Want to buy bitcoin (BTC) but don’t know how? If you’re new to the world of cryptocurrency, understanding exactly how bitcoin works and how and where you can buy bitcoin in Denmark is a pretty big challenge.
To help you make sense of the jargon and safely get your hands on some of the world’s most well-known digital currency, we’ve put together this beginner’s guide to buying bitcoin in Denmark.
A step-by-step guide to buying bitcoin
You can buy bitcoin in Denmark in three simple steps:
Step 1. Choose a bitcoin wallet
Before you can buy any bitcoin, you’ll need to set up a digital wallet where you can safely store your coins. Bitcoin wallets don’t actually hold any coins, but instead store the private keys you need to access your public bitcoin address and sign transactions.
There are dozens of options to choose from, including the following:
Hardware wallets, such as the Ledger Nano S and TREZOR, provide offline storage for your private keys.
Desktop wallets, such as Electrum and Exodus, can be downloaded to your computer and used to store private keys on your hard drive.
Mobile wallets, such as Jaxx and Coinomi, allow you to manage your BTC from your Android or iOS device.
Web wallets, such as Blockchain Wallet and GreenAddress, offer convenient online access to your bitcoin.
Paper wallets allow you to print out your bitcoin public and private keys and use this piece of paper as your wallet.
Step 2. Choose a cryptocurrency exchange
The next step is to decide how and where you will buy bitcoin. There are hundreds of platforms to choose from, and they can be separated into three main categories:
Brokers offer the quickest and easiest way to buy bitcoin, allowing you to pay for your digital coins using fiat currency (like BRL or USD).
Brokers offer user-friendly platforms and allow you to buy bitcoin using familiar payment methods like a credit card or a bank transfer.
Their main downside is that they often charge higher fees than other options. Bitit and Bitpanda are two well-known cryptocurrency brokers.
Cryptocurrency trading platforms
These platforms, such as Binance and Huobi, allow you to buy bitcoin using other cryptocurrencies.
They tend to offer lower fees than brokers and provide access to a more diverse range of coins.
However, you’ll usually need to already own another cryptocurrency in order to use this type of exchange, so they’re not suited to beginners.
Peer-to-peer (P2P) bitcoin exchanges
Peer-to-peer exchanges cut out the middleman and allow users to trade directly with one another.
The seller has the freedom to specify the price they want and their accepted payment methods, and this method allows you to trade with increased privacy.
However, you may have to settle for a price higher than the market exchange rate. Examples of peer-to-peer exchanges include LocalBitcoins and Paxful.
Step 3. Buy bitcoin
The final step is to submit an order through your chosen platform. For most first-timers, the easiest and most convenient option is to use a bitcoin broker.
No matter which type of exchange you choose, you’ll usually need to sign up for an account first.
Depending on the exchange you use and the regulatory requirements it is subject to, you may be able to sign up simply by providing your email address or you may need to provide your full name, contact information and proof of ID before being allowed to trade.
Once your account has been verified, you’ll need to enter the amount of BTC you want to buy, choose your payment method, review the fees and the total cost of the transaction and then finalise your purchase.
The exact steps you’ll need to follow vary depending on the payment method and type of platform you choose, so keep reading for more details on the different ways you can buy bitcoin.
How can I pay for my bitcoin?
There are many different ways you can purchase bitcoin, each of which has its own pros and cons.
Buy bitcoin With cash
Want to turn your cash into cryptocurrency? There are several ways to buy bitcoin with cash in Denmark , including the following:
Use a peer-to-peer exchange to find a seller who accepts cash.
Load a prepaid card with cash and then use it to buy bitcoin on a platform that accepts prepaid cards.
Find a bitcoin ATM and deposit cash, which can then be converted into BTC.
Use a crypto broker that accepts cash deposits.
Use an exchange that allows you to deposit funds into your account using a money transfer service, such as Western Union or MoneyGram, and pay for your transaction with cash. Cryptex24 is one such platform.
2. Buy bitcoin with credit card
Many bitcoin brokers and exchanges allow you to buy bitcoin using your credit card.
These include platforms like Paxful and Coinmama, and using your credit card allows you to make quick and convenient purchases.
However, credit card transactions tend to attract higher fees and some banks have even blocked customers from buying crypto with plastic.
Debit cards are nowhere near as widely accepted as credit cards but can still be used to buy cryptocurrency on some platforms.
3. Buy bitcoin with paypal
Got a PayPal account and want to use it to buy bitcoin?
The good news is that you can definitely do this; the bad news is that only a limited number of platforms accept PayPal.
The biggest advantage of buying bitcoin with PayPal is that it’s quick and easy to do as you’ll no doubt be aware if you’ve ever used PayPal to purchase anything else online.
However, you may need to hunt around for the right platform, and if the platform you choose doesn’t accept BRL, then you’ll need to be fully aware of the fees that apply. VirWox and Paxful are two of the better-known platforms that accept PayPal at the time of writing.
4. Buy bitcoin with you bank account.
Another way to buy bitcoin with Denmark real is to choose a platform that accepts bank transfer deposits.
The list of platforms that allow bank transfers is an extensive one and includes sites like Foxbit, SatoshiTango, Bitex and more.
Depositing funds using your bank account usually doesn’t attract any fees, but it does mean you may have to wait one to two business days until the funds are cleared into your exchange account.
Before making a bank account transfer, make sure you consider the following:
Any transaction limits that apply
The fees charged by the bitcoin exchange or broker
How long it will take for your funds to arrive
5.Buy crypto with any crypto
If you want to exchange another cryptocurrency for bitcoin, you’ll be pleased to learn that BTC is listed in a huge range of trading pairs on a wide variety of crypto exchanges. The key is finding the exchange that offers the right features and fees for you.
You’ll need to search for exchanges that list your desired trading pair, such as BTC/DASH, and then compare the pros and cons of each platform.
Once you’ve found a suitable exchange, you can buy bitcoin by following a few simple steps.
For example, if you want to buy BTC on CriptoHub, you’ll need to do the following:
Register for an account with CriptoHub.
Enable 2-factor authentication.
Click on “Wallet”
Select the fiat or digital currency you want to deposit (eg, BRL or DASH) then copy the relevant wallet address or scan the QR code.
Transfer the currency into your account from your external wallet.
Select a Limit, Market or Stop-Limit Order.
Search for the pair you want to trade, such as “BTC/DASH”.
Enter the amount of BTC you want to buy in the field provided.
Take a moment to review the details of your transaction.
Click “Buy BTC”.
The process may vary slightly from one platform to the next, so look for a how-to guide on your chosen exchange or contact its customer support team if you’re unsure of what to do.
6. Buy crypto Anonymously
If you want to buy bitcoin in Denmark, most exchanges will require you to verify your identity first. However, if you value your privacy, it is still possible to buy bitcoin anonymously.
The following are some of the available options:
Using a peer-to-peer platform like LocalBitcoins to trade directly with a bitcoin seller
Using a bitcoin ATM to anonymously deposit cash, have it converted to BTC and then transferred to your bitcoin wallet
Buying bitcoin with a prepaid credit card or cash via a platform that doesn’t require ID
Trading altcoins for bitcoin on an exchange that doesn’t require proof of ID
How to choose a bitcoin exchange in Denmark
With hundreds of platforms to choose from, finding the best bitcoin exchange for your needs is a challenging task.
To make your choice easier, consider these key factors when comparing exchanges:
Where the exchange is based and how it is regulated. While the regulatory environment surrounding Denmark digital currency exchanges is becoming clearer all the time, the same can’t be said for some overseas-based exchanges.
Do some research to find out where an exchange is based, the regulatory requirements that apply in that country, and whether the exchange complies with those requirements. This will help you work out if you’re dealing with a reputable platform.
Security. Look at the security features a platform has to offer, such as 2-factor authentication and PGP encrypted emails. Has it ever been hacked or linked to any suspicious activity?
Fees. Check the fine print to find out exactly how much your transaction will cost. Depending on the platform you choose, these could include trading fees and transaction fees as well as deposit and withdrawal charges.
Transaction limits. Are there any minimum or maximum limits on the amount of bitcoin you can purchase? Does the exchange restrict the amount of funds you can withdraw from your account in any one transaction or 24-hour period?
Supported currencies. As the biggest digital currency in the world by some margin, bitcoin can be bought and sold on a huge range of platforms. However, if you’re looking to acquire other cryptocurrencies as well as bitcoin, check to see what other coins you can buy through the platform.
Customer support. If you ever have a problem with a transaction, will you be able to quickly and easily get in touch with the customer support team? Check what contact methods are available and find out how quick the team is at responding to enquiries.
Reputation. Research bitcoin forums and online reviews to find out what sort of experience other users have had with the platform.
Buying bitcoin from a Denmark exchange: pros and cons
There’s plenty of choices when selecting a bitcoin exchange, and Denmark users can choose from platforms based here at home or in countries all around the world.
So, should you buy bitcoin from a Denmark exchange or from a foreign platform? To help you decide, consider the pros and cons of buying on a Denmark exchange.
You can usually buy bitcoin with BRL.
Denmark exchanges support local payment methods, such as cash or direct bank transfers.
You can access local customer support.
You get better consumer protection if your funds go missing.
You’ll need to provide your personal details and proof of ID – a disadvantage for people who want to trade anonymously.
The registration process takes longer than on those platforms that don’t require ID verification.
Some bigger platforms based overseas offer much better liquidity.
Denmark exchanges have yet to be regulated by the Denmark Central Bank.
Regardless of whether you choose a Denmark or overseas-based crypto exchange, make sure you compare a range of options before deciding which platform to use.