Summary
Luxembourg allows cryptocurrency, and it has friendly rules that encourage new ideas in this area. The Commission de Surveillance du Secteur Financier (CSSF) is in charge of monitoring crypto activities. People often use SEPA transfers and credit cards to make payments, and the Euro (EUR) is commonly accepted. Important laws governing cryptocurrencies include the Blockchain Act I and II. Some of the best crypto exchanges in Luxembourg are:
Best Crypto Exchanges in Luxembourg
Luxembourg is known as a crypto-friendly country in Europe, with the Commission de Surveillance du Secteur Financier (CSSF) being the main regulator for crypto activities. The country’s positive approach to blockchain and cryptocurrencies has attracted many exchanges to set up there.
For people living in Luxembourg, SEPA transfers are a popular choice because they are fast and have low fees. Credit cards are also commonly accepted but usually come with higher costs. The Euro (EUR) is supported by all major crypto exchanges in Luxembourg.
1. Bybit
Users:
40m
Free Demo:
Mobile App:
Bonus
$30,000
Cryptos:
600+
Leverage:
100x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.055%
Pros
- Low fees
- 600+ supported crypto assets
- 100x leverage and deep liquidity
- Advanced order types and additional features
- Great 24/7 customer support
- Automated copy trading
Cons
- Regulatory uncertainty in Europe and USA
- May be confusing for beginners
- Cryptocurrency investments carry high risks
Overview
Bybit stands out as one of the most advanced crypto exchanges with deep liquidity and low fees. Bybit users can trade Spot, Futures, Options, NFTs, and even Inscriptions. Additionally, Bybit offers copy trading and bot trading to automate your income streams. Bybit copy trading is one of the best in the crypto industry.
Where Bybit excels is its derivatives platform with 320+ perpetual futures contracts and up to 100x leverage. With advanced order types such as TWAP or Iceberg orders, Bybit caters to experienced traders seeking the best options.
On the spot market, Bybit supports over 500 cryptos and up to 10x margin, making Bybit a versatile crypto exchange.
With low fees of 0.1% maker and 0.1% taker for spot trading and 0.02% maker and 0.055% taker for futures trading, Bybit has highly competitive fees. To top it all off, Bybit offers fee discounts based on your 30-day trading volume. The more you trade, the more you save.
2. Coinbase
Users:
100m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
250+
Leverage:
5x
Spot Fees:
0.4%/0.6%
Futures Fees:
0.02%/0.05%
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed
- Great customer support
- Reputable with over 100 million users
- Comprehensive fiat deposit methods
- Great wallet for on-chain access
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
Coinbase Overview
Coinbase is one of the largest and most well-known cryptocurrency exchanges for buying cryptos.The platform currently has a user community of over 100 million users worldwide. What makes Coinbase special is its user-friendly interface. The platform is designed to be easy to use, making it accessible for beginners. Coinbase offers a clean and intuitive interface for buying, selling, and managing cryptocurrencies.
Crypto traders have access to over 250 cryptos for active trading. One downside of Coinbase is the fee structure. When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee of 0.60%, which is very expensive.
Another thing about Coinbase is that it offers a wide range of crypto services. These include wallets, NFT, crypto staking, Coinbase cards, and many more to help improve the overall trading experience on the platform. One of our favorite features is the Coinbase wallet.
It is suitable for beginners but also offers advanced trading tools including real-time charts, technical indicators, and many more for advanced traders.
3. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
200x
Spot Fees:
0.02%
Futures Fees:
0%/0.02%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 200x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 200x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
4. Bitpanda
Users:
3m
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
200+
Leverage:
3x (Spot Margin)
Spot Fees:
0.25%
Futures Fees:
Not Supported
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed in EU
- Great customer support
- Reputable with over 100 million users
Cons
- Lacks advanced features
- Very high trading fees
- No futures trading
- Not suitable for active crypto traders
Bitpanda Overview
Bitpanda is one of the oldest crypto trading platforms located in Austria. Since its launch in 2014, Bitpanda has been offering premium crypto services including access to over 3000 digital assets like crypto, stocks, precious metals, and crypto indices.
Users can access fees as low as 0.25% for both makers and takers on spot trading. The fees can be reduced to as low as 0% for makers and 0.01% for takers depending on your 30-day trading volume.
What sets Bitpanda apart is its user-friendly trading experience. Whether you’re a beginner or an experienced trader, you’ll find everything you need to trade in Bitpanda Pro.
You’ll have access to real-time candlestick charts and a trading terminal. You’ll also have access to advanced order types, an order book, and more. Additionally, Bitpanda provides 2x leverage with margin close-out controls that trigger at 50% of the original margin.
5. Binance
Users:
200m
Free Demo:
Mobile App:
Bonus:
$100
Cryptos:
400+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.05%
Pros
- Most comprehensive crypto exchange
- Most advanced features and products
- 24/7 customer support
- 400+ cryptocurrencies
- Reputable with over 200 million users
- Best liquidity
Cons
- Not beginner friendly
- Restricted in many regions due to regulations
- EU traders must use BNFCR for futures trading
Overview
Reaching over 200 million registered users in 2024, Binance is by far the largest crypto exchange in the world. The platform is incredibly comprehensive, offering crypto traders all the tools they need to make a profit in the crypto market.
With over 400 cryptocurrencies to trade, leverage of up to 125x, directly integrated charts from TradingView with tons of technical analysis tools, and many more features, Binance has secured its spot as one of the best crypto exchanges.
Binance offers a wide variety of products, including spot, margin, futures, and options trading, staking, lending, P2P, automated bot trading, copy trading, and even an NFT marketplace. It is safe to say that crypto geeks will find everything they are looking for on Binance.
The trading fees on Binance are very affordable. Binance charges 0.1% trading fees on the spot market (makers and takers alike), which is the industry standard. Where Binance excels is the futures market with fees of only 0.02% for makers and 0.05% for takers.
Is Crypto Legal and Regulated in Luxembourg?
Cryptocurrency is legal in Luxembourg, and the country has established a progressive regulatory framework to govern its use. The primary regulatory body overseeing cryptocurrency activities is the Commission de Surveillance du Secteur Financier (CSSF). Luxembourg implemented the EU’s 5th Anti-Money Laundering Directive (AMLD5) in 2020, which requires virtual asset service providers (VASPs) to register with the CSSF and comply with AML/CFT regulations.
In 2019, Luxembourg passed the Blockchain Act I, which provided legal certainty for transactions using blockchain technology. This was followed by the Blockchain Act II in 2021, which further expanded the legal framework for tokenized securities. These laws have positioned Luxembourg as a crypto-friendly jurisdiction, attracting numerous blockchain and cryptocurrency businesses.
The country has also implemented specific regulations for virtual asset custodians and exchange platforms. These entities must obtain a license from the CSSF to operate legally in Luxembourg. The regulatory framework aims to protect investors while fostering innovation in the cryptocurrency sector.
Is Crypto Taxable in Luxembourg?
Cryptocurrency taxation in Luxembourg follows specific guidelines set by the Luxembourg tax authorities. Capital gains from the sale of cryptocurrencies held for more than six months are generally tax-exempt for individual investors. However, if the holding period is less than six months, gains are subject to the progressive income tax rate, which can reach up to 45.78%.
For frequent traders or those engaged in mining activities, cryptocurrency gains may be classified as commercial income and taxed accordingly. The tax rate for commercial income ranges from 8% to 42%, depending on the amount earned.
Luxembourg does not impose a wealth tax on individuals, which means that holding cryptocurrencies is not subject to additional taxation based on their value. However, cryptocurrency holdings must be declared on annual tax returns.
It’s important to note that the tax treatment of specific cryptocurrency transactions can be complex. For instance, the exchange of one cryptocurrency for another may be considered a taxable event. Additionally, receiving cryptocurrencies as payment for goods or services is typically treated as taxable income.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in Luxembourg.
How to Buy Crypto in Luxembourg
For Luxembourg residents looking to enter the cryptocurrency market, the process is straightforward and secure. We recommend using Bybit as the primary exchange due to its robust security measures, competitive fees, and wide range of supported cryptocurrencies. Whether you’re interested in purchasing Bitcoin, Ethereum, or other altcoins, follow these steps to begin your crypto journey:
- Select a Crypto Exchange: Choose a reputable exchange like Bybit that supports Euro deposits and complies with Luxembourg regulations. Verify that the exchange offers your preferred payment methods and check their KYC requirements.
- Sign Up and Verify Identity: Create an account on the chosen exchange. Complete the KYC process by providing the required identification documents, which typically include a government-issued ID and proof of address.
- Deposit Funds: Once verified, deposit funds into your exchange account. For Luxembourg users, SEPA transfers are often the most cost-effective method. Credit card deposits are also widely accepted but may incur higher fees.
- Select Crypto to Buy: Navigate to the trading section of the exchange. Choose the cryptocurrency you wish to purchase. Popular options include Bitcoin (BTC), Ethereum (ETH), or stablecoins like Tether (USDT).
- Execute Trade: Enter the amount of cryptocurrency you want to buy or the amount of Euro you want to spend. Review the transaction details, including any fees, and confirm the purchase.
- Store Funds Securely: After purchasing, consider transferring your cryptocurrencies to a personal wallet for enhanced security. You can choose between hardware wallets for long-term storage or software wallets for more frequent trading.
Remember to stay informed about market trends and always invest responsibly within your means.
Best Crypto Wallets in Luxembourg
For Luxembourg crypto enthusiasts, understanding the importance of self-custody is crucial. By maintaining control of your private keys, you significantly enhance the security of your digital assets. Proper storage of key phrases is paramount; consider using a fireproof safe or a safety deposit box for offline backups.
It’s essential to recognize that with self-custody, you bear full responsibility for your funds. This autonomy requires diligence in security practices and careful management of access information.
Ledger offers a range of hardware wallets, ideal for cold storage of significant crypto holdings. These USB-like devices store your private keys offline, providing robust protection against online threats. Ledger supports a wide array of cryptocurrencies and integrates with various DeFi platforms, making it a versatile choice for Luxembourg users prioritizing security.
For those requiring more flexibility, MetaMask serves as a popular software wallet. This browser extension and mobile app primarily caters to Ethereum and ERC-20 tokens, facilitating easy interaction with decentralized applications (dApps). While convenient for frequent transactions, users should remain vigilant about phishing attempts and always verify transaction details before confirming.
Regardless of the wallet type chosen, regular security audits and updates are crucial to safeguard your digital assets effectively.
Bottom Line
For Luxembourg residents venturing into cryptocurrency, Bybit stands out as the top choice among the best crypto exchanges in Luxembourg, offering a blend of security, competitive fees, and a wide selection of assets. Coinbase follows closely as a user-friendly alternative with strong regulatory compliance. Both exchanges provide robust platforms for buying, selling, and trading cryptocurrencies, catering to beginners and experienced traders alike. Always prioritize security, stay informed about local regulations, and invest responsibly.
