Buy crypto currencies - Everything you need to know!

The Bitcoin price is rising! And if one follows the latest forecasts of analysts like crypto-experts, who deal with the price development in the coming years, the all-time high from 2017, when the Bitcoin price was over 19,500 US dollars, could soon be stopped or even skipped by far. This is also the reason why more and more investors such as savers and speculators are getting involved with Bitcoin, the mother of all crypto currencies. But besides Bitcoin there are other crypto-currencies which are also very promising. But what to look out for if you have decided to buy crypto-currencies?

Bitcoin and dollar bill lying side by side on a table

How can I buy crypto currencies? 4 ways

If one deals with the topic of how to buy crypto currencies, the following four possibilities come to the fore:

1. buy crypto currencies directly on a stock exchange

Coins of a crypto currency can be purchased via a crypto exchange. In this case the desired Euro amount is "exchanged" for digital coins. It must be clarified in advance whether the digital coins will then be stored on the wallet (digital wallet) provided by the exchange or transferred to an external wallet (hot or cold wallet). In addition, it must be ascertained in advance whether the desired crypto-currency will be offered for sale at all on the exchange. If it is mainly Bitcoin or Ether, you will probably find these crypto currencies on every crypto exchange - but with exotic crypto currencies, depending on the offer, it can lead to the fact that the favored crypto currency cannot be found on the crypto exchange at all.

Bitcoin Price Chart

2. CFD Crypto Trading

In this case you do not have any coins of a crypto currency. When trading CFDs, one ultimately only speculates on the price development. This means that the CFD trader opens a position in advance, with which he determines whether the price of the chosen crypto currency rises or falls. This is a rather risky way of increasing assets. This is mainly because the crypto market is very volatile.

3. buy crypto currencies indirectly through stocks or funds

In this case, one invests in funds or acquires shares that are related to crypto currencies or the technology behind them, the block chain. This is not a direct investment, but rising prices of crypto currencies or innovations in the field of block chain technology can have an impact on public limited companies that work with or are connected to crypto currencies. Ideal for those who believe in the crypto-currencies or the technology behind them, but do not want to take the high risk associated with direct investment.

4. buy cryptos from private persons

Through peer to peer platforms, crypto-currencies can be purchased from private individuals. These individuals make their coins available. The price is agreed between the two parties.

On which exchanges can you buy crypto currencies?

If you want to buy crypto-currencies, it is necessary to open an account at an exchange. You can buy crypto currencies via subsequent Crypto Exchanges:

eToro

eToro logo

eToro is probably one of the most famous crypto exchanges in the German speaking world. Especially attractive is the choice of crypto currencies:

  • binance coin
  • Bitcoin   
  • bitcoin cash
  • Cardano  
  • Dash  
  • EOS        
  • Ether  
  • Ether Classic
  • IOTA 
  • Litecoin  
  • NEO 
  • Ripple
  • Stellar
  • Tezos 
  • TRON    
  • ZCash

Plus500 

Plus500 CFD trading and more

Plus500 is a recommended eToro alternative. There is also a colourful variety of crypto currencies:

  • Bitcoin  
  • bitcoin cash
  • Cardano
  • EOS
  • Ether
  • IOTA
  • Litecoin
  • Monero 
  • NEO
  • Ripple    
  • Stellar
  • Tron

Octopuses

Kraken Stock Exchange Website Logo

You can also buy crypto currencies through Kraken. What's the special feature? Almost 50 crypto currencies are available here:

  • Algorandum
  • Augur
  • Augur v2
  • Balancer
  • Basic Attention Token
  • Bitcoin
  • bitcoin cash
  • Cardano
  • Chainlink
  • Compound
  • Cosmos
  • Curve DAO token
  • Dai
  • DASH
  • Dogecoin
  • EOS
  • Ether
  • Ether Classic
  • Filecoin
  • Gnosis
  • ICON
  • Kava
  • Kusama
  • cyber network
  • Lisk
  • Litecoin
  • Melon
  • Monero
  • Nano  
  • OmiseGO
  • Orchid
  • PAX Gold
  • Polkadot
  • Qtum
  • Ripple
  • Siacoin
  • Stellar
  • Storj
  • Synthetix
  • Tether
  • Tezos
  • TRON
  • Uniswap
  • Waves
  • USD Coin
  • Yearn Finance
  • ZCash

Binance

Binance Website Logo

Binance is one of the other top exchanges. More than 100 crypto currencies are available on this platform. This is also the reason why Binance is one of the largest exchanges or platforms in the world.

This is how the purchase of crypto currencies on an online exchange works!

Buying crypto currencies is not a great challenge, especially with eToro. The platform has been designed in such a way that even beginners who have never bought coins of a crypto currency before are not confronted with unsolvable questions.

Registration 

The crypto exchange eToro may be one of the most well known providers in the market. However, it should be noted that it is not a classic crypto exchange but also offers brokerage services. Furthermore eToro scores as a social trading platform. This means that besides buying crypto currencies it is possible to trade with the crypto currencies.

In the course of registration, only the name, e-mail address and password are required. This is also the reason why the whole registration process takes only a few moments.

eToro login or registration

Tip: If you have a Google or Facebook account, you can take over the login data - in this case you don't need to fill in the personal data.

Create eToro account

Deposit

The first step is to top up your eToro account. Just click on the "Deposit Money" button and then you can choose one of the following deposit methods:

eToro money deposit button
eToro account deposit money
  • Bank transfer
  • GiroPay
  • Credit card
  • Neteller
  • PayPal
  • Skrill

Depending on the chosen method, the transfer takes a few moments to two or three working days. Once the money is available, everything can be initiated via the platform to buy crypto currencies.

Buy crypto currency

The user interface is quite simple: Either you search for the desired crypto currency on the left side of the menu or click on "Kryptos" in the upper area to get an overview of the available digital currencies. Then click on the desired crypto currency, for example Bitcoin. Now follows the decision whether you want to buy coins or you decide to trade CFDs.

eToro Markets Filter Options
eToro markets various crypto currencies

It should be noted that you don't have to buy whole coins - for example, if you only want Bitcoin worth 2,500 euros, you get the coin proportionally.

Buy Bitcoin on eToro

Advantages and disadvantages of buying crypto currencies

Given the fact that the low or zero interest rate policy of the European Central Bank (ECB for short) will not come to an end in the foreseeable future, so that savings books, overnight or fixed-term deposits have become absolutely useless products for asset growth, it is no surprise that more and more investors and savers are interested in alternatives. Because if one takes inflation into account and sets this value against the interest rates currently available, it becomes clear that there is a real loss in monetary value if the savings are stored in a savings book. Crypto-currencies are decentralized - that means that there is no bank or government in the background that can influence the price. Furthermore, there are no or hardly any fees when using crypto currencies. The volatility is another reason why even small amounts of money can be earned here - and in a very short time - for large amounts.

Of course, volatility should not only be seen as an advantage, as daily fluctuations can be both a curse and a blessing. High losses are not uncommon when working with Bitcoin and Co. Furthermore, there are only very vague forecasts - in other words, even if analysts and experts agree that the Bitcoin price will rise by a certain percentage by a certain year, there is no guarantee. It can always go in the other direction.

When should you buy crypto currency?

If you are no longer in the mood for the low interest rate policy and consider yourself to be both opportunity-oriented and risk-oriented, you should definitely familiarize yourself with the crypto-currencies project. Because the past months and years have shown that it can be quite lucrative to invest in the crypto market. However, it should be mentioned at this point that the past price developments are of course no guarantee that the prices of the individual crypto currencies will continue to rise in the near future. However, it must be emphasized at this point that the chances are high that the prices of the crypto currencies will increase.

eToro Bitcoin price development for purchase wait and see

Who is worth buying crypto currency for?

All those who have freely available money can buy crypto currencies. Why should one invest only freely available capital? Losses can never be ruled out. Therefore it is important not to invest money in Bitcoin and Co. that is needed for the next month's rent, credit or leasing installments.

Which crypto currency should I buy in 2020?

The well-known crypto currencies Bitcoin and Ether are particularly interesting. However, there are also the one or other unknown crypto-currencies, which - according to one or the other prognosis - could cause a lot of attention. For more information about which crypto currencies should be bought in 2020, please refer to the article "Investing Crypto Currency 2020: Which Cryptos Should You Invest in?

What happens after the purchase?

If you have bought coins of a crypto currency, the first question is where to keep the coins and at what point in time they will be sold again. That means it is important to have a plan in advance, but it should not be thrown overboard after the first wind. Especially if you invest for the long term, it is important to have a lot of patience (and strong nerves).

Keep your cryptos in a wallet

After coins of a certain crypto currency are purchased, they are stored in the digital wallet. There are different possibilities here, which should be examined in advance. More information can be found in the article "Bitcoin Wallet Test & Comparison 2020 - The Best Crypto Wallets".

Keep or sell?

If you are convinced that the price is going to rise, it is important to answer the question in advance at what price you want to sell. If you are pursuing a long-term investment horizon, for example, if you want to sell Bitcoin only at a price of 25,000 US dollars, you need particularly strong nerves, as it can always go up as well as down.

Of course, short-term speculations are also possible. This means that you buy at 10,000 US dollars and sell at 11,000 US dollars. It is only important to set a goal in advance so as not to be "haphazard".

Conclusion: How to buy crypto currencies quickly and easily!

Via a crypto exchange you can easily invest in crypto currencies or buy coins of digital currencies. eToro may be of particular interest here, as it is a very well-known provider which not only provides many crypto currencies, but has also created a fair fee model. This is also a place where beginners who have never had contact with crypto currencies before will feel comfortable.

FAQ

Why would I buy crypto currency?

The forecasts are extremely promising. Anyone who has freely available capital should therefore invest in the cryptomarket - especially in view of the past years it is clear that Bitcoin and Co. can always provide for (very profitable) surprises.

Which exchange is the safest and best for crypto beginners?

Following the various test and experience reports, reference can be made to eToro at this point.

Which crypto currency should I buy?

According to the forecasts, Bitcoin has the greatest potential. Ultimately, only Bitcoin has so far been able to get into the 20,000 US Dollar range.

Can I also buy small quantities?

Yes. Depending on the sum, there is a pro rata calculation. Those who want to invest about 1,000 euros in the Bitcoin will receive a proportionate coin worth 1,000 euros.