How to Buy Crypto with Hargreaves Lansdown

Summary: Hargreaves Lansdown, a leading UK investment service, does not support direct cryptocurrency trading but provides indirect investment avenues in the crypto space through exchange-traded products (ETPs) and company stocks. Additionally, the company has not included Bitcoin ETPs in its product range.

For UK investors interested in direct cryptocurrency investment, eToro emerges as a secure and UK-regulated platform. eToro boasts over 4,500 assets, including a wide selection of cryptocurrencies, coupled with competitive fees. This makes eToro an attractive option for investors looking to diversify their portfolios with direct investments in the cryptocurrency market.

Can I Buy Crypto with Hargreaves Lansdown?

Hargreaves Lansdown, a leading UK-based investment service, does not provide the option for direct purchase or trading of cryptocurrencies. Nonetheless, it presents a pathway for those drawn to the crypto sector. Clients can delve into exchange-traded products (ETPs) or stocks focusing on crypto-related assets, such as Coinbase or Microstrategy.

For direct engagement in the digital asset market, investors must sign up with a cryptocurrency exchange in the UK. Such platforms offer a secure environment for transactions, including the deposit of GBP from UK banks. This enables clients to buy, hold, and possibly stake various cryptocurrencies, expanding their investment portfolio.

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How to Buy Crypto with a Hargreaves Lansdown Alternative

For UK investors seeking an alternative to Hargreaves Lansdown for cryptocurrency investments, eToro is a standout choice. It adheres to rigorous UK financial regulations, ensuring a secure investment environment. With its extensive selection of over 4,500 assets, including a wide range of cryptocurrencies, and competitive fee structures, eToro enables easy GBP deposits from UK bank accounts, making it an attractive option for diversifying investment portfolios.

Here’s a simple guide to start investing with eToro using your UK bank account:

1. Account Registration: Go to eToro’s website and create a new account.
2. Bank Account Linking: Connect your UK bank account for efficient GBP transfers.
3. Select Cryptocurrencies: Browse through eToro’s comprehensive range of cryptocurrencies.
4. Finalize Your Investment: Decide on your investment amount, choose your preferred cryptocurrency, and complete the transaction.

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What are the Fees?

When diving into cryptocurrency investment, especially from GBP funds, it's important to understand the fee structure, which often includes charges for deposits, trading, and withdrawals. The trading fees, in particular, are a key consideration and can vary widely among different exchanges, often ranging from 1% to 2%.

For UK investors looking for a cost-effective platform, eToro stands out. eToro charges an average spread of around 1% on trades, providing a competitive rate compared to other platforms like Coinbase, which charges over 2%. This fee structure is especially attractive when considering eToro's low-cost GBP deposit options.

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Will Hargreaves Lansdown Offer Cryptocurrencies?

As things stand, Hargreaves Lansdown venturing into offering real cryptocurrency assets in the short term seems improbable. A major challenge is the need for a solid and secure infrastructure capable of managing cryptocurrencies for both individual and institutional investors. This must align with the UK's regulatory framework, notably requiring approval from the Financial Conduct Authority (FCA).

Creating such an infrastructure necessitates significant investment in cutting-edge technology and stringent security protocols. So far, Hargreaves Lansdown has not demonstrated any initiatives towards this development. Therefore, it's reasonable to infer that the company will likely continue to focus on its existing portfolio of products and services, which currently do not include direct transactions in cryptocurrency assets.

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Bottom Line

In conclusion, while Hargreaves Lansdown remains a prominent figure in the UK investment landscape, its current offerings do not extend to direct cryptocurrency trading. Instead, the firm focuses on indirect crypto investments via ETPs and stocks. For investors seeking direct crypto investment opportunities, eToro offers a comprehensive and regulated alternative. With a broad selection of over 4,500 assets, including cryptocurrencies, and a competitive fee structure, eToro is a viable option for diversifying investment portfolios.