Bitcoin (BTC) has become a popular financial asset in recent years. Its popularity and performance have attracted many people to the cryptocurrency market. Traders in all parts of the world, Portugal included, have taken a keen interest in Bitcoin and other cryptocurrencies.
Despite the massive interest in cryptocurrencies, some Portuguese traders are not familiar with the best practices of buying Bitcoin. We have designed this guide to help you buy Bitcoin with ease in Portugal. It will also discuss some of the popular payment methods and platforms for buying BTC.
Quick Guide to Buy Bitcoin in Portugal Today
Choose a trading platform from any of our recommended exchanges and brokers and open an account with them. Usually, you will open an account using your phone number or email address. Once that is done, proceed to verify the account as required by the Know Your Customer (KYC) process. It is crucial to verify your account to ensure maximum security.
Fund your account
The account verification is followed by funding the exchange or brokerage account you just opened. These platforms offer a wide range of payment options to fund your account. Find out the exchanges or brokers that support your favourite payment option and open an account with them. The funds you deposit with the exchange or broker will allow you to buy Bitcoin and other cryptocurrencies.
Ensure the funds reflect in your exchange or brokerage account before you proceed to buy Bitcoin. Portugal uses the Euro as its official currency, and several crypto exchanges and brokerage platforms support the BTC/EUR pair, allowing you to buy Bitcoin directly using Euro. Complete the transaction after inserting the amount of BTC you wish to buy or the equivalent EUR amount.
Where to Buy Bitcoin in Portugal in 2021?
When you want to buy Bitcoin in Portugal, you have two major classes of platforms to choose from. You have the option of using cryptocurrency exchanges or crypto brokerage platforms. There are numerous exchanges and brokerage platforms available to Portuguese traders.
The exchanges and brokerage platforms differ in how they provide access to Bitcoin. Exchanges are popular among holders. These are people who wish to hold bitcoins as a long term investment. It gives them the option to move the coins to external wallets for holding.
Brokers operate differently than exchanges. They allow Portuguese investors to gain exposure to Bitcoin through derivatives. This implies that the investors are allowed to speculate on Bitcoin’s price performance via trading vehicles like contract for differences (CFDs), futures and options. Hence, the investors get to make money from Bitcoin without actually holding the real coins.
Since there are numerous platforms available to traders in Portugal, it might be tough deciding on the best ones to use for buying bitcoins. Not to worry, our research team has made it easier for you. We conducted in-depth research into numerous platforms in Portugal and have selected the best brokers and exchanges that support the purchase of Bitcoin. These are displayed below.
Step by Step Guide - How to Buy Bitcoin in Portugal
Buying Bitcoin is a technical and complicated thing, especially for people that are new to the cryptocurrency market. We put together five simple steps that make it easy and understandable for anyone to buy bitcoins in Portugal.
Step 1: Find an Appropriate Platform to Buy Bitcoin
As the leading cryptocurrency in the world, almost all cryptocurrency exchange and brokerage platforms offer access to BTC. As such, there are numerous platforms you can choose from when you are ready to buy bitcoins.
If your intention is to buy bitcoins and hold them for months or years, you should use the services of cryptocurrency exchanges to buy the coins. Since they are actual coins, you can easily transfer them to external wallets for adequate security.
On the other hand, if you are a trader that seeks to make money from the price performance of Bitcoin without holding the coin, then you should use the services of a cryptocurrency brokerage platform.
Regardless of your choice among the two major classes, we always recommend you use a platform that is regulated. The regulated platforms are more secure, and they provide insurance in case of a hacking attack that results in a loss of funds.
Step 2: Registration / Create a New Account
After finding the right exchange or broker for you, the next step is to open a trading account with the selected platform. Most sites allow their users to open an account using an email address, a phone number or social media accounts. The next thing is to verify your newly opened account according to the KYC standards. The recommended platforms are regulated entities, and they need their users to verify their accounts to ensure adequate security at all times. When verifying your account, you will be asked to submit some documents such as a passport, driver’s license or a national ID. For your proof of address, you will submit documents like utility bills and bank statements. Some platforms might even ask you to take a selfie.
Verifying your account with a broker or an exchange is important since it will ensure the safety of your investment funds and other personal and financial details. Make sure you only open an account and trade with a platform that has KYC and AML policies in place.
Step 3: Deposit Funds
After opening the trading account and verifying it, you will be granted access to virtually all the features available on those platforms, including buying and selling cryptocurrencies. The trading platforms offer users a wide range of payment options, allowing traders to choose the ones that best suit them. Some of the top options include bank transfers, PayPal, and credit and debit cards. Ensure you research the best payment method that is suitable for you.
Step 4: Start Trading or Buying Bitcoin
After funding your trading account, you can buy bitcoins to either hold or trade against other cryptocurrencies. If you want to use a broker, you will only gain exposure to BTC derivatives. This way, the trader will enjoy betting on the price performance of the cryptocurrency but won’t hold the underlying coin.
Cryptocurrency exchanges meanwhile operate differently. They allow users to buy the actual bitcoins. This way, the coins can be moved to external wallets to ensure maximum security.
Some platforms offer both services to their clients. eToro is a brokerage platform, but it allows its users to buy real bitcoins. Meanwhile Binance, a cryptocurrency exchange allows traders to access BTC as futures and options.
Step 5: Optional Steps
There are other steps you can take to increase the security of your bitcoin investment or boost your profit potential.
Store BTC in an external wallet: There are numerous external wallets you can use to store your bitcoins. You can use hot wallets like Trust Wallet or cold storage wallets such as Ledger and Trezor.
Hedge the bitcoins: As a derivative trader, you can hedge the bitcoins by opening a derivative trade and manage risk.
What is the Best Payment Method for Buying Bitcoin in Portugal?
Crypto traders in Portugal can use a wide range of payment options to buy Bitcoin. Some of the available payment options include PayPal, bank transfer and credit card. Each payment option has its pros and cons, and your choice of a broker depends on the method best suited to you. Some of the available payment options are discussed below.
Buy Bitcoin with Cash: You can buy bitcoins from peer-to-peer (P2P) exchanges using cash.
Buy Bitcoin with Credit Card: The credit card option is widely used thanks to the speed of the transaction and the security offered by this method. However, it also comes with a higher fee compared to the other options.
Buy Bitcoin with Bank Transfer: The crypto trading platforms accept account funding using bank transfers. The bank transfer method is also popular thanks to its low fees and high-end security. However, using this method means that you sometimes have to wait for days before the funds reflect in your trading account.
Buy Bitcoin with PayPal: This payment option is also convenient for buying Bitcoin from brokers and exchanges. Unfortunately, not all platforms support PayPal for account funding.
Why Buy Bitcoin?
Bitcoin has, over the years, attracted prominent names such as Elon Musk, Paul Tudor Jones, Jack Dorsey and several others. Other prominent companies that have invested in Bitcoin include MicroStrategy, Tesla and SpaceX.
The interest from popular names and corporate entities has to do with Bitcoin’s performance over the past few years. Several retail and institutional investors believe the leading cryptocurrency is a hedge against inflation. Another reason to buy Bitcoin is to use it to pay for goods and services at numerous outlets. Bitcoin has gained adoption in various parts of the world, with millions of merchants now accepting it as a mode of payment. Thus, you can buy BTC from exchanges and brokers and use it to pay for goods and services.
Is it Legal to Buy Bitcoin in Portugal?
At the moment, there are no specific laws or regulations applicable to cryptocurrencies in Portugal. There are no laws regarding how they are purchased or transferred. This means that cryptocurrencies are not prohibited, and Portuguese investors can buy, sell and hold them.
However, you have to be careful with the types of platforms you use. For maximum security of your investment, we recommend buying bitcoins from a regulated exchange or broker. They provide better security for your funds and a safer trading environment.
Where Can I Use Bitcoin in Portugal?
Portugal is still a young market as far as Bitcoin is concerned. At the moment, there are only three Bitcoin ATMs, one each in Lisbon, Porto and Braga. People living in these cities can use the Bitcoin ATMs to buy BTC with ease.
Bitcoin has also gained adoption in other sectors of the economy. Luzboa, a small energy trading company in Portugal, is now accepting Bitcoin as a payment option from its customers.
Our Recommended Best Way to Buy Bitcoin in Portugal
Portuguese traders and investors can buy Bitcoin from several exchanges and brokers. However, to ensure the maximum security of your investment and a safe trading environment, our research team has picked the most reliable, convenient, and cost-effective way to buy Bitcoin in Portugal.
Frequently Asked Questions
No. The Portuguese tax authorities don’t charge capital gains or value-added taxes (VAT) on personal gains made on currencies, including cryptos. This is why Portugal is regarded as one of the friendliest crypto countries tax-wise.
We don’t recommend using unregulated platforms to buy bitcoins in Portugal for security purposes. However, you can use P2P exchanges to buy BTC or find someone willing to exchange Bitcoin with cash, which might be tough. Hence, the best option is to buy from regulated exchanges and brokers.
OTC sellers usually provide services to institutional and big clients that buy huge amounts of bitcoins. There are some OTC sellers providing services in Portugal.
You can buy fractions of Bitcoin called Satoshis. The lowest amount of euro you can use to buy Bitcoin depends on the cryptocurrency exchange or broker you are using since each of them have their own purchase policies.
There are certain factors you have to consider when analysing crypto exchanges in Portugal, including trading fees, fiat currency support, trading pairs available and more. To make it easier for you, you can consult the recommended platforms we have listed above.