How to Buy Cryptocurrency in Portugal in 2024

Where to Buy Cryptocurrency in Portugal in 2024?

Being the most crypto-friendly jurisdiction in the European Union (EU), Portugal is the target of many cryptocurrency vendors. 

If your strategy is short-term, then a cryptocurrency broker is an appropriate platform to buy cryptocurrency. Brokers sell cryptocurrency derivatives, which you can open and close positions in a matter of minutes.

On the other hand, an exchange platform is an appropriate platform if your investment strategy is the long-term holding of the tokens. You can hold the coins for a long time because you have a claim on real assets. This means the exchange will deposit the coins in your account’s wallet or you can transfer them to a private wallet.

Given the number of exchange and broker platforms in Portugal, it could be daunting for new customers to find the best place to transact. Fortunately, we researched for many available options and compiled a list of the best platforms for your convenience. These are given below.

Step by Step Guide – How to Buy Cryptocurrency in Portugal

Portugal is a cryptocurrency hotspot, but we know that not everyone can find their way through the market. As such, we took the trouble to condense the process of buying cryptocurrency in Portugal into five basic steps, as discussed below.

Step 1: Find an Appropriate Platform to Buy Cryptocurrency

There is no ‘right’ or ‘wrong’ place to buy cryptocurrency in Portugal, for starters. Instead, the appropriateness of a trading platform depends on your personal needs.

For example, a broker platform is appropriate if you wish to wager on the price volatility of cryptocurrency. As such, traders can take as many positions at any time as their funds can allow. Also, this means traders do not have to worry about the storage of the coins.

However, the scenario changes once your needs shift to HODLing. To HODL is to buy actual cryptocurrency coins to hold for an extended period, often months and even years. The underlying idea of HODLing is to exploit the long-term growth of the given digital currency. 

The appropriate platform to buy coins for HODLing is the cryptocurrency exchange. A cryptocurrency exchange is like a market, where buyers and sellers meet and exchange one token for another, or one token for fiat currency, or vice versa. 

But your personal needs should not be the only bottom line to select the right platform. In addition, you should also consider the regulatory status of the broker or exchange. A regulated platform comes with an official guarantee of safety. 

Step 2: Registration / Create a New Account

Once your mind is settled on the ideal platform, the next step is to open an account. Thankfully, this is the easiest hurdle you will have to jump. 

A typical account registration process begins at the registration window – where you will be prompted to fill two boxes, the first one with your full name and the other with address details. Some platforms ask for a mobile phone or email address only, but others might ask for both. 

After you hit ‘SUBMIT,’ the platform opens an account, but it is not active just yet. To activate the account, the exchange or broker will ask that you upload a photo ID and a picture of the bank statement for the last three months. The documents will be used to complete the KYC (know-your-customer) process.

As the phrase suggests, the KYC process helps the exchange or broker to identify the new client. In addition, the law requires the platforms to explain the nature of their dealings with the clients, which means they must know who they are, where they come from, and their primary intention of opening an account.

Step 3: Deposit Funds

When using a broker platform, making it through the KYC process only activates the account. An active account can access the market through the demo feature, but not all platforms offer it. For live trading, you must fund the account.

In Portugal, traders have an endless range of payment options to fund their accounts. For example, you could use PayPal for convenience or a credit card for faster transactions. 

Also, it is worth noting that different trading platforms support different payment options. 

Step 4: Start Trading or Buying Cryptocurrency

You can start trading once the funds reflect into your account. It helps to know that the time it takes for the funds to reflect varies depending on the payment method used. 

The account enables you to trade with the given coin via derivatives, such as futures and CFDs. This means buying a preferred cryptocurrency pair and specifying the order size, as well as the leverage ratio.

On the contrary, exchanges allow you to make spot purchases of the given cryptocurrency. Spot purchases culminate in the exchange sending actual tokens into your account, and these coins need storage. 

You can store the coins in the account’s wallet, especially if you need quick access. However, you should send the coins into a private wallet if you intend to HODL. Keeping the coins in a private wallet extends more control over the coins to you, and their security is also in your hands.

While at it, please be reminded that some brokers such as eToro operate as exchanges, meaning they enable clients to buy cryptocurrency on the spot. Similarly, some exchanges such as Binance offer cryptocurrency derivatives trading. 

Step 5: Optional Steps

There is more you can do after purchasing cryptocurrency:

• If you purchased the digital currency for HODLing, it would be reasonable to move the coins into a private wallet for better security and more control. Also, you could offer the coins for staking, if possible. Staking helps to maintain the security of given blockchain systems for your profit.

• In the case of a trading position, the next step should involve risk management. Managing risk means protecting your position from sudden adversarial moves in the market. One way to manage risk is through hedging. For example, you could open a position in the derivatives market to hedge against potential loss.