Around the time Ethereum (ETH) was launched six years ago, the total market cap of cryptocurrencies was less than $5 billion. Fast forward to 2022, and the market sits at over $1.2 trillion. Part of the growth the market has witnessed over the past six years owes to the launch of Ethereum, which introduced smart contracts to the blockchain, making it possible to launch all types of dApps.
Are you looking to buy Ethereum in Portugal? This piece will guide you on the necessary steps you need to take to achieve this goal.
You can use either exchanges or brokers to purchase ETH in Portugal. Exchanges offer access to the actual asset. Exchanges allow people to get a hold of the coin before using it to transact or moving the coin to a private wallet for long-term holding.
Brokers will allow traders to exploit the volatile price of ETH with higher profitability since you get to trade with leverage. On broker platforms, you won’t access the actual asset but its derivative products. Leverage trading gives your capital a boost, thereby increasing your chances of exposure within a specific market. This increases your profitability but also losses that you might incur in a trade too. Therefore, trading derivatives requires mastering trading and learning skills such as hedging. Brokers will offer plenty of free learning resources and a demo account where you can practice different strategies. If you wish to trade, you don’t need a wallet. Always use regulated platforms to avoid fraud. We have shortlisted the best broker and exchange platforms to buy ETH that are listed below.
Let’s take a look at the vital steps you need to take to buy ETH in Portugal with ease.
The first step, as mentioned above, is identifying a reputable platform that offers ETH. There are factors to consider, such as ease of use, payment modes supported, and other excellent features. Once you have identified the platform based on your criteria, it’s time to sign up.
Create a new account by entering your personal details including your email address/phone number, and setting a strong password. A link will be sent to the email inbox that you have to click to verify your account to be allowed to buy/trade ETH. The process involves uploading a picture of your ID/passport plus a selfie. Some platforms may request a video call to determine if it’s you that indeed appears on the documents. You will also have to submit a utility bill such as a bank statement to get your address verified for higher limits. The document shouldn’t be more than 6 months old.
The documents will be reviewed, and if everything checks out, your account will be verified. Now it’s time to deposit funds to your account using any of the supported modes. Most platforms will allow you to fund the account using bank transfers, credit/debit cards, third-party payment options, and crypto. Choose the most appropriate mode according to you. Also, the speed at which the funds get to your account will depend on the mode you opt to use.
With funds safe in your broker/exchange account, it’s time to buy ETH. This process is straightforward. All you need to do is click on the buy button, and you will be taken to a page where you will select the coin you would like to purchase and enter the amount you would like to spend. Enter the details and proceed to complete the transaction. Brokers will allow you to trade derivatives attached to ETH, but there are a few exceptions. For example, eToro will offer you access to the actual asset as well as trading its derivative products. On the other hand, Binance will offer you access to ETH and also the ability to trade its CFDs.
Now that you understand how to buy ETH, let’s cover a few things you need to do to protect your investment and increase your chances of profitability.
Once you sign up on any platform, ensure you set a strong password and activate the two-factor authentication (2FA).
If you are dealing with the actual asset on exchanges, ensure you transfer your coins to a secure hardware wallet. This way, even if the platform is breached, your investment will be safe.
Finally, if you opt to exploit the volatile price of ETH using various financial instruments offered by brokers, ensure you hedge your investment to reduce the chances of incurring losses. Also, educate yourself on how to trade and set strategies to be more profitable.
Buy Ethereum with Cash – This can be done peer-to-peer or by using crypto ATMs. As for the former, it’s pretty risky since you will be dealing with strangers.
Buy Ethereum with Credit Card – A popular mode supported by most platforms. It’s fast compared to bank transfers but charges higher fees.
Buy Ethereum with Bank Transfer – Another popular option supported by most platforms but can be slow, with transfers taking 3 to 5 business days.
Buy Ethereum with PayPal – The use of third-party payment options is another option that is fast and convenient.
Buy Ethereum with Bitcoin – this can be the easiest way to buy ETH, but you need to have some BTC with you at the start.
If the value of crypto projects relies on utility, then Ethereum has to be one of the most valuable projects within the cryptocurrency space. Launched six years ago, Ethereum is considered a second-generation blockchain that allows users to do more than Bitcoin, a first-generation blockchain. Like Bitcoin, this project allows for peer-to-peer transactions. Additionally, you can launch smart contracts. These are self-executing programs. This ability allowed almost anyone to launch decentralised applications. Most of the growth we have witnessed within the cryptocurrency space is associated with the building of programs that allow for decentralized finance, where people can lend, borrow, and earn interests with minimum requirements, monitoring of supply chains, non-fungible tokens and monitoring carbon footprint.
Most of this development occurs on Ethereum, and even though today other protocols try to compete with similar products or improved versions, they can all be traced back to this project.
One problem that has plagued this project and the crypto space as a whole has been scalability. Slow processing times have seen the Ethereum network clogged at times when there is so much activity going on and, as a result, it has pushed fees through the roof. This has left users incurring huge fees if they want to process transactions faster.
This issue has been apparent from the start, and the team behind the project has been busy trying to come up with a solution. Transitioning to Proof of Stake is the answer. However, it’s not easy since the network is fully functional. So, this transition is taking place in stages. The first stage of Ethereum 2.0 has already launched. Some proponents of this project believe that if the protocol can manage to scale without any issues, it’s likely to oust Bitcoin as the top cryptocurrency.
Currently, Bitcoin’s market cap is bigger than that of Ethereum by $400 billion. To move to the top, ETH needs to grow by 250% only. This is a small feat considering the over 4744x growth the project had registered since its all-time low in October 2015.
Technically yes. Authorities in the nation haven’t endorsed crypto as legal tender, but they are not opposed to these digital assets. You are free to buy Ethereum from various exchanges and brokers, read more about this in our Portugal tax guide.
Even though Portuguese citizens are free to buy and sell crypto, you are likely to struggle to find businesses that readily accept ETH. However, it’s possible to make arrangements with a business or individual to pay for goods or services using the digital currency. Also, you can convert your coins into fiat and spend them as you like. This is possible using crypto ATMs, and there are three. One each in Porto, Lisbon and Braga.