There are many UK crypto exchanges, and their user interface differs. Some features will be seen on every platform; therefore, they can be easily located and used even as new and first-time users. However, using a cryptocurrency exchange is easy. You can follow the steps below to use an exchange:
1. Sign up with a reputable exchange with your email address, create the desired password and verify your email
2. Verify your identity and complete the KYC process to access full features and increase the transaction limit
3. Prioritize your account security by enabling 2FA and other measures
4. Fund your account by choosing the preferred fiat or crypto deposit option
5. For fiat deposits, you can transfer funds to the provided bank details. The deposit will reflect on your account once it has been confirmed.
6. Your preferred asset’s wallet address will be provided for deposits with crypto. The deposit will reflect in your account after successful network confirmation.
7. After funding your account, choose your preferred asset and locate “BUY”
8. If you want to exchange one cryptocurrency for another, you only need to locate the Market or Exchange section in the side or menu bar. Afterwards, select a preferred crypto pair, for example, BTC/ETH, to buy Ethereum with Bitcoin.
9. Choose your preferred order type and complete the trade
Where to Store Cryptocurrency After Buying on an Exchange
Storing cryptocurrency after buying is another common concern for beginners. After buying your preferred cryptocurrency, there are many platforms that serve as wallets for storing cryptocurrency. However, some exchanges usually have their own wallets, automatically making others incompatible with them. This is commonly done to keep users on their exchange platforms while offering needed services.
However, there are two main ways you can store your cryptocurrency after purchase. You can either use a hot wallet or a cold wallet. Paper wallets are also available.
Although cold and hot wallets works the same way, i.e. to store cryptocurrency, their main difference is internet access. Hot wallets require internet connectivity and are mainly used on mobile phones or desktops. These types feature public and private keys, a combination of words or characters to secure your wallet. It is also used to execute transactions.
Hot wallets are free, an advantage that makes them accessible to everyone. Additionally, hot wallets can store any type of cryptocurrency. However, due to their internet access, hot wallets are more vulnerable to cyber-attacks and can be hacked anytime than cold wallets. This, however, can be a huge concern to huge investors and traders.
A cold wallet is a hardware device, say like your leather wallet in which you can hold and carry about. Although not free, cold wallets guarantee a maximum level of security as long as it doesn’t have access to the internet. It is much harder to hack as long as it is unplugged from computer or mobile devices and therefore more reliable than hot wallets.
However, the main disadvantage of cold wallets is their high cost of purchase. Also, in contrast to hot wallets’ ability to store any cryptocurrency, cold wallets can store only a limited type of cryptocurrency. Additionally, it is highly susceptible to physical damage because it is a hardware device.
Apart from those two common types of wallets, there are paper wallets. Paper wallets offer the advantages of cold wallets for free. Paper wallets are also like cold wallets as they do not require network connectivity. It involves printing private or public keys as a QR code that can be stored and scanned when needed.
FAQs
Are UK crypto exchanges regulated?
There are no stringent regulations surrounding cryptocurrency and crypto exchange services in the UK. Although exchange services follow parameters set by Financial Conduct Authority, the registering body, there are no regulations for crypto exchanges in the UK. This is because cryptocurrency is viewed as a property that anyone can own.
Meanwhile, there is a non-mandatory regulation that crypto exchanges can purchase to protect their users and enhance security and reliability while improving their standing with the regulatory bodies. An example is the EMI (Electronic Money Institution).
What is the cheapest UK cryptocurrency exchange?
The cheapest crypto exchange in the UK depends on many factors that generally affect total costs like leverage, deposit method, fees, and the type of crypto you wish to buy. Binance is a good option to start with. However, its complex user interface can be complicated for beginners to navigate and use. Another recommended option is Kraken. Although it has a slightly higher fee than Binance, it is easy to navigate.
Do UK crypto exchange platforms offer leverage?
Leveraging is a normal offering from crypto exchanges. However, while some exchanges do not offer leverage, others offer leverage and advertise it.
Is Binance better than Coinbase?
This is a subjective decision that totally depends on your goals and the preferred functionality you want. The only disadvantage of Binance can be its complex interface for beginners. However, Binance offers a wide range of functionality at a very low cost. In contrast, Coinbase is generally easier to navigate, especially for beginners. Therefore, your preference can also be influenced by your proficiency in trading.
Meanwhile, it is essential to know that you can start with Coinbase while learning to get the hang of Binance, then switch once you think you are proficient enough.
Which crypto exchange is safest?
This is also another subjective question that depends on personal discretion. Crypto exchanges tend to provide the best service to their users, which builds a strong relationship between them. Therefore, users’ discretion of the best crypto exchange is personal.
Although rare, this doesn’t mean cyber attacks and hacking do not happen to some. It is highly recommended to check out reviews and recommendations so you can have an idea of how secure and reliable your preferred crypto exchange is.