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Bitcoins: how to invest securely in the cryptocurrency
The demand for cryptocurrencies is high, and many new investors want to benefit from the boom. But how do I invest in Bitcoin and which crypto exchange is the right one? t-online clarifies the most important questions.
Cryptocurrencies like Bitcoin have long ceased to be just a tip for technology enthusiasts - more and more professional investors are also discovering the digital currency for themselves. Now even the world's largest is planning Asset Manager Blackrock To offer funds with Bitcoin investment in the USA in 2021.
More and more products are pouring into the markets around the world that can be used to invest in cryptocurrencies such as Bitcoin. But even fraudsters are not letting the boom pass by.
t-online explains how you can invest in cryptocurrencies and how you can use a reputable stock market differentiate from a fraud.
Should I invest in bitcoins or not?
Each investor must make the decision themselves. The fact is: The rate for Bitcoins is in the Corona crisis increased sharply - Bitcoin increased by 308 percent within a year. What is special about this boom is that many professional investors are now investing in Bitcoin and expressing their trust in the currency.
But it is also a fact: Investors can lose a lot of money with Bitcoin, because the price of the cryptocurrency fluctuates massively. "The volatility is really intense and can get on your nerves," says Ben Bilski, head of the Hamburg fintech company "NAGA". In addition to stocks and funds, cryptocurrencies can also be bought on the trading platform.
Where can I invest in bitcoins?
If you want to invest in Bitcoins, you can either use decentralized orcentral crypto exchanges walk. Decentralized exchanges store the bitcoins on the devices and not on a central server. They are therefore less prone to Hacker attacks, but also more difficult to use for newcomers.
Most customers, however, invest in central exchanges. Here you have with one Online account everywhere access to their bitcoins, which are in turn managed by the exchanges.
There are also black sheep on the stock exchanges. Here it makes sense to stick with the big names. These are aboutOctopuses, Coinbase, eToro, Binance and the Stuttgart Stock Exchange with the appbison. Before investing, you should check a few checkpoints to know which wallet is the right one for you:
- Where is the stock exchange based?
- Is the stock exchange regulated by a government agency?
- Does the stock exchange have enough volume and liquidity?
- Does the company have a common imprint?
The importance of the stock exchange location
Only a few of the major stock exchanges have their headquarters in Germany. Of the examples mentioned above, this is only the Stuttgart Stock Exchange. Kraken and Coinbase are American companies.
"Coinbase and Kraken have IBAN accounts that are maintained in Europe and there is one Deposit insurance. US companies that send something to the US would be more problematic, "explains" NAGA "boss Bilski. He advises against exchanges based in Asia or on the Caribbean islands. He sees that too Consumer protection so. "When it comes to enforcing your rights, it is easier if the company is based in your own country," says Jennifer Kaiser from the Rhineland-Palatinate consumer center.
Binance and eToro have their headquarters at least in Europe: on Cyprus and Malta. According to Bitcoin expert Timo Emden from Emden Research, however, the European islands are "spots that are not subject to a European supervisory authority". In fact, Binance is not subject to any regulation, E-Toro is made by the distant British FCA controlled.
Regulation of the stock exchange is important
In general, however, other European countries are not an exclusion criterion, emphasizes Kaiser. Regulation is important: "If a company has a BaFin license, it is also not a problem if it is based in Spain."
The American stock exchanges Octopuses and Coinbase are by the American authorities FinCen regulated. Only the trading venue of the Stuttgart Stock Exchange is under the supervision ofBaFin. The American provider Coinbase claims that it is at least trying to obtain a BaFin license.
Trading volume and liquidity play a role
In addition to the license, this is also important Trading volume. If there are hardly any users on the trading platform, investors also have fewer buyers and sellers with whom they can trade. The higher the volume, the easier it is for users to buy and sell.
Fintech founder Bilski therefore rates Binance as a trustworthy exchange despite the lack of regulation. "Binance has 'the power of the platform', they are so big and liquid that you can trust the stock market," he says.
Consider the imprint and service of a crypto exchange
Consumer advocate Kaiser advises checking the online exchanges for an imprint. "For websites that do not have aimprintalarm bells should ring. "
Bitcoin expert Emden also points out the service that investors should pay attention to: Is it offered in my language? Are emails answered? You should check these aspects before registering.
Good to know: Atcentral exchanges Bitcoins are not stored on your own device, but managed by the company. How this protects the coins of the cryptocurrencies differs from the provider. Coinbase manages all currency units in oneOffline storageso that they cannot be stolen by hackers. Bison from the Stuttgart Stock Exchange has the coins held by a trustee.
How do I buy bitcoins?
Who, after weighing the possible Risks If you have decided to invest in Bitcoins, you only have to choose an exchange. Then the way to your own bitcoins is not far. With these three steps you can easily get your bitcoins.
1. Account opening: First of all, a must have account be opened at the stock exchange of choice. With all of them, except for Binance, the new customer has to identify himself via video. A passport, a driver's license or the is sufficient for this Identity card out.
2. Transfer: You then have to transfer the money you want to invest to the account of the Stock exchange provider transfer. Some exchanges also offer direct debit mandates, PayPal or credit cards - but these options are sometimes high fees connected. How long the transfer takes depends on the platform. The Stuttgart Stock Exchange states, for example, that the money will be in the account after one working day.
3rd selection: Then it is almost there: now the user only has to indicate the amount of euros he would like to buy Bitcoin - or another crypto currency. The current course is displayed by the exchanges.
Investors do not have to buy a whole bitcoin - instead, it is calculated down exactly how many parts of a bitcoin a user receives for the desired amount. With the Bison app, the Stuttgart Stock Exchange then gives you the opportunity to make your own investment at any time mobile to check. Coinbase, Kraken, Binance and eToro also offer mobile trading with their apps.
You should bear this in mind when registering
For the Registration Most providers use one Two factor authentication. Similar to a banking app, users have to verify themselves with their mobile phone number when logging in, for example.
After entering the password, the provider sends an SMS to the saved number with a code. Your own investment is safe even if the password is hacked.
How do I sell bitcoins?
The same way you bought the coins. With the exchanges, you must have the Sell order enter and the bitcoins will be transferred back to the user account in euros. You can then see the profit on your account pay off to let.
What does trading Bitcoins cost?
Trading is not free, however: As with any other exchange, there are also crypto exchanges fees which can differ greatly depending on the provider.
Bison charges between 0.2 and 0.35 percent for an order, while Coinbase charges 1.49 percent for an order. It is therefore worthwhile for investors who Fee models Carefully compare the various exchanges.
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