How to buy Bitcoin in Germany

Christina Comben
Updated

Germany was one of the first countries to regulate cryptocurrencies and recognise Bitcoin as a financial instrument (unit of account). So, if you buy Bitcoin in Germany, you can use it for payments just like you would with gold or EUR. Bitcoin has been considered “private money” in Germany since 2013.

Germany is a pioneer in cryptocurrency and blockchain adoption. The country doesn’t treat Bitcoin as an equivalent to foreign fiat currencies, but it doesn’t see digital coins as a threat to the national currency either. So, your funds are safe in this country, as there are no plans for heavy-handed laws in the cryptocurrency market.

So, how do you buy Bitcoin in Germany?

Top cryptocurrency exchanges to buy Bitcoin in Germany

When looking to buy Bitcoin in Germany, there are many options in place, as most global cryptocurrency exchanges are available to German users. Moreover, as this country uses the SEPA system, buying Bitcoin with bank wire transfers is more convenient than with other payment systems.

Besides wire transfers, other ways to pay for Bitcoin in Germany are debit and credit cards, PayPal, and online bank transfers. The most popular cryptocurrency exchanges in Germany are Coinmama, Bitpanda, Luno, and Coinbase.

Coinmama

Coinmama is a cryptocurrency exchange that works in almost all countries where buying Bitcoin is legal. You can use this platform to buy Bitcoin in Germany with your debit or credit card (Visa or MasterCard) as well as through SEPA transfers.

The fee for purchasing cryptocurrencies is 6%, which is higher than the market average. You receive your digital coins immediately after the exchange confirms both your payment and wallet address. Not only is the platform reliable, but it also has one of the highest limits for buying Bitcoin using your credit card.

Users who want to buy or trade cryptocurrencies here need to share some personal information to verify their identity online. The more information you add, the higher your limits for making purchases. Coinmama promises the highest security and privacy standards.

Bitpanda

Bitpanda is Europe’s most used platform for buying and trading cryptocurrencies, gold, and other assets. The exchange is based in Austria, has low fees, and allows high payment limits. Another positive about Bitpanda is its flexibility with payment methods.

You can buy Bitcoin here using online bank transfers, debit and credit cards, and a wide range of other methods like Skrill, NETELLER, SOFORT-Transfer, Amazon, or GIROPAY.

The platform supports a wide range of cryptocurrencies, including Bitcoin Cash, Litecoin, Dash, Ethereum, Ripple, ZCash, USD Coin, Cardano, and Tezos. Besides euros, Bitpanda accepts payments in Swiss francs, British pounds, and USD.

Luno

Luno is a cryptocurrency exchange based in Singapore that has recently expanded to cover most European countries. It allows users to buy Bitcoin and Ethereum using credit cards, SEPA transfers, iDEAL, and SOFORT-Transfer.

Luno has a user-friendly interface that simplifies cryptocurrency transactions, especially for beginners. It’s a trusted exchange in Germany thanks to its security features and low withdrawal fees.

The company also provides Luno wallets for Bitcoin and Ethereum, but this service may be less secure than other storage options.

Coinbase

Coinbase is another newbie-friendly cryptocurrency exchange available in 103 countries. Trading fees are higher than many other platforms, but Coinbase is known for its excellent security features.

The platform provides vault security, as users can store their funds in a vault with time-delayed withdrawals. Coinbase also enables users to schedule buys on a daily, weekly, or monthly basis.

The downside? The exchange has been accused of putting investor interests before clients.

Buying Bitcoin with cash

In Germany, you can also purchase Bitcoin with cash from ATMs. The country currently has 25 machines in Berlin, Hamburg, Stuttgart, Munich, and Würzburg. Buying Bitcoin from ATMs isn’t the best way due to the very high fees. However, it may be an option for cryptocurrency buyers who want to maintain their anonymity.

A cryptocurrency tax haven

Germany has a favourable tax policy for cryptocurrency owners and investors. The German Finance Ministry has a relaxed approach to cryptocurrency capital gains.

Owners who hold digital coins for more than a year are exempt from taxation. It’s a rule that encourages long-term investment in cryptocurrencies – a sign that German authorities consider Bitcoin and other digital assets a long-term investment.

Moreover, some purchases with Bitcoin are exempt from VAT when the value of private sales stays under €600.

Final thoughts

Germany encourages cryptocurrency investments through clear laws and tax exemptions. You can buy Bitcoin in Germany using a wide range of payment methods, from very convenient SEPA transfers to PayPal. Almost all popular exchanges are available in Germany, but you can also buy Bitcoin with cash from Bitcoin ATMs.

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