¡Hola! and welcome to this guide on how to buy bitcoin and other cryptocurrencies in Spain. If you're wondering about the best exchanges, legal complexities and payment methods, you're in the right place. But before we get started, here's a brief overview of what happened to Spain's cryptocurrency economy after the severe pandemic crisis.
Cryptocurrency boom in Spain
Whether it was the сoronavirus that tragically hit Spaniards or the bleak beaches of Malaga without tourists in the summer of 2020, something made local authorities feel the blues and turn their eyes toward cryptocurrencies.
In mid-October 2020, Spain's new anti-tax fraud law made it mandatory for all citizens to electronically report any use of digital assets above €1,000, increasing the level of oversight for the first time in months.
On the positive side, all 350 members of Spain's lower house received the equivalent of €1 in cryptocurrencies when edtech platform Tutellus tried to promote the use of cryptocurrencies in the country. In addition, Banco Santander has partnered with Ripple to explore how blockchain can make transactions faster, cheaper and more transparent.
Does all this make buying cryptocurrencies in Spain harder or easier? Check it out!
Are cryptocurrencies legal in Spain?
Let's put it this way: cryptocurrencies are not banned in Spain, although there are no specific regulations yet.
In short, local authorities do not consider digital coins to be money or financial instruments. However, depending on the situation, they may consider cryptocurrencies to be securities, commodities or utilities and will treat them accordingly.
Importantly, the regulators' approach to small investors in Spain is very conservative and protective due to the high number of scams in the cryptocurrency niche. So if something bad happens to you, you can always try to appeal to the Consumer and Investment Protection Act.
Do you want to pay taxes on cryptocurrencies? You can do so at a variable rate from 19 to 23%. Higher rates will be applied to profits in excess of €50,000.
So, going back to the initial question of whether cryptocurrencies are legal in Spain, the answer is yes, but there are no specific regulations, just like in Japan.
Is buying cryptocurrencies in Spain easy?
Although Bitcoin is still relatively hard to find in the mainstream, you might be surprised to learn that Spain is home to more than 100 Bitcoin ATMs. This is an impressive number compared to the rest of the world and is sure to increase in the coming years.
In a global ranking of countries where bitcoin ATMs can be found, Spain ranks 4th, a distinguishing statistic that signifies some level of involvement, or at least some potential for involvement for cryptocurrencies.
Bitcoin ATMs are very cool in a way: they are sort of cryptocurrency renegades that guard the border between two worlds, giving you a chance to physically interact with Bitcoin, which is rare. So if you run into a big orange iron box that looks like a regular ATM, but is not a regular ATM, congratulations!
It's easy to buy cryptocurrency from such a machine, although you may have to watch a few videos first, just in case.
But if you have a credit/debit card and are ready to sign up for a cryptocurrency exchange, you won't need any bitcoin ATM and yes, buying cryptocurrencies won't be difficult at all.
Exchanges around the world have become safer and safer over the years, and Spain offers access to most of them with high quality.
Best Spanish exchanges to buy cryptocurrencies
Most of the popular cryptocurrency platforms are present in the country, so all you have to do is choose one of them!
Below is a list that includes several options. Note that all of them are international and work worldwide.
1. eToro - The best platform to buy cryptocurrencies in Spain (regulated by the FCA)
Toro is undoubtedly the best platform for buying Bitcoin and other cryptocurrencies in Spain. First, you may have heard that the cryptocurrency trading scene is full of rogue operators. This is not something you have to worry about with eToro - as the platform is regulated on three fronts. This includes the FCA, ASIC and CySEC.
This regulation means that you can easily deposit funds using traditional payment methods. This includes debit/credit cards, e-wallets and bank transfers. Before we get into the details of funding your cryptocurrency trading account, we should note that eToro is a commission-free broker in 100%. This means the absence of any transaction fees.
Instead, only consider the spread, which is usually very competitive when trading cryptocurrencies on eToro. As for the markets you can trade on, eToro offers various Bitcoin instruments. If you just want to buy Bitcoin and hold your investment for a few years, you can do so easily. If you want to trade Bitcoin against fiat currencies - you have BTC pairs with the US dollar, British pound, euro, Japanese yen and others. eToro supports a wide range of altcoins, which means you can invest in Polygon, Ethereum or Dogecoin from the comfort of your own home.
In addition, eToro also allows you to trade cryptocurrency pairs. For those who don't know, this means you'll be trading the future price of Bitcoin against altcoins such as Ethereum, Ripple, Dash, NEO, BNB, BCH and Litecoin.
If you're a more versatile investor, you'll be pleased to know that eToro also offers stocks from 17 markets.
ETFs are also available, as well as CFDs on commodities, forex, indices and more. The Copy Trader feature on eToro is also worth considering, as it allows you to invest passively. Your portfolio will mirror that of your chosen trader, just as it would for other traders.
When it comes to starting your investing adventure, eToro requires a minimum deposit of €10. However, you can buy and trade Bitcoins from as little as EUR 25 per transaction. In addition, eToro is available online or through a native investment app.
Finally, eToro has also emerged as one of the top cryptocurrency alert apps of 2022.
This means you can stay up to date with all the latest cryptocurrency market movements and price fluctuations.
2. Crypto.com - a popular bitcoin trading platform in Spain
Crypto.com is a reputable cryptocurrency exchange that provides a variety of services, from traditional trading and investing to cryptocurrency staking, NFTs, wallets and much more. This mainstream cryptocurrency exchange offers access to more than 250 cryptocurrencies, has low fees and rewards cryptocurrency traders who hold Crypto.com (CRO) tokens.
Crypto.com uses a number of security protocols to protect account security, such as multi-factor authentication (MFA) and whitelisting. This popular cryptocurrency exchange also offers one of the best cryptocurrency savings accounts in 2022.
Crypto.com offers users up to 14.5 percent per year for stablecoins and 8.5 percent for BTC and ETH when it comes to cryptocurrency staking rewards. What's more, this well-known cryptocurrency staking exchange supports a large number of tokens and cryptocurrencies; 40+ to be exact.
You can also download the application to cryptocurrency stakings, to make your cryptocurrencies work for you whenever and wherever you want.
Crypto.com is more akin to a cryptocurrency bank than a bitcoin exchange or broker. Indeed, the platform allows customers to buy cryptocurrencies as well as sell them via P2P. They can also be exchanged with other cryptocurrency enthusiasts via DeFi wallet-to-wallet payments.
What's more, you can use a Visa card to spend cryptocurrencies, making it an excellent alternative to cryptocurrency payments. You can get paid in cryptocurrencies, put your money in an interest-bearing account, and even get credit in cryptocurrencies in some countries.
Check it out here -. Crypto.com card review
3. Coinbase - a user-friendly cryptocurrency platform in Spain
Coinbase is the largest cryptocurrency trading platform in the world. Based in the US, the broker is home to more than 35 million users in more than 100 countries.
Therefore, your money is safe when you trade cryptocurrencies on Coinbase. Now, Coinbase has both pros and cons - like most platforms. As for the good points, Coinbase is a super user-friendly way to trade Bitcoin and other cryptocurrencies in Spain. This is evident from the moment you visit the website, as everything is presented in a clear and jargon-free manner.
In addition, Coinbase is very strong when it comes to security. It stores 98% of customer funds in cold storage - making it virtually immune to external hacking. It also offers security controls such as two-factor authentication and the ability to lock Bitcoins for 48 hours after a withdrawal order is placed.
When it comes to tradable markets, Coinbase offers a good selection of cryptocurrencies to buy - including Bitcoin. It also offers a sister platform that is designed for short-term trading. Coinbase Pro, the platform offers plenty of cryptocurrency pairs - many of which include Bitcoin.
You can easily invest in cryptocurrencies while living in Spain on Coinbase with just a few clicks.
Now about the disadvantages. The main disadvantage of Coinbase is that it charges high fees. For example, you will have to pay 3.99% to deposit funds using a debit card in the UK. Bitcoin trading fees are 1.49% - which again is quite high compared to other platforms.
You'll pay even more if you're trading a small amount of money, because the variable fee turns into a flat fee.
Ultimately, while Coinbase is great for beginners and provides top security, it comes at a cost.
The views and opinions expressed here are solely those of the author and should not be taken as financial advice either. Every investment and transactional activity involves risk, so you are advised to do your own research when making any trading, investment or financial decisions.
