How to Buy Bitcoin in the UK
There are hundreds, if not thousands, of bitcoin wallets accessible in the UK. More importantly, there are also different cryptocurrency exchanges in the UK. That said, the first step to buying bitcoins in the UK is finding the right crypto-exchange.
With that in mind, Binance is arguably the best cryptocurrency exchange platform in the UK. So, this article will take you through the step-by-step process of buying bitcoins using Binance. Without further ado, let's get started?
What is Binance?
Binance is a cryptocurrency exchange that offers its services to most countries globally, including the UK.
The best part about Binance is that it provides different trading options that you could profit from.
Binance is a crypto-to-crypto trading market; hence you can trade your coins for other crypto-coins.
Binance was established back in 2017 in China but later moved its headquarters to Japan. That's because China had strict rules and policies.
The man behind this outstanding platform is Changpeng Zhao, popularly known as CZ. The company was started through an ICO (Initial Coin Offering).
An ICO is almost similar to crowdfunding because people invest in your company to boost its capital and help it start. Every investor who financed this exchange got Binance Coin in return for their investment.
The initial value of Binance Coin was $0.1, but it's been on the rise ever since then. That's because the platform continued to gain popularity over the years.
Zhao's CV shows his experience as a technical director in some of the world's biggest companies. He's the right candidate to spearhead an advanced cryptocurrency platform like Binance.
Currently, Binance is one of the leading cryptocurrency platforms in the world.
Binance Unique Features
Without a doubt, Binance has come a long way from its original design. This platform has gone through several upgrades hence creating a responsive and intuitive interface. What's more, the crypto site has new features that are quite impressive.
That said, let's take a look at some of the features that Binance offers.
- Binance Review 2021: P2P Trading
The site offers peer to peer trading exchange for cryptocurrencies. That means Binance connects buyers and sellers directly while at the same time giving them different payment options.
This site works in connection with some of the local payment options in several countries to provide seamless transactions. The best part about P2P trading is that it allows you to use fiat payment options while working with various cryptos.
Credit or Debit Card
Even though platforms like BitMEX are known for their outstanding performance, the site doesn't allow fiat deposits. Yes, you heard that right! More importantly, at BitMEX, you can only deposit or withdraw bitcoins. That is an excellent way to increase the adoption of cryptos, but it also makes it quite challenging to integrate cryptos and fiat transactions.
Thankfully, that's not the case on Binance. Without a doubt, aside from crypto deposits, Binance also allows you to purchase cryptos directly using your credit or debit card.
You can buy over 31 different cryptocurrencies using your credit card. However, this service also includes a 3.5% service fee charge when working with USD.
Future Trading on Binance
To most new traders, futures trading could be a bit complex to understand. However, the concept is relatively easy to grasp. But if you haven't ever traded on futures, then it's probably a good idea to stick with margin trading, which is also offered on this platform. Now that that's out of the way, let's talk about future trading on Binance.
Futures trading on this platform is a recent feature that was added only a couple of years back.
With futures trading, you don't necessarily own the cryptos-no siree! This type of contract grants you the chance to use leverage and open a long or short position.
In layman's terms, future trading is typically predicting a certain crypto-coin price over a specific period. When your prediction is right, you are rewarded for that. The user experience on future trading on Binance is relatively smooth and easy to understand once you get the concept.
Currently, futures trading on BTC has exceeded the volume of BTC/USDT. That shows how popular this feature is to most traders. Future trading employs perpetual contracts, making them stand out from the market's traditional future trading protocols.
That's because the perpetual contract doesn't have a pre-set expiry date or settlement period. With perpetual contracts, the trader can terminate the agreement whenever they want. Above all, these contracts are anchored to the spot price.
The bitcoin future is traded on the USDT, which is a stable coin. Additionally, the maximum limit you can have on future quarterly leverage is 125X. This leverage is higher compared to most cryptocurrency exchanges in the market.
Binance Review 2021: Spot Trading
Aside from future trading, Binance also offers spot trading. Here, you can select from two different interfaces depending on your level of expertise.
The classic interface allows you access to the market and trading pairs, but it's a bit simplified. Even if you don't have any trading experience, you'll quickly understand how spot trading works on the classic interface. However, the advanced interface is a bit challenging.
This interface provides you with advanced tools that could smoothen your trading experience. But it's only ideal for advanced traders.
I'm sure you are probably wondering; what is spot trading in crypto? Spot trading is similar to peer-to-peer trading, where buyers and sellers come to one place and trade their cryptocurrencies.
The most notable feature of spot trading is that the payment is instantaneous.
In this type of trading, what you do is ask for an offer for the cryptos. Then as soon as the bid reaches your exact value, the trade is executed immediately.
Another critical feature of spot trading is that the trade is always available 24/7 throughout the year.
Additionally, as you trade, the funds can be exchanged in your account at any time of the day. On Binance, traders do not need a broker to execute this trade. It's pretty straight forward and favored among new traders in the market.
However, the profit levels pale in comparison with the future trading. All in all, spot trading carries fewer risks as opposed to future trading. All the same, it's an exciting way to grow your cryptocurrency capital.
Margin Trading on Binance
What is margin trading in crypto? Well, margin trading is a feature where you can use funds provided by a third party to trade in a particular asset.
As a trader, margin trading allows you to tap into a more considerable capital to leverage your position in a specific trade. In other words, margin trading only amplifies your trades so you can get substantial profits from your trade.
With this feature, you can now maximize your profits even in low volatility markets. That's why this type of trading is popular in the forex market. That said, Binance also offers margin trading to any interested. Traditionally, traders couldn't access margin trading without a broker.
However, in the cryptocurrency market, particularly Binance, these funds are provided by other traders. The traders earn interest in lending you the funds to trade based on the market and the capital demand. More importantly, specific cryptocurrency platforms provide margin trading funds to their traders, but this is less common.
Additionally, margin trading funds can be used to open future trading, and you can trade a long or short position. While the trade is open, the trader's funds act as collateral to the margin trading funds.
This fact is crucial for you to keep in mind. That's because most exchanges will reserve the right to sell off your funds if the trade goes against you.
So, whenever you enter the trade using margin trading, always remember this downside. All in all, margin trading typically grants you the chance to gain more from your trades.
Oh, did I mention that I've just described the difference between margin, spot, and futures trading? Well, there you have it!
Binance Saving and Staking
In addition to trading, Binance also offers several finance options, including saving and staking. The site comes with a fixed and flexible account for saving.
A flexible account means that you can withdraw your funds at any time, while the locked savings account has a set date when the funds will be available for withdrawal.
All in all, the locked savings account will typically feature a higher interest rate compared to the flexible one.
On the other hand, staking is a feature where users can earn from the proof-of-stake protocol.
Above all, you don't have to know the currency's technical knowledge to profit from the staking protocols.
All you have to do is deposit your funds to the staking coin of your choice. This feature also includes a fixed and flexible deposit. As always, the fixed deposit carries more interest compared to the flexible one.
Binance Mobile App
In our modern world, our smartphones seem like a part of our day-to-day activities. That's because we can do almost anything with our smartphones.
That said, Binance has also taken advantage of this aspect and designed an interactive mobile app that lets you perform most, if not all, the actions on the go.
The Binance mobile app is compatible with both android and iPhone users. That means that this app is available on Apple and Play stores.
With this application, you can keep up with your trades and execute new ones using your smartphone.
The app also has a robust security system that includes 2FA and fingerprint security.
Additionally, you have to use the Google Authenticator to gain access to this app. Therefore, you are sure your funds are safe even when you lose your phone.
Top-notch Security Systems
Both the mobile app and the web page implement the latest security tech to ensure your funds are safe and secure.
Binance uses cold storage to reduce the risk of losing your funds in case of a security breach. Above all, to beef up the security even further, the platform offers facial recognition and fingerprint scanning to its users.
That way, you can always be sure that your funds are safe and secure. Binance takes its security seriously, and the tech team is dedicated to providing the latest advanced features available in this sector.
Competitively Low Fees
There are hundreds, if not thousands, of new upcoming cryptocurrency platforms available in the market today. And with that in mind, to ensure Binance stays ahead of its competition, the website offers low, competitive fees.
There's a constant 0.1% flat rate fee for traders who are not in a rush to liquidate their coins.
More importantly, any trader on the futures contracts will enjoy very low fees that start at 0.02% for the makers and 0.04% for the takers. On top of that, trading with the Binance coin also comes with several perks.
With the Binance coin, you will enjoy a 50% discount on your trades. Deposits on this platform are free, but there's a fee for withdrawals. The prices are also updated regularly, and they are relatively fair.
How to Create an Account on Binance?
For you to buy bitcoins in Binance, you'll have to create an account on the platform. After that, you will get full access to buying, selling, or even trading with bitcoins. That said, here's how to create an account on Binance:
- Simply click on the green button below which will take you directly to their sign up page.
- You will then have to fill in your details, including your email and password, then tick on the 'I agree to Binance terms and conditions' section.
- You will have to validate your email address before continuing with the rest of the process.
- After that, Binance will require you to activate your 2FA for extra security measures. You can either use Google Authenticator or SMS to confirm this process.
- Once that's all done, you will get the level 1 status by verifying your phone number. However, the level 1 verification comes with a 2BTC withdrawal limit. To remove the limit, you will have to verify your documents, including your ID, and take a selfie.
How to Buy Bitcoin on Binance in the UK?
Now that you've created an account on Binance, the next process is to buy your bitcoins. The process is pretty easy and straightforward. That's all thanks to the simplicity of the Binance platform.
- You can link your account with your Debit/Credit card. Connecting your bank account or even card is easy on Binance.
- That will grant you access to buy bitcoins directly using the P2P trade. However, you can only buy bitcoins worth $15 or more. That will depend on the currency of your choice and also the country you are in. More importantly, you can use GBP, EUR, AUD, and other currencies to buy your bitcoins on this platform.
Benefits of Using Binance Cryptocurrency Exchange
Several benefits come with the use of this platform. That said, let's take a look at how this platform will positively impact your cryptocurrency investment journey.
- A vast number of crypto-coins
Binance has over 100 cryptocurrencies available for trade. From the well-known cryptos such as Ethereum and Litecoin to the smaller types, including ZCoin and CyberMiles.
That said, this platform gives you a chance to leverage some of the best opportunities in the market.
On this platform, traders get the chance to win prizes from time to time.
What's more, these rewards change, and so far, they've included winning free cryptocurrencies such as Ontology and Waves. However, there was a time the platform gave out a Maserati!
- High-security levels
The Binance tech team has gone above and beyond to ensure the platform is safe to use. Once you register, you will be required to enter a 2FA security.
Apart from that, Binance will also need to confirm your transactions by sending a unique code to your mobile phone.
- High trading volumes
The liquidity level of this platform is outstanding. It's one of the most comfortable places to trade your coins. That's all thanks to Binance's popularity in the cryptocurrency market. That's an essential factor, especially if you want to sell your cryptocurrencies immediately. Additionally, the platform is capable of handling up to 1.4-million transactions per second.
- Low trading fees
As I said earlier, one of the vital perks of trading on Binance is its low trading fees. Deposits on this platform are free, but there's a fee for withdrawals. Thankfully, there's no limit for deposits on this site.
However, you will have to verify your documents to transact 2BTC and above. Typically, if a specific crypto value increases, so does the fee since the percentage remains the same.
- Several financial options
Binance might be one of the few cryptocurrency exchanges that offer various financing options. These financial options include spot trading, futures trading, staking, and cryptocurrency loans. That means you don't have to switch from one platform to another to access a specific contract. What's more, transfers within the website are free.
The Downside of Trading on Binance
Every platform has its set of downsides, and Binance isn't an exception. The main disadvantage of trading on Binance is their customer support.
Most of the reviews on this platform have mixed reactions. Even though you can contact the support team using live chat and email, some users have complained of long delays.
However, the challenge might be because the platform has a large customer base. All in all, Binance still has one of the best support teams in the crypto exchange world.
Should I Trade on Binance if I'm not in the UK?
Binance offers its services globally. Therefore, that means this platform is available to anyone around the world.
What's more, Binance maintains seamless operations in most countries.
The best part is that this platform has integrated some of the local payment options in different countries.
As a bonus, you can purchase cryptocurrency coins from bank wires, credit, and debit cards.
Is Binance a Safe Exchange?
Even though Binance has had several security breaches in the past, the platform has ever since beefed up its security protocols.
Thanks to their technical team, Binance's security is always up to date with the current security trends.
What's more, the site stores its cryptos in cold wallets to reduce the hackers from getting access to the funds.
I hope you now understand how to create and also buy cryptocurrencies, and not just bitcoins, on Binance. Easy-peasy, right?
Without a doubt, Binance is one of the leading cryptocurrency exchanges in the market today. That's all thanks to its impressive interface and outstanding features.
With this site, you can leverage all the different financial options in the cryptocurrency world.
And on top of that, the platform also offers free education to its users on Binance Academy. Here, you can learn how to use and trade on Binance.
That said, if you don't know how to use the platform, you can always start by learning on the Academy section then work your way up. Thankfully, the Binance is here to stay, so there's no rush.
The best part about Binance is that you can also store your crypto coins on your account.
With the strict security measures, you don't have to worry about any security breaches. Hands down! This platform is worth checking out.