Every cryptocurrency other than Bitcoin is considered an Altcoin. Designed for varying purposes, there are around 10,000 Altcoins in the crypto market. Since Altcoins are created upon perceived limitations of the cryptocurrencies they are forked from, they tend to pose more advanced features than their competitors. With higher survivability and a wider option to choose from, Altcoins are in major demand.
Key takeaways
- Regulation, security, customer support, insurance, review and ratings, and multiple cryptocurrency support are the basic conditions to check while choosing a cryptocurrency exchange platform.
- eToro, OKX, Coinbase, Kraken, and Uphold are the popular exchange platforms in the United Kingdom.
Factors to consider before choosing a crypto exchange platform
1. Regulation
Choose an exchange platform that is regulated by an authority. In the UK, the Financial Conduct Authority monitors the operations of exchange platforms to ensure the funds of investors are protected.
2. Security
Select an exchange platform with advanced security features including two-factor authentication, SSL encryption, and cold storage.
3. Customer support
A trading platform with good and efficient customer support offers instant assistance in solving issues and concerns.
4. Reviews and ratings
Choose an exchange platform that has positive reviews and ratings. Learning the opinions of other investors helps in knowing more about the workings of the platform, helping you to conclude whether to utilize the platform or choose alternatives.
5. Supports multiple cryptocurrencies
A multiple cryptocurrency platform gives a wider option to choose from. It allows ease of transfer of funds from one to another.
6. Insurance
Choosing a platform with insurance adds an additional layer of security.
Top 5 platforms for buying Altcoins in the UK
1. eToro
In the United Kingdom, eToro is a prominent cryptocurrency trading site. The copy trader feature allows an investor to follow and copy trades to other users, mainly benefiting the new investors. With more than 100 cryptocurrencies, the platform allows trade even with a 10-dollar investment, making it a beginner-friendly platform.
Benefits of exchanging in eToro
- Low transaction fees.
- Provides a variety of investment options.
- Ability to buy fractional shares.
- Supports 100 cryptocurrencies.
2. OKX
OKX is one of the most preferred crypto exchange platforms for Altcoins in the UK. Abiding with the Financial Conduct Authority regulations, it offers a secure and safer exchange environment. It uses multi-factor authentication and a cold storage mechanism to protect the funds. The maker and taker fees are 0.08% and 0.1% respectively.
Benefits of exchanging in OKX
- Publish regular reports of Proof of Reserves.
- Uses advanced trading tools to provide better insights and charts.
- High liquidity.
- Automated trading using bots.
3. Coinbase
Coinbase is a well-known cryptocurrency exchange platform because of its simple and user-friendly layout. The Coinbase Visa debit card allows the spending of cryptocurrency like normal fiat currencies. The Coinbase wallet supports more than 4000 digital assets including NFTs. In contrast to other UK exchanges, it charges a larger price.
Benefits of exchanging in Coinbase
- Supports more than 200 cryptocurrencies.
- User-friendly interface.
- High liquidity.
- Multiple security features to secure user assets.
4. Kraken
The user-friendly and easy-to-use features of Kraken make it one of the best platforms for beginners. The low trading fees and higher level of security allow a convenient and comfortable exchange.
Benefits of exchange in Kraken
- Efficient customer support.
- Advanced tools for experienced traders.
- Regular proof of reserves reports to monitor user asset backing.
- GBP and EUR crypto pairs for main cryptocurrencies.
5. Uphold
Uphold is one of the premium exchange platforms for crypto investors. The intuitive interface allows users a seamless cryptocurrency exchange. The transparency and security offered by the platform are unmatchable.
Benefits of exchanging in Uphold
- Broader availability of tokens.
- Instant conversion among supported assets.
- Advanced trading features include taking profit and trailing stop loss.
- Transaction scheduling feature automates trade.
Guide to Buying Altcoins in the UK
Since the trade of cryptocurrencies is legal in the UK, buying, selling, and exchanging them is easy. One has to choose a platform that abides by security and is friendly for UK users. Here is a simple step-by-step guide for buying Altcoins in the UK.
1. Select a UK cryptocurrency exchange.
Choose a reliable crypto platform to buy the Altcoin. A secure, cost-effective platform, abiding with the UK regulation allows a safer buy. Choosing a platform that follows the rules set by the Financial Conduct Authority (FCA) adds to the advantage of trading.
2. Create an account
Head to the site you intend to trade, and choose the ‘sign-up’ option to create an account. One can either use an email address or phone number to complete the registration process. Once the registration process is complete, the site will direct you to the ‘Know Your Customer’ (KYC) process to verify your account by submitting documents like a passport or driving license.
3. Add funds to your account
Go to the deposit section and choose the currency you prefer in exchange for buying the Altcoins.
4. Buy Altcoin
Choose the Altcoin you prefer to buy and the payment method. Then click ‘buy’ to receive the Altcoin to your exchange wallet.
5. Store the Altcoin
One can either store it on the exchange platform itself or transfer it to a non-custodial wallet. If you prefer a third-party wallet, you can use Ledger Nano X.
Bottom Line
There are thousands of Altcoins available in the market, making it difficult to analyze which ones are legitimate and which ones are not. Choosing a legitimate exchange platform eliminates the issue to a certain extent. A trustworthy exchange platform ensures security, follows regulatory guidelines, and provides a systematic exchange mechanism.