Buy Bitcoin in Hungary

How to Buy Bitcoin in Hungary

There aren't any Bitcoin exchanges based in Hungary, but Hungarian citizens have 20 popular exchanges available to them. Coinbase and Coinmama are some of the biggest exchanges that serve Hungary, but they (like most exchanges) require identity verification.

LocalBitcoins is another private option available to Hungarians, which facilitates the peer-to-peer exchange of Bitcoin without requiring identity verification.

Bitcoin ATMs are another great way to buy Bitcoin privately. There are 46 ATMs throughout Hungry, with 30 in Budapest, making it a bitcoin hot spot. That's more than a few other European countries combined!

Regardless of your payment method or exchange of choice, storing your tokens with a hardware wallet is essential. You should secure your Bitcoin with a Coldcard or TREZOR for maximum security.

Software wallets are alright, but they can't compete with the protection that hardware wallets provide.

With your wallet situation sorted, buying is pretty easy in Hungary thanks to the country's Bitcoin-friendly legislation. Choose an exchange above, verify your ID, connect your payment method, and buy away.

Bitcoin & Cryptocurrency Trading in Hungary

The economy of Hungary is the 35th largest export economy in the world being based mostly on foreign trade. More than 80% of productive capacity is owned by private companies, and more and more, crypto is a growing part of that economic activity, though no exchanges have opened up locally in the country.

That's because the Hungarian government has not yet established the legal framework regarding cryptocurrency transactions, explaining its view that the cryptocurrency hasn't been issued by a central financial authority and the Hungarian National Bank hasn't confirmed an exchange rate. In February 2022, Hungary Central Bank governor György Matolcsy, supported the Russian ban of cryptocurrency and stated in his blog, "Time has come to ban crypto trading and mining in the EU." It doesn't look like the crypto policy will improve.

The good news is that for 2022 the tax policy has changed to a new flat rate of 15% for individual income from cryptocurrency. Previously Hungarians paid 30.5% on profits made from cryptocurrency transactions.⁽²⁾

One of the easiest ways to buy Bitcoin in Hungary is through the cryptocurrency exchanges outlined above. There are several exchanges offering Bitcoin in Hungary, allowing you to select one based on your requirements and preferences using our guide. Different exchanges have different transaction fees, withdrawal limits, payment modes, and verification processes that need to be considered before selecting one.

Additionally, Bitcoin buyers need to keep in mind that certain exchanges might require you to get a wallet of your own before being able to buy the digital currency. Even if there is no requirement, it is recommended to have a wallet of your own for security reasons (preferably a hardware wallet).

Another way to buy Bitcoins in Hungary is through automated teller machines (ATMs). These ATMs allow users to instantly purchase the cryptocurrency using cash, and most of them only require a telephone number for verification, so long as you aren't buying a lot of Bitcoin. You can locate Bitcoin ATMs in Hungary using our Bitcoin ATM Map.

Exchange Hacks and Crypto Scams in Hungary

Hungarian citizens being scammed via online ads

Several Hungarians were victims of online ads generated by Hungarian sites promising great profits.

The scam followed a pattern: a website/social media ad led to a false website where a famous person told a story about how he/she got rich; from this website, the victim reached a registration page containing Bitcoin in its name and all the victim's personal data was collected there

The final step was taken when the scammer was calling on the phone, pretending to call in the name of an investment platform and asking the victim to pay €250 for the first investment.

The Cybercrime Intelligence Unit of the National Investigation Bureau of Hungary called this scam "the €250 scam".⁽³⁾

Bitcoin Mining in Hungary

Mining Bitcoin in Hungary isn't a great idea because their average electricity price is 37 Forints per kWh ($0.11).

Although Hungary's electricity prices are low compared to the rest of Europe - and the United States - it's still not small enough to profitably mine Bitcoin.

Bitcoin mining has fallen a long way from its golden age when many people considered it a gold rush. Now, mining requires expensive, powerful mining hardware, time, energy, and a large upfront investment, which you probably won't see again.

According to our Bitcoin mining profitability calculator, you'd lose roughly $1,400 annually with Bitmain's newest miner, the S19.

Mining is profitable in countries with cheap electricity like China, Georgia, India, and Kuwait. Furthermore, mining is primarily dominated by massive mining companies that have thousands of ASIC miners running at scale.

Sadly, mining is no longer profitable for the little guy, which was the point of decentralizing the blockchain's verification in the first place.

If you want to buy Bitcoin, go to a trusted exchange, peer, or Bitcoin ATM - mining is not the best option.