Cheapest Crypto Exchanges For UK Investors

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With dozens of crypto exchanges to choose from for UK investors, it can sometimes be a struggle to understand which is right for you and which is the cheapest.

It’s important to stress from the outset that the crypto exchange offering the lowest fees may not necessarily be the most suitable.

Why? The best exchange for buying crypto might be the one that offers simplicity and ease of use rather than the lowest fees, especially if you’re new to the world of digital assets.

Choosing the cheapest UK crypto exchange may save you money in trading fees but it could potentially cost you a lot more in terms of sleepless nights.

Before signing up to an exchange and parting with your hard-earned cash you should consider the following points:

• Is cost more important than ease of use?
• Are you interested in advanced trading options?
• How much crypto do you plan on buying?

Asking yourself these questions will help you narrow down which exchange is right for you.

Easiest to use or cheapest – which is best?

There’s often very little to distinguish the main exchanges from each other.

But, from my experience, Coinbase is one of the easiest to use for beginners. The trade off is that it’s not the cheapest.

Coinbase’s slimmed down platform makes buying crypto super simple and once you’ve passed the AML/KYC checks you’ll be buying crypto in no time.

But this comes at a cost – the fees for crypto buying and selling on the basic Coinbase platform are much higher than other exchanges.

However, you can cut these significantly if you use Coinbase Pro, although you’ll need to learn how to use a professional trading set-up to do this which might be a step too far for some.

That said, Coinbase is working towards merging the two platforms and providing a slimmed down ‘pro’ for everyday use which will make it a more competitive platform in general to use.

Easy-to-use UK crypto exchanges

Remember, there are many other options out there and things change rapidly in the cryptosphere, so spend some time researching the fees when you come to invest to ensure you’re getting the best deal.

For example, those new to the world of crypto should also consider eToro for ease of use. Traditionally a stocks and shares platform, the exchange branched out into crypto a few years ago and offers investors access to a limited number of coins.

The platform is extremely easy to use and if you’ve already got an account you can add some crypto to your portfolio in no time.

Bear in mind that you’re limited to what you can do on eToro in terms of moving your crypto around or sending it anywhere else.

Another incredibly simple, yet limited, option is PayPal. The payments giant added the option to buy crypto in 2021 and anyone with an account can purchase Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) or Bitcoin Cash (BCH).

The process is seamless, and the coins will be in your account immediately. You can sell you crypto just as easily as well, but you won’t be able to move them off the platform or send them to a third-party address.

The cheapest crypto exchanges

So, I’ve looked at the simplest platforms, but what about the cheapest which is what this article is all about?

From my experience, Binance offers the lowest crypto trading fees and, at the time of writing, is the cheapest cryptocurrency platform overall that UK investors can use.

Binance is one of the largest crypto exchanges in the world and offers a host of features, trading options and complex products.

You can use the platform to simply buy and sell mainstream cryptos like Bitcoin and Ethereum, but the process is nowhere near as intuitive as it is on platforms such as Coinbase.

There’s a steeper learning curve which may put off beginners, but if you persevere you’ll save yourself some cash, especially if you plan to make regular trades.

One small word of warning about Binance – in the past some UK banks, including Barclays, have blocked transactions with the platform, only to reinstate them at a later date.

This meant that you couldn’t fund your account or withdraw your money. Be aware of this in case further restrictions are imposed in the future.

There are many alternatives to Binance, and you’ll need to check the fees at the time of signing up to see which is the most competitive.

It’s also an idea to play around with a few different platforms before investing to see if you’re comfortable with the way they work and happy that you understand the processes involved, including how to withdraw your funds.

Aside, from Binance, here are some other crypto exchanges that offer competitive fees:

• Crypto.com
• Kraken
• Gemini

Where should I store my crypto?

During the crypto winter of 2022 there were growing concerns about the security of crypto exchanges and other platforms.

This led to a boom in hardware wallet sales driven by people who wished to move their coins off exchanges and effectively become their own bank.

‘Not your keys, not your coins’ is often cited in the same breath as warnings about losing your crypto if an exchange was to go bankrupt.

Transferring your coins to an offline storage solution not only protects them from this, but also keeps them safe from hackers.

How to earn interest on my cryptocurrency

If you don’t like the thought of your crypto languishing on a hardware wallet and would like it to work for you and earn a passive income you might want to move it to an interest earning account.

Crypto investors can earn bank-busting rates of return on their deposits, especially if you buy stablecoins or one of the other best cryptos for earning interest.

Many crypto exchanges will pay interest on your coins but they’re unlikely to offer the highest rates which is why you should look for a dedicated crypto interest and loans platform to maximise your profit.

Make sure you’re happy with the risks involved and do your due diligence before parting with your cash.

In 2022, one such platform – Celsius – filed for bankruptcy leaving thousands of investors in limbo without access to their funds.