos, deposit methods and more. Once you've found the right fit, select Go to site to get started.
1 - 6 of 6
How to use a cryptocurrency exchange
For the sake of our example, let's assume that you have £500 that you want to use to buy Bitcoin (BTC).
Register for an account on the platform and provide any personal details and proof of ID required.
Navigate your way to the "Buy" screen.
Select BTC as the cryptocurrency you want to buy.
Select your payment currency, which in this case is GBP, and specify the amount you want to spend as £500.
Select your payment method, such as a debit card payment or bank transfer.
Enter your payment details, such as your account number if sending a bank transfer or your card number and CVV if paying by card.
Review the full details of your transaction, including the fees that will apply and the amount of BTC you are purchasing.
If you're happy to proceed, click "Buy BTC".
Once the transaction has been processed, the BTC will be deposited into your exchange wallet. However, please note that some brokers will automatically send your purchased BTC to an external wallet address that you nominate.
How to pay for your cryptocurrency in the UK
Crypto exchanges in the UK support a range of deposit methods, including the following:
Debit cards
Bank and wire transfers
Cryptocurrency transfers
Peer-to-peer (P2P) payments
Neteller, Skrill and other online payment services
SEPA
SOFORT
Accepted payment methods vary between exchanges. Prior to signing up, it's worth checking that your preferred payment method is supported.
Risks of using a crypto exchange
Cybersecurity breaches. Hacks and scams are, unfortunately, commonplace in the crypto space. Exchange-related security breaches and targeted phishing scams remain a major concern for exchanges and their customers.
Not your keys. "Not your keys, not your crypto" is a common industry saying and refers to holding your digital assets in a wallet that another person or company controls, such as on an exchange. By storing cryptos on an exchange rather than
in a non-custodial wallet, you're relinquishing full ownership of those assets and putting trust in a third party – which some may see as contradictory to the decentralised philosophy of crypto.
Lack of consumer protection. While crypto exchanges are increasingly regulated in the UK and may be registered with the FCA, they are still lacking a lot of consumer protections such as mandatory insurance or strict rules about how user assets are managed.
Proof of reserves. Since the widely publicised collapse of FTX, many traders and investors have demanded centralised exchanges provide proof of reserves and user deposits. This may be done by a third-party auditor or through the use of on-chain data. Proof of reserves is still an evolving concept, and it's not clear yet what the best practices are or how reliable it will prove to be.
Transaction limits. Most crypto trading platforms have daily deposit and withdrawal limits. This means that even though you may have, for example, 10,000 GBP available, you may not be able to access and withdraw the total balance. Transaction limits depend on the exchange and the FCA stipulations and typically increase as you provide additional KYC information.
Frozen accounts. Crypto exchanges freezing deposits and withdrawals can happen without warning. If your account is frozen, you will not be allowed to remove your funds until the exchange approves or denies your request. Precautionary measures such as only holding a trading balance on an exchange are recommended.
Asset delistings. Centralised exchanges can opt to delist a cryptocurrency at any time. This can happen for numerous reasons, including poor asset performance, security concerns or anti-money laundering (AML) breaches. If delisting is taking place, you will be notified by the exchange and forced to sell your assets or remove them from the platform.
Is it safe to store your cryptocurrency on an exchange?
Cryptocurrency is held in digital wallets. Some exchanges will give you your own wallet that lets you hold cryptocurrency in your exchange account and then transfer it anywhere as desired.
However, once you have purchased what you consider to be a sizeable amount of digital assets, you may want to consider transferring the private keys to those assets to a self-custodial wallet.
This is because the exchange controls the private key to your wallet, which means you don't have total control of your funds. And with exchanges sometimes falling victim to hackers, there is some degree of risk involved with leaving the private keys to your crypto in the hands of a centralised exchange.
We polled 56 specialists in the fintech industry to get their opinion on what the future looks like for centralised crypto exchanges and what the demise of FTX means for the crypto industry.
The vast majority of our panellists (83.93%) don't think the collapse of FTX was the beginning of the end for crypto, while 8.93% think it was and 7.14% are unsure.
However, because of the FTX collapse, more than half of our panellists (58.49%) believe that crypto exchanges should be regulated just as much as other financial trading platforms.
22.64% believe that crypto exchanges should be regulated, but less so than other financial trading platforms. 15.09% don't believe that crypto exchanges should be regulated to the same degree.
Over one-third of our panellists (35.19%) believe all crypto exchanges will be regulated as traditional financial institutions by 2030. A further 22.22% believe this will happen by 2025 and another 14.81% think it will happen by 2024.
In the future, the majority of our panellists (86.79%) feel that crypto exchanges should be required to disclose both their proof of reserves (PoR) and records of their liabilities.
42.31% think that more crypto exchanges will face bankruptcy as a result of a reduction in their customer base. 15.38% believe this will play out over the next 5 years while a quarter (26.92%) think it'll happen within the year.
Finder surveyed 56 fintech specialists in January 2023. Panellists are able to answer as many or as few questions as they like, meaning the number of responses received varies by question. Panellists may own some cryptocurrencies.
Meet the panel
Bottom line
Not all crypto exchanges are created equal and not all crypto buyers and sellers have the same trading needs. The best exchange or platform for one person might not necessarily be the right choice for someone else, so it's essential to do your own research.
Read our reviews of some of the most popular cryptocurrency exchanges in the UK and around the world before you decide which to use. Compare the features, fees and pros and cons of each platform and consider whether they align with your investment goals and budget.
Frequently asked questions
It is important to understand that cryptocurrencies are not currently regulated in the UK. The Financial Conduct Authority's (FCA) position on cryptocurrency is that "Cryptoassets are considered very high risk, speculative investments".
However, as of 31 March 2022, all cryptocurrency exchanges need to be registered with the FCA in order to operate in the UK. Currently registered exchanges include Ziglu, Zumo, Coinpass, CoinJar and eToro.
There is no financial insurance scheme in place for cryptocurrencies. So any deposits that you have with a cryptocurrency exchange will not be protected by the Financial Services Compensation Scheme (FSCS).
Some crypto exchanges have their own insurance policies in place to protect your cryptoholdings against cybercrime. When researching which crypto exchange in the UK to use, remember to take a look at what insurance and security features the exchange has in place.
The safest exchanges are those that have stringent security measures, such as 2-factor authentication, an insurance fund and cold wallet storage in place.
Crypto isn't regulated, and even with registered firms, you don't get the protection you'd get with regulated services, such as access to the Financial Ombudsman if you have a complaint.
Keep in mind that all centralised cryptocurrency exchanges are vulnerable to hacking, so consider using a hardware wallet for added security.
There are lots of fees to take into account when choosing an exchange. Transaction fees are the most transparent, but it is "spreads" where costs can really add up. CoinJar is known for having a very low spread as well as no deposit or withdrawal fees.
There can be plenty of other fees to weigh up when picking an exchange. A good place to start is by comparing fees with our table.
Due diligence and research are incredibly important when choosing a crypto exchange you can trust. As a good rule of thumb, look for platforms that are registered with the UK's financial watchdog, the FCA.
A great way to dive deeper is by reading our extended reviews of each crypto exchange and researching customer feedback on platforms like Trustpilot as well as industry data.
Exchanges in the UK and several other countries are subject to anti-money laundering and counter-terrorism financing (AML/CTF) laws. In order to comply, exchange operators must gather certain details about their customers – which is why you may be asked to provide proof of ID. This process is typically referred to as "know your customer" or KYC.
To answer this question, you'll need to research a number of crypto exchanges and compare their features and fees based on your needs and budget.
In order to operate in the UK, all cryptocurrency exchanges need to be registered with the FCA. You will be able to find a list of registered exchanges on the FCA's website.
It is important to understand that while registration allows crypto exchanges to operate in the UK, cryptocurrencies are not regulated.
In order to buy and sell crypto in the UK, you either need a broker or you need to sign up to a cryptocurrency exchange. Increasingly, you can buy and sell crypto through banking apps like Revolut. And ETFs are also available for selected crypto coins.
Yes, it is legal to buy and sell Bitcoin (BTC) in the UK. In order to ensure you're being legally compliant, it's a good idea to only use crypto exchanges which are registered with the Financial Conduct Authority (FCA). All of the crypto trading platforms we recommend are FCA registered.
Yes, you can trade crypto legally from the UK on FCA-registered exchanges like those recommended by Finder. Regulations on crypto change frequently, so it makes sense to keep an eye on the news, but there are currently no signs that crypto trading will be made illegal in the UK.
Altcoin stands for alternative coin, and refers to any cryptocurrency other than Bitcoin (BTC). This broad term covers everything from coins like Ether (ETH), which was released in 2014 and has a 12-figure market cap, right down to brand new crypto coins which were invented this morning.
To trade crypto, there has to be a buyer and a seller. The people adding to the order book are makers. For example, if you're selling a coin at a high price. These orders didn't exist beforehand, so you're making more options available. If you buy or sell at a price which is already available, you're taking options away. Both makers and takers can be charged a fee when trading, called - you guessed it - maker fees and taker fees.
Yes, Bitcoin is also known as BTC (and, less commonly, XBT). All cryptos have a 'code', called a ticker symbol, which is often three letters but can be four or more. The two are interchangeable. Bitcoin is BTC, Ether is ETH, Ripple is XRP and so on.
It's up to you whether you want to leave your funds on an exchange or store them in your own private wallet, which can be done either online or offline. If you do choose to leave your funds on an exchange, it would help to choose one which has additional insurance. This is because the exchange could be hacked, which is something that has happened at very large crypto exchanges in the past.
In order to buy and sell crypto in the UK, you either need a broker or you need to sign up to a cryptocurrency exchange. Increasingly, you can buy and sell crypto through banking apps like Revolut. And ETFs are also available for selected crypto coins.
Yes, it is legal to buy and sell Bitcoin (BTC) in the UK. In order to ensure you’re being legally compliant, it’s a good idea to only use crypto exchanges which are registered with the Financial Conduct Authority (FCA). All of the crypto trading platforms we recommend are FCA registered.
Yes, you can trade crypto legally from the UK on FCA-registered exchanges like those recommended by Finder. Regulations on crypto change frequently, so it makes sense to keep an eye on the news, but there are currently no signs that crypto trading will be made illegal in the UK.
Altcoin stands for alternative coin, and refers to any cryptocurrency other than Bitcoin (BTC). This broad term covers everything from coins like Ether (ETH), which was released in 2014 and has a 12-figure market cap, right down to brand new crypto coins which were invented this morning.
To trade crypto, there has to be a buyer and a seller. The people adding to the order book are makers. For example, if you’re selling a coin at a high price. These orders didn’t exist beforehand, so you’re making more options available. If you buy or sell at a price which is already available, you’re taking options away. Both makers and takers can be charged a fee when trading, called – you guessed it – maker fees and taker fees.
Yes, Bitcoin is also known as BTC (and, less commonly, XBT). All cryptos have a ‘code’, called a ticker symbol, which is often three letters but can be four or more. The two are interchangeable. Bitcoin is BTC, Ether is ETH, Ripple is XRP and so on.
It’s up to you whether you want to leave your funds on an exchange or store them in your own private wallet, which can be done either online or offline. If you do choose to leave your funds on an exchange, it would help to choose one which has additional insurance. This is because the exchange could be hacked, which is something that has happened at very large crypto exchanges in the past.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
Was this content helpful to you?
Thank you for your feedback!
Written by
Kate Steere
Kate Steere is an editor at Finder, specialising in fintech, banking and cryptocurrency. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run. See full profile
A comprehensive review of Uphold, the cloud-based financial services platform where you can hold, move, convert and transact in fiat currency, cryptocurrency and even commodities.
Check out our complete review of Coinbase to see if it’s safe, weigh up pros and cons, compare fees and learn what you can do on it beyond simply buying cryptocurrency.
If you’re thinking of buying and selling cryptocurrencies on eToro, make sure you check out our comprehensive eToro review first to understand the pros and cons.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
