While the rest of the world seemingly balks at the very mention of Bitcoin, Spain is attempting to embrace this crypto currency. It begins with how the Spanish government is choosing to define the digital currency. The Spanish treasury is quoted as saying the Bitcoin is a “convertible virtual currency that can be exchanged between users and can also be converted into dollars, euros or other currencies both real and virtual.” This definitive ruling puts Spain ahead many of the other countries still attempting to specify the value of Bitcoin. It is also important for Bitcoin users in Spain that the crypto currency was labelled as currency as opposed to a commodity.
Cementing the legal certainty surrounding the digital currency, the Spanish tax office confirmed that there would be no Value Added Tax (VAT) placed upon Bitcoin. This further solidifies Bitcoin as a viable currency in Spain.
Bitcoin Wallet in Spain
Prior to the acquisition of Bitcoin, you must have a Bitcoin wallet to place the Bitcoins you receive or buy. Like the crypto currency itself, the wallet is a software. A Bitcoin wallet can be managed in one of two ways – you can choose to manage your own Bitcoin finances or you can outsource your wallet to a third party. To have sole possession of your Bitcoin wallet, you will have to download the software onto your computer or phone. From here you can manage all your sales and purchases. If you wish to have a third-party manage your wallet, you will have to seek a company with which you can register.
There might be a period of adjustment when it comes to handling your Bitcoin wallet. This is, however, the more secure method. You should not entrust your Bitcoin wallet to a third party unless you can verify their authenticity and trust them implicitly.
Blockchain, Bitcoin.org and Coinbase are some of the more popular Bitcoin wallets. Blockchain is a free service that allows you to create your online wallet. Blockchain allows you to make payments all over the globe without incurring any charge. The service uses AES encryption to prevent unauthorized entities from accessing your Bitcoin wallet. Furthermore, all the security measures take place within your browser denying even Blockchain, access to your wallet. Blockchain does not monitor any of your wallet’s activities and cannot even examine the balance in your wallet.
Bitcoin Core is another Bitcoin wallet. The services provided by Bitcoin Core is far from basic with added security features, privacy barriers, and features not supported by other wallets. This service fully verifies any and all transactions that occur from the wallet – this means that in addition to being immune to most attacks, you will also not be manipulated into violating any Bitcoin policies. The increased privacy endeavors by the service attempt to create as much distance between you and your real-world identity as they possibly can. All these added benefits come at the cost of added requirements for your computer. This involves greater disk space needs and more bandwidth.
Coinbase is a simpler and more user-friendly wallet that accommodates newer users. In addition to storing Bitcoins, Coinbase also allows for the buying and selling of small amounts of Bitcoin through its service. You can also receive and send the crypto currency by e-mail. The simplicity of Coinbase does not diminish its capacity as a security provider and to date, is one of the few digital wallets that have not been hacked by outside forces.
Bitcoin Exchange Companies in Spain
There are many exchange companies that allow people to purchase bitcoins. Each of these companies require their own method of payment. The organizations will also levy any additional fees against your purchase according to the rules and rates that they already have in place.
Local Bitcoins – a platform from which you can choose to purchase Bitcoin from a wide variety of sellers or traders. This allows you to be able to pay the lowest rate possible in your region to buy Bitcoin. You will also be able to find a vendor who will fit your payment method. There is no fee for trading between Local Bitcoin wallets and a fee of about 0.0001-0.0005 BTC for external wallets.
Kraken – the first step involves depositing money from your bank account to your Kraken account. You then fill out a purchase order on Kraken. Once this is accepted you will be able to buy Bitcoin. There is a charge levied against every trade. The larger the amount that you trade, the lower the fee.
CleverCoin – with CleverCoin, you can choose many different ways of purchasing Bitcoin. You can transfer funds to your CleverCoin account or wallet by means of a credit card, iDeal, SEPA, SOFORT, GIROPAY, and Bancontact. For exchanging euros to Bitcoin, a fee of 0.3 percent is applicable. The use of your credit card to buy Bitcoins will result in a 3.6 percent charge in addition to 30 euro cents.
Bity – once registered, you can buy Bitcoins by transferring funds by means of an online bank transfer, wiring the money via the bank, or SOFORT. They are no charges for buying or selling Bitcoin on Bity. The time that it will take for you to receive your new Bitcoins will vary depending on the method of payment you choose. The Bitcoins should be deposited in your wallet in about four working days.
CoinCorner – you will be able to pay for Bitcoins with your debit card or credit, or through bank transfers. There will be a 1 percent fee for buying or selling Bitcoin with CoinCorner.
Bitstamp – you must first deposit money into your Bitstamp account by a variety of payment methods. Once you have chosen your method of payment, the money will be deposited into your account. You can then begin to buy Bitcoins. You are charged according to your 30 day trading history on the exchange site. The new accounts or ones with the lowest trading volume will be charged a 0.25 percent fee.
Bitboat – you can pay in cash for your Bitcoins. You have to merely deposit the money in one of the BBVA (Banco Bilbao Vizcaya Argentaria) ATMs.
Coinimal – you can choose to pay for your Bitcoins with SOFORT, NETELLER, Skrill, GIROPAY, SEPA, or other methods of payment. The charge that is levied against your purchase depends on how you choose to pay for your Bitcoins.
Xapo – you can purchase Bitcoins by various means including a wire transfer. There is a 1 percent fee for buying Bitcoins. There is an additional charge depending on the method of payment you chose.
Safello – SEPA is an accepted form of payment for Bitcoins by Safello. There is a 3 percent charge against the buying and selling of Bitcoin on this site.
Selling Bitcoin In Spain
You can sell Bitcoin through the same exchange companies that you used to buy your first Bitcoins from. The regulations and rates differentiate with each company. The commissions or charges that you will have to pay will depend on the exchange company that you choose to deal with. The presence of sites such as Localbitcoin.com will allow you to sell Bitcoins without the involvement of a third party. The prices at which you choose to sell your Bitcoin will have to compete with those of the other vendors in your region. There are risks associated with being an independent seller so it always best to be cautious when dealing with unknown buyers.
Always ensure that the exchange company you are dealing with has been verified. It is important to remember that once you have bought or sold with Bitcoins, that transaction is irreversible. The rates at which Bitcoin is bought and sold can fluctuate quite tremendously. It is always best to keep a close watch on the market to ensure that you will buying Bitcoins at the lowest possible rate and selling them for the highest possible price.