1.1 Learn how crypto buying works and its risks (UK rules include a 24 hour cooling off period)
Crypto Owl Quick Start Guide
Getting started with cryptocurrency can be complex and involves a high level of risk, so this guide focuses on explaining the basic steps and main risks rather than telling you what to buy.
It is an educational, step by step overview of how a first crypto purchase typically works, so you can decide for yourself whether this is right for you.
What you will understand after this
- A 7 step overview of the typical process for buying and storing your first cryptoasset, and the key risks at each stage.
- Factors to consider when assessing whether an exchange is reputable and how it approaches security and regulation.
- How some people approach choosing a first cryptoasset, and why even large, well‑known coins can still be very risky and volatile.
- Essential risk and safety considerations, such as scams, fraud and protecting your login details and recovery phrases.
This guide does not provide personal investment advice or recommendations and is not a guarantee that buying crypto will be “safe” or suitable for you.
1. Choose a reputable cryptocurrency platform
Your first practical step, if you decide to buy crypto, is to choose a platform that allows you to trade cryptoassets.
Some widely used global platforms include eToro, Coinbase, Revolut, Kraken and Crypto.com, but availability, features and risks differ and you should do your own research.
Things to check include:
- Security tools such as two‑factor authentication (2FA)
- Clear information on fees and charges
- Whether the platform is available in your country and how it complies with local rules
- How easy the app or website is to understand and use
2. Create and verify your account
Most platforms will ask you to register with an email and password and then complete “Know Your Customer” (KYC) checks by providing ID such as a passport or driving licence, and sometimes a selfie.
Verification can take from minutes to longer, depending on the firm’s processes.
In the UK, if you are a new‑to‑firm retail customer, you should expect to see an appropriateness assessment and a 24‑hour cooling‑off period before you can make your first transaction in qualifying cryptoassets.
3. Fund your account
Once verified, you can usually add money by bank transfer, card or sometimes other payment methods, each with different fees and processing times.
It is sensible to start with an amount you can afford to lose entirely, as cryptoassets can be very volatile and you may not be able to recover funds if something goes wrong.
UK banks have different approaches to crypto payments and may apply limits or restrictions because of fraud and financial crime concerns.
Some, such as Revolut, Monzo, NatWest, Lloyds, Nationwide and Halifax, allow crypto‑related payments to varying degrees, often with daily or monthly limits.
Others, including Barclays, HSBC, TSB, Starling and some building societies, have tighter rules or block many crypto payments, and they may display warnings about scams when you try to send funds.
Always check your bank’s current policy and limits before you rely on it for crypto transfers.
4. Consider your first cryptocurrency
Many beginners look first at larger, more established cryptoassets such as Bitcoin (BTC) and Ethereum (ETH), but these are still high‑risk investments and their value can rise or fall sharply.
Other coins and tokens (for example, Solana or coins in the “Top 10”) may carry even greater risk due to lower adoption, higher volatility or unclear fundamentals.
Always research any cryptoasset in detail and do not assume that past performance, popularity or market size means it is low risk or suitable for you.
5. Make a test purchase
On most platforms you will use a “Buy/Sell” or “Trade” screen to place an order.
A simple way to start is with a small “market” order, which buys at the current available price; even very small purchases can move in value significantly.
Only commit money you are prepared to lose and do not rush or feel pressured to invest quickly.
6. Think about how you store your crypto
You can leave your crypto on the exchange, where the platform usually controls the private keys, or move it to your own wallet.
Software wallets (for example, MetaMask, Phantom, Trust Wallet) and hardware wallets (for example, Ledger, Trezor) give you more direct control but also more responsibility.
Whatever you choose, keep your recovery phrase and private keys secure and never share them with anyone, as losing them can mean losing access to your assets permanently.
7. Monitor, learn and review
After your first purchase, it is helpful to monitor your holdings and continue learning about how crypto markets work, the technology, tax implications and security best practices.
Avoid reacting emotionally to short‑term price moves or investing more money because of hype or “fear of missing out”.
Keep records of your transactions so you can meet any tax or reporting obligations.
Quick risk tips
- Use strong, unique passwords and turn on 2FA wherever possible.
- Be alert to phishing and scams, and always double check URLs and contact details.
- Start small and treat any initial amount as money you can afford to lose.
- Do not invest based purely on social media, tips or aggressive marketing.
Buying cryptoassets is high risk and will not be right for everyone, and you could lose all the money you invest.
If you are unsure whether investing in crypto is appropriate for you, consider getting independent financial advice.
FCA Registered Cryptoasset Exchanges
Cryptoassets are high-risk and unregulated; verify on FCA register.
Crypto.com
Buy, sell and trade crypto in GBP; optional DeFi wallet, 140M+ users worldwide.
Bitpanda
Multi-asset investing: crypto, stocks, ETFs, metals and commodities in one app.