A Quick Guide to Purchasing Cryptocurrency in Austria

Known as one of the wealthiest countries in Europe, and thereby, one of the wealthiest countries in the whole world, Austria is a key financial hub. This means that the country hasn’t been ignoring Bitcoin and the crypto revolution that has been happening throughout the global financial industry. Austria has its fair share of high net worth investors and many of them have already diversified some portion of their investment portfolio into Bitcoin and other cryptocurrencies. Since there is a high level of crypto interest in this European country, it is not surprising that people may also be wondering how to buy digital Yuan in Austria.

The digital Yuan is also a digital currency and an addition to the crypto space, albeit a unique one. It is essentially a central bank digital currency (CBDC), which means that it is actually controlled by the Chinese government and does not share the same decentralized properties of other cryptocurrencies that you can find in the market. If you are interested in investing in cryptocurrency in Austria, you will not have any trouble in finding out exactly what you need and how to go about purchasing it, whether for investment or for trading purposes. This is now also applicable to the digital Yuan, which has been issued by the Chinese central bank recently.

Let’s take a quick look at some important details regarding crypto investment in Austria:

Is Cryptocurrency Legal?

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The first question that you need to ask before you try to figure out how to buy digital Yuan in Austria is about legality. Is it even legal for you to do so? Before the existence of Bitcoin, the first digital currency to be introduced, the regulators in the country had already been quite receptive to the boom in financial technology. The good news is that this trend has remained quite consistent during the revolution of the crypto industry as well. Lawmakers and regulators in Austria have kept a close track of the cryptocurrency ecosystem in the country and have opted for a hands on approach.

The Austrian government has tried to promote innovative and new startups, but they are a bit cautious when it comes to initial coin offerings (ICOs). However, if you are looking for regulations and laws specifically related to cryptocurrencies, then you will come to know that Austria hasn’t implemented anything new in this regard. This means that if you want to buy digital Yuan in Austria, it wouldn’t be a problem at all. As a matter of fact, Austria hasn’t even introduced new laws for the fintech sector generally.

With that said, some comments have been made by the Austria Financial Markets Authority (FMA) in which they have elaborated how these digital currencies work. They have explained the decentralized nature of cryptocurrencies to highlight the risk associated with them in order to clarify that they are not like any other form of currency that exists. But, the digital Yuan is actually a centralized digital currency and this will work in its favor. Hence, if you decide to buy digital Yuan in Austria, the level of risk would certainly be lower than the other cryptocurrencies because this one is backed by the Chinese central bank.

As far as other crypto assets are concerned, Austria currently treats them as commodities. Crypto users in the country only need to worry about laws if they are planning on introducing a cryptocurrency of their own or planning to set up an exchange. Buying and selling digital currencies is quite straightforward and not very different from trading any other kind of asset.

However, the taxation rate in the country is a bit on the high side. For short-term trading, a 55% tax may be applicable on the profits, but if you want to buy digital Yuan in Austria for holding onto it in the long-term, this tax can be avoided. You don’t have to pay capital gains tax on any crypto that’s held for longer than a year.

Buying Cryptocurrency in Austria

You can pretty much use any method of buying and selling cryptocurrencies in the country, which means there will be no problem when you buy digital Yuan in Austria through any option. Whether you want to do your trading on a peer-to-peer basis or you wish to pay the lowest fee on a global crypto exchange, you will have more than enough options in Austria to explore. As a matter of fact, you can even find domestic cryptocurrency exchanges in Austria, which is usually the best option for anyone who is thinking about entering the crypto space for the first time

When it comes to choosing the right exchange in Austria, it will depend on your individual needs and priorities. Nonetheless, majority of the people are known for using one of two options; Kraken and Coinfinity. The latter is the ideal option for anyone who is new to the market because it offers a variety of services to help people get started. It operates more like a traditional broker than a crypto exchange, which makes it easier to use and understand. The former, on the other hand, is an ideal option for those who are already familiar with the crypto space in general.

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With Kraken, users can enjoy access to an array of cryptocurrencies and get access to global liquidity. Also, considering the fee charged by most global crypto exchanges out there, Kraken is quite reasonable and this is another plus that works in its favor. If you are familiar with the crypto market on a whole and want to keep your costs down while trading, this is the best option for you to go for.

Apart from these two, there are some other options that can also be explored. The key is to do your research, especially when you want to buy digital Yuan in Austria, because it will not be widely available right away. Considering that it is quite new and will have a huge demand, you will need to make the right choice.

Author: Michael Ellis

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