The world is gradually accepting cryptocurrencies and the markets are bigger and more versatile than they’ve ever been. But if you’re an outsider to the crypto-sphere it might all seem a little daunting. With so many online exchanges and brokers available in Europe and around the world, how do you even go about getting started? Can you buy cryptos in Europe? Which crypto should you consider buying? What is the process of buying cryptos legally?
First and foremost, you can find more information about the pros and cons of each crypto in our other guides. Let’s consider for the sake of this guide that you live in Europe and are looking to specifically buy Bitcoin (BTC). In this guide, we’ll be investigating the methods available for purchasing Bitcoin in Europe. We also have a step-by-step guide that will help with every aspect of a purchase.
Europeans are lucky in that they have access to an enormous crypto market. In fact, Europe has the biggest crypto market outside the United States, making it the second biggest in the world. With that said, it is still necessary to choose an avenue for transaction. You can’t, after all, buy Bitcoin directly through your local bank.
Brokers: A broker is a common method for buying Bitcoin in Europe. Popular broker options include Naga, EToro and Plus500, all of which are respected for their reliability. Bitcoin will be listed with all of these brokers as a major, non-alternative asset, meaning that buying and selling the crypto is easy. The best aspect of brokers is that they also offer alternatives to simply buying and selling. Bitcoin futures and margin trading is offered too and is aimed specifically at those that want to delve deeper into investment.
Global Exchanges: Exchanges are probably the easiest and most accessible method for buying Bitcoin in Europe. An exchange is exactly what the name says. It’s a platform meant for exchanging a currency for another currency, including Bitcoin. Though to be more specific, you can buy Bitcoin with fiat currency or trade for Bitcoin with other cryptocurrencies. Using a global exchange requires that you sign up at the platform, deposit fiat currency into the account, and then choose the crypto you wish to purchase.
If you want to trade for Bitcoin with other cryptos you’ll have to take trading pairs into account. Trading pairs represent which crypto can be exchanged specifically for other cryptos. As an example, BTC/ETH means that Bitcoin and Ethereum (ETH) are a supported trading pair. In other words, you can exchange one for the other with very little hassle.
Reputable exchanges available in Europe include Binance and Coinbase.
Local Exchange: Going global is great for versatility and convenience, so why would you want to choose a local exchange? The fact of the matter is that even if an exchange is technically native to Europe, it acts as a global exchange regardless. The only difference is that a local exchange has more of an emphasis on the Euro. So, using a local exchange may cut out a bit of hassle in regard to currency considerations.
Exchanges native to Europe include Bitpay and Coindeal.
P2P Marketplace: P2P refers to peer to peer trading. An exchange facilitates trade through a central platform, but P2P is simply a direct transaction between traders. If you’re new to trading you’re probably going to want to stick to an exchange just for the sake of simplicity. More advanced traders may potentially go P2P for the added flexibility.
P2P marketplaces in Europe include Paxful and Local Bitcoin.
Assuming that you’ve made up your mind to buy Bitcoin, it’s probably a good idea to take a look at the crypto itself. You’ve obviously heard of the token, though perhaps aren’t familiar with the finer details. Bitcoin is the oldest, most mature crypto in the world, having been around for much longer than most people tend to assume. Even before it became globally known, Bitcoin existed in 2009. This means it’s the oldest crypto by years. But does being old necessarily make it better?
It isn’t Bitcoin’s age that makes it a good purchase, but rather its maturity. The coin is very well established, very highly sought after, and very valuable. Though its value is also technically a strike against it. You’ll have to pay up big to get even a single Bitcoin, making the crypto an alarming investment in that regard.
The exact steps for buying Bitcoin in Europe may vary, depending on the method you’ve decided on and the particular exchange or broker. However, these steps will still more or less be applicable. Be sure to keep in mind that we aren’t necessarily saying that Bitcoin is the best investment. There are pros and cons to investing in any crypto, as mentioned above. So, although we’ll be using BTC as an example, you should consider other investment options.
Whether you’re using a broker, an exchange, or a P2P marketplace, you’re going to need crypto storage. There are a number of ways to permanently store crypto, including offline methods and even hardware methods. But for the sake of this guide, we’re going to talk about digital wallet storage, given that wallets are versatile and convenient.
The first step is to sign up for a digital wallet. There are a number of wallets available, each with its own pros and cons. Investigate, see what you can find, and sign up with the wallet that strikes your fancy. Bitcoin that you purchase can be stored here later, for safekeeping.
Once you’ve decided on an exchange or broker you’re going to have to sign up at that platform. The factor to keep in mind is that there is a difference between centralised, decentralised, regulated and unregulated trading platforms. Many reputable exchanges these days require that you complete the Know Your Customer (KYC) process to sign up. KYC is necessary for preventing money laundering and generally keeping out unwanted elements. In order to complete the KYC process you will have to provide verified identification, which shouldn’t take long.
On the other hand, there are exchanges that don’t require the KYC process to be completed. This allows for completely anonymous trading, which you may prefer. Either way, you will have to sign up at your chosen platform in order to proceed.
Now that your broker or exchange account is ready, you’ll have to have funds in that account in order to purchase crypto. As mentioned earlier, crypto can be purchased with fiat currency, or traded for with other crypto. If you want to purchase directly with fiat currency you’ll have to make a deposit. Find the option to make a deposit on your chosen platform, then select a payment method. The vast majority of platforms will allow fiat deposits by Visa or Mastercard. Some also allow for deposits with Google Pay and Apple Pay.
If you want to transfer crypto into the account the process is a little different. First, be certain of which trading pairs are supported if you’re at an exchange. You can’t trade for Bitcoin with every crypto at every exchange. Head to the deposit section of your platform, then select the option to make a transfer. When you select to make a transfer an address will be generated. Now head over to the wallet where your desired crypto is stored. Provide the address at the wallet and the crypto should automatically transfer over to the exchange account.
Buying Bitcoin with fiat currency is straightforward in Europe. At an exchange you can simply choose Bitcoin, then indicate how much fiat currency you’d like to spend. The exchange should automatically add the appropriate amount of Bitcoin. Simply agree to the purchase and the BTC should instantly appear in your exchange account.
If trading for Bitcoin then simply select the trading pair. Depending on the exchange, you should be able to proceed with the trading pair automatically, assuming that you have that crypto in your account. Again, once agreeing to the trade the BTC should appear automatically in the account.
Now that you have your Bitcoin you may be tempted to simply leave it in your exchange account for safe storage. This isn’t recommended. Hacking is a reality in the world of cryptocurrency, and if you don’t take the necessary steps you could be putting your assets at risk. Remember; if someone hacks the exchange and steals your crypto it would be near impossible to get the funds back.
You should withdraw your BTC to the wallet you set up earlier. This is simple, requiring only that you head over to the wallet, ask for an address, and then provide that address at the exchange. At the exchange select the option to withdraw, input the address, and the transfer will be done instantly.
Note that you can withdraw the BTC for hardware storage, as touched on earlier. Hardware storage holds crypto externally, offering an ultimate safe solution. Investigate hardware storage if you’d prefer to have your BTC separate from the internet entirely.
It is entirely up to you where you’d like to buy Bitcoin, but let’s take a quick look at Coinbase, one of the most popular exchanges in Europe.
Coinbase is amongst the biggest exchanges in Europe, offering a number of convenient options for savvy traders. A notable feature at Coinbase is the broad support of European payment methods, including SEPA and Faster. As far as Bitcoin itself is concerned, Coinbase offers a broad variety of trading pairs, including BTC/USDC and BTC/EUR.
Coinbase also has a very user-friendly interface, is available on Android and Apple devices, and is extremely popular around the world. If you’re unsure of which exchange to use, try Coinbase as a starting point.
Now that you understand how to buy Bitcoin in Europe it’s time to decide if you want to take the plunge and invest. We touched on the pros and cons of Bitcoin investment, but there are certainly a number of other investment opportunities. It is advised that you do some research, see which cryptos are available, and only commit when you’re sure of what you want.
