Master crypto investing with UK tax guidance, risk management strategies, and real-world examples for 2025.
Total Market Cap
$3+ Trillion
Global cryptocurrency market capitalization
Bitcoin Dominance
~55%
BTC represents over half of crypto market cap
Minimum Investment
£10+
Buy fractional coins on most platforms
Trading Hours
24/7/365
Cryptocurrency markets never close
Cryptocurrency is digital money that uses cryptography for security and operates on decentralized blockchain technology. Unlike traditional currencies controlled by governments, cryptocurrencies are typically decentralized and maintained by a global network of computers.
💡 Simple Example:
Think of Bitcoin like digital gold: scarce (only 21 million will ever exist), portable (send anywhere instantly), divisible (can buy 0.0001 BTC), and no central authority controls it. You can send £1,000 to Japan in minutes for a few pounds in fees, without a bank.
This creates a transparent, permanent, and tamper-proof record of all transactions.
Cryptocurrency is extremely volatile and speculative. Bitcoin has dropped 80%+ multiple times. Only invest what you can afford to lose completely. Never invest emergency funds or money needed within 5 years.
The first and largest cryptocurrency - digital gold with a fixed supply of 21 million coins
Primary Use
Store of value, digital gold, payment system
Launched
2009
Creator
Satoshi Nakamoto
Select a UK-regulated cryptocurrency exchange or trading platform.
Complete KYC (Know Your Customer) verification with ID and proof of address. Required by UK law.
Deposit GBP via bank transfer, debit card, or other methods. Bank transfers usually have lower fees.
Start with Bitcoin or Ethereum. Use "market order" for instant purchase at current price.
For long-term holding, transfer to a hardware wallet (Ledger, Trezor). For trading, keep on exchange.
| Feature | Bitcoin | Ethereum | Stocks (FTSE 100) |
|---|---|---|---|
| Market Cap | ~$1.8 trillion | ~$400 billion | ~$2.2 trillion |
| Annual Volatility | 60-100% | 70-120% | 15-25% |
| Trading Hours | 24/7 | 24/7 | 8am-4:30pm |
| Supply Limit | 21 million (fixed) | Unlimited | Unlimited |
| Dividends/Yield | None | Staking ~3% | 3-4% |
| FSCS Protected | |||
| Regulation | FCA registered | FCA registered | FCA regulated |
⚠️ Important:
Cryptocurrency is subject to Capital Gains Tax in the UK. You must report gains over £3,000 to HMRC. Trading crypto-to-crypto is a taxable event (not just selling to GBP).
✗ Selling crypto for GBP
✗ Trading BTC for ETH
✗ Using crypto to buy goods
✓ Buying and holding crypto
✓ Transferring between wallets
💡 Tax Strategy Tips:
See potential outcomes (remember: past performance ≠ future results)
Potential Portfolio Value
£18,339
50-80% drops are common. Bitcoin has crashed 80%+ four times. Can you handle seeing your investment drop 70% overnight?
Not covered by FSCS. If your exchange is hacked or goes bankrupt, your crypto may be gone. Not your keys, not your coins.
Crypto is full of scams: fake coins, pump-and-dumps, phishing, Ponzi schemes. If it sounds too good to be true, it is.
Governments can ban or heavily regulate crypto. China banned Bitcoin mining. Future regulations could significantly impact prices.
Lose your keys = lose your crypto forever. Billions locked in lost wallets. Hardware wallets can fail. No password recovery.
Smart contract bugs, blockchain forks, quantum computing threats. Technology is experimental and evolving rapidly.
What is the maximum supply of Bitcoin?
Monitor your cryptocurrency holdings alongside stocks and ETFs with TrioWealth