How To Buy ALGO UK

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

How to Buy Algorand in the UK – Detailed & Explained in Full

In this section of our beginner’s guide we’ll show you how to buy ALGO in the UK in less than 5 minutes with the social trading platform eToro.

Step 1: Open a Trading Account

How do you choose the best broker or exchange to trade cryptos in the UK? Simply put, we recommend eToro as the best crypto trading platform to buy Algorand in the UK with 0% commission and market-leading spreads.

To buy ALGO you will first need to visit the eToro.com website and click on ‘Join Now’. This will take you to an online form where you will need to populate the empty fields with your personal information such as your name, email address, and phone number.

After that, you’ll be asked for some extra information, such as your social security number and address. Finally, once you’ve verified your phone number the account registration process will be completed.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

As part of the KYC process you must upload proof of identity and address, such as a passport, driver’s licence, utility bill, or bank statement issued within the last six months.

The verification process can take up to two business days, and you will be contacted when your eToro trading account has been verified.

Step 3: Deposit funds into your account

When it comes to funding your account, the initial deposit is only $200, and subsequent deposits are set at a minimum of just $50. Using a debit/credit card or an e-wallet like Skrill, PayPal, or Neteller to buy ALGO in the UK is the fastest option in terms of processing times.

These payment methods are instantaneous, so you won’t have to wait for funds to be deposited to your account like you would with a bank transfer, which normally takes 4-7 days. Depositing funds into your eToro account is safe, secure, and simple. SSL (Secure Socket Layer) technology is used for all transactions, which helps to keep your personal information safe.

At eToro, there are no deposit fees or account fees, and withdrawals are set at a rate of $5 per transaction.

Step 4: Search for Algorand

Now that you have successfully deposited funds into your account you can simply type ‘Algorand’ into the search bar and select the relevant result from the drop-down list.

Step 5: Buy ALGO UK

By clicking on the ‘Trade’ button you will have access to an ALGO buy order window, as shown in the image below. From here you can enter the amount you want to invest, keeping in mind that there is a $25 minimum investment for cryptocurrencies on eToro.

A $25 investment in ALGO on eToro will currently get you 0.03 ALGO tokens. Lastly, click on the ‘Open Trade’ button on the order box. By doing so, eToro will execute your Algorand investment instantly.

Buy Algorand – Best Place to Buy ALGO in the UK

What is the difference between a cryptocurrency exchange and a cryptocurrency broker? In this section of our beginner’s guide, we’ll seek to answer this important question.

Online Cryptocurrency Broker

Regulated online crypto brokers are the best place to buy ALGO in the UK. For example, eToro is regulated by the UK’s Financial Conduct Authority and also provides investor protection under the FSCS. By using the fully-regulated eToro platform you will:

• Have access to several convenient payment methods such as debit/credit cards, bank transfers, and e-payments like PayPal, Neteller, and Skrill.
• By investing in Algorand through a regulated crypto trading platform, the provider complies with strict KYC policies and other regulations designed to prevent money laundering and online fraud.

Another huge advantage of buying, selling, trading, and holding cryptos via an FCA-approved online broker is that you will have unfettered access to cutting-edge trading features such as copy trading. CopyTrader and CopyPortfolio are two tools that let you trade passively with a single click. In other words, you can either replicate other experienced investors’ trades or invest in a specific theme or portfolio of securities.

eToro also offers CFD and forex trading, as well as commission-free stock and ETF trading. So, in addition to crypto trading, you can use the same eToro live trading account and platform to gain exposure to other financial markets with different financial instruments. In a nutshell, eToro has everything any beginner trader will need all in one place.

Cryptocurrency Exchange

A crypto exchange allows you to buy and sell cryptos. Certain cryptocurrency exchanges offer a range of services and products, whereas others were set up mainly for buying and selling DeFi assets. Decentralized crypto exchanges (DEXs) are not managed by centralized third-party authorities, are open source, and facilitate peer-to-peer trading. Additionally, DEXs also demand greater technological skill and detailed knowledge of digital assets in comparison to centralized crypto exchanges and regulated trading platforms.

Crypto exchanges connect buyers with sellers. As is the case with traditional bank accounts, to buy and sell on the majority of exchanges you will need to open an account and complete the KYC process. This is to help minimize money laundering and online fraud.

Cryptocurrency exchanges, including centralized and decentralized types, are a relatively new technology which makes it crucial that you conduct thorough research before you select one to use. The crypto market is notoriously volatile at the best of times, and some crypto exchanges have recently suffered hacking attempts and in the case of Binance have been banned in the UK altogether.

Ways to Buy ALGO UK

Buying Algorand in the UK can be done in a number of ways. As such, we’ll explore some of the safest and convenient ways to buy ALGO with a top-rated broker or exchange.

Buy ALGO with a Debit Card

Assuming you have access to a Visa or MasterCard debit card, this is by far the most convenient way to purchase Algorand in the UK.

This is due to the fact that the broker will process your transaction immediately. The broker must be licenced in order to take debit card payments. Before it can complete your transaction, it must additionally require you to upload some form of identification.

You can buy ALGO with a debit card from all five of the exchanges/brokers we looked at earlier. eToro is the cheapest option on the table, with a conversion fee of around 0.5%, and no deposit or account fees.

Buy ALGO with a Credit Card

If you’re used to using a credit card for all your online transactions, you may be surprised to learn that buying Bitcoin and other popular altcoins such as Algorand with a credit card could be complicated. If you attempt to, you could be restricted by the exchange itself or by the credit card issuer.

For example, certain top-rated crypto exchanges including Coinbase do not accept credit cards as payment methods. Some crypto exchanges state that they only accept Visa and Mastercard credit cards. However, even if the crypto exchange accepts credit cards that is not a guarantee that the credit card company will allow it.

As well as the fee charged by the exchange for its service, it may charge an extra fee for using a credit card. For instance, the crypto exchange could charge you a portion of the transaction total to exchange fiat currencies for Bitcoin or other altcoins. Let’s say that your preferred crypto exchange charges a 3.99% fee for credit card transactions. This means that for every £100 of crypto you purchase, you’ll be paying £3.99 to buy with a credit card, which leaves you with £96.01. In terms of an investment, you would need to make a 4% return just to get even.

Buy ALGO With a Bank Transfer

If you would prefer to make your Algorand investment using a bank account, eToro has you covered. With the convenience of bank transfers via the eToro platform, it’s simple for beginners to get the ball rolling.

Buy ALGO With PayPal

Using a CFD broker like eToro to buy ALGO using PayPal is a straightforward, secure, and fast way to do it. The main objective of eToro, which is branded as a “social trading network,” is to allow people to copy the trades of other experienced traders. eToro traders can buy one of 17 different crypto-assets listed on the platform or speculate on their price movements using CFDs.

Buying ALGO with PayPal on eToro is relatively easy. Simply create a trading account, specify your deposit amount, choose PayPal as your payment method. When the transaction is finalized, you can go ahead and invest in Algorand.

Buy ALGO with Bitcoin

The majority of altcoins cannot be purchased with USD which means that you’ll need to buy Bitcoins (BTC) and exchange them for your preferred altcoin on a crypto exchange. Bear in mind that your Bitcoins will be traded for ALGO. Once you’re ready, simply head over to the exchange of your choice and place an order for your digital currency, which in this case is Algorand.

After the transaction is complete your altcoins will be stored on the exchange or trading platform. If you’re a long-term investor and want to hold your cryptos, we recommend storing them in a secure hot or cold crypto wallet such as the eToro Money crypto wallet.

Why Buy ALGO UK?

Is Algorand a good potential investment in 2021? Algorand (ALGO/USD) is still under stress with its market price falling from an all-time high of $3.28 in 2019 to a current price of $0.7742. This represents a decline of -76.28% in the space of 24 months.

Algorand has not yet reached the so-called ‘Ethereum-killer’ status, but it has the potential to stir up the mainstream cryptos. This altcoin checks a lot of the boxes when it comes to meeting the requirements for altcoins that could compete with the current top DeFi (decentralised finance) cryptos.

Some of those requirements include transaction speeds and capacities, smart contract capabilities and its potential appeal to decentralized application development. With all these elements in mind it’s easy to see why Algorand could quickly join the likes of Polygon and Ripple.

It sounds promising on paper, but what about in reality? While Algorand may have the technology, its competitors have already done a lot to concrete their position in the blockchain and DeFi ecosystem.

Why crypto enthusiasts and investors are keeping a close eye on Algorand

For those looking for a unique investment opportunity in underdog altcoins, Algorand seems to stand out. Since its creation in 2019, it has achieved quite a lot as a newcomer to the DeFi sector. It has gathered millions in funding for research and development, with several third parties now using its ecosystem.

Of course, it’s a long way off from knocking Ethereum off its high blockchain horse, or from giving the so-called ‘Ethereum killers’ such as Cardano, a run for their money.

Despite this, with its smart contract abilities, rocket transaction speeds, and commitment to becoming the missing link between decentralized and centralized systems, it does appear to be eager to fit into that classification.

As if that wasn’t enough, Tezcan Gecgil from investorplace.com, suggested that ‘Algorand is a carbon-negative network as it does not involve mining. Therefore, efficiency is built into the ethos of this blockchain, making ALGO appealing for those seeking fundamental value in their crypto wagers.’

On its own this may not be enough to make it one of the most popular cryptos out there. However, as major digital assets such as Bitcoin are being criticised for their impact on the environment, it’s another advantage that Algorand is capitalizing on.

Uncertainty lingers over the cryptocurrency market like a black cloud, and it may have further to fall until it reaches its floor. You should bear this in mind, as it currently trades for $0.79, a huge difference from its record high of $3.28 on June 21st, 2019.

The Cost of Buying ALGO

There are costs involved when buying Algorand in the UK, whether that’s trading and non-trading fees. Just as you would pay fees for stocks and ETFs, the fee rates vary depending on the platform you use.

The most important fees that you need to consider when buying any type of financial asset are:

Deposit fees

The cost for making a deposit varies depending on the payment method used and the platform’s pricing structure. During our research, we found that eToro only supports USD as the account base currency and hence does not impose fees for USD deposits. EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP, SEK, DKK, NOK, PLN, and CZK are among the 14 fiat currencies accepted by the social trading platform. When you deposit in anything other than USD eToro charges a 0.5% conversion fee.

Trading Fees & Commissions

Trading any type of financial instrument comes with fees and commissions. At eToro you can trade 17 different cryptocurrencies on a commission-free basis. The only fee you will have to pay is the difference between the buy and sell prices, otherwise referred to as the spread.

For example, when you buy ALGO on eToro you will pay a 3.9% spread. Cryptoassets can be moved from the eToro trading platform to the eToro Money crypto wallet.

Risks of Buying Algorand in the UK

The crypto market has made a name for itself as being highly volatile. This is partly due to its decentralized structure making it more sensitive to investor sentiment which undulates at the best of times. All in all, there are a number of key issues you need to factor into your risk tolerance planning.

Regulations

While financial authorities do not regulate cryptocurrencies, online brokers and crypto exchanges are required to register with them. Recently, the UK’s Financial Conduct Authority has clamped down on crypto trading platforms due to growing concerns about money-laundering and a lack of client fund protection.

eToro is fully regulated by the FCA, CySEC, and ASIC, and as such users can rest assured that their funds and data are protected by centralized financial regulatory bodies and investor protection schemes such as the Financial Services Compensation Scheme (FSCS).

Volatility

Most cryptocurrency market analysts will agree that crypto volatility is in a league of its own. There are no indices to assess crypto price volatility, but a quick look at historical price charts reveals that crypto prices experience higher peaks and lower troughs at a faster and more intense rate than those of assets in conventional markets.

Many factors that cause price volatility in traditional markets also apply to cryptocurrencies. Price movements in crypto and mainstream markets are driven by news and speculation. However, because crypto markets have less liquidity than traditional financial markets, their impact is magnified. Lower liquidity levels are a consequence of crypto markets having a lack of support from institutional investors and global trading firms.

It is still early days to forecast when or even if crypto market volatility will even out as it has done in traditional markets. But, as the DeFi ecosystem continues to evolve, it’s likely that the hyperactive volatility will continue its course until cryptos find a secure foothold in the financial system.

ALGO has Competition

Algorand is not the only under-the-radar altcoin stirring the waters. Polkadot (DOT), Tezos (XTZ), Cardano (ADA), Stellar (XLM), and NEAR Protocol (NEAR), are all examples of cryptos that fall into the ‘Ethereum killers’ category.

Selling ALGO: A Quick Overview

When you invest in ALGO coins in the UK the long-term investment tactic is to sell them in the future for a higher profit margin.

For instance:

• Let’s imagine you purchased 200 ALGO coins at $5 each
• This means that your total investment is $1,000
• At some point in the future the crypto is priced at $15 and you decide to sell for a profit
• You have 200 ALGO coins which means that you make a $2,000 profit.

Placing a crypto trade on the eToro platform is simple, whether you’re interested in buying the underlying asset or speculating on the crypto’s price movements via CFD derivatives.

Here’s how you can trade crypto assets on eToro from the comfort of your own home:

1. Login to your eToro live trading account
2. Click on Trade Markets to access the entire list of supported cryptocurrencies
3. Choose your preferred crypto and click on Trade
4. Tap on BUY
5. Set the leverage to X1 if you want to take ownership of the underlying asset, otherwise set it to X2 to increase your leverage and trade the asset’s price movements through a CFD (Contract for difference).
6. Enter the total amount of funds you wish to invest
7. Place a take profit order if necessary
8. Finally, click on Open Trade

How to Buy Algorand UK – Conclusion

You now have everything you need to know about how to buy Algorand in the UK quickly, efficiently, and securely. We’ve covered everything from picking an Algorand broker/exchange, to the different payment options available, as well as the risks and rewards of investing in this digital asset.

If you want to buy ALGO in the UK today then choose eToro. Fully regulated by multiple financial authorities and home to more than 20 million traders, this social trading platform allows you to invest in ALGO and 16 other cryptos with 0% commission and tight spreads. As well as having access to low-cost trading, you can also use eToro’s copy trading features to diversify your portfolio in a hands-off approach to online trading.

So, to start trading ALGO on eToro simply follow the link below and open a trading account in minutes!

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