How to Buy Crypto in Denmark |

How to Buy Crypto in Denmark

With a thriving economy, a tech-savvy population, and warm regulations for crypto and blockchain, it’s no wonder that Denmark is a growing market for cryptocurrencies.

Danish investors can use Bitcoin, for example, as a payment method, an asset, or a commodity without running afoul of any regulations. So what’s the best way to purchase Bitcoin, Ethereum, and other cryptocurrencies in Denmark?

Buying Crypto and Bitcoin in Denmark

Let’s take a look at the climate for crypto and crypto taxes in Denmark first, and then dive right into our list of exchanges and ways of purchasing crypto.

Exchange Hacks and Crypto Scams in Denmark

Like most countries, Denmark has been the home of a handful of crypto scams and scandals. A Danish man was sentenced to over four years in prison in 2019 for various crypto crimes including money laundering and installing crypto malware on hacked computer servers.

On the flip side, however, the Danish Ministry for Development Cooperation encouraged the use of the blockchain technology that powers cryptocurrencies as a way of fighting fraud and corruption.

With an overall friendly climate for crypto investors, it’s important to know how to handle tax returns and liabilities as a Danish crypto investor. The Danish tax authority has issued some guidelines on the subject.

How Crypto Transactions and Bitcoin Transactions Are Taxed in Denmark

Bitcoin and other cryptos are not considered legal tender by Skattestyrelsen, the Danish tax authority, but rather as property. Capital gains tax applies to profits, and losses are eligible for capital loss deductions. Business losses, however, are not deductible. Value-added tax (VAT) does not apply to crypto. When calculating your tax obligations or for general tax purposes, you should consider crypto as property. Personal income earned as crypto is subject to gains tax on profits at the time of writing.

How to Choose a Crypto/Bitcoin Exchange

When choosing an exchange, it’s important to consider the currencies traded, the features available, and the fees, prices, and deposit methods that apply. Consider the features each exchange is offering before making a decision.

Here are the Best Exchanges to Buy Crypto in Denmark

2 eToro

eToro is a trading platform that alows users to trade stocks, CFDs, and also crypto. You can even automatically mimic the trades of popular and successful eToro traders on the platform. However, you cannot spend funds on real-life goods and services using eToro, but must cash out your digital currency first before making transactions like you would with regular currency.

Users must pay a minimum deposit of $500 USD before trading.

  • Cryptocurrencies: BTC, BCH, ETH, XRP, LTC, and XLM.
  • Fiat Currencies: 44 currencies including DKK
  • Deposit Methods: Online banking or wire transfer
  • Fees: 0.75% on BTC trades

3 Exmo

Exmo is a British crypto exchange with many fiat deposit options and over 50 cryptocurrencies. The trading platform features a helpful news section to educate its users, along with a step-by-step guide for various aspects of the platform. Trading fees are relatively low.

  • Cryptocurrencies: 57
  • Fiat Currencies: USD, EUR, GBP, RUB, PLN, TRY, UAH, KZT
  • Deposit Methods: Exmo supports methods including debit cards, Skrill, BanContact, QiWi, Payeer, MoneyPolo, and many more.
  • Fees: Trading fees start at 0.3% with reductions for higher sums.

4 Coinbase

Coinbase is a one of the largest and most popular exchanges with 57 cryptocurrencies on offer and high liquidity due to the wide user base. Based in San Francisco, it’s noted for its faster processing times and user-friendly interface displaying selling price, exchange rates, and other information, although fees and prices for transactions are higher than on many competing exchanges.

  • Cryptocurrencies: 57
  • Fiat Currencies: EUR, GBP, USD
  • Deposit Methods: Bank transfer, wire transfer, credit card or debit card
  • Fees: 1.5% – 4% for fiat purchases, up to 0.5% for crypto trades

5 Binance

Binance is the world’s largest exchange by trading volume. It has a wide range of altcoins, over 500, along with 19 fiat currencies including DKK. Selling price is shown on-screen along with basic information, with a more advanced interface for advanced traders or simply cryptocurrency traders interested in added features like leverage trading. One drawback is that the overburdened customer support system has led to criticism from users with support tickets left unanswered for long periods.

  • Cryptocurrencies: 500+ for non-US users
  • Fiat Currencies: 19
  • Deposit Methods: Debit card or credit card, bank transfer
  • Fees: 0.02% to 0.10% purchase and trading fees, 3% to 4.5% for debit card purchases

6 Paybis

Paybis is a traditional exchange regulated by UK authorities with an easy-to-use interface and options to earn referral fees. Registration is straightforward and there are many fiat currencies and payment methods with which to make your investment. Crypto holders can only sell Bitcoin, with no option to sell the other altcoins traded on the platform — these currencies are for purchase only.

  • Cryptocurrencies: 10 cryptos including BTC and ETH
  • Fiat Currencies: 47 major fiat currencies including DKK
  • Deposit Methods: Bank transfer, Neteller, and Skrill
  • Fees: 2.49% for credit card purchases, 1.50% maker fee, 1.50% taker fee

7 Kraken

Kraken is a well-established and respected cryptocurrency exchange with a wide user base, and is known as one of the more reliable cryptocurrency exchanges out there. Traders can choose from 70 trading pairs with fees reduced when trading with stablecoins. Kraken is also noted for its high volume along with research reports and helpful educational materials including step-by-step instructions.

  • Crypto Currencies: 50+
  • Fiat Currencies: USD, EUR, CAD, AUD, GBP, CHF and JPY
  • Deposit Methods: Wire transfer, credit card or debit card
  • Fees: 0.9% – 3.75%

8 Bittrex

Bittrex is a Seattle-based exchange with a very wide range of trading pairs available and strong security credentials. Multiple payment methods are supported. The verification is more extensive than many online exchanges and peer exchanges, and this can be time-consuming, but Bittrex remains one of the more popular exchanges on the market with hundreds of millions of US dollars traded on a daily basis.

  • Cryptocurrencies: 220+
  • Fiat Currencies: USD, EUR
  • Deposit Methods: Bank transfer, credit/debit cards
  • Fees: 0.2% for maker and taker fees

9 Bitpanda

Bitpanda is a crypto exchange with dozens of supported cryptos, more than most crypto payment platforms. Withdrawals are limited to $1,500 per day until users have passed verification. The exchange offers a native token that can reduce fees when used to buy other cryptos, along with a range of payment options. Native tokens that reduce fees are often one of the key factors for users seeking to cut currency exchange fees.

  • Cryptocurrencies: 51
  • Fiat Currencies: EUR, USD, GBP, CHF and TRY
  • Deposit Methods: Bank transfer, credit/debit card
  • Fees: 1.49% or lower

Denmark Crypto Exchange FAQs

Let’s take a look at some of the commonly asked questions around trading crypto in Denmark.

Is Coinbase available in Denmark?

Yes, Coinbase is available in Denmark despite being an overseas exchange based in the U.S. It is also available in over 100 other countries, although currency exchange fees alienate some users.

Which country is best for cryptocurrency?

No country is the best country to trade crypto in. However, some countries have more crypto-friendly laws for crypto traders than others — Denmark is one of those countries!

Can we buy Cryptocurrency in all countries?

Crypto is heavily restricted in some countries. In China, Bitcoin can only be bought peer to peer, as exchanges are illegal, while Turkey prohibits the use of crypto to purchase goods or services. India is also in the process of banning crypto. The market risk of buying in highly regulated countries is higher than for crypto traders in other countries. Central bank policy usually determines crypto regulations for digital currency exchanges.

Which country has invested the most in crypto?

The U.S. is home to the greatest number of crypto investors, exchanges, and development funds. Each individual user will have their own reasons for investing in crypto and, as such, has individual needs when it comes to selecting a personal wallet and wallet provider as well as an exchange. Sufficient trading volume, regulatory requirements, and features added for security purposes are important considerations.

Which stores accept crypto in Denmark?

No major stores have adopted crypto. However, with Crypto Wallet, crypto traders can spend their cryptocurrency anywhere they like! To order a crypto debit card and spend crypto online or in any store, download Crypto Wallet now.