This is an abbreviated version of a longer post I have available here.

The Revolut Method

Overview

This is the cheapest method (that I know of) to buy bitcoin in the UK. Here's an overview of the process:

1. Transfer funds from GBP bank account (via transfer or debit card) to your GBP Revolut account.
2. Exchange GBP funds in Revolut to EUR (at the real exchange rate, instantly).
3. Transfer funds from your EUR Revolut account to GDAX or Bitstamp.
4. Purchase bitcoins at less than 1.5% above the real EUR to BTC exchange rate (or less than 1% if using Bitstamp).

Requirements

To complete this process, you'll need to download and verify your identity with Revolut (a mobile banking app) and have a GDAX account setup. FYI: GDAX is owned by Coinbase. If you already have a verified account with Coinbase, the signup process required to use GDAX should be painless. You can also move your funds (fiat and cryptocurrency), without any fees, between Coinbase and GDAX.  

If you’re NOT already signed up on Coinbase, click through this link to get an extra $10 worth of bitcoin when you buy or sell $100 of bitcoin or more. When you initially sign up, your EUR wallet might not be present immediately. It should appear shortly after you’ve registered. Verifying your identity and making an initial purchase with a debit/credit card might speed up the process. Check out this post for a first time users guide.

In order to transfer funds from your EUR Revolut account successfully, you’ll also need to activate your EUR account (which isn’t done automatically). This is an essential step, otherwise you’ll receive an error.

• Open the Revolut app.
• Select:
  • ‘Top-up EUR’
  • ‘Bank Transfer’
  • ‘EUR’
  • ‘Activate’
• Details should populate instantly, with Beneficiary (your name), IBAN, and BIC.

Some Details

If you are purchasing through GDAX, don’t try to add Revolut as a bank account in Coinbase. Instead, follow these steps:1. 

1. On Coinbase, go to ‘Accounts’ in the top bar. 

 2. In the left sidebar under ‘Your Accounts’, select ‘Deposit’ under the ‘EUR Wallet’. 

 

 3. Deposit information should then pop-up. Plug these details into Revolut (Pink Transfer Button  > To bank account > Add a new beneficiary). 

 4. When you’re ready, select this new beneficiary. Input the desired amount. Also, make sure that you enter the reference number provided by Coinbase on this screen. If you don’t, your payment might be rejected and returned after 5-10 days. 

 5. Double check everything and send the money over. SEPA transfers are only processed during working hours on weekdays. If you initiate a SEPA transfer on the weekend, then it won't process until the next working day (Monday). If you initiate it on a weekend, it takes 24 hours (or less) to complete (usually).

Note: Prices on GDAX are typically between about 1% and 1.5% above the real exchange rate. If you want rates closer to the real EUR to BTC exchange rate, then Bitstamp is worth checking out (see here for a comparison of rates).

I tackle some of the most FAQ with this process in this post.

Summary

ADVANTAGES

• Cheapest method to purchase bitcoin.
  • Real GBP to EUR exchange rate.
    • 0.5% markup on major currencies on weekends.
  • No exchange deposit fees (GDAX/Bitstamp).
  • <1.5% (GDAX) or <1% (Bitstamp) above real EUR to BTC exchange rate.
• Only have to verify identity through two companies (Revolut and GDAX/Bitstamp).
• This process will work with other popular exchanges (e.g., Kraken) as long as you activate your personal EUR account (detailed above).

DISADVANTAGES

• You can send, spend, withdraw, and exchange (in a non-GBP currency) the first £5000 for free every month. After that, you pay a 0.5% fee on cross-currency transactions.
• Funding your Revolut account is instant, but transferring to an exchange is NOT instant.
  • It can take as little as 3 hours or up to 24 hours to transfer from Revolut to an exchange.
  • If you send a payment on the weekend, it will not get credited until Monday.
• Revolut is a smartphone app. No desktop version available.

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One more thing...

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Remember: I’m not a financial advisor and this is not financial advice. Check out my full disclaimer here.