As cryptocurrencies became more and more popular, the method of purchasing them became increasingly more user-friendly. Gone are the days of mandatory interaction with unregulated and risky exchanges, as was the case so often. These days, one of the best ways to buy crypto is by using a credit card, which, unlike bank transfers that can take days to process, is virtually instant. In other words, if you use a credit card, you’ll get your digital assets at once with no fuss. That said, it’s worth noting that using a credit card to obtain crypto usually means there will be a higher fee compared to bank transfers. Depending on the credit card issuers, there may be extra charges if, for whatever reason, that transaction gets treated as a cash advance. Financial institutions are weird and want to screw you over wherever there’s a chance, so pay attention to any fees or similar charges. Still, despite all of this, the ease and speed with which they operate make credit cards a popular choice among crypto enthusiasts, including those in Portugal.
The country has always been known as rather fond of cryptocurrencies, since users don't pay taxes on crypto unless it's part of a regular professional activity or if it’s a short-term capital gain (selling crypto in less than one year). The good news is that there are no restrictions on buying crypto with credit cards, but users still must go through the standard KYC (Know Your Customer) process. For those unfamiliar with it, this means that after opening an account on the crypto exchange, you’ll need to verify your identity so the exchange can confirm with the bank that the name on the card matches the name on your exchange account. Hence, this begs the question how can I buy crypto with a credit card in Portugal? Go to the deposit section, enter the amount you wish to buy, select deposit via credit card, enter your card details, and you will receive the crypto into your wallet. This is basically the gist of it, but we’ll go into more details below, while also exploring some of the crypto laws in Portugal. If you’re a keen PlasBit reader, we’re willing to bet you’re expecting a gripping crypto story from the Iberian Peninsula, but that won’t be the case this time. We decided to change it up a little with a detailed guide on all things crypto and Portugal in our trademark informative style, so be sure to read on.
Credit card limitations
We’ll start by explaining the drawbacks of using a credit card to purchase cryptocurrencies in general, not just in Portugal. We slightly touched base on this in the introduction, but now we’ll discuss these downsides in crypto transactions in more detail. Here are the most notable ones:
- Higher transaction fees than a bank transfer
- Limited amount you can buy
- Possible restrictions by credit card companies or banks
First off, higher fees can occur due to several situations, so it’s best to do a bit of prep work before buying any cryptocurrency. For instance, there can be exchange fees from currency conversion in case your credit card operates in a currency other than USD. Fees can also come from actual processing when using an exchange, as, after all, everybody wants their cut. These charges can go up to 5%, so they can add up quickly if you’re not familiar with what you’re getting into. When it comes to limits, it’s not unusual for platforms or credit card issuers to put some sort of cap on how much crypto you can buy with a credit card. These can be daily or monthly restrictions, or even specific ones set for newly created accounts, which in the end may foil your idea of a larger investment or purchase. As for card purchasing restrictions, in some instances, your transaction can just be flat-out refused if the issuer or the bank deems the crypto transaction too risky. This could be due to chargeback risk, fraud risk, or even due to bans on specific crypto exchanges. With crypto popularity on the rise, this isn’t as much of an issue as it was a few years back, but it can still happen, so the best course of action would be to check with the bank or credit card provider before trying to buy anything. Now, not everything is doom and gloom, since credit cards are a popular and more convenient choice when compared to bank transfers or Bitcoin ATMs.
A cryptocurrency ATM (Image credit: Wikipedia.com)
A Guide on Buying Crypto with a Credit Card
What follows is a bit of (shameless) self-promotion, but not without a good reason. You see, using our wallet is a piece of cake and a safe way to store your cryptocurrency. Here’s how:
1. Go to the deposit section and enter the amount you wish to transfer (just make sure it’s under 50$, as that’s the low limit deposit). Then, find the option “Debit Card - Low Limits” and click on the “Deposit” button to proceed.
2. Fill out the required information, as marked in this form:
3. Ensure that the amount displayed on this screen matches the amount you intend to transfer, then click “Buy Now”.
4. Add your card details and click “Add Card”.
5. Verify the order details and press “Confirm”.
6. You will receive a code in your email. Add the code, mark the “I agree to the terms” checkbox, and then click “Continue”.
7. After you enter the code, you will receive an SMS message with another code. Enter it to complete the 3D Secure verification process. Your order may take a few minutes to process, and then you should see a pop-up with order confirmation.
8. After confirmation, the amount of Bitcoin will be shown in your wallet.
As you can see, depositing your crypto into the PlasBit wallet is a walk in the park, and your crypto is now safe and secure.
Funding your PlasBit account with debit or credit cards
To make it easier for you, we’ve made a table listing all the USD purchase limits and the KYC requirements to do so. With our help, you can instantly buy a variety of cryptocurrencies using your Visa or Mastercard.
USD PURCHASE LIMITS
| USD Purchase Limits | ||||
|---|---|---|---|---|
| KYC Level | Maximum Limit Per Transaction | Daily Maximum Limit | Monthly Maximum Limit | Yearly Maximum Limit |
| 1 | $50 | $150 | $500 | $500 |
| 2 | $3,000 | $5,000 | $25,000 | $100,000 |
| 3 | $3,000 | $10,000 | $50,000 | $200,000 |
OTHER CURRENCIES PURCHASE LIMITS**
| Other Currencies Purchase Limits | ||||
|---|---|---|---|---|
| KYC Level | Maximum Limit Per Transaction | Daily Maximum Limit | Monthly Maximum Limit | Yearly Maximum Limit |
| 1 | GBP & EUR - $100 / Rest - $50 | $300 | $1,000 | $3,000 |
| 2 | $3,000 | $15,000 | $50,000 | $100,000 |
| 3 | $6,000 | $30,000 | $100,000 | $200,000 |
*KYC Levels explanation
Level 1 - Simplified Verification: Includes filling in first and last name, date of birth, and complete address.
Level 2 - Full verification: Includes ID verification and a liveness check.
Level 3 - Enhanced Due Diligence: Involves submitting additional financial information, such as bank statements and proof of the source of funds.
** Do note that for other currency purchases, limits apply in the equivalent amount of the purchase currency.
Also, purchase limits will vary based on region and payment method, while transactions can’t be made in countries that appear in the list of prohibited countries, so keep that in mind. If you’re wondering about the minimum purchase amount, the limit is $5 worth of cryptocurrencies per transaction. Additionally, all purchases contribute towards total spending limits and are applied on a per-user basis. Don’t forget that the fee will always be displayed before a transaction is made and that the purchases are final and nonrefundable.
Crypto purchasing methods in Portugal
Now that you’re informed on how to use our wallet with your crypto acquisitions, it’s time to talk a little bit more regarding the question of how can I buy crypto with a credit card in Portugal. First, it’s important to remember that while no specific methods for purchasing cryptocurrency are banned in the country and banks generally won’t have any issues with your transfers to cryptocurrency exchanges, some impose certain restrictions. At the start of this year, it was announced that one of the major banks in Portugal, Banco de Investimentos Globais (BiG), has completely banned fiat transfers to cryptocurrency platforms. In this rather surprising turn of events, the primary reason cited for doing so was compliance with EU regulations and concerns about anti-money laundering. Fortunately, other banks such as Caixa Geral de Depósitos or Bison Bank didn’t follow these steps, and they continue to offer fiat transfers to crypto platforms.
We’re not certain if this will change in the near future, but Portugal remains one of the most crypto-friendly countries in the world. That said, when it comes to P2P marketplaces, they are not banned, though liquidity is usually limited due to the smaller user base. Platforms like Binance P2P are operating without issues, but it’s best to check in advance, since there may be fewer available offers and even less favorable rates due to the smaller user base. Luckily, users aren’t limited to the above, as there is no shortage of other ways to acquire crypto in Portugal. Credit cards (and debit cards) are widely supported in the country, but Spain’s neighbor also has several approved and licensed local cryptocurrency exchanges. For instance, Mind the Coin and CriptoLoja are among the most notable ones, and both of them are registered with the Banco de Portugal. Some users also report a bunch of banks that allow bank transfers to and from crypto exchanges, with some of the names mentioned being Moey, Millennium BCP, Banco BEST, Novobanco, and BBVA. Do note that this is based on a broad user experience, so things might vary from user to user.
What is the tax rate on crypto gains in Portugal?
Crypto taxes in Portugal (or lack of them, for the most part) are an interesting topic, since the country has some laws handling this matter. Several years ago, Portugal was a crypto tax haven, but since 2023, certain changes have been introduced. So, what is the tax rate on crypto gains in Portugal? It’s a 28% capital gains tax on crypto held less than 365 days and on income derived from passive yield, such as staking rewards or lending interest. In addition, if crypto activities are conducted as a business, you can expect income tax rates ranging from 14.5% to 53%. To summarize, this means that if you hold on to your crypto for more than a year before selling, you won’t pay any tax (unless it’s classified as a security or held outside the European Economic Area, then there may be some levies). Also, there is no tax on buying, though taxing (the already mentioned 28%) on swapping cryptocurrencies is very much present since that counts as selling.
Can I buy Bitcoin with a debit card in Portugal?
Being the topic of today’s article, we talked a lot about credit cards, but not everyone has them. In fact, many people prefer debit cards because they don’t put you in debt almost instantly, among other benefits. With that in mind, you’re probably asking yourself can I buy Bitcoin with a debit card in Portugal? Yes you can, go to the deposit section, enter the amount you wish to buy, select deposit via debit card, enter your card details, and you will receive the crypto into your wallet. It’s that easy, and you’ll be ready to go on your Bitcoin shopping spree or any other crypto that tickles your fancy.
Can you buy Bitcoin in Portugal?
As we discussed earlier, the birthplace of Vasco da Gama was always crypto-friendly, with some changes in the last few years. That said, can you buy Bitcoin in Portugal? Yes, you can buy Bitcoin and other cryptocurrencies in Portugal with a credit, debit, or prepaid card instantly using the PlasBit exchange. That’s not all, though, as we offer a lot more than just purchasing crypto with a card. For example, our wallet is ultra-secure by having the private keys encrypted with Secure Enclave and protected by biometrics and 2FA. Also, 100% of user cryptocurrencies are stored offline in cold storage, and credentials are kept separate from the database and code base. Additionally, apart from the usual Bitcoin, Ethereum, Tether, or USD Coin, we support over 100 other crypto tokens. When it comes to fees, depositing funds is free of charge, but withdrawing will incur the usual network fees. These vary depending on the actual network and blockchain, but you can see more on the Withdrawal Fees page. Furthermore, we offer trading options that let you buy and sell crypto for as little as $1.
Crypto happenings in Portugal
Interestingly enough, there have been a bunch of rather intriguing crypto-related developments in the last few years.
- MICA regulation - At the moment, Portugal is adapting to the EU’s MiCA (short for Markets in Crypto-Assets) regulation, which is an initiative seeking to establish a unified framework for trading crypto assets and services across all member states.
- Ripple collaboration - Ripple also has an interest in the country since in February, it announced a partnership with Unicâmbio, which is Portugal's leading currency exchange provider. The main goal of this collaboration is for Ripple to have crypto-enabled payment solutions on Portuguese soil.
- Buying real estate with crypto - One of the more interesting things regarding crypto dealings in Portugal is that you can buy real estate with cryptocurrencies. It was reported by notaries in 2022 that 13 houses were bought by cryptocurrency, and we must admit that is pretty cool.
- Buying Portuguese citizenship - We saved the best for last, and that is the fact that you can get residency and citizenship by crypto investing. More precisely, the Unbound Fund, a venture capital fund regulated by the national Securities Market Commission, offers a unique way to Portuguese residency by indirectly investing in Bitcoin through ETFs (exchange-traded funds). Also known as a golden visa, you can get it if you invest a minimum of €500,000 in a qualifying fund and hold that investment for at least five years. Also, you must be present in Portugal for 14 days every two years.
If we helped make things a little clearer or gave you a useful starting point regarding the question how can I buy crypto with a credit card in Portugal, then we're really glad we took the time to write this.
Potential issues with banks
Before we conclude this article, we must discuss banks and their tendency to sometimes just decline any kind of crypto purchases. Unfortunately, there are many reasons why this takes place, but we’ll try to list the most common ones.
- Prohibited countries - In case your credit card holder is from a country that’s strict on crypto or imposed some kind of ban, you’re pretty much in a pickle, since you likely won’t be able to use any of the crypto exchanges.
- Crypto volatility - As you may know already, the crypto industry is volatile by nature, and banks tend to stay away from anything that’s considered a high risk.
- Double currency conversion - This occurs when a single transaction involves two separate currency exchanges, meaning when the transfer is initiated between accounts in different currencies, which is definitely something that can happen when using a crypto exchange.
- High fraud levels - Then, there’s the notion of the crypto industry being one of the most fraudulent ones, with scams occurring all around the world (if you’re following our blog, we’re sure you know what we’re talking about). We won’t go into details why this is so, but because of it, the banks can decide that they don’t want to do anything with crypto to safeguard their clients from being duped and whatnot.
- Iffy clients - To add insult to injury, sometimes bank clients themselves tend to be questionable, putting it mildly. When dealing with crypto exchanges, some customers may declare the charges as false and request a refund, which is yet another reason why certain banks choose to avoid dealing with crypto purchases like a vampire avoids a garlic farm.
Taking into account the above, in case the bank doesn’t have any issues, but you still have troubles buying crypto with your credit card, the best course of action would be to contact the bank or the credit card company and find out if maybe your card has restrictions on crypto purchases. If this turns out to be true, the bank or the credit card company could lift those restrictions, but not before they give you a verbal or written consent that you’re familiar with the potential risks those transactions can hold. In the end, perhaps instead of wondering how can I buy crypto with a credit card in Portugal, you should think about why banks are generally so averse to cryptocurrencies. To be fair, some people are stupid, and a good deal of them see the crypto industry as a gold mine that can easily make them rich. Some use their credit cards to buy more crypto than they can afford, because they’re “just” one sale away from getting ultra-wealthy. But more often than not, due to the inherent crypto volatility, their investments don’t pay off and they end up losing all that money, stuck with a credit card that has a negative cash balance. In other words, they’re now in debt, and the bank is going to have their ass for it. Hence, this is another reason why banks simply decide not to have anything with cryptocurrencies.
Credit cards are still the most convenient
With all the pros and cons, credit cards remain the easiest way to get yourself some cryptocurrencies. They are not the cheapest option by any means, but they are quite common and very convenient. Regardless of whether you’re in Portugal or not, if you’re an avid crypto buyer, having a credit card with you will always be a good idea. We hope we’ve adequately answered the question of how can I buy crypto with a credit card in Portugal. After all, the crypto industry started on a wonderful principle, and we always want to get our users to experience its good side.
