One of the most frequently asked searches online in the Bitcoin & Co. area is buying cryptocurrency. It is primarily about information about what currency, how and where to buy. In addition to the most well-known cryptocurrency, there are well over a thousand other coins and tokens. The number is steadily increasing. This makes it difficult to find your way as a crypto prospect alone.
Even for experienced investors or traders, it may not be easy to get the information you need when dealing with Internet currencies for the first time. Buying cryptocurrencies is what many people primarily associate with buying coins, similar to buying securities like stocks or ETFs. With crypto trading there is another, an indirect form of crypto buying. The guide deals with with the topic "Buy or trade from Bitcoin & Co.".
- Invest directly in Bitcoin & Co.
- Buy Bitcoin on Exchange and private marketplaces
- Trading cryptocurrencies with the broker
- Trading Bitcoin CFDs long and short
Table of contents
- This is how interested investors can get cryptocurrencies
- Buy cryptocurrencies directly
- Trading CFDs on cryptocurrencies
- Buy crypto stocks
- Mine digital coins
- Where to buy cryptocurrencies?
- Markets, exchanges & brokers
- Earn money with Bitcoin & Co.
- Which cryptocurrency to buy in 2019?
- Buy cryptocurrency with PayPal: Is this possible?
- Buy cryptocurrencies: Step by step instructions
- Conclusion Buy cryptocurrency: Two options as direct purchase & trading
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Sun. interested investors arrive Cryptocurrencies
Cryptocurrencies have been the focus of investor interest since Bitcoin passed the $ 10,000 mark. Whoever would have invested around $ 100 in Bitcoin in 2011 would be a millionaire today. Even if a bitcoin investment does not promise such huge profit jumps today, there are a variety of alternatives with good return potential. Buying a cryptocurrency directly is one of several options. Interested parties can invest in digital currencies by
- buying cryptocurrencies directly,
- trading CFDs on cryptocurrencies,
- buying crypto stocks,
- Mining Bitcoin & Co.
How to buy cryptocurrencies is a matter of investment strategy in individual cases. For example, if you invest money directly in Bitcoin and Co., you must know that they will only make a profit if the price increases. There are no interest rates like fixed deposits or dividends like corporate investments for internet currencies. If the exchange rate falls, a loss is realized on any sale. Investors can invest in both short-term and long-term investment goals in crypto.
Cryptocurrencies can be bought with conventional money. In this context, fiat money (US dollars, EURO, Swiss francs, etc.) is often spoken of. Depending on the Bitcoin & Co. rate, investors receive a certain amount of digital coins (Bitcoin, IOTA, Ethereum or Ripple) for their US dollars or euros. There is a second option besides direct purchase. If you already have one cryptocurrency, you can exchange it for another. The corresponding exchange partner must be found for this. Insignificant or new internet currencies on the market can only be exchanged with a few significant exchanges.
When trading special CFDs in cryptocurrencies, buyers can go long and short and thus benefit from rising and falling prices. Anyone who believes in a short-term positive price development and realizes their profit the next time the price jump has to deal with the taxation of income. The financial supervisory authority responsible in this country, Bafin, sees cryptocurrencies as taxable financial instruments and not as a means of payment.
Buy cryptocurrencies directly
If you plan to buy cryptocurrencies directly, you first need one matching provider. The range of crypto marketplaces is confusing and the number of providers is constantly increasing. Few are recommended as trustworthy and safe trading venues. Even large exchanges are repeatedly exposed to attacks by hackers, which will not be a major security problem if they are immediately stored in their own wallet with a private key. The situation is different for traders who hold their digital coins on the marketplace for trading. In addition, not every crypto exchange offers the desired coin that is in the buyer's interest.
Depending on which exchange the investor opts for, various work steps have to be processed. Some investments only work if a corresponding crypto wallet is available. Other coins can be held on a crypto exchange for as long as you like after purchase. For a good reason, this should be avoided because the risk of loss is not small. In the past, exchanges have often been the target of hacking and theft. Other trading venues suddenly went offline and made off with the deposited currency holdings of their customers.
As with trading on regular stock exchanges, there is a certain fee for each purchase or sale. The amount of the fee is determined from the amount of cryptocurrencies converted. In principle, reputable crypto exchanges require verification from the customer, which is more or less complex depending on the provider and cryptocurrency. In the further text of the guidebook there is specific instructions on how to buy cryptocurrencies, with the help of which the first own coin can be taken possession of in a matter of minutes.
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eToro Walk-Through: Buy Cryptocurrency With Confidence
Trading CFDs on cryptocurrencies
Meanwhile, some crypto exchanges do not only offer the purchase and sale of different cryptocurrencies. They focus on trading with digital coins. In some cases, CFD levers can also be traded here. The prerequisite for participating in trading is having a cryptocurrency. The market leading cryptos such as Bitcoin or Ethereum mostly serve as the base currency.
Not everyone wants to invest directly in cryptocurrencies. Those who invested money in Bitcoin at the highest prices at the time in 2017 quickly became a lot poorer due to sharp price drops at the beginning of 2018. There were high losses on the sale. This has deterred many people from putting their money into digital coins in the coming months.
Many of them have discovered trading derivatives on cryptocurrencies as an alternative. Here you can earn money even with falling prices. One advantage of CFD derivatives is that the trader can bet on different cryptocurrency performances. CFD investors benefit from rising and falling exchange rates. To do this, it is sufficient to correctly predict the price behavior of certain cryptocurrencies, such as Bitcoin against the US dollar or euro. In the case of a sell order, the selling price must be below the buying price. The reverse is true for the buy order.
With some brokers, trading using larger levers is possible. Large trading volumes can be moved with only a small amount of capital. An important advantage in CFD trading is the low trading fees, which are usually incurred in the form of spreads or as a commission.
Often cryptocurrency CFDs are only part of the tradable portfolio at the broker. CFDs on stocks, indices and commodities as well as forex are also offered. In addition, a wallet for the respective cryptocurrency is never necessary for trading the crypto CFDs. A good overview of possible providers is provided by a crypto broker comparison.
Buy crypto stocks
The range of pure crypto stocks 2019 is relatively manageable. These include companies with a focus on Bitcoin mining, blockchain development and operation, and investment companies. Bitcoin Group SE is the operator of the well-known German crypto exchange bitcoin.de. The Australian company Digital X is active in the Bitcoin Services area and offers blockchain solutions to professional customers. Global Blockchain Technologies Corp is an investment company that is all about Bitcoin and other cryptocurrencies.The graphics card manufacturer NVidia and the internet retailer overstock.com are not pure Bitcoin stocks. NVidia was a leader in mining graphics cards until 2017. Overstock.com has introduced Bitcoin as a means of payment and is the owner of its own blockchain subsidiary.
There are also a few public companies that want to benefit from the general hype surrounding Bitcoin & Co. with a company name based on cryptos. There is more choice with stocks, where the issuing companies are more or less directly related to Bitcoin and Blockchain. These include Large companies like IBM and Amazon. For example, IBM invests in crypto companies that develop blockchain applications.
Further blockchain investments are possible via ETFs, certificates, futures and EFTs. For investors, these forms of investment have the advantage of clear regulation. Trading on an unregulated crypto exchange is exposed to far greater risks. The risks of the unregulated market are added to the actual trading risk.
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Mine digital coins
The mining use many cryptocurrencies to generate new units of their digital coins. The miners create new blocks in the blockchain. Those who have the necessary hardware for the respective mining method can take part in the mining process. Miners usually receive their share of the transaction fees as a reward. Mining sometimes offers users the opportunity to use Bitcoin & Co. without using their own money. In Germany, mining bitcoins is no longer worthwhile because of high electricity prices on the PC at home.
There are two alternatives to mining at home with a mining pool and cloud mining. Due to the great competition and increasingly difficult computing processes, the probability of a reward for Bitcoin mining is low. It is therefore advisable to switch to other digital currencies. Earning money works best when the user joins a certain mining pool with his ASIC calculator. He will then be rewarded proportionately for the computing power provided, either in the form of, for example, Bitcoin or transaction fees.
The user who participates in cloud mining saves having to buy his own miner. He rents the necessary mining hardware from a mining provider abroad who ensures profitable mining thanks to low electricity prices and climatic conditions. Bitcoin Miner provides a detailed explanation of how mining cryptocurrencies works in 2019.
Where to buy cryptocurrencies?
Offer crypto exchanges, brokers and private marketplaces Investors have several options to invest in Bitcoin & Co. in different ways.
- Buy & trade digital coins on an online exchange
- Buy crypto CFDs through a broker
- Buy Bitcoin or Ripple privately from private individuals
A number of investment companies and stock exchanges offer crypto stocks and other company holdings.
Note: The world's leading cryptocurrency Bitcoin can now be bought at vending machines within Germany. Bitcoin machines are currently located at four locations in Berlin, Essen and Hamburg. Up to a maximum of 500 euros, Bitcoin can be bought KYC-free. For higher amounts, verification is necessary directly on the machine. A 4.5 percent fee is charged for each purchase. In Austria and Switzerland it has been possible to buy bitcoin from a machine for a long time. In Germany, BaFin prohibited an earlier list and ultimately had to bow to a judicial decision. Bitcoin trading is permitted and is not punishable.
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Market places, exchanges & brokers
Bitcoin. de is the largest marketplace for crypto buying in Germany and therefore a good recommendation for buying cryptocurrency. The German platform is operated by a real bank, so the strict German regulations for banks apply. However, the investment opportunities are limited to Bitcoin or Ethereum. The trader can post an offer on the marketplace or search for a sales offer.
The Kraken exchange offers an extensive selection of cryptocurrencies and scores with low fees. In addition to the top coins such as Bitcoin, Ripple, Ethereum, IOTA and Litecoin, numerous unknown and exotic cryptocurrencies can be bought on the platform, which is unfortunately only available in English. The purchase can be processed in many currencies.
Coinbase is a well-known American trading exchange for cryptocurrencies, where German users are well served. The platform presents itself with a German language interface. In addition, cryptocurrencies can be traded in euros. Even comparatively high fees only partially compensate for these advantages.
Poloniex, one of the largest trading platforms in North America, is not suitable for entry into the crypto business. Only cryptocurrency trading takes place here. You cannot buy cryptos with euros or US dollars. Platform users must have a cryptocurrency like Bitcoin or Ethereum for crypto trading. Advantages are high security standards and cheap offers thanks to many transactions.
eToro, the world's largest social trading platform, now offers the service of a cryptocurrency exchange in addition to CFD trading. Cryptocurrencies are available for trading as CFDs and for real purchases. The few known cryptocurrency brokers include eToro providers such as IQ Option, Plus500, 24Option and Markets.com.
With these brokers, traders can start placing the first trade within a short time. They offer them online account opening, simple authentication and quick payment solutions. Customers can also try out CFD trading with a demo account free of charge and without financial risk.
Earn money with Bitcoin & Co.
Make money with Earning cryptocurrencies can also be earned outside of direct purchases, crypto trading and mining. This is the case, for example, when someone receives cryptocurrencies in exchange for their work. There are some special platforms where solving tasks is rewarded with bitcoins. If an employer allows it, the wages could be paid out as Bitcoin. Another option would be to sell goods and services for bitcoins or ripples in your own online shop.
Which buy cryptocurrency 2019?
In In the first months of 2019, the prices of many cryptocurrencies developed positively. Bitcoin temporarily reached more than $ 12,000. Many already see the next Bitcoin run and dream of courses far above the 20,000 mark. With a few exceptions, rising Bitcoin prices are pulling the market up as a whole. There is a large selection of digital currencies, but only very few are given real chances for lasting success.
Not a few financial experts see Bitcoin as the digital gold of the future. The short history of the market-leading cryptocurrency shows a certain connection with the price development of gold. Whenever the gold price moves more in one direction, this is largely reflected in the price of Bitcoin in a comparable way. However, ten years of Bitcoin are too short to provide reliable forecasts for future developments. New coin and token providers will enter the market. So far, Bitcoin has been unmatched in terms of market capitalization and acceptance. The majority of the currently numerous digital currencies will disappear from the market for lack of any real benefit.
The question "Which cryptocurrency to buy?" could be answered quite simply from this point of view. The market-determining Internet currencies such as IOTA, Ripple or Ethereum are suitable for a direct investment. For further purchase decisions, coins are recommended that stand out from the crowd with special added value and that are given high potential for value growth.
A possible trading approach could be to take the top 10 or top 20 cryptocurrencies and each in each invest the same amount. Since there are major shifts among the top currencies over time, some of the money can be invested in a coin with little potential. Another approach would be to set up a portfolio that contains 50 percent pure cryptocurrencies such as Bitcoin, Bitcoin Cash or Ripple and 50 percent cryptocurrencies with an additional focus on applications such as Ethereum and the smart contracts. On the one hand, this ensures a good mix of currencies and, on the other hand, it offers the chance to benefit from an innovative currency. In-depth research and general understanding are necessary.
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Buy cryptocurrency with PayPal: Is this possible?
In Germany, the American payment service PayPal is one of the most popular payment methods. Klarna and credit cards are also popular when it comes to making quick deposits. PayPal is available for every German consumer with their own bank account. Even Google Pay has integrated PayPal into its mobile payment solution.
While PayPal is available in many online shops and on other websites with service offers, the payment service is only occasionally found at brokers and crypto exchanges. According to US law, PayPal is only allowed to do business in regulated and legal areas. This is the reason why buying cryptocurrency with PayPal is only possible at selected brokers and crypto exchanges. These platforms include the brokers Plus500 and eToro as well as the crypto exchange Coinbase.
There are still a few alternatives where Bitcoin can be bought via PayPal. One of these portals is called "VirWox". Here you can buy the VirWox-Linden-Dollar with Euro via PayPal and then convert it into Bitcoin. Another alternative to buying PayPal cryptocurrency is Neteller. The online payment service is available from numerous brokers and on some crypto platforms. Neteller customers also have the option of exchanging Neteller balances in various Fiat currencies (EUR, USD, etc.) for cryptocurrencies (Bitcoin, Bitcoin Cash, Ethereum, Ether, EOS, Litecoin, XRP) and storing them in their own Neteller cryptocurrency wallet.
Buying cryptocurrencies: Step by step instructions
Step 1: Provider selection
First a suitable provider is selected. This decision is based on your own investment and trading ideas. If you do not intend to buy digital coins directly or do not want to set up wallets, you will find the best trading opportunities with brokers such as Plus500 or eToro.
If you primarily see yourself as a crypto investor, you value a portfolio of cryptocurrencies, finds the right provider with a real and possibly renowned crypto exchange. There are now crypto marketplaces where cryptocurrencies can be bought in real terms or Internet coins that are already held can be traded against fiat currencies or other crypto coins. If you attach great importance to buying cryptocurrency PayPal, check the provider regarding PayPal under the payment methods before opening the account.
It is worth comparing the different providers, taking into account their own preferences. This is the easiest way to find the personally optimal offer. The choice of platform is crucial for the purchase and / or trading results. Real prices, low transaction costs and security of the exchange are important factors that play a role when investing in Bitcoin & Co. At the broker, where cryptocurrencies are traded on the basis of CFD, it is the trading fees (spread, commission, overnight fee) that will have a significant impact on the possible trading profit.
Step 2: Account opening & registration
If you want to buy Bitcoin, Ethereum or XRP on a crypto exchange or broker, you need an account on the respective platform. The account opening takes place online and in most cases is done within minutes. The registration procedures have a standard that is generally known from the opening of the current account.
The self-explanatory online form contains all the required basic information (first and last name, date of birth, email address ) to be entered. A user name and password must also be specified. The password should consist of a secure string or be generated by a password generator.
After the registration has been confirmed by email link, the account is active. In order to be able to carry out financial transactions, further personal information (address, income, personal situation, etc.) and verification of the person are usually necessary.
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Step 3: Verification of personal data
Depending on the provider, verification is the prerequisite for being able to become active on the platform. While some require the data check to be completed before the first deposit is made, others have to be verified until the latest before the first withdrawal request.
In each account, users will find a way to upload the required documents. A copy of the valid identity card or passport must be presented to the portal operator to confirm identity. Reputable platforms and brokers who apply European guidelines to their business will ask the customer to confirm the address. Depending on the provider, different consumer bills are recognized as proof of address. All types of utility bills are suitable. The document can usually not be older than three months. Name and address must be clearly legible. As a rule, the operators ensure a swift confirmation process, provided the customer provides the required documents in the necessary quality.
Step 4: First deposit
Depending on the Exchange and Platform users will find a more or less extensive portfolio of payment methods.
Numerous methods of depositing are provided by crypto brokers. In addition to the standard payment solutions such as bank transfers and credit cards, other online payment service providers can be used. Depending on the provider, it is possible to buy cryptocurrencies with PayPal, Klarna or Neteller as well as other regionally available payment providers.
Users of pure crypto marketplaces cannot make deposits using fiat currencies, but only via crypto currencies. Bitcoin and some of the other top internet currencies are usually accepted. These can then be traded against up to 100 more of the digital currencies. The respective provider will inform you about the options, the individual steps and payment fees.
Conclusion Buy cryptocurrency: Two options as direct purchase & trading
There are direct purchase options for buying cryptocurrency and trading two different options. If you want to invest your money directly in a cryptocurrency like Bitcoin, you buy it on a crypto marketplace. Trading with crypto-CFDs is an option for all investors who do not own digital coins or do not want to deal with a wallet.
Users find the best provider through an exchange & crypto broker comparison. If the account opening and the deposit have been successfully completed, there is nothing standing in the way of starting trading with the chosen crypto broker or on an exchange. The provider shows the tradable currency pairs, charts and statistics as well as the possible trading functions on the website. In contrast to the broker platforms, users in other marketplaces like Coinbase can buy a crypto currency directly and send it to their own wallet. With crypto shares and mining shares, crypto-interested investors have further alternatives for direct crypto investments.
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