To start off with, I'm very new to QGIS. I'm attempting to place a shapefile with locations for 3 substations on a map of Peniche, Portugal. The locations for the substations are given in latitude and longitude coordinates.
When I start off by importing the substation shapefile, I make sure that both the layer CRS and project CRS are set to EPSG:32629, which gives each substation point the correct coordinates, however the scale is at 1:1, which is not correct. As soon as I then add a raster map of the region or a shapefile of Portugal using the same CRS the position of the substations also becomes incorrect.
I'm sure there's a simple solution I'm not getting, but I've been trying for a while and have had no success. Here's a dropbox link to the files https://www.dropbox.com/sh/53kcszzry8kekqx/AADsHaKMpkiCzmNWjSPapC1Ma?dl=0