Bitcoin Investment Guide UK

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Investing in Bitcoin is an exciting opportunity with significant risks. To mitigate these risks, it is crucial to conduct thorough research and stay up-to-date on market trends. It’s also advisable to start small and work with professionals with cryptocurrency investing experience.

How to Buy Crypto in the UK

Bitcoin investment guide the UK up for an account with a crypto exchange. Choose a platform with a simple user interface, high security features, and a large selection of cryptocurrencies to trade. Ensure the crypto exchange you select is FCA-registered and adheres to anti-money laundering (AML) and know-your-customer (KYC) regulations. Verify your identity and deposit funds to your account in GBP. Transfer your funds to a digital wallet for long-term holding or keep them on the exchange for trading and liquidity access.

How is Bitcoin Taxed in the UK?

When you sell crypto for GBP or another fiat currency, you’ll be liable to pay either Income Tax or Capital Gains Tax depending on the specific transaction. When you sell your crypto, you’ll need to know your cost basis, which is the fair market value of the crypto on the date you received it in GBP or your chosen fiat currency from a purchase, an airdrop, fork, or other means.

When you earn new tokens through investing in a DeFi protocol, earning liquidity pool or governance tokens, or from shopping to earn campaigns, this is considered Income and is taxable under UK tax law. However, a recent bill introduced to Parliament has clarified crypto’s legal status as personal property, which may change how investors are taxed in the future.

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