How to buy cryptoassets in the UK — a practical guide
Quick answer: Pick an FCA-registered exchange, prove your identity (photo ID — normal for UK law), pay by bank transfer or debit card, and write down what you bought and when. Start small and never invest money you cannot afford to lose.
Most people buy crypto through a website or phone app — often called an exchange. This guide walks through the process safely, assuming you have never done it before.
Choosing a provider
Select a firm registered with the FCA under the Money Laundering Regulations. Compare fees (spread, trading fee, deposit and withdrawal charges), supported tokens, withdrawal options, and whether you can move assets to your own wallet.
Identity verification
UK AML rules require providers to verify your identity before you can trade. You will typically need photo ID and proof of address. This is standard across FCA-registered platforms.
Payment methods
Bank transfers are common and often cheaper than card payments. Some banks restrict payments to crypto firms — check your bank's policy. Credit-card crypto purchases may incur cash-advance fees and higher interest.
After you buy — records and tax
Note the date, number of tokens, sterling cost including fees, and transaction ID. Add the purchase to your token pool for future CGT calculations. HMRC expects you to maintain these records even if the exchange later closes. Download our free CSV template at /templates/.
Before you start — check you can afford the risk
Read our should-you-invest checklist and FSCS protection guide. The FCA warns you should be prepared to lose all your money. Verify the firm on the FCA register before sending pounds.
Selling for pounds
When you cash out, each sale is a Capital Gains Tax disposal. See our guide to selling crypto for pounds and when to report to HMRC.
Frequently asked questions
Can I buy crypto through my Stocks & Shares ISA?+
No. ISAs can only hold qualifying investments as defined by HMRC. Direct crypto holdings are not permitted in ISAs.
Is buying crypto legal in the UK?+
Yes. Owning and buying cryptoassets is legal. You must comply with tax and AML requirements.