Buying Bitcoin in Germany
Bitcoin is by far the most popular cryptocurrency, of which there now exist several thousand. That can be read from, among other things, market capitalization – the value that all existing bitcoins represent as a whole. According to this, the approximately 19 million currently existing bitcoins have a combined value of about 160 billion EUR (February 2020) and thus make up two-thirds of the entire crypto market (about 240 billion EUR). Altcoins such as Bitcoin Cash, Ethereum, XRP, or Litecoin follow, but trail quite a bit behind.
Bitcoin is not only the first, and therefore oldest, digital currency based on blockchain, but also by far the largest. Bitcoin is also the most in-demand in the cryptocurrency market. Every day, two to three million bitcoins are bought and sold worldwide. Bitcoin’s trading volume exceeds that of all other cryptocurrencies.
In recent years, it’s become easier and easier for private investors to buy Bitcoin. Although there was still a lot of uncontrolled growth and uncertainty when buying Bitcoin during the initial years following its launch in 2009, its trading situation has become much clearer and more reliable due to governmental measures. Fixed processes and methods have developed, making the Bitcoin system manageable for private investors. On the one hand, a distinction can now be made between the various cryptocurrency trading platforms, such as the large Bitcoin exchanges, most of which are operated abroad. On the other hand, with the BISON app, a purchase option “Made in Germany” is now available, which is “powered by” Boerse Stuttgart. But how do these offers differ when buying Bitcoin?
What do investors have to consider when buying Bitcoin?
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Table of Contents
What Is Needed in Order to Buy Bitcoin in Germany?
To buy Bitcoin, you essentially need three things:
- Capital: The financial means to purchase Bitcoin
- Technology: A smartphone or a standard PC with Internet access
- Identification Card: An official document to prove your identity
Regarding 1 – Capital to Buy Bitcoin
To buy Bitcoin, you need money to pay for the purchase. This can be in either EUR or USD, but also some other cryptocurrencies as well. When buying Bitcoin, many financial experts advise investing only capital in cryptocurrencies, the loss of which can be afforded in emergencies. Bitcoin has been on the market for over 10 years and, on top of that, is quite successful. Nevertheless, there still exist risks when purchasing it. Theoretically, the value of Bitcoin can drop to zero from one day to the next because its value is not guaranteed by anyone – not a single bank, state, or enterprise.
Regarding 2 – Technology, in Order to Buy Bitcoin via the Internet
Anyone wanting to purchase the digital currency Bitcoin must have a device that is connected to the Internet. Smartphone, tablet, laptop, PC – it sounds trivial, but you can only buy Bitcoin with modern communication technology. You don’t, however, need any sort of high-performance supercomputer. Normal devices are completely sufficient. The BISON app can be installed on most standard smartphones.
Regarding 3 – Proof of Identity to Buy Bitcoin as a Real Person
Most countries have now enacted laws and regulations that impose strict requirements on the trading platforms where Bitcoin can be purchased. The most important regulation for an investor concerns the unequivocal determination of their identity. If you create a customer account in cryptocurrency exchanges or the BISON app, you must, during the registration process, prove that you are really the person you claim to be. Through a video identification process, a passport or an identity card should be used to prove the identity of the person operating the respective account to the cryptocurrency exchange provider. This proof is required before you can buy Bitcoin. This regulation, also known as KYC (Know Your Customer), is designed to prevent criminals from concealing their true identity to carry out illegal transactions.
Step-by-Step: How to Buy Bitcoin with the BISON App
- Download the BISON App on a Smartphone First, download the free BISON app on your smartphone. The BISON app is available in relevant app stores: iOS (Apple): apps.apple.com Android (Google): play.google.com/store
- Create a User Account To open a personal account in the BISON app, only a valid e-mail address and a self-chosen password are necessary for the first step. Enter your data and confirm your email.
- Test All BISON App Functions in the Demo Mode Buying and selling BTC, ETH, LTC, and XRP can be tested easily and without any hesitation using the BISON app’s demo mode. With a lot of play money (fake money), you can get to know the app without verification and test out all the functions yourself.
- Switch to Real-Money Mode: Determine Identity via Video ID Procedure Due to legal regulations, the identity of every person who purchases cryptocurrencies such as Bitcoin with the BISON app must be clearly verified. This process is called KYC (= Know Your Customer). In the BISON app, a person’s identity is verified using a video identification procedure. A corresponding function can be found in the settings. Before starting this process, you should have your identity card or passport ready. These documents will then be verified in a short video chat. Shortly after successful completion of the Video-Identification-Procedure, you can use the real-money mode
- Deposit EUR into the BISON App After you have been activated to use the real-money mode, you will be able to deposit EUR into the BISON app. You will find a corresponding International Bank Account Number (IBAN) in your account settings. This IBAN is created individually for each user and an account is automatically created in the background under BISON’s German partner, Solarisbank. The legal deposit protection of 100,000 EUR on the monetary balance applies to this account. The deposited amount is usually available in the BISON app within one business day.
- Buy Bitcoin in the BISON App When the user’s deposit in EUR is available in the BISON app, the user can buy bitcoins. To do this, go to the “Bitcoin” area in the app and click “Buy”. The next page will display the price for buying bitcoins. You can, however, specify how much EUR you want to invest to buy Bitcoin. Parts of a bitcoin can, of course, also be bought; the purchase is possible from 20 euros. When you click on “OK, send”, the purchase is carried out. A short time later, your purchased Bitcoin are available in the app.
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What Exactly Does One Buy When Buying Bitcoin?
When you buy bitcoins, you acquire the right to send those bitcoins to someone else. This sounds a bit unreal, but that is, in principle, exactly how it works. The fact that a bitcoin is not a coin, not a bank bill, not a piece of land, and not a share in a company, makes this possible. Bitcoin is also not a loan that is given or any sort of tangible material. Bitcoin is none of these things – instead, it is 100% digital. At a closer glance, personally purchased bitcoins are nothing more than an entry in a forgery-proof database that is completely decentralized. This entry in the Bitcoin database, known as the blockchain, is proof of purchase. This entry in the blockchain contains all the information necessary to prove that you own Bitcoin as a buyer.
Can Bitcoin Be Bought in Germany?
In contrast to other countries, you may both buy and sell Bitcoin in Germany. The state regards the trading of Bitcoin and other cryptocurrencies as a private matter between buyer and seller. Bitcoin itself is a “digital representation of a value” for the state. Legal restrictions on trading Bitcoin only exist for providers of trading platforms and providers of storage for crypto values. They have to have their services approved and adhere to certain rules. For investors who buy and sell Bitcoin in Germany, profits from trading Bitcoin are taxable. The tax liability for profits from trading in Bitcoin for private investors applies if Bitcoin is held for less than 12 months and the profits from Bitcoin trading exceed a certain tax exemption. If you have specific questions, it is highly advised that you consult a tax advisor.
Where in Germany Can Bitcoin Be Bought?
There are various paths available for buying Bitcoin in Germany. From Germany, you can use the internet to access and utilize any of the cryptocurrency exchanges available worldwide to buy Bitcoin. There are, however, also online trading platforms available whose business headquarters are located in Germany. Another option is buying Bitcoin directly at certain ATMs that are operated in Germany if you already have a wallet for storing your bitcoins. And finally, you can also, of course, buy Bitcoin with the BISON app. The BISON app is “Made in Germany” and “powered by” Boerse Stuttgart. The BISON app is very easy to use, whereas many cryptocurrency exchanges are considered complicated and not very beginner-friendly.
What Must One Consider When Buying Bitcoin?
If you want to buy Bitcoin, you should make sure that you have precise information about the platform through which you want to make your purchase. You should obtain information regarding where the exchange is located or who the operator is. After all, you’ll be sending some very private data (name, date of birth, address, etc.) to the Bitcoin exchange before making a purchase. In addition, you’ll be trusting the exchange with your funds. For a successful Bitcoin purchase, it is also crucial how high the fees are when purchasing Bitcoin. The cryptocurrency exchanges themselves charge fees of quite varied amounts – from about 0.5 to a maximum of 2%. If you want to think about all of this as little as possible, the BISON app provides you with the possibility to buy and sell Bitcoin in an entirely uncomplicated and simple manner.
What Are the Costs of Buying Bitcoin?
When buying Bitcoin, there exist fees that are charged and withheld by cryptocurrency exchanges. These fees vary and are given as a percentage of the purchase amount. As a rule, when buying Bitcoin, cryptocurrency exchanges charge fees of 0.5 to a maximum of 2%. In contrast, with the BISON app, there are no fees. With the BISON app, there are no fees for transactions, deposits and withdrawals, and the safekeeping of cryptocurrencies. BISON always shows the buying and selling price at which you can buy or sell cryptocurrencies. BISON earns its money through the spread. The spread is the difference between the buying and selling price. This difference is subject to fluctuations, as it depends on market conditions and the volume of a transaction. This difference is usually around 0.75% for BISON.
Where Can One Buy Bitcoin at a Low Price?
The question of where you can buy Bitcoin at low rates cannot be answered conclusively. First of all, the price of Bitcoin is roughly the same across all online exchanges. Therefore, it is unlikely that someone will sell their Bitcoin at a price significantly lower than current market prices. The situation is somewhat more differentiated when it comes to fees for brokering trading partners with Bitcoin. First of all: All cryptocurrency exchanges and trading platforms must somehow finance themselves. For this purpose, fees for transactions with Bitcoin are charged in varying amounts. So, the cheapest provider is the one with the lowest agency fees. There are no additional trading fees with BISON, only the 0.75% spread applies. Customary trading fees for the purchase of Bitcoin range from 0.5 to 2%
Can Half a Bitcoin Be Bought?
It is always possible to buy half a bitcoin. A bitcoin can be divided into any number of pieces. Currently, it is possible to transfer values starting from 0.00000001 bitcoins. In the crypto-community, this minimum value is called: “1 Satoshi”. This name serves as a reference to the legendary and, still today, unknown inventor of Bitcoin, Satoshi Nakamoto. One Satoshi is equivalent to one-hundred-millionth of a bitcoin. Converted into EUR, a Satoshi is worth about 0.000085 EUR, for example in February 2020, at a rate of 1 BTC = 8,500 EUR. It is therefore possible to represent any value in EUR, in Bitcoin. Thus, when buying Bitcoin, one can assume to be able to pay any EUR amount, even the smallest amount, with Bitcoin.
Is Special Software or a Certain PC Program Needed in Order to Buy Bitcoin?
In general, you do not need any special software or program to buy Bitcoin. The cryptocurrency exchanges through which Bitcoin and other cryptocurrencies are traded can all be operated with a standard web browser. Thus, you do not need to install a special program on your PC to buy Bitcoin.
Can Bitcoin Be Bought with a Smartphone?
It is possible to buy Bitcoin with any modern smartphone. To buy Bitcoin with your smartphone, you need to install an appropriate app. All major cryptocurrency exchanges provide corresponding apps, most of which are free. A very easy-to-use and reliable app for buying Bitcoin is the BISON app. The BISON app is also free of charge. After downloading it, you can trade with the BISON app immediately: In its demo mode, you’ll have the option to try out all the functions of Bitcoin trading. If you then want to buy Bitcoin with the BISON app, you can switch to real-money mode. To do so, you must first verify yourself with a video identification procedure. Then you can deposit money from your current account, which will be available in the BISON app shortly afterward to buy Bitcoin.
Can Bitcoin Be Bought from an ATM?
Can Bitcoin Be Bought via Paypal or with an Instant Bank Transfer?
It is not possible to pay directly with PayPal or with an instant bank transfer to buy Bitcoin. However, on some Bitcoin trading platforms, it is possible to transfer real money via PayPal to pay for Bitcoin purchased on the respective platform. With the BISON app, it is possible to pay in EUR via bank transfer from your own giro account (SEPA).
Can Purchased Bitcoin Be Resold at Any Time?
In practice, you can sell Bitcoin that you have purchased to someone else at any time. At the moment, this happens thousands of times, every day. However, the likelihood of selling is not 100% guaranteed. Because unlike with EUR, where the state guarantees both a purchase and a sale, when selling Bitcoin, you need someone who is responsive to the trade, i.e. who buys Bitcoin at an agreed price. This trade takes place on cryptocurrency exchanges or in the BISON app.
The difference between exchanges and the BISON app lies in the person behind the buyer. Exchanges are made up of private individuals who trade among themselves with the help of the trading software. In the BISON app, EUWAX AG, a company within the Boerse Stuttgart, always acts as a buyer (and as a seller). One simply buys and sells at the displayed price. In contrast to conventional securities, you can really buy and sell Bitcoin at any time of day. Bitcoin can be traded 24 hours a day, 365 days a year. There are no fixed trading hours for Bitcoin and the other cryptocurrencies.
A further advantage that Bitcoin has over normal money is that you can send Bitcoin that you’ve bought to any corner of the world within minutes. The cost of sending purchased Bitcoin is minimal. One condition for the sending of purchased Bitcoin is, however, that you can send Bitcoin only to a Bitcoin address, i.e. to a digital Bitcoin account. A postal address or telephone number is not sufficient for this. A Bitcoin account, a so-called wallet, can in turn be set up all over the Internet. Costs: Usually, none. With the BISON app, you don’t have to worry about complicated wallet rules and their creation. BISON takes care of the reliable fiduciary safekeeping of cryptocurrencies and has, for this purpose, implemented a multi-level security concept.
How Do I Transfer Bitcoin That I Have Purchased?
Bitcoin that you have purchased can be transferred at any time, and easily, by sending it to another Bitcoin address. To make a Bitcoin transfer, you must meet the following requirements, which are derived from Bitcoin technology:
- You need, of course, a device – smartphone or PC – with an Internet connection to access a trading platform.
- You need access (login data) to your personal wallet on the trading platform where your purchased bitcoins are “situated”. For security reasons, logins to cryptocurrency exchanges often require a two-factor authentication (Two Factor Auth – 2FA).
- You need to know the private key of your own Bitcoin. The private key is a series of numbers and letters that are generated with cryptographic mathematics the moment Bitcoin is purchased and transferred. The “private key” is unique and cannot be recovered if lost. If the private key is lost, purchased Bitcoins are irretrievably lost because they cannot be transferred.
- To transfer purchased Bitcoins, you need the address of the wallet to which you transfer the purchased Bitcoins.
How Do I Keep Bitcoin That I Have Bought?
Purchased Bitcoin can be stored using various methods. Common to all these methods of storage is the fact that Bitcoin is always stored digitally. You cannot “print out” purchased Bitcoin or store it in any other way than as a physical object. The following is an overview of the most important methods for storing purchased Bitcoin.
Store Purchased Bitcoin in a Wallet on Online Cryptocurrency Exchanges.
If you have created an account on crypto trading platforms and buy Bitcoin there, a Bitcoin account with a Bitcoin address is automatically created, and you can store Bitcoin there.
Security factor: Satisfactory.
Important: Keep your Private Key (encryption key for your own BTC) safe!
Store Purchased Bitcoin with the BISON App.
f you buy Bitcoin with the BISON app, you do not need to worry about storage. In the BISON app, the user has access to almost all the functions of a Bitcoin wallet (deposit Bitcoin, transfer Bitcoin). However, bitcoins in the BISON app are stored through blocknox GmbH, a subsidiary of the Boerse Stuttgart, which also operates the BISON app. They store bitcoins and also keep corresponding private keys, etc. As a BISON app user, you do not have to worry about the safekeeping of purchased Bitcoin.
Store Purchased Bitcoin with Your Own Wallet.
With the appropriate software, it is relatively easy to operate a Wallet on your own computer. This means that Bitcoin purchased on cryptocurrency exchanges or in the BISON app can be stored if they have been transferred from there to your own wallet. However, one should be aware that in the event of computer damage resulting in loss of data or loss of the entire device, the bitcoins stored there will be lost.
Hot Storage or Cold Storage to Store Purchased Bitcoin.
You can store purchased Bitcoin on cryptocurrency exchanges or on your own computer that is connected to the Internet. This is known as “hot storage”. In contrast, Bitcoin’s “cold storage” takes place on electronic devices that are not constantly connected to the Internet. These can be hard disks or USB sticks. Here, too, users must be sure that they do not lose their devices or forget their access data. In both cases, purchased bitcoins may end up lost because you no longer have access to them.
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