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, Chainlink, Uniswap 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. However, with BISON, a purchase option “Made in Germany” is now available, which is “powered by” Boerse Stuttgart Group. But how do these offers differ when buying Bitcoin? What do investors have to consider when buying Bitcoin?
BISON takes away the complicated processes
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 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 withBISON, 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, BCH, ETH, LTC, LINK, UNI 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, Solaris. 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.
However, it is not absolutely necessary to download the app: You can also simply register for BISON online and buy and sell cryptocurrencies directly on your computer.
What Exactly Does One Buy When Buying Bitcoin?
Can Bitcoin Be Bought in Germany?
Where in Germany Can Bitcoin Be Bought?
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 BISON. BISON is “Made in Germany” and “powered by” Boerse Stuttgart Group. 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?
What Are the Costs of Buying Bitcoin?
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 spread applies. This amount may vary, given that it depends on market conditions and the volume of a transaction.
Can Half a Bitcoin Be Bought?
Is Special Software or a Certain PC Program Needed in Order to Buy Bitcoin?
Can Bitcoin Be Bought with a Smartphone?
Can Bitcoin Be Bought from an ATM?
There are about 60 ATMs in Germany with which you can buy Bitcoin. There, you pay for the desired amount of bitcoins with an EC or credit card, as is customary at ATMs. Many ATMs where you can buy Bitcoin also accept cash to pay for the Bitcoin. A prerequisite for purchasing Bitcoin from an ATM is the existence of a Bitcoin Wallet address. This address must be entered during the purchase process because that is where the purchased Bitcoin is sent. However, there exist fees when purchasing Bitcoin from ATMs. These fees can be up to 5% of the purchase amount, which is of course much more than purchasing, for example, via BISON.
Can Bitcoin Be Bought via Paypal or with an Instant Bank Transfer?
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 account. The difference between exchanges and BISON 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. For BISON, the EUWAX AG, a company within Boerse Stuttgart Group, always acts as a buyer (and as a seller). (…) With the BISON, 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?
- 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.
If you buy Bitcoin with BISON, you do not need to worry about storage. In the BISON account, the user has access to almost all the functions of a Bitcoin wallet (deposit Bitcoin, transfer Bitcoin). However, bitcoins in the BISON account are stored through Boerse Stuttgart Digital Custody, a subsidiary of the Boerse Stuttgart Group, which also operates BISON They store bitcoins and also keep corresponding private keys, etc. As a BISON 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 account can be stored if they have been transferred from there to your own wallet.
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.
