Acquiring bitcoins (BTC) just got easier

Since 2017 and the cryptocurrency boom, many measures have been taken to facilitate access to the market for Bitcoin (BTC). It has also become easier to find a good guide to buy Bitcoin. This trend has continued until today: it has never been easier to get bitcoins.

Several people were hesitant to invest because cryptocurrencies did not appear to them to be sufficiently regulated by law. It is true that many cryptos, including Bitcoin, are volatile and therefore the investor should be careful and aware of this. Today, the legislator is well acquainted with Bitcoin and blockchain-related services. Everything is much clearer.

And of course, like any investment product, Bitcoin is now subject to capital gains tax in most countries, including France. Don’t panic!

Although paying taxes is never very pleasant, now that the operation is well known and explained, there is no longer any reason to be afraid. Discover in this article our guide to buying Bitcoin (if you want to find an even more detailed and complete guide on how to buy Bitcoin, go to here).

Buying Bitcoin (BTC) is now very easy

Investing in BTC has become so simple that there is almost no need for a guide to buy Bitcoin anymore. Everything is done so that new investors can easily enter the cryptocurrency market and start building a portfolio of digital assets.

To get started, there are a few things to know. Follow our guide to buying Bitcoin and you won’t have any unpleasant surprises. You can start investing in Bitcoin with confidence.

There are generally two questions you need to ask yourself before anything else: where to buy and how. Several solutions exist and will suit a particular investor profile better. By being well informed, you can make the right choice. These solutions vary in terms of ease of use, available options and technical nature.

Don’t panic! Several of these options are recommended for beginners. There will be no fear of making a mistake or being cheated if you are vigilant and stick to reliable and reputed service providers.

Where to buy bitcoins easily?

Choose where you want to build yours bitcoin wallet is the first step. There are several ways to get Bitcoin. Some investment brokers such as eToro and some online banks already offer the possibility to invest in this type of asset.

Nevertheless, many people prefer to buy Bitcoin through cryptocurrency exchanges. These platforms are fairly new to the financial landscape, with the first appearing less than a decade ago. Before this, Bitcoin was only traded over-the-counter.

Among these platforms, they are famous Binance, Coin base, the kraken or Crypto.com. On these sites, you can exchange traditional money for cryptocurrencies and vice versa. These sites generally have a larger selection of cryptoassets than brokers like eToro, but are a bit more difficult to use.

Some crypto exchanges / Photo: Adobe Stock

How to buy Bitcoin easily?

Once you find out where to buy Bitcoin, all you have to do is invest. This is the simplest part. Some platforms offer direct Bitcoin purchases by card, but most require you to credit your account and then complete a transaction.

Of course, traders can also do it in another way, by opening a position. Of course, be careful, Bitcoin is a volatile asset and its price can fluctuate significantly in a short period of time. You should be careful and measured when using leverage and only speculate with money you can afford to lose. Any experienced investor respects these basic rules.

In the case of online banks and some brokers, buying Bitcoin is as easy as buying a stock. Experienced investors will easily find their marks.

The regulation is going in the right direction

Photo: Adobe Stock

Is Bitcoin Legal? Is it allowed to buy Bitcoin? These questions are important. Fortunately, the answer is yes in both cases. It is completely legal to hold Bitcoin and to buy and sell Bitcoin. Regulations on cryptoassets are usually directed at providers of digital assets.

For individuals, it is more the tax aspect that deserves to be examined. We will see that in the next part of this guide to buying Bitcoin.

So what are the rules and how can they go in the right direction? It is very simple: 10 years ago, if you bought Bitcoin from an individual, nothing and no one could guarantee you the execution of the transaction at the other end.

Finally, these rules aim to combat money laundering and terrorist financing on a global scale.

What are the French rules?

French regulations against financial companies that want to offer services related to digital assets are very strong. The Autorité des Marchés Financiers has created a strict framework that companies involved in cryptocurrencies must diligently comply with.

This regulation has two aspects:

  • On the client side, it is imperative to verify their identity so that the service provider is authorized to exchange cryptocurrencies. These rules are often referred to by the abbreviation KYC, Know Your Customer, an English terminology that means that the service provider must know its customers;
  • On the part of the authorities, careful reporting, both financial and technical, showing that the financial flows are legal and that no suspicious transactions have taken place on the platform.

These rules were implemented in 2021 and were not very popular in the French cryptocurrency industry. The administrative burden and the need for high capital have discouraged many companies, which have been forced to establish themselves elsewhere.

How do the rules protect me when I buy Bitcoin?

When I am a French citizen in France and I invest in Bitcoin through an AMF approved broker or platform, I am protected.

Photo: Adobe Stock

First of all, I have the assurance of not participating in the financing of terrorism or in a money laundering circuit. I will therefore not be concerned about the law.

Then I have the guarantee that the service provider has money to pay me my profit when I resell my Bitcoins. This avoids the rather common scenario around 2019 where many investors were duped by rogue platforms that never allowed their earnings to be withdrawn and disappeared with it.

Finally, I am confident that the payment methods I am used to will be accepted. I will be able to credit my account or buy Bitcoin directly with my bank card or my French bank account.

Taxation becomes clearer

As with any investment in a financial asset likely to generate a capital gain, profits on Bitcoin trading are taxable in France. This subject is often scary, but fortunately it has been greatly simplified in recent years and today, all you need to know are the conditions that lead to taxation, how to declare your account and your capital gains and complete your declaration in order to be in legality.

France is not considered a very “crypto-friendly” country, with this approach mixing BTC with any other type of financial asset, while Bitcoin is considered legal tender in some countries such as El Salvador or the Central African Republic. Other countries such as Portugal do not tax transactions between cryptocurrencies and traditional money at all.

The majority of readers of this guide to buying Bitcoin are native to France, we will study the situation in this country in more detail.

How is Bitcoin taxed in France?

The French tax rule for capital gains on cryptocurrencies is very simple: in addition to 305 euros in profits, they must be declared and taxed at the flat rate of 30%. It is the same rate as for an ordinary securities account.

Note, of course, that this is a taxation of realized capital gains, i.e. your winning position has been closed and your account has been credited in euros. Some investors buy Bitcoin without the goal of reselling it at a higher price. These investors are therefore not liable for tax, as the potential capital gain they will realize has not been realized at the end of the tax year.

It is important to note this point: capital gains are only considered realized upon conversion to fiat currency, such as the euro or dollar.

This tax comes under income tax and must therefore be disclosed by the investor.

How do you declare your capital gain on Bitcoin trading?

Financial gains made from the purchase and sale of crypto-assets, of which Bitcoin is one, must be declared for income tax purposes. There are two scenarios:

  • If your broker or cryptocurrency exchange platform is declared and operating in France, the information will be automatically transmitted to URSSAF. In this case, the value of the capital gain and the tax to be paid will be communicated to you, but it is customary to check this amount yourself to correct a potential overtaxation;
  • If your broker or exchange platform is not registered in France, you must specify your account with this service provider using form No. 3916. Each account and each portfolio must be the subject of a separate form.

Then, under your income tax declaration, you must fill in boxes 3AN and 3BN on form no. 2042 and appendix no. 2086.

Earn Bitcoins by learning: the amazing offer of Coinbase Earn

What better way to get started buying Bitcoin than by receiving free cryptocurrency? On Coinbase cryptocurrency exchange platform it is possible!

With Coinbase Earnyou receive crypto while learning.

This type of initiative aims to train investors more familiar with the subject of cryptocurrencies and give them a boost to start with confidence.

With Coinbase Earn, you will know everything about Bitcoin and how it works, but not only. Several cryptocurrencies are on the agenda. It’s a unique opportunity to build a diverse crypto portfolio while having fun!

To participate, you must create an account on the Coinbase platform and verify your identity with an official ID.

Coinbase is one of the largest cryptocurrency exchanges in the world. This is the US market leader. Coinbase has committed to register in France with the Autorité des Marchés Financiers and submitted an application for approval by the end of 2021. The process is about to be completed and Coinbase will soon be one of the asset-related service providers. digitally approved on French soil.

This article is promotional content and does not constitute investment advice. Do your own research and only invest money you can afford to lose.

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