Buy Bitcoin in Europe

In March 2020 Bitcoin was priced at ‘just’ under $5,000. And today? The very same digital currency has gone beyond $40,000. Put simply, this means that Bitcoin has increased in value by over 800% since March 2020.

With this in mind, it goes without saying that interest throughout Europe in this cutting-edge cryptocurrency has sky-rocketed in recent months. The good news is that buying Bitcoin these days is actually really simple.

All you need is a good online broker or exchange that accepts your preferred payment method – such as a debit card or bank account. But, with so many options to choose from, knowing which platform to buy Bitcoin from can be daunting.

In this guide, I explain how to buy Bitcoin in Europe in the quickest, safest, and most cost-effective manner.  On top of discussing the best online platforms to complete the purchase with, I also provide a simple step-by-step walkthrough on how to buy your first every Bitcoin today.

Here are the exchanges we’ll be looking at:

Here are my top suggestions right away:

 

Choosing a Bitcoin Trading Platform

First and foremost, if you want to buy Bitcoin in Europe, you will need to open an account with an online trading platform that supports cryptocurrencies.

Before I get the specifics on how to pick a platform that is right for your needs, I should make it clear that Bitcoin ATMs are also an option in Europe. As the name suggests, these are physical ATMs that allow you to buy Bitcoin by inserting cash into the machine.

 

Although this might sound super-convenient, I should make it clear that Bitcoin ATMs are hugely expensive. In fact – depending on the provider, it is not uncommon to pay a mark-up in excess of 10-20%. As such, I would suggest avoiding Bitcoin ATMs and instead recommend using a trusted online platform.

So that begs the question – how do you choose a platform to buy Bitcoin in Europe? Well, there are several key factors that you need to assess before opening an account with a new cryptocurrency platform, which I outline below.

Reputation and Trust

Before you even think about transferring money from your EU bank account, you first need to explore the credentials of the cryptocurrency platform in question. In an ideal world, the platform will hold a regulatory license of some sort.

With that said, much of the industry still operates in an unregulated manner – not least because Bitcoin is not controlled or governed by any single person or entity. As such, you’ll need to look at other metrics to determine whether the platform can be trusted – such as general feedback in the online domain.

In this respect, a select number of cryptocurrency platforms in Europe have amassed an excellent reputation that spans several years of trading. This includes the likes of Kraken and Coinbase – both of which I will discuss in more detail later on.

Trading Fees

Regardless of which cryptocurrency platform you decide to buy Bitcoin from, you will need to pay a fee to access the market. In most cases, this comes in the form of a trading ‘commission’. This is no different from buying and selling stocks with a traditional share dealing platform.

You will likely find that your chosen platform charges a variable fee. For example, if you buy €1,000 worth of Bitcoin and the platform charges 1%, then you will pay a commission of €10. Then, if you sell your Bitcoin holdings when it worth €2,000 – your 1% commission will amount to €20.

There are other fees that you also need to take into account. For example, some cryptocurrency platforms will charge you a fee when you deposit and/or withdraw funds. Coinbase, for example, will charge you 3.99% to deposit funds with a debit card.

Fortunately, transferring funds via SEPA will usually only cost you a few cents in fees. This payment method also permits larger purchases and is arguably much safer than using a debit card.

Payments and Account Minimums

Leading on from the section above, you also need to ensure that your chosen cryptocurrency platform accepts your preferred payment method. As noted above, most Europeans will opt for a SEPA transfer as it is cost-effective, safe, and usually pretty fast to arrive.

Alternatively, you might want to consider a debit/credit card if you are after an instant deposit. Some platforms – such as eToro, also support e-wallets. This includes Paypal, Skrill, and Neteller. On top of payment method-specific fees, you should also check to see what the platform’s withdrawal policy is.

 

As I explain in more detail later on, it is all-but-certain that you will need to provide some ID before you can make a withdrawal. In fact, this will likely be required before you are able to make a deposit – as per European regulations on the countering of money laundering.

In addition to supported payment methods and withdrawal policies, you should also explore what the platform’s account minimums look like. This might be a minimum deposit amount or minimum trade size. Kraken, for example, allows you to buy from just 0.001 worth of a single Bitcoin.

At the time of writing, that amounts to just over €15. This is really useful if you are buying Bitcoin for the first time and wish to start off with really small, inconsequential amounts.

Best Platform to Buy Bitcoin – My Views

Taking all of the above into account, I would argue that a select number of cryptocurrency platforms stand out from the crowd. If you don’t have time to research a platform yourself, it might be worth considering one of the following providers.

1. Coinbase – The Most Well-Known Exchange

Coinbase is potentially the best-known cryptocurrency broker in the industry. Launched in 2012 and now serving over 35 million customers in more than 100 countries, the US-based platform is often the go-to broker for first-time buyers.

This is because Coinbase is super-easy to use. The account opening process takes just minutes, and the platform is often able to verify your ID instantly. You can easily deposit funds with a debit card or SEPA, which makes the purchasing process seamless.

 

With that said, the overarching drawback of using Coinbase is that its fees are on the high side. As I briefly mentioned earlier, you will need to pay 3.99% if you wish to deposit funds with a debit card. Debit card withdrawals are also costly, with a 2% commission charged at a minimum of €0.55.

If, however, using SEPA, then deposits are free. Withdrawals will cost you a flat rate of just €0.15, too. I should also note that the trading commission charged by Coinbase is not only expensive but somewhat confusing.

For example, the platform charges a variable fee of 1.49%. This means that by buying €500 worth of Bitcoin, you’d end up paying €7.45. Once again, the 1.49% needs to be paid when you cash your Bitcoin out. With that said, a flat commission fee will come into play on smaller purchases.

You can view these fees in the screenshot below:

coinbase fees

All in all, while Coinbase is a highly trusted cryptocurrency broker with a great reputation and seamless purchasing process, the platform is not the most cost-effective option in the market.

Read More: You can find my full Coinbase review here.

Buy Bitcoin at Coinbase

2. Kraken – Most Trusted Platform for Europeans

It’s somewhat difficult to get away from Kraken. This is because the platform ticks most of the right boxes for Europeans. In fact, in terms of Euro-based trading volume, Kraken is the largest exchange in Europe.

So, in order to buy Bitcoin at Kraken, all you need to is a European bank account. The easiest way to make a deposit is to transfer the funds via SEPA. Other banking networks are supported too, such as SWIFT.

 

With SEPA, you only need to meet a minimum deposit of €1. Best of all, if you have access to Instant SEPA, the transfer should be credited to your Kraken account in just a few minutes. Deposits via SEPA are free too – so far so good.

In terms of Bitcoin trading fees, Kraken the platform utilizes a market maker/taker system. If you’re just planning to use the platform to buy Bitcoin, then you are a market ‘taker’. As such, unless you are planning to trade more than $50,000 in a single month, you will pay a commission of 0.26%.

As such, if you were to buy €100 worth of Bitcoin, you would pay a fee of €0.26. Don’t forget, you’ll also pay a 0.26% commission when you eventually get around to selling your Bitcoin. Nevertheless, buying Bitcoin at Kraken can be done in a hugely cost-effective manner.

In terms of regulation, Kraken isn’t licensed in the same way as a traditional online stockbroker or CFD platform. But, launched way back in 2011, the platform is one of the oldest cryptocurrency exchanges in the space.

Crucially, it complies with all European regulations on anti-money laundering, and thus – all users must have their identity verified. Finally, I should also note that Kraken is extremely user-friendly. As such, if this is your first time investing in a cryptocurrency online, Kraken is a good option.

Read More: You can find my full Kraken review here.

Buy Bitcoin on Kraken

3. eToro – Best Commission-Free Platform

eToro is a different kettle of fish from Kraken, not least because much of the platform is focused on traditional assets like stocks and ETFs. The platform also offers a fully-fledged CFD facility, meaning that you can also engage in short-selling and apply leverage of up to 1:2 on your positions.

Regarding the former, this means that you can trade Bitcoin with twice the amount that you have in your account. All in all, eToro certainly comes with its pros and cons. In terms of the positives, this trading platform allows you to buy Bitcoin in a 100% commission-free manner.

 

It also supports heaps of payment methods – including but not limited to debit/credit cards, Paypal, Skrill, and bank transfers. eToro also stands out because it holds licenses from three key bodies – notably the FCA, CySEC, and ASIC.

On the flip side, all deposits at eToro made in a currency other than US dollars will attract a 0.5% fee. As such, although you are not paying any commission per-say, this is actually a smidgen more expensive in comparison to Kraken.

The platform also requires a minimum deposit of $200 – or about €170. You can, however, buy from just $25 worth of Bitcoin, which is handy for first-timers.  The one key point that I will note about eToro is that 71% of people that use the platform to trade CFDs lose money.

 

I would imagine that this is largely a result of newbie traders using too much leverage without having a grasp of the underlying risks. In addition to this, I must also make it clear that eToro does not allow you to withdraw your Bitcoin out to a private wallet.

This is also a practice employed by Revolut. This isn’t necessarily a negative point if you are happy to keep your Bitcoin at eToro until you are ready to cash out. But, for those of you that want to retain full control over your Bitcoin, this may prove problematic.