How to buy crypto with a debit card in the UK

If you’re living in the UK, you might be wondering if you can use your debit card to make crypto purchases.

Well, you’re in luck! The process is quite simple, although there are some important factors to consider. In this article, we will show you how to buy crypto via debit card in the UK, any pitfalls to avoid, and answer any questions you might have.

Step 1: Get a Wallet

The first thing you’ll need to do is set up a crypto wallet to hold your assets. A crypto wallet is a way to manage your crypto safely and comes with two keys. A private key (for sending cryptocurrencies) and a public key (for receiving cryptocurrencies). You’ll need to keep these keys safe as they allow you access to your funds. If you lose them, you may lose all your crypto!

A wide range of crypto wallets are available, and each comes with its advantages and drawbacks. Most software wallets are either self-custody (you manage your own keys) or custodial (a third party, such as an exchange, manages your keys for you). 

Some popular wallets include:

• Binance: Binance offers a custodial wallet and exchange. However, they recently announced that all GBP withdrawals and purchases would be halted from May 2023. 
• Coinbase: A popular crypto exchange, Coinbase offers a custodial or self-custody wallet. The platform often charges high fees for crypto transactions. 
• Metamask: Metamask offers a self-custody wallet that you can connect to several exchanges to buy cryptocurrencies. This option may be more complex for beginners.
• CryptoWallet: We offer a convenient crypto wallet that supports multiple currencies and can be used on our platform to buy crypto with a debit card. 

We’ll walk you through the process of buying crypto with a debit card using the CryptoWallet wallet. 

The first thing you’ll need to do is set up an account with CryptoWallet. The registration process takes just a few minutes, and you’ll be asked to verify your identity.

We’ll guide you through setting up a crypto wallet and provide you with a seed phrase. This string of words is needed if you lose access to your account. Make sure to store this seed phrase somewhere secure on paper.

Step 2: Top it Up

Once you’ve set up your crypto wallet, you’ll need to top it up with fiat money and use it to buy crypto. We’re going to look at how to buy Bitcoin with a debit card for this example. 

Head to the Buy section on the CryptoWallet app. Choose the cryptocurrency you want to buy—in this case, Bitcoin—and confirm the amount you are willing to buy. You’ll be shown the value in GBP and Bitcoin. 

Choose Buy, and you’ll be taken to the payment page, where you can use your debit card to pay for your Bitcoin purchase. Your fiat will be exchanged for cryptocurrency in your wallet. This transaction may take a few minutes to clear and appear in your wallet. And that’s how you buy bitcoin online with a debit card in the UK.

Step 3: Spend it

Now that you’ve bought your cryptocurrency, you may want to spend it with UK retailers who accept Bitcoin, like Lush, Shopify, and Starbucks. For other shops, you’ll need to convert your crypto back to GBP. You can do this in several ways.

You can sell it for fiat through an exchange and transfer it to your bank account. This may take several days to clear and incur high fees. 

Another option is withdrawing your funds to a debit card or credit card. Some platforms like Coinbase and Binance support this and charge a fixed percentage fee for the process. You’ll need to use their platform to convert your crypto and then transfer it to your card.

However, you won’t be able to withdraw your crypto at a Bitcoin ATM in the UK. Crypto ATMs are prohibited in the UK, and you could face serious repercussions for doing so. 

If you’d like to spend your crypto and withdraw it from an ATM easily, a great solution is a crypto card. This works like a debit card; you can spend it in shops and online or withdraw it from an ATM. Your crypto will be sold for fiat money at the point of sale. Then you can withdraw the fiat money through a standard ATM. 

Our upcoming crypto card due to launch later this year has low fees and will support over 800 currencies. You won’t need to convert funds or go through any complex process. You can simply spend your crypto directly through your card.

Fees

Each platform will charge different fees for buying cryptocurrency with a debit card. It’s worth looking at multiple platforms to find the best place to buy bitcoins with debit card. Your bank may also charge additional fees. 

For the wallets we’ve mentioned, here are the fees they charge:

• Binance: Binance charges 0.5% for crypto purchases and a 0.1% trading fee
• Coinbase: Coinbase charges a 3.99% fee for debit card purchases over £200 as well as additional fees for using the platform including a 0.5% spread fee. 
• Metamask: As a self-custody wallet, you won’t be able to buy cryptocurrency through their services at all.
• CryptoWallet: CryptoWallet charges a 0.8% conversion fee for spending and withdrawals.

Pitfalls

Be careful with which platform you choose to buy cryptocurrency. Some platforms will only support specific regions. You’ll need to check if the exchange operates in the UK. Others can be scams or have exorbitant fees.

Make sure to check if the platform is regulated in the UK. Every platform operating in the UK is required to be regulated by the FCA and comply with anti-money laundering regulations. If you choose a platform that doesn’t meet these conditions, you can face repercussions and potential financial risks. 

Restrictions on buying bitcoin via a debit card

One crucial factor to consider is if your bank allows crypto purchases with a debit card. Nationwide and HSBC do not allow crypto purchases. Santander, Natwest Group, and Lloyds Banking Group also have restrictions on cryptocurrency. 

Many of these restrictions apply to Binance specifically, so the platform may not be a great choice for buying crypto in the UK.

CryptoWallet, on the other hand, is active in the UK and European Economic Area. Join the whitelist for our crypto card here!