Who should make use of the comparison?
Our crypto exchange UK comparison isn’t just aimed at complete beginners and people who are relatively new to the world of cryptocurrency exchange. While we do most certainly aim to help new traders and investors get started, our expert comparison reviews are also here to help more seasoned investors who might be looking for a crypto trading platform in the UK with more capabilities or that’s better in dealing with higher volumes. No matter what functions you’re looking for from a crypto exchange UK, our expert comparisons are here to help you out. If you’re simply looking for a crypto wallet to store your crypto, or you’re looking to get into trading with a crypto broker, or even crypto mining, we’re confident you’ll find our comparison useful.
Exchange Checklist: Top5 steps for a secure & fair experience
License and regulation
The legislation and regulation surrounding crypto exchange in the UK is still rather unclear in some respects, as it is in many other countries. Since January 2020 the Financial Conduct Authority FCA) is responsible for regulating crypto exchange in the UK, however only as far as money laundering and terrorism is concerned, meaning they don’t monitor how crypto businesses in the UK treat their customers. The best ones should have an E-Money license as well as being regulated by the FCA.
You might think that a simple Google search could help you ensure that a crypto exchange UK is trustworthy, however it pays to be more vigilant and to dig deeper. Websites such as Trustpilot are helping in finding user ratings and reviews, but it’s important to check how many reviews a company has and to actually read the reviews themselves. If a company has a high rating, but a fairly low amount of reviews look into it further as there’s a high chance the positive reviews were written by people from inside the company. Also check where the reviews come from, BitMEX is one of the biggest crypto exchange platforms in the world, but was called out by the FCA for not being regulated, despite marketing itself to UK customers.
The UK implements General Data Protection Regulation through the Data Protection Act 2018, which restricts what companies can do with your data and also gives you the right to find out what they’re using your data for. That said it’s not absolutely foolproof and companies can exploit it, crypto exchanges in the UK included. Through urgent clickbait and lengthy small print, even some of the more reputable platforms will trick you into signing away some of your privacy.
While they’re not to be confused with one another, privacy and security do come hand in hand when it comes to finding a safe and secure crypto exchange in the UK. To highlight the differences; a private platform should protect your personal information and data, while a secure platform should ensure your money is completely safe. Some of the larger and more reputable crypto exchange platforms, such as Coinbase, keep client funds in an offline storage so that hackers cannot access them in any way. It is possible for a platform to be completely secure but not private. For example, some platforms require ID to sign in, which makes your account much harder to hack but also makes your personal documents and information available online. The best ones should have an offline storage space and a login system akin to that of online banking.
In order to have completely secure and safe experience when crypto trading in the UK, it’s essential to avoid scammers at all costs. The best UK crypto exchange platforms should have high enough levels of security and monitoring to keep scammers at bay, however any platform, no matter how secure, that allows person-to-person trading does leave potentially open to scammers, so it’s important to be vigilant.
Editor’s recommendation – the best exchange
Selecting one platform to be above all others is a near impossible task, especially as our aim is to help find an exchange for every type of individual and investor. However, if we were to choose one that’s well balanced and has a happy middle ground to suit everyone, then the best crypto exchange for us is Cex.
Based in London, at the epicentre of crypto exchange UK, Cex have been around since 2013. Cex offers an extensive range of Crypto currencies that would entice even the most seasoned crypto investors. If that sounds overwhelming, you needn’t worry. Their platform is well laid out and easy to use, making it ideal for beginners who’re just starting out in the world of cryptocurrencies.
Their fees are pretty fair and reduce depending on how much volume you’re working with. They are, however, far from perfect and users have reported certain problems, especially related to slow withdrawal times. The good news is that this downfall is counteracted by the fact that Cex’s customer service team are known for being on the ball and having a speedy response to customer complaints. They also generally take the time to reply to both their positive and negative reviews across a range of platforms.
A nice feature of Cex’s website is that they have a Bitcoin – GBP exchange widget that you can use without having to sign up. This means you can see how much of the cryptocurrency you could buy with your planned budget without having to commit to making an account first.
This is how our experts test exchanges
Our experts take a variety of elements into consideration when reviewing and comparing crypto exchange UK. Our experts test all of the top UK crypto exchanges themselves and assess other users’ experiences in order to create fair and balanced reviews. What’s most important for us is that all of the necessary elements we look for are balanced in the right way so that they work for each type of customer.
Below you can find an explanation of the main elements our experts look to tick off in our search for the best UK crypto exchange:
License and security
This encompases a few elements that we’ve already spoken about above. For our experts, a reputable crypto exchange UK should be regulated by the FCA and have an E-Money license at the very least. Any further licensing or registration with other regulatory bodies is a huge plus. What’s equally important is that customers’ money is secure and the login process is air tight while also protecting data and privacy. If a company isn’t properly licensed, our experts won’t continue assessing any other elements of the platform as we wouldn’t review or recommend anything that isn’t both legit and secure.
No matter how seasoned you are with cryptocurrencies and no matter the volume of money you’re working with, we believe it’s fair to say that everyone prefers an easy-to-use app or website. For those who are completely new to crypto exchange in the UK, a platform with good usability is certainly more important, and perhaps even essential. The world of cryptocurrencies can seem flummoxing at first, so it’s important to use a platform that displays the figures and information in a manner that’s easy to digest. Similarly the actual functions when it comes to buying crypto, trading and brokering should be seamless and as easy to do as possible.
Different types of user will require different capabilities; the best UK crypto exchange for you might not be the best for someone else. If you’re simply looking for a crypto wallet where you can safely store some Bitcoin to use for occasional payment and purchase needs, then it won’t be unnecessary for you to sign up to a high end broker and exchange platform. Complete beginners who are completely new to the world of crypto but are interested in trading should seek a beginner friendly easy-to-use platform that does have these capabilities. seasoned investors looking to up their game should make sure not to stunt their growth, even if some of the higher end platforms do appear more daunting and complex at first.
Range of cryptocurrencies
It all started out with Bitcoin in 2009, and today there are quite literally thousands of different crypto currencies to choose from. The best UK crypto exchange isn’t necessarily the one with the most different type of currencies on offer, however. If you’re already experienced and have a few crypto investments on the go already then yes, you might be interested in a platform that offers an absolute mountain of different options. However, if you’re completely new to crypto exchange UK, then having thousands to choose from will most likely seem incredibly daunting. For beginners it’s better to work with a smaller range of known crypto currencies, such as Bitcoin and Ethereum.
Fees; no one likes them, everyone has to pay them and we sadly can’t avoid them. When it comes to crypto exchange in the UK, you’ll most commonly encounter storage and translation fees. Fees are most commonly charged on a per transaction basis and are typically higher if you’re using a credit card to purchase cryptocurrency. Some crypto exchange platforms do charge a monthly fee instead, which can be good as long as you’re using the platform enough to make the monthly fee lower than your transaction fees would be. The good news for people working with larger volumes of money is that transaction fees tend to get smaller as volume gets higher, with some platforms even completely waving transaction fees once volume hits a certain level.
Finding the right exchange for you
So how can we find the best UK crypto exchange for you? What’s important to consider here is how experienced you are, how much money you’re working with and what you’re looking to get out of a potential crypto exchange platform.
This is the most important thing to consider as you don’t want to end up confused and out of your depth, plus some trading and investment platforms have high loss risks. If you’re new to crypto, best use a simple platform with a small selection of cryptocurrencies that comes recommended for beginners.
What do you want to do with your crypto?
If you’re just looking for a crypto wallet, then signing up for the best crypto trading platform in the UK would be a bit unnecessary. Whatever you plan on doing with your cryptocurrency, it’s important to choose an exchange platform that matches your needs.
There are different platforms suited for dealing with different volumes of money. If you plan on buying a high value amount of crypto there are high end exchanges that cater specifically towards big money clients. Similarly, there are smaller exchanges that cater towards the more casual investor. The more volume you’re working with, the more secure a platform you’ll be after.
As cryptocurrencies are slowly becoming increasingly more regulated and taxed in the UK and the world over, crypto investments are getting increasingly more secure and green lit by leading figures in the financial world. You should still invest with caution and make sure that you choose a safe and reputable exchange to keep your cryptocurrency with, which is what our experts are here to help you find. If we can leave you with any parting advice it’s this: find a secure and licensed platform that’s easy to use and has capabilities that are matched to your needs.