Author Topic: [Not-OTC] Cheap way to buy bitcoins at UK  (Read 1657 times)

Offline Rick

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[Not-OTC] Cheap way to buy bitcoins at UK
« on: April 14, 2013, 01:27:05 pm »
Buying bitcoins in United Kingdom can be very hard... since Intersango closed doors and blockchain.info & MtGox stoped receiving GBP deposits.

Thats why I would recommend this service -> TransferWise
(this refferal url will get you 1 free transfer.)

You will be able to deposit on:
Bitstamp (recommended)
MtGox
Bitcoin24
Bitcoin-Central
(and every other Exchange that accepts SEPA deposits)

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How to get GBP into BTC (on BitStamp) :
(this is the cheapest way to buy bitcoins in uk atm, but you are free to find other alternatives.. pls post them in the comments)

To get GBP into BTC we may still want an exchange; this post uses the BitStamp exchange (BS) primarily because they seem to focus on Europe, and also because I've seen good things, but finally because I've used them once and been happy with them.

We cannot directly send GBP to BS as they don't have a UK bank account. UK bank accounts appear to be difficult for some reason: look at blockchain.info who stopped allowing cash deposits at their Barclays account, and now disallow any kind of transfer in.

So in order to get money to BS, we first need to convert GBP into EUR. I'm going to do this with TransferWise (TW), primarily because they give much better rates.
What will happen is this: we deposit GBP into TW's UK bank account. Somebody wanting GBP in return for EUR does the same into TW's European account. TW will swap the two around: we can then use the other people's EUR, and the other people can use our GBP. For this, TW get a 0.48% cut. We then tell TW to send our EUR to BS, using SEPA.

BS use USD for trading, so our EUR needs to be converted first. Why do we convert GBP into EUR, and not directly into USD? Because EUR can be transferred by SEPA for free, taking 1-3 days, whereas it would cost another 0.1% and take 2-5 days if we used USD directly.

BS accepts the EUR into our account, converting the EUR into USD. For this, BS get a 0.5% cut. Finally, we can use the USD at BS to buy BTC into our wallet there, then forward it from our wallet to wherever we like.

When TransferWise convert our GBP into EUR, they do it at mid-market rates. Mid-market rates mean that we don't lose anything converting the one currency into another.

When BitStamp convert EUR into USD, they do it at corporate rates. This means we do lose a little bit in the exchange, but very little.

I've done it this way once so far, and it took just under 48 hours to complete.

Feedback from TransferWise:


http://www.reddit.com/r/Bitcoin/comments/19bskp/as_a_uk_resident_whats_the_best_way_to_take_10000/

http://www.reddit.com/r/Bitcoin/comments/1bcvxe/buying_bitcoins_from_the_uk/

https://bitcointalk.org/index.php?topic=138081.msg1476342#msg1476342

http://www.reddit.com/r/BitcoinUK/comments/1bf692/finally_mtgox_verified_this_morning_first/

https://bitcointalk.org/index.php?topic=152451.msg1635781#msg1635781

to withdraw...
http://www.reddit.com/r/Bitcoin/comments/1b2n20/can_i_withdraw_using_sepa_and_transferwise_to_a/


Source: BitcoinUK

The first transfer using my referral is free, enjoy it ;)



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Plausible reason on why UK banks are going Hard on Exchanges:

http://www.reddit.com/r/Bitcoin/comments/1bxrrw/playing_devils_advocate_why_bitcoin_will_crash_to/c9b6gr4