Having witnessed a tremendous value appreciation over the past decade, Bitcoin (BTC) is often equated with Gold in the investment community. Portugal is considered one of the most crypto-friendly nations in Europe, and offers a very healthy environment for investment and trading in all kinds of cryptocurrencies, including Bitcoin.
You don’t need to pay any taxes on profits earned from investing in Bitcoin or cryptocurrency trading activity in Portugal. If you’d like to learn more about how to buy Bitcoin in Portugal, this piece will serve as a comprehensive guide for you.
Why Trade Bitcoin instead of Buy Bitcoin?
No wallet needed
Trading Bitcoin doesn’t require any wallet as you simply bet on the coin’s price movements, without exchanging its actual ownership.
Use usual payment methods
Most Bitcoin brokers permit the use of regular payment methods like credit/debit cards, bank transfers and third-party platforms like Paypal.
Easy & fast
Since no actual BTC exchange happens during trading, trading is a quicker and more effective method to profit from BTC’s dynamic price movements. Trading bots can be employed too, for further easing up the activity.
The Best Places to Buy Bitcoin in Portugal in 2021
Cryptocurrency exchanges, brokers and peer-to-peer (P2P) platforms constitute the best places to buy Bitcoin in Portugal, in 2021. While Bitcoin ATMs may serve as the most convenient means to buy BTC in any country, there are none in Portugal at the time of writing. Furthermore, Banco de Portugal (Central Bank of Portugal) recently licensed two crypto exchanges focused on country-specific operations for the first time, but most of the online platforms you’ll come across for Bitcoin trading and investing in Portugal are broadly meant for all member nations of the European Union. Below listed are some of the best cryptocurrency brokers and exchanges that you can use in Portugal for BTC purchase.
How to Buy Bitcoin With the Best Broker in Portugal
There are many top-rated Bitcoin brokers operating in Portugal for quite some time now. These platforms are run by capable teams having extensive experience in offering quality brokerage services to the interested traders and investors. Most of them are licensed and regulated by reputed global authorities. Let’s learn how to sign up with them and use their services.
1. Register with a Reputable Broker
Once you have selected the broker you would like to use, you can register with it by providing some basic details like your name, email address, residential address and a phone number. To start right away, you can pick from any of the shortlisted crypto brokers above. They meet all the popular criteria and are already used by a large number of Bitcoin investors and traders in Europe.
2. Verify your Identity (KYC Process)
This step involves verifying your identity on the brokerage platform, to comply with their KYC norms. As the majority of well-known brokers are regulated and licensed by leading authorities, they are mandated to follow this process. You can verify your identity by uploading a government-issued photo ID, and in some cases a separate utility bill that will serve as a proof of address. Please note, it is important to register and use only regulated brokers as they offer a higher degree of security than unregulated platforms.
3. Deposit Funds with your Preferred Payment Method
Most crypto brokers operating in Portugal will accept deposits in credit/debit cards, bank transfers and some even through third-party facilitators like PayPal. Each one of these payment methods comes with its own unique traits with respect to speed, cost and convenience. It’s entirely up to you which one you choose based on your specific preferences.
4. Open a Position to Long/Short Bitcoin
A long position on Bitcoin is taken to profit from its upward price movement, and a short position helps exploit a drop in its value. Let’s understand it better with an example of opening these positions on a well-known broker platform like eToro, which is regulated and authorised by CySEC (Cyprus Securities Exchange Commission).
If you open a long position on BTC using the eToro broker website, you will be buying Bitcoin’s actual ownership, and register a profit by selling it at a possibly higher value later.
On the other hand, opening a short position on Bitcoin will entail using a financial derivative such as a CFD (Contract for Difference), to sell a certain amount of underlying BTC, with no actual BTC exchanging hands. In this case, you’ll be speculating a drop in Bitcoin’s price, which if it happens, the difference between the opening and closing price of the CFD trade will constitute your profit.
It’s possible to use various order types such as limit order, market order, stop-loss and trailing stop-loss, to make timely entries and exits from your trades, and maximise your profit potential, while cutting down the losses. To give you an example, while a market order will buy you the required amount of Bitcoin instantly at the existing market rate, a limit order will execute the buy trade only when the Bitcoin’s value touches a price point specified by you.
5. Close your position
Closing your position essentially means concluding the trade. An open position on Bitcoin is closed by selling the corresponding amount of actual BTCs, or closing the CFD trade.
As highlighted in the previous section, it’s also possible to automate this process by specifying take profit and stop-loss price points beforehand. When you do so, a long position on BTC will get automatically closed once the coin’s value appreciates to the take profit level; alternatively, it may also close if the price drops to the stop-loss point, to guard against further losses. If desired, you can even intervene manually at any time and close your positions.
How to Buy Bitcoin With the Best Exchange in Portugal
Being an integral part of Europe, Portugal enjoys a vibrant business environment and is home to a wide variety of international cryptocurrency exchanges serving the European Union. Though the majority of these platforms are based outside of the country, they hold valid licences to operate in Portugal and are usually regulated by the leading financial authorities of Europe.
A cryptocurrency exchange in Portugal will normally offer you a BTC/EUR pair, enabling you to easily buy Bitcoin with the local currency. Alternatively, you can also make use of other trading pairs, based on your convenience, and make the required Bitcoin purchase. Let’s learn more about how to buy Bitcoin with an exchange platform in Portugal.
1. Set up a Wallet
To begin, you’ll need to set up a cryptocurrency wallet to safely store your purchased Bitcoin. However, using a Bitcoin wallet is optional and for those who do not wish to trade actively. It may also be a good option for long term investors with huge assets. These wallets are essentially software applications and most of the crypto wallets available in the market can be classified into two broad categories as follows.
Software wallets – These wallets are meant for cryptocurrency storage on desktops/laptops or mobile devices. As they stay online constantly, they’re also classified as a type of hot wallet, and are vulnerable to hacking attempts.
Hardware wallets – Sold in the form of flash-drive size small physical devices, hardware wallets mostly stay offline and are the most secure amongst all crypto wallets in the market today.
2. Choose and Join an Exchange
You should select an exchange platform that holds a good reputation in the market and is already used by a significant number of crypto traders and investors. It should be transparent in its fee structure, with various charges like withdrawal fee, deposit fee and transaction fee clearly specified on the platform. In addition, the exchange must implement leading security measures to safeguard investors’ and traders’ interests. Regulated digital currency exchanges that make ID verification and KYC mandatory are comparatively safer than unregulated portals.
3. Choose Your Payment Methods
Many crypto exchanges in Portugal accept deposits made with credit/debit cards and bank transfers. Some exchanges accept Paypal deposits too. It’s entirely up to you which mode of payment you use depending upon the level of convenience, cost and speed you require in your Bitcoin transactions. Credit/debit cards though offer greater convenience, can be costly for frequent crypto traders. Bank transfers, on the other hand, are inexpensive but take more time for processing.
4. Place an Order to Buy BTC
You’ll need to use a trading pair like BTC/EUR, BTC/USD, BTC/XRP and BTC/ETH, to place a Buy order for Bitcoin on a cryptocurrency exchange. Just select the trading pair that suits you the best, specify the quantity and check the existing exchange rate, then click the ‘Buy’ button if you feel the rate is as per your expectations.
5. Safely Storing Your Bitcoin in a Wallet
You may want to transfer the purchased Bitcoin from the exchange provided web wallet to an external crypto wallet of your choice. This is usually preferred by people buying Bitcoin with a longer investment horizon, who primarily use a cold hardware wallet for such storage. To transfer Bitcoin from the exchange to your crypto wallet, simply access the withdrawal option on the site and then specify your wallet’s address to initiate the transfer.
What if I want to Buy Bitcoin with Cash in my City in Portugal?
Unless you are using a reliable Peer to Peer exchange or depositing cash into a Bitcoin ATM, there may be many risks associated with purchasing Bitcoin with cash, not just in Portugal, but anywhere in the world. P2P exchanges are usually preferred in this regard because they involve lesser fees and some platforms also facilitate cash deposit in an escrow account till you receive the promised Bitcoin in your wallet. There are no Bitcoin ATMs in Portugal at the time of writing.
It is always better to buy BTC with cash from your friends within your local Bitcoin community, than buying it from a stranger on a P2P platform. The best option is to purchase it through a regulated and licensed trading platform.
Portugal is one of the most progressive countries when it comes to adoption of emerging technologies. While it abides by the EU guidelines on regulation of digital currencies, Portuguese authorities have clarified time and again that cryptocurrencies, including Bitcoin, will receive the same treatment as any other currency, and not merely as an asset. Furthermore, a 2016 notification from Portugal's Ministry of Finance stated that capital gains from retail trading of cryptocurrencies will be non-taxable.
3 Tips to Buy Bitcoin
Let’s now acquaint you with a few important tips that can potentially make your Bitcoin purchase in Portugal a smooth ride.
1. Choose the Right Time and Do Your Own Research
Conducting some study on Bitcoin’s historical price movements can help you enter the market at an opportune time, and therefore maximise your chances of booking profit. It is imperative that you learn about some important technical and fundamental factors which are likely to impact BTC value going forward. It can give you a fair idea of the coin’s movement and help you to decide when to buy.
2. Comparing Costs to Buy Bitcoin
When you buy and sell Bitcoin, there are certain fees and charges to pay including a withdrawal fee, deposit fee and transaction fee normally levied by various trading platforms. Other than that, there may be a certain charge associated with the payment option used to buy the cryptocurrency. All such costs must be factored in while planning to make the Bitcoin purchase, especially if you trade or invest in it on a regular basis.
3. Safety and Security
Finally, the onus is on you to ascertain that the trading platform you’re using to buy Bitcoin in Portugal uses the leading security technologies to safeguard your account. One of the better ways of ensuring this is by dealing with only reputed and secure providers, regulated by well-known authorities. Apart from these measures, you can also use additional security layers like 2FA (Two-Factor Authentication) to protect your account.
Can I Buy Bitcoin with Euro?
All the cryptocurrency brokers and exchanges operating in Portugal will normally allow you to purchase Bitcoin with Euro (EUR), without any hassles. In fact, most of them are receptive to accepting popular fiat currency deposit and withdrawls like the British Pound, Euro and US Dollar. It is recommended that you refer to the buying processes detailed earlier in this piece, and use EUR to purchase Bitcoin in Portugal.
Other Ways to Buy Bitcoin in Portugal?
There are few other ways in which you may be able to buy Bitcoin in Portugal, besides the ones discussed above.
Use a Bitcoin ATM to Buy BTC: Unfortunately, there are no Bitcoin ATMs available anywhere Portugal at the time of writing. So, this method to buy Bitcoin in Portugal is ruled out at the moment.
Other Ways to Get Bitcoin: Mining is one of the ways to get access to BTC. However, while mining Bitcoin may seem profitable to many as an effective means to acquire the cryptocurrency, especially considering Portugal’s crypto-friendly tax laws, the ground reality is quite different. You cannot possibly turn a profit from Bitcoin mining in Portugal owing to the higher electricity costs. Nonetheless, you can obtain it as a form of payment, instead of Euro, for providing goods and services in Portugal. It’s also possible to legitimately earn small amounts of BTC through Bitcoin faucets and online games.
Additionally, many people also use the ETF (Exchange Traded Funds) route to indirectly invest in Bitcoin, through regular exchanges.
Portugal is rapidly emerging as the number one destination for anyone interested in crypto trading. There are multiple convenient methods for buying Bitcoin in Portugal today. As BTC enjoys the maximum liquidity among cryptocurrencies worldwide, you’re unlikely to face any problem in locating reliable sellers in the market.
Frequently Asked Questions
The best place to buy Bitcoin in Portugal depends entirely on your personal preferences, and what you’re looking for. We’ve listed some of the best crypto brokers in this article where you can easily buy BTC, without any hassles.
While a Bitcoin exchange will allow you to buy and trade actual ownership of Bitcoin, a Bitcoin broker apart from facilitating sale/purchase of actual BTC will also enable you to use derivatives like CFDs to speculate on its price movements.
Yes. You can check out the recommended Bitcoin brokers in this article, most of which will allow you to use leverage to buy or trade Bitcoin with ease.
Yes. Most of the licensed and regulated online trading platforms operating in Portugal will require you to verify your identity using a government-issued ID, before allowing you to buy Bitcoin through them.
It is advisable to use a regulated cryptocurrency broker to place large volume Bitcoin trades.