Instructions: Buy Bitcoin
Have you recently heard about Bitcoin , decided to invest some of your money and want to know what to look out for, where you can make the purchase and how it all works?
This guide from Blocktrainer.de will show you different ways to buy Bitcoin, give you important key aspects to consider and take you step-by-step through your first purchase process.
The most important facts in brief
- There are different ways to buy Bitcoin, which can vary significantly in terms of fees, complexity and functionality
- You need to find the right service for your requirements - Click here to go to our provider page
- Also remember to make a note of your purchases, as the tax office may have questions - a good tool for this is CoinTracking
Before the purchase
The first step to successfully buying Bitcoin is thorough preparation. You will already have mastered the first and most important step after reading this guide: Gathering information.
Even though a lot has happened in recent months and years in the further development of the user experience when buying Bitcoin and cryptocurrencies, there are still some hurdles that need to be taken into account. Especially if you are not very internet or tech-savvy, you may quickly reach a point where questions and problems arise.
The Bitcoin network, which was launched in 2009, has gained enormous trust and acceptance among the general public and institutional investors. Nevertheless, you should be aware that it is still a very young and highly volatile asset class.
After careful consideration, have you come to the conclusion that you are ready to take the step of "buying Bitcoin"? Then let us show you how to find the right service for you in the next step.
Where can I buy?
While there was no platform at all on which Bitcoin could be traded until March 2010, there are now hundreds. The options for exchanging euros, US dollars or other fiat currencies for Bitcoin are now extremely diverse. In addition to buying directly from private individuals via sites such as localbitcoins.com, buying at Bitcoin ATMs or via modern Bitcoin brokers, but of course also the possibility of trading on centralized and even decentralized crypto exchanges, there is actually hardly anything left to be desired, so that every type of buyer will find a suitable way.
What are the differences?
There are many differences between the various purchase options. First and foremost, of course, are the varying direct fees and indirect fees based on the deviation from the Bitcoin exchange rate. The reputation and therefore the trustworthiness and security of the corresponding service is also an elementary point. Another factor is the complexity and clarity of the respective platform as well as the range of functions. While some portals specialize in the simple purchase and sale of Bitcoin, others advertise features such as "lending" or "margin trading", which (rightly) act as a deterrent for newcomers and entail high risks. Meanwhile, there are also major differences in the registration procedures for a service and the associated verification procedures. Another important point with exchanges is to ensure that the Bitcoin can also be transferred from the exchange to your own wallet. Even if self-custody of assets is often not the top priority for newcomers at the beginning, it is essential to keep this option open for later. Otherwise, if you want to take this step in the future, you would have to sell the Bitcoin, send the money to another provider, buy the Bitcoin back and only then send it to your own wallet. In addition to fees, taxes may also be incurred. Click here for our wallet overview.
Security
Even though a lot has happened in recent months with regard to regulations etc., the Bitcoin market should still be treated with caution to a certain extent, as many fraudsters are still up to mischief. It is therefore important that you trade with established providers, preferably based in Germany or the DACH region.
If we exclude direct purchases from private individuals and from vending machines in this guide, there are basically two different purchase options for beginners: stacking services and exchanges. As a rule of thumb:
- Stacking services are easier and less complicated to buy from, but slightly more expensive than exchanges
- Exchanges are usually cheaper to buy, but more complex and often more confusing due to the wider range of functions
Choose the right provider
At this point, you should already have a rough overview of how to choose the right provider for you. Below you will find the providers that Blocktrainer.de can recommend:
Blocktrainer.de recommends Coinfinity as a stacking service. The service provider is a Bitcoin veteran based in Austria.
Another good alternative is the Austrian provider 21bitcoin.
Blocktrainer.de can recommend the Bison app from the Stuttgart Stock Exchange as an exchange. Bison impresses with its intuitive user interface and the advantage of being able to transfer Bitcoin to your own wallet free of charge.
What do I have to consider after the purchase?
Congratulations! If you are back at this point, you have most likely made your first purchase and are now a proud Bitcoin owner. Welcome to the Bitcoin community!
Finally, you should take the following advice to heart: keep a record of your purchases in some way! On the one hand, it is of course great to keep an eye on your own portfolio and potential profit growth, but on the other hand, Bitcoin and cryptocurrencies are not a legal vacuum and taxes may be incurred and the tax office may require proof of purchase transactions from you.
Blocktrainer.de therefore recommends the free CoinTracking tool - a very simple, clear yet very comprehensive tool that you can use to manage your purchases, track your portfolio and even create tax reports.
And now: Have fun and success with your investment. If you want to stay up to date and find out more about Bitcoin & Co., sign up to our free Blocktrainer forum and become part of our great community.
