How to Buy Cryptocurrency in Belgium in 2024

Where to Buy Cryptocurrency in Belgium in 2024?

There are two prominent ways in which you can buy cryptocurrency in Belgium, in 2021 – through an online cryptocurrency broker or an exchange platform.

When you use a cryptocurrency exchange, you’ll buy crypto directly from the market, using a trading pair of your choice. Please note, in this case you will be investing in the ownership of the actual crypto coins, and will have the option to use a crypto wallet for their safe storage.

Although you can buy actual crypto coins from a broker too, these entities serve as intermediaries between you and the crypto market, getting you the best possible price for the concerned cryptocurrency. However, brokers are generally used for trading cryptocurrencies via derivatives like CFDs, Futures and Options, enabling people to speculate on crypto prices, without exchanging any actual coins. This type of trading does away with the need of setting up a wallet too.

Below we have listed some of the best online brokerage and exchange platforms you can use to buy cryptocurrency in Belgium.

Step by Step Guide – How to Buy Cryptocurrency in Belgium

Cryptocurrencies being a fairly new asset class compared to the conventional tradable assets, new buyers often find buying them a little intimidating. We’ve made the process easier for you and have explained it clearly in 5 simple steps below.

Step 1: Find an Appropriate Platform to Buy Cryptocurrency

To begin, please note, there’s no right or wrong platform to buy cryptocurrency in Belgium. It all comes down to your personal preferences and the medium that seems most comfortable to you. That being said, it’s always better to transact with well-regulated platforms licensed by leading global authorities and approved by Belgium’s government to operate in the country. Doing so will ensure that your crypto funds stay safe and you’re not left stranded in the event of any mishap.

While it’s a norm amongst long-term and occasional crypto investors to opt for exchange platforms to buy cryptocurrencies, short-term traders normally use brokerage platforms to exploit the short-term price fluctuations in the crypto market. Your decision to choose a specific service provider should be based on multiple factors including your trading strategy, investment approach and risk appetite. The platform’s regulatory status, customer service, fees, security features, user-interface and offered cryptocurrencies should be considered as well. 

Step 2: Registration / Create a New Account

After you’ve successfully identified the trading platform you’d like to use to buy crypto, you’ll need to register with it first. While most of these platforms will ask for your name, email id, residential address and phone number to open an account, some may shorten this process by allowing you to sign up with a Gmail or social media account.

As mentioned earlier, you’ll be asked to verify your identity after signup. This is to comply with the platform’s KYC (Know Your Customer) process, and is compulsory as per the global CFT (Combating the Financing of Terrorism) and AML (Anti Money Laundering) laws. The idea behind this is to make such portals secure for everyone involved. This verification can be normally completed by providing a government-approved photo ID card and a proof of address. You may even be asked to click and upload a selfie by some platforms.

Step 3: Deposit Funds

Once the KYC process is complete, you’ll be able to deposit funds into your account with the broker /exchange. Belgium, being an integral part of Europe, is served by a large number of trading portals that will readily accept Euro deposits through credit/debit cards, prepaid cards, bank transfers and third-party payment processors such as PayPal. Please note, the available modes of payment may vary from platform to platform. Additionally, there may be different fees, speed and convenience levels associated with each payment option. 

Step 4: Start Trading or Buying Cryptocurrency

Depending upon the payment method chosen by you, it may take anywhere from a few hours to a few days for the funds to become available for the cryptocurrency purchase.

Cryptocurrency exchanges will allow you to buy and own actual crypto coins, which can then be either stored in the exchange-provided web wallet, or in an external crypto wallet of your liking. These platforms are usually preferred by long-term or occasional crypto buyers who prefer holding onto their coins, and wait for their value to appreciate.

Brokers on the other hand are experts in offering crypto trading via derivative products like Futures and Contract for Differences (CFDs). These are the favourites of traders who like speculating on the fluctuating prices of cryptocurrencies, and don’t want to deal with the complexity of buying and storing the coins.

However, as is the case in any market, there are exceptions in the crypto market too. You may find crypto exchanges like Binance that also deal with derivatives like Options and Futures, while eToro, a recognised crypto broker, facilitates easy spot purchases of crypto coins.

Step 5: Optional Steps

At this point, when you have successfully made a crypto purchase or have opened a trade, you can take certain additional steps to safeguard or make the most of your investment, for instance:

• If you have bought crypto coins on an exchange with a long-term perspective, you can move your funds from the vulnerable online wallet, to a self-owned crypto wallet. 

• If the purchased cryptocurrency can be staked, you can opt to do so through a crypto wallet or exchange that supports such activity.

• There are many cryptocurrencies that allow owners to participate in their governance, to the extent of the amount owned by them. You can avail this privilege and become an active contributor in deciding that crypto’s future.

• Investors comfortable with derivatives trading can hedge their primary cryptocurrency investment by opening corresponding positions in the derivatives market.