Bitcoin (BTC) is the world’s first cryptocurrency and was created by a group or individual known pseudonymously as Satoshi Nakamoto. The asset has become increasingly popular over the years, especially in the UK.
But, after you buy Bitcoin, a cryptocurrency wallet is needed to send and receive BTC on the Bitcoin network and there are several types to choose from depending on your experience level.
The best Bitcoin wallet will depend on your own needs and preferences. Most Bitcoin brokers and exchanges in the United Kingdom will provide you with a crypto wallet for free when you register for an account. However, you can also store your assets in a Bitcoin wallet that no company has access to in what is known as a private (or custodial) cryptocurrency wallet.
In this guide, we will be diving deep into the various types of Bitcoin wallets in the UK so you can find the best Bitcoin wallet or the best crypto wallet UK that suits you best.
What Types of Bitcoin Wallets Are There in the UK?
Bitcoin wallets come with different levels of security and ease of use. Those provided by crypto platforms are typically the most beginner-friendly options.
Private crypto wallets on the other hand require more technical knowledge but come with additional features. For example, staking, which is earning interest on your crypto holdings and the ability to send and receive non-fungible tokens (NFTs).
When you set up a private crypto wallet, you are presented with two strings of characters.
The public key/address is the address that you can use to receive crypto assets from other users, or yourself from a different crypto wallet.
The private key serves as the password to your crypto wallet UK holdings. Keep this key safe like you would the pin code to your bank card. It is worth making several copies of this key and storing it in places that won’t be affected in case of natural disasters.
Crypto wallets that give users access to this private key are known as non-custodial wallets since there is no one except the user looking after the tokens. Only the person with the private key has access to the crypto assets.
Custodial wallets on the other hand have private keys which are held by a company such as an exchange or brokerage platform. Users can send and receive cryptos from the crypto wallet UK, however, the company also has access to these assets.
Crypto wallets are typically the most user-friendly options but using these to store assets comes with some risks. For example, if the exchange gets hacked, then assets may be stolen from the crypto wallet and if the company goes bankrupt, then funds may be seized in the process.
This would not be the case for non-custodial wallets as no one except the user can access the funds.
Hot Wallets - Best Crypto Wallets For Beginners in the UK
There are various types of Bitcoin wallets but they can all be classified into two distinct groups: Hot and Cold wallets.
A hot wallet is a crypto wallet that is always connected to the internet. Some example of online wallets include:
Desktop & laptop software applications
Web browser extensions
Smartphone applications
Wallets provided by exchanges/brokerage platforms
Hot wallet example: You can use a desktop wallet as a downloadable application on your Windows or Mac computer.
Cold Wallets - Best Crypto Wallets For More Experienced Users in the UK
A cold wallet on the other hand is not connected to the internet which means there is a lower risk of it being compromised or hacked by online attackers. Examples of cold wallets include:
Paper Wallets
Hardware Wallets
Cold wallets are typically used for larger amounts of money and long-term holdings.
Top Hot & Cold Bitcoin Wallets in the UK
Best Bitcoin Wallets Overall
The table below contains a list of the top crypto wallets overall for users of all experience levels, starting with the one that beginners prefer.
| Wallet Name | Wallet Type | Price | Beginner Friendly? | Best Feature |
| eToro | Platform (Hot wallet) | Free | Yes | Intuitive user interface. |
| Coinbase Wallet | Web extension/mobile app (Hot wallet) | Free | Yes | A wide range of assets supported |
| Ledger | Hardware (Cold wallet) | $59 - $119+ | Yes | Private keys secured on the device |
Here’s a more in-depth look at each of these wallets:
eToro
Best for Beginners
eToro is a multi-asset trading platform that offers markets for several cryptocurrencies including Bitcoin. The platform provides a secure free crypto wallet for all the cryptos on its platform with security features that include 2-factor authentication, and data encryption.
- Quick account registration
- Avoid the technical side of crypto
- Easy to use
- Great for beginners
- Customer service can be slow sometimes
- Withdrawal fees may apply
- Inactivity fees after 12 months
Coinbase Wallet
Best for More Experienced Users
Coinbase Wallet is a self-custody cryptocurrency wallet that enables users to interact with various blockchains and decentralized platforms.
- Can hold numerous cryptos including Bitcoin
- Can be used to store NFTs
- Can connect with Decentralized Finance platforms (DeFi)
- Users are responsible for the safety of their own assets
- Crypto wallet is not open-source so people cannot inspect the code for vulnerabilities
Ledger
Best for Advanced Users
Ledger wallets are hardware wallets that are used to store private keys offline. This Bitcoin hardware wallet offers an added level of security over software wallets since transactions require physical authorization on the device.
- Provides a higher level of security than software wallets
- Ledger Live app comes with crypto management tools
- Thousands of coins supported
- Not free
- Not as beginner-friendly as other crypto wallets
- Set-up process takes a long time
If you’re looking for a more extensive list of Bitcoin wallet UK options then have a look at the section below for rankings by each type. In addition, we've put together a number of cryptocurrency wallet guides for the top cryptocurrencies in the UK:
Best Bitcoin Wallets in the UK Reviewed By Type
Best Software Bitcoin Wallets in the UK
Below we have listed a variety of different software wallets, beginning with the most beginner-friendly one to help you make a more informed decision.
| Wallet Name | Wallet Type | Price | Beginner Friendly? | Best Feature |
| Exodus | Software wallet | Free | Yes | Intuitive user interface |
| Electrum | Software wallet | Free | No | Security |
| Bitcoin Core | Software wallet | Free | No | Anonymity |
Best Hardware Bitcoin Wallets in the UK
A hardware wallet is a secure way to keep your cryptocurrency safe from hackers and malware. In this section, we have listed the top hardware wallets on the market that support Bitcoin.
| Wallet Name | Wallet Type | Price | Beginner Friendly? | Best Feature |
| Ledger | Hardware wallet | $59 - $119+ | Yes | Private key encryption |
| Trezor | Hardware wallet | $85+ | Yes | A large variety of assets supported |
| SafePal | Hardware wallet | $49.99 | No | Cheaper than competition |
Best Mobile Application Bitcoin Wallets in the UK
A mobile wallet gives you the option to have the flexibility and enjoy the security levels of a hardware wallets. Here we have listed the top mobile wallet apps or Mobile Bitcoin wallets to help you manage your assets on the go.
| Wallet Name | Wallet Type | Price | Beginner Friendly? | Best Feature |
| eToro wallet | Mobile App | Free | Yes | Variety of coins |
| Trust Wallet | Mobile app | Free | Yes | Easy setup |
| Coinbase Wallet | Mobile app | Free | Yes | Beginner-friendly |
| Exodus | Mobile app | Free | Yes | A variety of coins supported |
Best Free Bitcoin Wallets in the UK
Have a look below for the top free Bitcoin wallets on the market.
| Wallet Name | Wallet Type | Best Feature |
| eToro | Hot wallet | Many coins supported |
| Coinbase Wallet | Hot wallet | User-interface |
| Paper wallet | Cold wallet | Security |
What to Consider When Choosing A Bitcoin Wallet UK?
Do Bitcoin Wallets in the UK Support NFTs?
Non-fungible tokens (NFTs) are digital assets stored on the blockchain. These tokens can represent art, certificates, music, virtual land, concert tickets, and more. NFTs can only exist on smart contract platforms such as Ethereum and Solana, meaning only multi-asset wallets can support these tokens. Popular crypto wallets that support Bitcoin and also offer NFT compatibility include Trust Wallet and Coinbase Wallet.
Is Staking Possible With A Bitcoin Wallet UK?
Staking enables participants to earn rewards for “locking up” their tokens in a similar way to how a bank pays interest on savings accounts. Many platforms such as eToro offer this service directly from the crypto wallet. However, staking is not offered on Bitcoin but on other coins such as Ethereum, Tron, and Cardano.
Can I Use The Same Wallet For Multiple Exchanges in the UK?
The same cryptocurrency wallet can be used to transact with multiple different exchanges. There are no limitations to how many crypto wallets you can create or interact with. When making transactions on the blockchain, it is important to double-check the addresses being used as there is no way to recover assets sent to the wrong crypto wallet.
Fortunately, the first few characters of a crypto wallet give you an indication of what blockchain it belongs to.
For example, a typical Bitcoin wallet UK address on Binance would look like this:
Whereas a typical Ethereum wallet address looks like this:
Note: ALL Ethereum wallet addresses begin with 0x — good to make a mental note of that.
You should only send BTC to a Bitcoin wallet and Ethereum to an Ethereum wallet.
Can I Trade On Decentralized Exchanges Using A Bitcoin Wallet UK?
Some cryptocurrency wallets give users access to decentralized exchanges (DEXes) directly from the app itself. This enables users to trade and manage their assets in a decentralized way, without any intermediaries. However, this feature is only available for assets built on the Ethereum blockchain or other smart contract platforms such as Solana.
Since Bitcoin only exists on its own blockchain, it cannot be traded on DEXes.
Some examples of wallets that have DEX functionality include Trust Wallet, Coinbase Wallet, and Metamask.
Can I Buy Bitcoin Using A Wallet in the UK?
It is common now to find wallets that offer users the ability to buy Bitcoin directly from the app using third-party providers. This is a feature that is offered on Trust Wallet for example. In fact, trust wallet will let you buy Dogecoin in the UK, Ethereum, Litecoin, Cardano and DASH along with other altcoins.
Simply open the app, search for Bitcoin, click ‘buy’ and follow the onscreen instructions to complete the transaction.
Do I Have to Pay Tax on Bitcoin Stored in My Crypto Wallet in the UK?
You may be liable for taxes when dealing with cryptocurrencies in the UK, as per the guidelines provided by HMRC. It is important that you keep up to date with the latest regulation to ensure that you stay compliant with the law.
Crypto companies may be required to provide information on their customers to the relevant authorities if requested.
How to Set Up an Ethereum Wallet in the UK
Follow these simple steps to set up an Ethereum crypto wallet in the UK:
Step 1: Sign up for an account
Step 2: Verify your identity
Step 3: You can use your Ethereum wallet now
How Do You Cash Out And Spend Bitcoin From A Wallet in the UK?
To cash out your Bitcoin holdings from a crypto wallet UK, you can follow these steps below:
Step 1: Open the wallet
Step 2: Provide the recipient's wallet address
Step 3: Sign in to your account
Step 4: Click ‘deposit’
Step 5: Paste the address
Step 6: Click confirm
Step 7: Sell your Bitcoin
Step 8: Withdraw the money
Top Tips For Bitcoin Wallet Users in the UK
Never enter your seed phrase on a website as it could be a scam/phishing site.
Double and triple-check crypto wallet address before making a transaction. An incorrect address may lead to a loss of funds forever. Remember, the blockchain is decentralized so there is no customer service that can help to retrieve your assets.
Make a copy of your seed phrase / private key and keep it safe in case you forget your password. One of the best ways to keep it safe is to print it out on a piece of paper and store this in a safe place.
Crypto platform staff will NEVER ask for your seed phrases. If someone does, they may be a scammer so beware.
