Published on September 27th, 2019 | by Bibhuranjan0
How to Trade Bitcoin in the Netherlands 2019
Want to start trading bitcoin in the Netherlands? This guide is for you.
This beginner’s guide will share useful tips to help you get started fast and easily.
Therefore, if you don’t know how to start buying bitcoin or you are just getting started in the cryptocurrency world, read this guide to know how to navigate the waters.
Understand how you can start trading bitcoin in the Netherlands 2019 can sometimes be tricky.
We will show you how to get started.
But before that…
Bottom of Form
What is bitcoin?
Bitcoin is the world’s biggest digital currency that was created in 2009 to act as an alternative to traditional fiat currency. With bitcoin, you do not need to go through bank transactions. You can just send coins to anyone with bitcoins on a peer-to-peer network.
Bitcoin Netherlands Regulations
In the Netherlands, regulations on Bitcoin are not strict. Well, there are anti-money laundering laws in every country to prevent people from laundering money through Bitcoin.
Besides, the issue of Know-Your-Customer is inevitable. And for all Bitcoin holders in the EU, this is something that can’t be wished away. The Netherlands considers Bitcoin a revolution and not a threat. And with the formation of these two laws, it’s clear that the Dutch government does not consider Bitcoin illegal.
So here is the step by step guide on how to trade Bitcoin in the Netherlands in 2019.
- Set up a Digital Wallet
First things first, before you start trading bitcoin, you need to have a digital wallet. A wallet will keep your coins safely. Usually, Bitcoin wallets aren’t designed for storing coins but are used to store the keys you need to access your bitcoin address.
Different types of bitcoin wallets to choose from include:
- Web wallet– This includes the Blockchain Wallet and GreenAddress. These wallets help bitcoin holders to access their wallets safely on the internet
- Hardware wallets– They include TREZOR and Ledger Nano S and are useful for offline storage of private keys
- Mobile wallets– They include Coinomi and Jaxx and are helpful when it comes to the management of your BTC, especially for iOS and Android users.
- Desktop wallets– These include Exodus and Electrum. You can access these wallets through your desktop computer and are useful to store your private keys on the hard drive of your computer.
- Paper wallets– With these wallets, you can produce a hard copy of your private keys and bitcoin public keys and use the hard copy as your wallet
Select a Cryptocurrency Exchange
Once you set up your digital wallet, you need to choose a platform where you will buy bitcoin and how you will do it.
The three main categories of platforms are:
- Cryptocurrency trading platforms
- Bitcoin brokers
- Peer-to-peer bitcoin exchanges, also known as P2P
Start Trading Bitcoin
Once you have gone through all the steps above successfully, you should be able to start buying bitcoin. This you can do through your platform of choice (in this case, we hope you have chosen your cryptocurrency exchange)
If you are a new Bitcoin holder, the best option would be to use a bitcoin broker.
Here, you will have to create an account which you may use your email address to sign up but you can also use your full name, contact address and ID to start trading.
Your account must be verified as well before you start buying bitcoin. Once verified you can proceed to enter the amount you want to purchase in BTC, select your method of payment, evaluate the cost and complete your purchase.
Depending on the payment method you decide to use, the process may be different.
Keep reading as we discuss more on this.
How to Pay for Your Bitcoin?
You can pay for your bitcoin in the Netherlands using different methods.
- Peer-to-peer exchange- you will need to exchange cash with a seller
- Bitcoin ATM and cash deposit- These will be exchanged with BTC
- Pay via a crypto broker that accepts cash deposits
- Use money transfer services like MoneyGram or Western Union
Although trading bitcoin with cash is fast and expedient, it’s costly than other payment methods.
Factors to Consider When Choosing a Bitcoin Exchange in the Netherlands
It’s not an easy task to choose the bitcoin exchange for your needs since there are plenty of platforms.
Use these tips to make your choice easier.
- Consider security
- Find out where the bitcoin exchange is located and its regulations
- Find out the cost per transaction
- Transaction limits
- Find out the currency a bitcoin exchange supports
- Customer support
- Find out how long they have been in business
Pros and cons of buying bitcoin in the Netherlands
- You can trade with EUR
- You can use local payment methods like cash or direct bank transfers
- Availability of local customer support
- You are protected in case of loss of funds
- To be allowed to trade bitcoin in the Netherlands, you have to proof of identity- you will provide your ID and personal details
- The registration process is time-consuming
We hope you can now start trading bitcoin in the Netherlands with ease after reading this guide.