As a leading UK investment platform, Hargreaves Lansdown currently does not allow direct cryptocurrency purchases. However, for investors seeking crypto exposure, we recommend using the regulated exchange for buying digital coins and tokens. At Coincipher, we provide expert insights on how to buy crypto with Hargreaves Lansdown account.
Summary
As of now, Hargreaves Lansdown does not support direct trading of cryptocurrencies on its platform. However, investors can gain indirect crypto exposure by investing in crypto exchange-traded products (ETPs) or stocks of crypto-related companies. For direct purchases and trading of digital currencies like Bitcoin and Ethereum, UK investors need to use a dedicated crypto exchange platform that allows linking to a UK bank account.
Based on market research and expert opinions, eToro is the best Hargreaves Lansdown alternative for buying crypto assets. eToro is regulated in the UK, offers an extensive range of over 4,500 trading instruments, including popular cryptocurrencies, and charges average spreads of around 1% on trades – making it a cost-effective and secure option for diversifying investment portfolios.
Cryptocurrency Adoption Trends Among UK Investors
Recent surveys reveal a growing appetite for crypto investments among UK investors. An estimated 2.3 million adults now own digital coins in Britain – an over 173% jump from 2020’s figure. Driven by increased mainstream awareness and motivations like portfolio diversification, 13% of UK adults expressed interest in buying crypto over the next 12 months in the FCA’s crypto asset survey published in December 2022.
However, the lack of proper information and secure platforms for investing in cryptocurrencies remains a key barrier. Over 36% of current crypto holders rely on internet search engines to guide their investment decisions. Meanwhile, around 25% have concerns about becoming a victim of cryptocurrency fraud.
This demonstrates the need for simplified, trustworthy avenues for individuals to participate in the crypto economy through incumbent financial institutions or regulated crypto-specialized platforms tailored for beginners.
Step-by-Step Guide: How to Buy Crypto with Hargreaves Lansdown
Given Hargreaves Lansdown does not currently allow direct purchase of cryptocurrencies, using a dedicated crypto exchange like eToro represents the most straightforward approach for investors to buy digital assets.
Here is a simple step-by-step process for buying crypto on eToro using your GBP funds:
Step 1) Create eToro Account: Register on eToro’s website with your email ID and password to open a trading account. Complete profile verification.
Step 2) Link UK Bank Account: Search for and connect your UK bank account to deposit British Pounds and withdraw funds from eToro.
Step 3) Explore Crypto Assets: Browse through eToro’s extensive catalogue of popular cryptocurrency coins and tokens like Bitcoin, Ethereum, XRP, Cardano etc.
Step 4) Initiate Your Investment: Enter the investment amount in GBP, select the desired cryptocurrency and execute your purchase order.
Your purchased crypto assets will be reflected in your eToro portfolio. You can transfer coins to a private crypto wallet, though eToro charges a small withdrawal fee.
Remember, cryptocurrencies are highly volatile digital assets. Invest only an amount you are comfortable losing entirely.
For readers specifically interested in buying cryptocurrencies using other bank accounts and payment providers, check out these additional guides:
What is Hargreaves Lansdown’s status on cryptocurrencies?
Hargreaves Lansdown currently does not facilitate direct purchase, sale, or trading of cryptocurrencies on its platform. The company instead offers investors the option to invest in crypto-related exchange-traded products (ETPs) from their portfolio. These ETPs track the performance of digital assets like Bitcoin and Ethereum or derive value from a basket of cryptocurrencies.
Additionally, clients can invest in stocks of publicly listed crypto companies such as Coinbase. However, unlike a crypto exchange, these indirect investment avenues do not provide ownership of the actual cryptocurrency assets.
Hargreaves Lansdown has not indicated any plans to enable support for direct crypto transactions or include crypto ETPs in its offerings in the foreseeable future. The company would likely need considerable investments in infrastructure and resources to handle cryptocurrencies safely while complying with UK regulatory guidelines – a challenging barrier for the short term.
Key Metrics
- Current share price: £780.57 (as of February 5, 2023)
- 52-week range: £676.40-£1,023.50
- Market capitalization: £3.70 billion GBP
- Average daily trading volume: 998,970 shares
- P/E ratio: 11.45
- Dividend yield: 5.32%
- Primary stock exchange listing: London Stock Exchange (LON)
- CDP Climate Change score: C
- Projected revenue for June 2023: £192.55 million
- Projected net profit margin for June 2023: 43.24%
Does Hargreaves Lansdown work with crypto?
As covered earlier, Hargreaves Lansdown currently does not allow customers to directly invest in or trade cryptocurrencies through its platform. The company instead facilitates indirect investment into crypto-linked exchange-traded products or stocks.
What do I do if Hargreaves Lansdown is not crypto-friendly?
For investors specifically looking to purchase and own cryptocurrency coins, Hargreaves Lansdown’s not supporting crypto trading requires considering alternative platforms. The simplest option is to open an account with a regulated, user-friendly UK crypto exchange like eToro that allows direct engagement with various crypto assets using British Pounds.
Additionally, one can explore transferring funds to a digital wallet and buying crypto from within the wallet app itself through linked payment methods. For instance, the Coinbase wallet integrates with a Coinbase exchange account for quick, hassle-free crypto purchases. However, convenience comes at the expense of higher platform charges.
Conclusion
In summary, buying cryptocurrencies directly through Hargreaves Lansdown is currently not possible. The investment management firm instead provides indirect crypto exposure via crypto-linked ETPs and stocks. For hands-on ownership of digital coins, UK investors must use specialized crypto exchanges like eToro that enable secure crypto purchases using British Pound deposits.
FAQs
Does Hargreaves Lansdown allow buying Bitcoin or other cryptocurrencies?
No, Hargreaves Lansdown does not yet provide support for direct purchase, sale or trading of cryptocurrencies like Bitcoin on its investment platform.
Can I buy crypto ETPs on Hargreaves Lansdown?
Yes, clients can invest in select exchange-traded products (ETPs) that derive value from or track the performance of cryptocurrency assets. However, this does not entail owning the actual digital coins.
What is the easiest way for UK residents to buy cryptocurrencies?
The easiest avenue is to open an account with a reputable UK crypto exchange platform like eToro. These platforms allow direct purchase of many popular cryptocurrencies using British Pounds deposited from your UK bank account.
