Those who want to buy a cryptocurrency have it easy today, because there are over 200 exchanges worldwide. So that users can trade Bitcoin, Litecoin, Dash, Ripple and Co. at all, a wallet is required in addition to the account at a stock exchange. With the right course, the purchase or sale can be realized with just a few clicks and we show how easy it is. We also have a solution for those who do not favor crypto buying in Germany and still want to benefit from the crypto hype.
- Buy cryptocurrency on more than 200 exchanges possible
- users need wallet, account and coins / equity for purchase
- security with crypto wallet essential; we recommend offline wallets
- alternative to direct purchase: crypto-CFDs
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buy cryptocurrency: This is how investors can easily invest in Coins
The purchase of Bitcoin and Co. is interesting for numerous investors, because the cryptocurrencies are gaining value and acceptance. Bitcoin is still the leader, which will hardly change in the next few years - according to many experts. Bitcoin started the hype about the digital currencies and the spread of the blockchain, whose technology significantly simplifies processes and is finding its way into more and more application areas.
What does buying coins mean for users?
Anyone who decides to purchase the digital units needs a suitable trading venue. Since Bitcoin and Co. are not available in physical units, an administration option is also required, because the classic wallet does not work here. It is also not possible to keep the coins and tokens in an account with the bank. Crypto exchanges, the so-called exchanges, are the trading center where the coins are bought and sold.
Every user can register on such an exchange and start trading. After purchase, the digital units must also be managed somewhere. If this is not possible through the classic wallet or bank account, where can the administration succeed? We have the answer: the wallet. So that prospects know exactly how to buy a cryptocurrency and what needs to be considered, we give an insight into wallets, exchanges and the processing itself.
Buy crypto on the exchange - users need to know that
Internet currencies are traded on the exchange, although there are big differences between the providers. Not every crypto exchange offers all internet currencies; it is often only the leading ones such as Bitcoin, Litecoin, Dash or Ethereum. Experience shows that the known exchanges are constantly expanding their offer, so that users can trade almost all top 20 cryptocurrencies there. A look at the market capitalization shows the following cryptocurrencies in the top 5:
- Bitcoin Cash
Due to supply and demand, the price can change again and again, so that the order of the crypto list changes based on the market capitalization. However, the top 5 have strengthened by a large margin in recent months, so that they will probably continue to be among the most popular internet currencies among users.
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The price of coins on Exchange
Buy cryptocurrency in Germany - how is the price set at all? There are different prices on the stock exchanges, which is noticeable when comparing the providers. But how does this difference come about? The users themselves determine the price with their behavior, namely through supply and demand. Furthermore, the price is influenced by factors such as general market sentiment or news situation.
Example of pricing
Suppose we want to trade Bitcoin on crypto exchange A and there is currently an excess demand there, For the price of the coins, this means that it will probably rise significantly. We are registered with a second account at crypto exchange B and would also like to trade Bitcoin here. The price is significantly lower compared to exchange A, because there is an excess supply. Where would we buy? Of course, buying on crypto exchange B is an advantage, because here we can secure more coins with less capital investment.
Selling the coins at what price?
We saw that the purchase the coins are advantageous at the lowest possible price. The lowest possible purchase price is particularly important for all users who trade Bitcoin and want to sell at a profit. But what happens if I already own Bitcoin and want to sell the coins? The logical consequence here is, of course, the highest possible price on the market, because that is the best way to secure profits.
However, volatility plays an important role in sales and purchases; because Bitcoin and other cryptocurrencies are subject to enormous price fluctuations. Trading on exchanges is not always easy, as prices can change within a very short time. If the transaction is not processed quickly enough (among other things due to a delay in the confirmation in the network), a less attractive price may apply to buyers and / or sellers, which in turn can have a negative impact on trading.
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Why I won't buy Bitcoin with Robinhood
Means of payment to Exchange: Buy cryptocurrency PayPal & Co.
In order for users to be able to become active on the Exchange, you need to log in with an account also a corresponding credit on it. You can buy crypto on many exchanges not only with conventional means of payment, but also with existing coins. Bitcoin is recognized as a means of payment on some crypto exchanges, but users already need the corresponding stock in their wallet include credit cards and bank transfers. Experience has shown that payment by Visa or MasterCard is particularly quick and usually has low limits. The processing time for bank transfers is significantly longer, because here users have to wait up to five working days for the receipt of their credit. For short-term buyers with a good exchange rate, bank transfer capitalization is therefore not recommended. Exchanges users often (still) look for the payment option with PayPal in vain, because experience has shown that the service provider is hardly available at a large crypto exchange.
Tip: Exchanges offer their own credit cards
In the future, the exchanges may also make their own means of payment available. The pioneer for this is one of the largest crypto exchanges. Coinbase. With the crypto debit card, users can now issue Bitcoin and Co. at points of sale in many European countries and the United Kingdom that accept Visa. This makes the list of means of payment on crypto exchanges even longer.
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Buy cryptocurrency Germany: The right wallet is important
Once the users have made their choice for the crypto exchange, it is their turn to find the right wallet. After all, the coins purchased should be stored securely here in the future. There are two main variants of crypto wallets:
- Online administration
- Offline administration
Online administration includes the online wallets, which can be called up via the browser, for example. The mobile wallets and desktop wallets also fall into this category. An advantage for many users: these wallet solutions are free of charge and are relatively easy to use. However, they are controversial, especially when it comes to security. In the past, there have been repeated reports of attacks by hackers and the associated theft of coins.
Until a few years ago, the exchanges also managed many coins online, so attacks were not spared. The users suffered because they mostly did not get the stolen coins back. In the meantime, the crypto exchanges have done a lot when it comes to security and made the administration of the coins more secure. Most or all of the coins are now managed offline, so that users have more security.
Offline wallet for private use
Not only the exchanges use the offline storage options, they are also available available to private users. There is hardware and paper wallets - both offer the same level of security. However, there are differences in costs, because hardware wallets have to be bought.
How the coins in the wallet are managed.
Buy cryptocurrency in Germany and worldwide thanks to the virtual trading venues and wallet solutions very straightforward and possible from almost anywhere. But how does the administration of the coins actually work in the wallet? The system behind it is comparable to a checking account, because here too there is a kind of PIN and an “account number.”
In the case of wallets, these two components are referred to as private and public keys. The private key is the wallet holder's access to their coins and can be compared to the current account PIN. The public key, on the other hand, is the "account number" and is required for the transfers.
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Keep keys safe
When trading on an exchange the link to the wallet is established so that users automatically access it when buying or selling and after successful transaction processing the coins are transferred from or into the wallet. With the public key, the counterparty cannot see how many coins are actually in the wallet or even access them. This only works with the private key, which is unique and gives anyone who owns it access to the wallet. That is why wallet holders are encouraged to securely manage the private key and not to pass it on to others.
Additional security is now guaranteed at Exchanges through further measures. This includes 2-factor authentication, which can be optionally set on many exchanges.
Buy cryptocurrency: What can I actually do with the coins?
The hype about Bitcoin and Co. is is still unbroken and is repeatedly stoked by the media. Therefore, there are more and more interested parties who want to start trading on an exchange. Some users are just excited to see how the process works and what is behind it. Other users trade the coins more ambitiously and try to make profits with them. But what options do I have when buying cryptocurrency in Germany and worldwide?
Trading coins successfully
In times of low interest rate policy, trading coins is a welcome alternative to traditional investment products. The volatility often results in interesting price developments that enable the sale of Bitcoin and Co. at a profit. But users should know exactly when the right time to buy or sell has come. To actually make a profit, a little experience, practice and knowledge of market analysis is required. Only those who manage to buy coins as cheaply as possible later have a great chance of selling them profitably.
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Use coins as a means of payment
The coins can also be used as a means of payment, especially Bitcoin. More and more shops offer the possibility to pay for goods and services with Bitcoin, but this is not always an advantage. Before users actually use Bitcoin as a means of payment, they should pay attention to the current exchange rate. If it is disadvantageous for Bitcoin owners, we recommend paying with fiat currencies and traditional service providers (e.g. credit cards or bank transfers).
Alternatives to cryptocurrency must be bought from the broker
Must users inevitably become active on an exchange and buy the coins directly or are there other ways to use the internet currencies? No, of course the users do not have to buy Bitcoin and Co. directly, but they can still benefit from the price development.
This is made possible by crypto brokers who have various financial instruments available for trading on the crypto market. The best known include the contracts for differences on Bitcoin, Litecoin and other important cryptocurrencies. The advantage of CFDs is that they can be traded on different price developments: rising prices, falling prices or sideways trends. Since the cryptocurrencies in particular are subject to price fluctuations, CFDs are an ideal means of benefiting from these situations, although they are considered risky derivatives and are controversial.
Realizing profits quickly with CFDs
Contracts for difference are for Daytrader is a good option for realizing quick profits and taking advantage of even the smallest price fluctuations. The leverage multiplies the capital that is brought into the market. Of course, traders do not have to use the maximum leverage of 1: 2 (for private investors) for crypto CFDs, but can also trade without leverage. But it is precisely the CFD lever that makes it so interesting and offers greater profit opportunities through its function as a multiplier. However, traders should not be blinded by the chance of high profits, but should pay attention to sufficient risk protection especially when trading CFDs and open their positions with stop go and take profit.
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Conclusion: You can buy cryptocurrency at over 200 exchanges worldwide.
"Buy cryptocurrency in Germany" - if you search for this term, you will find a long list of known exchanges, but trading is also worldwide now over 200 exchanges possible. Users simply need an account and the link to their crypto wallet and can buy or sell Bitcoin, Litecoin and other cryptocurrencies without any major problems. When choosing a suitable exchange, users should pay attention to the conditions and especially the current prices.
The price-determining factors include the supply and demand behavior of registered users and the current mood on the crypto market. That is why we recommend comparing on different exchanges before actually trading to ensure the best conditions. As an alternative for everyone who does not want to trade the coins directly, there are numerous offers from brokers. The crypto CFDs are an option to comparatively easily benefit from the market developments at Bitcoin and Co. and thus to make profits even in difficult market situations. Simply test your chances yourself and register with IQ Option or another provider with a free demo account.
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