History Of Bitcoin To GBP Pairing
VirWoX exchange was the first exchange you were able to trade some virtual currencies against GBP in 2011. They use the SLL dollar system, which allows you to buy SLL first and only then exchange it for Bitcoin.
Taken the history of cryptocurrency in the United Kingdom, Bitcoin has been a renowned topic since its inception. Cryptocurrency has become of large interest amongst many, so that regular discussions on its growth, issues, and the innovative technology have been held since 2012. When the Bitcoin price hiked in 2013, the exposure to Bitcoin increased vastly and many businessmen decided that the UK is an excellent place to establish business headquarters.
Approximately 5,000 BTC are traded in GBP on a daily basis today. Although it is a small portion of the daily global trading volume, the British Pound is regarded as one of the most popular foreign exchange trading currencies globally.
Regulation Of Bitcoin In The UK
As the United Kingdom is known to be one of the economic hubs in the world, FinTech technological development has become increasingly popular in the UK. The UK is also seen to be the best place to establish your head office as the registration process of companies is easy and straightforward.
To date, not much attention has been given to Bitcoin by the UK Government, however, studies have been conducted with regards to the effect this might have on Consumer Protection, Taxation and Money Laundering in the country. It has been confirmed that Bitcoin is seen as another foreign currency and is thus treated as such in respect of VAT. No VAT is payable on Bitcoin exchanges as it is not charged on other exchanges, such as EUR or USD. Instances, where VAT will be levied, are where transactions take place by exchanging goods or services for Bitcoin.
Top 3 Sites To Trade BTC/GBP
The popularity of trading GBP for Bitcoin has increased over the last few years. Together with this, the number of platforms supporting the BTC/GBP pair has also increased. We have investigated some of the sites available and will provide insights on them.
About. The exchange is based in London, UK, so the BTC/GBP pair is especially popular among users. Known as one of the first companies to provide Bitcoin trading services, they are now available in 99% of all countries and 24 US states. The company is officially registered as a Money Services Business within FinCEN, so the user verification is done in correlation with AML/KYC requirements.
Verification. To verify identity you will be required to provide some personal information, Identity documents, photo with yourself and your ID. The number of documents required depends on the level of verification you aim to get (Basic, Verified, Verified Plus, Corporate).
Buy/Sell. Payments are quick and easy. In addition to bank transfers, they accept different types of paycards for deposits and withdrawals. Limits are incorporated according to your level of verification.
About. Founded in 2013, Coinfloor is now one of Britain’s largest exchange portals for BTC/GBP trades. As they are aware of the security and importance thereof, they happened to be the first introducer of cold storage wallets. All of their clients’ Bitcoins are stored offline. For extra confirmation, regular audits are published.
Verification. To pass through verification and use the services, you need to provide some personal details and a proof of identity (passport, driving license, etc.) The user may also be asked to submit a proof of address.
Buy/sell. Coinfloor is aimed at higher-volume traders, as the minimum deposit allowed is 1,000 GBP.
About. GDAX is an affiliate of Coinbase, the US-based exchange with its headquarters in San Francisco, California. GDAX has been operating since 2016 under the ownership of Coinbase Inc. and is focused on international markets. GDAX covers 27 European countries, Canada, UK, Australia, Singapore and those US states, where Coinbase is licensed. The platform has been designed for expert users, so it offers a wide range of advanced trading tools.
Verification. The registration and verification on GDAX are a bit complex and requires duel verification for the residents of certain countries.
Buy/Sell. Each trade will require two-factor authentication as this makes it safer and minimises risk.
*Note that while the BTC/GBP pair is available for trading, the wire transfers of GBP are not supported by GDAX so far.
There are also sites like LocalBitcoins, which is a peer-to-peer network where buyers and sellers are matched using the location services. It acts as a platform for direct person-to-person trading. The user posts a buy or sell offer and is prompted once someone agrees to the terms and is willing to make a transaction. As a rule, the users undergo no special identity check. They are not required to provide any identification documents except for a valid email address. So, the service is to be used with due caution.
Buying And Selling Options With BTC To GBP
Usually, you can buy BTC through online brokers or exchanges like those mentioned above. They allow you to use your credit card to fund your account, or, alternatively, you can use a bank transfer with the details and reference provided.
The first way to buy or sell Bitcoin is by trading, which can be done on the same platform. Here, you will need to place an order, which is to be completed under the conditions you specify. You can also set limits on your account when the trade needs to take place. For instance, sell limit for 0.06 Bitcoin is £450.00, once it reaches that limit it will automatically sell.
Some platforms, like CEX.IO, offer an opportunity to buy or sell Bitcoin instantly following the principle of a FOK order. The user sets the desired amount of Bitcoin to be bought or sold, and the system automatically checks whether the conditions can be met at once.
Fees For Deposits/Withdrawals And Trades
Most trading platforms have charges linked to the transactions.
- CEX.IO deposit/withdrawal fees depend on the method of payment you opt for.
- When depositing with Coinfloor they recall a flat fee of 5 GBP for a minimum of 1,000 GBP deposited while the withdrawal fee amounts to 10 GBP.
- GDAX charges €0.15 for deposits and withdrawals via SEPA transfer.
The trading fees among the exchanges under review do not differ broadly. They range between 0 to 0.30%, depending on the trading volume.
When trading, always ensure that the transaction you want to perform is safe and that you are in control of your own account.