Bitcoin has made a name for itself globally, thus attracting millions of investors. Its popularity in Germany continues to grow and is slowly becoming a lucrative asset. However, while you can earn money through Bitcoin investments, most individuals do not know how to begin this venture.
For this reason, we have prepared this ultimate guide to recommend the best three brokers for buying Bitcoin. In the end, you will understand why using brokers for such investments is a more viable option than using a cryptocurrency exchange.
Top 3 Bitcoin Brokers in Germany
There are plenty of Bitcoin brokers in Germany, and investors must take it upon themselves to choose the best to buy Bitcoin. However, the research procedure can be daunting, especially if you have no idea what to look for in a broker.
Fortunately, we recommend the best three below that have undergone multiple tests and comparisons by expert researchers and traders. Hopefully, you will be able to choose one that meets your investment needs and kickstart your Bitcoin investment venture on a good note.
Also, if you speak German, we highly recommend you to ready the following step-by-step guide on how to buy bitcoin with different brokers and will help you to compare the different brokers to decide on the best Bitcoin Broker in Germany, “du die einzelnen Anbieter besser miteinander vergleichen und dich für den besten Bitcoin Broker Deutschland entscheiden”- Cryptomonday.de
eToro has made a name for itself in the German market by offering some of the best investment services. For instance, the broker is user-friendly, making it a go-to platform for newbies. Furthermore, it hosts a unique social trading platform that connects traders to share ideas for better strategy development. On top of that, this broker has a $50 minimum deposit requirement and charges low trading fees for Bitcoin investment. Also, investors can diversify their portfolios using additional cryptocurrencies or other assets available.
Simply put, buying Bitcoin with eToro maximizes your profitability. You can test the broker using its demo account loaded with $100,000 virtual funds to prove this review. Regarding research and skills development, eToro has plenty of resources to help you out.
Although Pepperstone doesn’t allow you to purchase Bitcoin and take full ownership, it is among the best German brokers for trading Bitcoin. Through CFD trading, you get to speculate on Bitcoin’s price movements and earn profits or losses with the price difference. Moreover, there are additional popular cryptocurrencies offered by Pepperstone. On top of that, its customer service is dedicated and committed to helping you get your trading ventures on the right track.
Like eToro, this broker has a social trading platform and charges low fees. There are also plenty of resources to help you become independent. All you need is a minimum deposit of $200 to get started.
Trading Bitcoin CFD with Plus500 requires a minimum deposit of $100. This German Bitcoin broker charges one of the lowest spreads, and there are no commissions. In addition, Plus500 has a modern design and user-friendly platform. Also, you get exposed to quality trading resources for maximum experience. Note that this broker is an excellent choice for active traders because it has an inactivity fee that kicks in after only three months of not logging into your trading account.
Difference Between Bitcoin Brokers and Cryptocurrency Exchanges
For users wondering about the difference between brokers and cryptocurrency exchanges, note that brokers acts as an intermediary between the crypto markets to facilitate trades. They set Bitcoin buying and selling prices based on market conditions, and traders get to pay commissions or spreads.
In contrast, a cryptocurrency exchange is simply an online platform connecting buyers and sellers to trade directly based on the market price. There are no third parties involved, and they are only focused on cryptocurrency investments, limiting users who want to try other securities. Like Brokers, crypto exchanges also charge trading fees.
Advantages of Buy Bitcoin Using Brokers?
As mentioned earlier, there are two reliable ways to buy and own Bitcoin in Germany, including using online brokers or cryptocurrency exchanges. However, it is highly recommended that you consider online brokerage firms since they give you access to diverse asset offerings such as stocks, forex, etc. With these securities, Bitcoin investors can diversify their portfolios, thus minimizing massive loss potential.
In addition, you can leverage your position with crypto brokers and increase your chances of earning huge profits. On top of that, online brokers regulated by the Federal Financial Supervisory Authority (BaFin) are safe, hence the best when making huge investments. Lastly, they are user-friendly, execute trades fast, and offer dedicated customer service to help you manage any challenges.
Disadvantages of Buying Bitcoin Using Brokers
Online brokers also have their pitfalls that are easily manageable with excellent plans. For starters, online brokers require you to verify your information as this is one of the standard procedures set by BaFin regulated brokers to keep online trading platforms safe. Furthermore, they charge higher fees compared to cryptocurrency exchanges.
Advantages of Buying Bitcoin Using Cryptocurrency Exchange
- User-friendly, thus recommended to newbies.
- By allowing traders to interact with each other, cryptocurrency exchanges reduce market manipulation, thus keeping traders away from fraudsters.
- They offer traders privacy and anonymity since they do not need to fill out KYC forms.
Disadvantages of Buying Bitcoin Using Crypto Exchanges
- No trading of fiat currencies for digital ones.
- Lack of liquidity makes it challenging for users to find buyers or sellers, especially when the trading volumes reduce.
Based on this guide, the best broker is the one meeting your requirements. These needs can be trading charges, reliability, asset offerings, user recommendations, platform performance, etc. In addition, consider a Bitcoin broker with extensive learning and research materials to guarantee a worthwhile experience. Most importantly, you need to safeguard your investment funds against scammers by finding a BaFin-regulated broker. With all these elements figured out, it will only be a matter of time before you become independent and successful.
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.