How to Buy Crypto with Barclays Bank

Can You Buy Crypto with Barclays Bank?

Barclays Bank, as of now, does not provide a platform for investing in cryptocurrencies, as it lacks the necessary infrastructure for executing and custodying digital asset transactions. Therefore, customers are unable to purchase or hold cryptocurrencies through Barclays Bank's online banking system. In order to partake in cryptocurrency investments, Barclays Bank's patrons must register with a certified digital asset exchange in the UK, sanctioned by the Financial Conduct Authority (FCA), and deposit British Pounds (GBP).

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How to Buy Bitcoin and Crypto with Barclays Bank

Barclays Bank and its Smart Investor platform don't offer cryptocurrency trading. To buy digital assets like Bitcoin, deposit GBP into an FCA-regulated UK exchange, such as Uphold UK. This London-based, FCA-licensed exchange supports free, instant deposits from Barclays and fee-less trading of over 250 cryptocurrencies.

Just follow four simple steps to get started:

1. Create a free account on Uphold with your email and complete the verification requirements.
2. Connect your Barclays Bank account or Barclayscard to Uphold by selecting the 'GBP' button on your dashboard.
3. You can then select the 'connect bank' button to link your Barclays account to Uphold.
4. Find the cryptocurrency you want to buy and execute your trade.

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What are the Fees?

There are two fees involved when purchasing crypto assets like Bitcoin and Ethereum with Barclays Bank. The initial fee pertains to depositing funds onto the platform, while the second fee is related to trading. Luckily for investors, Uphold offers free GBP deposits via bank transfer or Faster Payments in the UK.

In terms of trading fees, Uphold does not charge any upfront fees and levies a modest and variable spread averaging around 0.5% per transaction. This pricing structure renders Uphold considerably more affordable compared to alternatives like eToro or Coinbase, which impose fees up to 2% per transaction when using a Barclays Bank account to buy cryptocurrencies.

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Is Barclays Bank Crypto-Friendly?

Indeed, Barclays Bank is a crypto-friendly institution, granting its UK clients the ability to deposit and withdraw British Pounds from regulated digital asset exchanges. However, we urge Barclays Bank customers to utilize FCA or European-regulated platforms for crypto transactions. We discourage the use of offshore and unregulated exchanges such as Gate.io or Kucoin, as these could potentially lead to the freezing of your bank account.

Furthermore, in July 2021, Barclays Bank implemented a policy halting customer deposits intended for the renowned cryptocurrency exchange, Binance. This action was taken swiftly following the Financial Conduct Authority (FCA) of the U.K's announcement that Binance lacked the necessary regulation to provide financial services within the nation.

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What is Barclays Bank?

Barclays Bank is a multinational investment bank and financial services company based in London, United Kingdom. It was founded in 1690 and has since become one of the largest banks in the world, operating in over 40 countries. Barclays offers a wide range of financial products and services, including retail banking, wealth management, corporate banking, investment banking, and digital banking. The bank's services are designed to meet the diverse needs of its customers, from individuals and families to businesses of all sizes.

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Final Thoughts

In conclusion, while Barclays Bank currently does not support cryptocurrency trading directly through its platform, it allows customers to seamlessly transfer funds to regulated exchanges such as Uphold. Uphold stands out as a particularly attractive option for Barclays Bank customers, offering instant, fee-free GBP deposits and competitive trading fees for a broad range of cryptocurrencies.

Importantly, Barclays Bank patrons are advised to only engage with FCA-regulated platforms to ensure the safety of their transactions and avoid potential account issues.