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Budget-Friendly Crypto Investing: How to Start with £100 in the UK Market
Ruby Layram
12th May 2025
So, you’ve heard the buzz about crypto and you’re wondering if you’ve missed the boat. Good news, you haven’t. The world of cryptocurrency isn’t just for blockchain experts or people with thousands to spare. You can absolutely dip your toe in with £100. Yep, really.
Whether you’re hoping to get in on the next big thing or just want to try something new with your money, this guide will walk you through how to get started with crypto investing on a budget.
First Things First… What Actually Is Cryptocurrency?
The easiest way to explain cryptocurrency is that it was originally intended as a form of value store and transfer that exists on the internet, without a bank in the middle. It was created to offer a financial solution that is not controlled by governments (also known as ‘decentralised’). Instead, it runs on clever tech called blockchain, which is like a public record book that anyone can check but no one can mess with.
It’s important to understand that not all cryptocurrencies are the same. In fact, there are thousands of them, and they all do slightly different things.
The most popular cryptocurrencies are Bitcoin (BTC) and Ethereum (ETH). Bitcoin is the largest crypto (by market capitalisation) and is primarily used as a digital currency and store of value. Ethereum is slightly different. This cryptocurrency was made to support the Ethereum network, a blockchain network that can be used to build decentralised apps (apps that run on the blockchain, rather than apps that run on the normal internet.)
By investing in cryptocurrency, you’re gaining exposure to new technologies and the (potential) future of finance. There are also potential risks too, so keep that in mind.
Why Bother Starting with £100?
Starting small is an interesting concept. Here’s why:
- You’re not risking much: Crypto can be wild, prices swing up and down more than a rollercoaster. Depending on your own circumstances, £100 can be enough to get started without losing sleep.
- You can play around: £100 lets you try out different platforms, maybe even buy a few different coins, and see what works for you.
- You’ll learn as you go: Getting hands-on with a small amount is a way to build confidence.
Picking the Right Platform (AKA Where to Buy Your Crypto)
There are loads of places where you can buy crypto these days, but not all are created equal.
When choosing a platform, look at things like fees, how easy it is to use, and what coins are available.
For example, Coinjar is a UK cryptocurrency exchange) that offers an easy-to-use interface and allows you to invest from as little as £20.
Look for a platform that is registered with the FCA, these platforms are permitted to offer cryptocurrency exchange services in the UK.
As a beginner, try to stick to centralised exchanges that come with a responsive customer service team, and account recovery options.
How to Get Started (Step-by-Step)
Right, let’s get into the nitty-gritty. Here’s how to invest that £100:
Step 1: Create Your Account
Pick a platform and sign up. You’ll need to verify your identity, so get your passport or driving licence handy. It’s all part of anti-money laundering laws and regulations in the UK.
2. Add Your £100
Most platforms let you add money via bank transfer, debit card, or sometimes even Apple Pay. It’s all pretty straightforward.
Make sure that you do this part over a private and secure WiFi connection or mobile data.
3. Pick Your Coins
If you’re new to this, then you could follow the crowd and start with the big names like Bitcoin (BTC) or Ethereum (ETH). But also, do research other coins. Some have fascinating uses and are part of interesting projects. Other cryptos don’t have a lot of uses are most people are in it for the community value and the banter.
You could try splitting your £100 between a couple of coins. Just don’t chuck it all into something random because it’s trending on TikTok!
You might like: 5 types of cryptocurrency that I would add to my portfolio
4. Make the Purchase
Once you’ve chosen, open up the order form (this will look different on each exchange), and fill out the details.
Then hit ‘buy’. And that’s it!
Your crypto will appear in your account after a few minutes.
5. Keep Your Coins
If you plan to hold your crypto for a while, you can opt to move it off the exchange and into a personal wallet This can be an online wallet or a hardware wallet. This would be better for bigger funds, rather than small amounts: Blockchain fees will apply to most transactions once you start moving your funds between blockchains.
As a beginner, it is an option just to leave your funds in your account on the exchange.
Now What? Managing Your Crypto Investment
Okay, you’ve bought your crypto. Now what?
- Keep up with the news: Crypto changes fast. Subscribe to a couple of newsletters or follow a few reputable voices on X or Reddit (take things that are said with a pinch of salt!). No need to obsess, just stay in the loop.
- Don’t panic: Prices will go up. And down. And sideways. Don’t make knee-jerk decisions every time the market moves.
- Think long-term: If you’re investing rather than trading, consider strategies like “dollar-cost averaging” (that’s a fancy way of saying: invest small amounts regularly over time).
Don’t Forget the Tax Bit (Sorry!)
Yep, even crypto isn’t free from the taxman. In the UK, if you make a profit when you sell your crypto, you might owe Capital Gains Tax.
Keep a record of what you bought, when, and how much you sold it for. It’ll save a massive headache later. You can always chat with an accountant if you’re unsure.
If you trade crypto often, there are crypto calculator software packages available that can track all your trades for you and spit out a report at the end of the tax year. So keep that in mind.
Read: Are crypto gains taxable in the UK? HMRC rules explained.
Final Thoughts: Is £100 in Crypto Really Worth It?
Totally. Think of it as a low-cost way to get started in a fast-moving, exciting space. You’ll learn a lot, test the waters, and maybe even see your investment grow.
Just remember: Crypto isn’t a guaranteed win.
Do your research, never invest money you can’t afford to lose, and be prepared for a bit of a bumpy ride.
But hey, with just £100, you’ve already taken the first step. And that’s what smart investing is all about.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
| Standard Risk Statement |
| The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies. The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results. |
| UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor. New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.). |
| Cryptocurrency is currently not regulated in the UK. It’s vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments. You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you’re unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) if something goes wrong. |
| Remember: |
| Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more: www.coinjar.com/uk/risk-summary. |
| If you use a credit card to buy cryptocurrency, you would be putting borrowed money at a risk of loss. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. |
| Note the standard risk warning from the CoinJar website. |
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