Buy Bitcoin in under 7 minutes including instructions, providers & tips

Table of Contents

Bitcoin (BTC) is the most important& well-known crypto currency of all. Multiple investors agree that Bitcoin should now be part of every portfolio.

But how can you actually buy Bitcoin? In our companion, we show how you can buy Bitcoin from a secure provider using varicolored payment tactics resembling as PayPal, bank transfer or credit card and hand detailed instructions on how to buy it.

We also show what the difference between Bitcoin CFDs and real Bitcoins is-and which of the two variants is more suitable for buying and trading.

What is bitcoin

Bitcoin is a decentralized and independent digital arithmetic unit that, compared to conventional currencies, is based on transparency and cryptographic formulas .

Satoshi Nakamoto published a white paper in 2008 in which he introduced an electronic currency based on cryptographic evidence rather than trust in a central bank. A manipulation and devaluation of the currency by others is impossible here .  

The Bitcoin network was created on January 3rd, 2009. Nakamoto mined the first 50 Bitcoin, the so-called Genesis Block was added to the network and sealed. Bitcoin received its first real value by paying for two pizzas in May 2010 . These were sold for 10,000 BTC.

founder Satoshi Nakamoto
Coin BTC
begin 03/01/2009
Maximum care 21,000,000 BTC
Circulation supply 18,774,918 BTC
Market capitalization € 610,497,340,159.02
Current rank # 1
Current rate / coin 32,494.55

Buy bitcoin: important tips at a glance

Bitcoin logo

  • Establishing a trading strategy
  • Create a compatible wallet to store the coin
  • Register on a trading platform
  • Choose a secure payment option for the trading account and top up the account
  • Wait for the right time to buy Bitcoin

What is special about Bitcoin?

Bitcoin is the first and oldest cryptocurrency that ever existed. Despite a lot of competition, it is still by far the most important and valuable currency in the crypto market . The market capitalization and performance are so far unbeaten.

The entire crypto market is based on the Bitcoin idea and promises decentralization, transparency and independence from institutional companies and central banks.   Buy now for our test winner eToro & Bitcoin

67% of retail investor accounts lose money when trading CFDs from this provider.

Where buying bitcoin works best and safest

In order to buy Bitcoin safely, the choice of the provider is one of the most important aspects that should be considered before making a purchase. The best provider gives a brief overview here:

Our test winner: eToro

Etoro Logo Transparent

EToro has been one of the leading fintech companies for over 10 years . Millions of users invest in the network for social trading and use innovative tools for trading and investment.

  • Demo account available
  • Copy trading
  • Integrated wallet app
  • User-friendly overview
  • Ideally suited for beginners

  • Fast and competent customer support
  • Cysec / FAC regulated provider
  • Deposit protection up to € 20,000
  • Accepts PayPal as a deposit option
 

Capital.com

Capital.com logo

The CFD broker Capital.com describes its app as “the most beautiful CFD trading platform ever developed for a mobile device”. The British company is certainly not entirely wrong with this statement, because the platform and the AI technology behind it have already won multiple awards.

  • Very high usability
  • Access to over 3,000 markets
  • Various analysis tools
  • Negative balance protection

  • AI based app
  • Mobile Learn to Trade and free demo account
  • FAC and CySEC regulated provider
  • Up to 10 trading accounts possible
 

Libertex

libertex logo

Once started as a forex broker in 1997, investors can now conduct CFD trading through Libertex . The provider is based in Cyprus and is subject to European regulations . For professional traders, the maximum leverage can be up to 1: 600. However, investors must register as professional traders and meet certain requirements. For private investors, the maximum leverage is 1:30 in order to protect traders with no experience from speculation that threatens their existence.

  • Demo account available
  • Wide range of trading markets

  • CySEC regulated provider
  • Deposit protection up to € 20,000
 

Plus500

plus500 logo

Plus500 was founded in 2008 and is one of the most popular online brokers thanks to its many years of experience . Compared to other providers, however, the Plus500 offer is quite narrow.

  • FCA and CySEC regulated
  • More than 2,000 underlyings available
  • Free demo account
 

Binance

Binance logo

Binance was founded in 2017 by the Chinese developer Changpeng Zhao in China. Due to the Chinese regulations of the crypto market, the company moved from China to Malta. At the beginning of the year, Binance traded a total of 150 different cryptocurrencies and made an average of 1.4 million transactions per second. We don't have the current numbers, but we assume that they will be much higher.

  • More than 100 cryptocurrencies available
  • Own wallet
  • Exchange of crypto currencies among each other possible

 Create a free demo account with eToro now

67% of retail investor accounts lose money when trading CFDs from this provider.

Buy Bitcoin Instructions: Step by step to buy Bitcoin at eToro

The trading platform eToro is one of the best trading places for buying Bitcoin and is certainly one of the most popular providers for trading cryptocurrencies. Both real Bitcoins and Bitcoin CFDs can be bought with this state-regulated and licensed company.

In addition, eToro offers a useful function with Social Trading , which makes it possible to follow successful traders and to copy their strategies. Here we show how to buy Bitcoin at eToro:

Step 1: Create a trading account

First, personal data such as name and email address must be entered in the short registration form. Use a secure password and finally accept the conditions to create an account with eToro. Then click on “Register now ”.

You will now receive a link by email with which you have to confirm the customer account. This gives you full access to the customer area and the demo account.

Invest in eToro Bitcoin

 

Step 2: deposit money

Immediately after registering, you will be taken to the eToro homepage. From here, select the ” Deposit money ” option – you can deposit up to € 2,000 without verification.

Now all you have to do is select the payment method you want, such as bank transfer, credit card or PayPal , and then make the payment. After that, your money should be available.

eToro deposit

 

Step 3: buy bitcoin

After you have successfully deposited money, you can start buying Bitcoin at eToro. Click on ” Markets ” in the navigation menu and then on ” Crypto “. Here you can see a number of crypto currencies and all the necessary details about the individual currencies.

Buy Bitcoin at eToro

In order to buy the desired Bitcoin, you have to click on ” Buy ” and then on ” Open Trade “. A window opens in which you can now enter the amount and other values such as Stop Loss or Take Profit.

Buy Bitcoin at eToro

Important : With the “Leverage” setting you control whether you want to buy real Bitcoin or Bitcoin CFDs:

  • If the lever is on X1, you are buying real bitcoins
  • With all other levers, you buy Bitcoin CFDs

Buy Bitcoin with leverage at Etoro

Click “ Open Trade ” and you have just bought your first bitcoin on eToro. We wish you every success with it! Create a free account with eToro & trade Bitcoin now

67% of retail investor accounts lose money when trading CFDs from this provider.

 

Buy bitcoin with PayPal, credit card, instant transfer and more

Bitcoin is listed on the most important trading venues and with reputable CFD brokers and is available for trading as a real coin or as a CFD. We recommend buying Bitcoin from our test winner eToro, which offers many payment options . eToro also offers the option of making payments to the trading account via PayPal. We have compared the most popular and safest payment options here:

Credit card PayPal Instant bank transfer Bank Transfer
 Immediate availability
 Almost all credit cards are accepted
 Great comfort and security
 Fees are relatively low
 Only available at eToro
 Immediate availability  Immediate availability
 Most popular method
 Available on the trading account within 4 days

 

Buy Bitcoin: Fees Comparison Between Brokers and Exchanges

If you want to buy Bitcoin and are still unsure about the choice between a broker and an exchange, a look at the fees will probably help. Of course, each provider takes different types and levels of fees. Basically, however, one can say that brokers or exchanges each work according to the same principle, so the fees at the exchanges or brokers are always similar. We would like to illustrate the whole thing with an example:  

  • We buy Bitcoin for 1000 € , hold it for 30 days, sell it again and have the money paid back into the account.
  • For our example we assume the case that the course does not change in the 30 days .

providers coinbase (exchange) eToro (trading platform)
Deposit (credit card) 3.99% (= 19.95 €) for free
Purchase fees 0.5% (= 5.00 €) 0.75% (= € 7.50)
Holding fees for free for free
Sales charges 0.5% (= 5.00 €) 0.75% (= € 7.50)
Withdrawal Fees for free € 4.23
total cost € 29.95 € 19.23

 

Which Bitcoin wallets are there?

Buy bitcoin wallet

Anyone who owns Bitcoin must keep it safe and protect it from unauthorized access. So-called wallets exist for this , which enable the secure storage of coins . When choosing a wallet, security and compatibility come first.  

  • Special hardware and paper wallets offer the highest level of security. These so-called cold wallets are not connected to the Internet and can therefore not be attacked by hackers.
  • Even desktop wallets offer a high level of security. However, if the end device with the wallet is lost or if there is malware on the device, desktop wallets are also not protected from attacks.
  • Online wallets are also called hot wallets and are constantly connected to the Internet. Bitcoin is stored on the Internet so that resourceful hackers have the opportunity to illegally access the wallet at any time. Hot wallets are therefore rather unsuitable for long-term storage of Bitcoin.

Since Bitcoin is the largest and most important currency in the entire crypto market, many wallets are of course compatible , the best of them can be found here:

  • eToro Wallet (web and mobile wallet)
  • Trezor (Hardware Wallet)

  • Ledger (hardware wallet)
  • Coinbase Wallet (Online and Mobile Wallet)

  • Exodus (mobile and desktop wallet)
  • Bitadress (paper wallet)

 Benefit now from low fees at eToro

67% of retail investor accounts lose money when trading CFDs from this provider.


How does Bitcoin mining work?

Bitcoin mining describes the process of generating new bitcoin and adding it to the blockchain. Miners are companies or individuals who use high-performance computers to provide computing power to maintain the blockchain. In return, they can generate new Bitcoin blocks and mine the coins.

Bitcoin mining

For mining, a high-performance computer is required on which special software runs day and night. Bitcoin miners compete with each other and vie to find new blocks, add them to the blockchain and seal them. Due to the constant computing power of the software, miners randomly find what is known as a hash. The more miners participate, the lower the probability of finding a hash. Similar to a lottery , the more participants there are , the lower the probability .  

Miners can increase their chances of finding hashes by making more computing power available. However, the electricity costs are very high , so that operated by entire mining farms in our latitudes would represent a very high cost factor. If a new block has been added to the blockchain by a miner, it must be checked and confirmed by other miners using a proof-of-work algorithm.

New Bitcoin are generated on average every 10 minutes . Every four years, the block reward is halved in the so-called halving. This procedure is intended to reduce the volume of the mined coins and thereby stabilize the price and keep it at a high level.

Differences between Bitcoin CFD brokers and Bitcoin exchanges


Bitcoin CFD broker

  • Government regulations & deposit insurance
  • No Bitcoin wallet necessary
  • Leverage trading possible
  • Numerous deposit and withdrawal options
  • Mobile trading: Apps for Android & iOs available
  • Demo account

  • Only holding a certificate, not holding Bitcoin
  • There could be an obligation to make additional payments
  • Risky investment

Brokers offer so-called Contracts of Difference (CFDs) or contracts for difference. CFDs are highly speculative derivatives that are only suitable for well-informed investors.

How it works : With a CFD broker you do not receive real Bitcoins, you receive a certificate (CFD) from the CFD broker. Buyer and provider agree to exchange an underlying value (here Bitcoin). If the buyer acquires a “long” CFD, he receives a Bitcoin CFD at this point in time, and the provider receives security in money. At the end of the term (or the time of sale) of the Bitcoin CFD, the buyer “sells” the CFD back to the provider. The purchase price is now deducted from the sales price . The buyer makes a profit if the price has risen over the period. If the buyer purchases a “short” CFD, it will make a profit if the CFD price falls between the time of purchase and sale.

Obligation to make additional payments : Although BaFin excluded the obligation to make additional payments for private customers in 2017, individual providers may be required to make additional payments. Therefore, check whether there is one with the CFD broker to be on the safe side


Bitcoin exchanges

  • Actual ownership of Bitcoin
  • Learning how to deal with cryptocurrencies
  • Variety of cryptocurrencies on offer
  • (Partly) trading with leverage is possible
  • (Partly) Mobile Trading: Apps for Android & iOS
  • Total loss limited to purchase (no obligation to make additional payments)

  • No regulation & deposit protection
  • Attractive target for hacker attacks
  • Risky investment

Bitcoin exchanges offer the purchase of Bitcoin, the underlying asset. This is where you get real bitcoins, but you are also responsible for the security of them. A secure Bitcoin wallet is a must! Bitcoins should never be stored on an exchange , these are attractive targets and in 2018 alone, 800 million US dollars were stolen from Bitcoin exchanges.

Just storing it on a stock exchange can lead to a total loss . There is a saying at Bitcoin: Not your wallet, not your Bitcoins. Find out about Bitcoin wallets and choose a secure wallet.

Risk : Cryptocurrencies are high-risk and speculative assets, the price could drop to zero at any time. In the past, the Bitcoin price has fallen six times by more than 40 percent, which can happen again at any time. A total loss is always possible with crypto currencies , the loss (in contrast to Bitcoin CFDs) is limited to your stake – of course only if you trade real Bitcoins and no derivatives. There is no obligation to make additional payments.

Bitcoin CFDs vs. real BTCs


Buy Bitcoin CFD

  • Fee advantage when trading
  • State-regulated and subject to deposit protection: You are protected in the event of a hack
  • no complicated set-up of a wallet necessary
  • Protection against hacks
  • Leverage trading

  • no “real” bitcoins
  • Fee disadvantage for long-term investors
  • Risky investment: There is an obligation to make additional payments in leveraged trading

Buy “Real” Bitcoin

  • Owning real bitcoins that you can manage yourself
  • steep learning curve
  • If you want to hold Bitcoin for the long term, you have an advantage here in terms of fees

  • Vulnerable to hacks and cyberattacks
  • You are responsible for managing the keys – if the keys are lost, the bitcoins cannot be restored
  • Paper or hardware wallets are required for really secure storage.


How can I buy Bitcoin offline?

Bitcoin vending machine ATM

The safest way to buy Bitcoin offline is to use special ATM machines . In Germany, the machines have so far only existed in larger cities. In Austria and Switzerland, on the other hand, the option of buying Bitcoin offline at the machine has already become widespread.

Once you have found a suitable machine, it is very easy to buy Bitcoin for cash or with a credit card . To get Bitcoin credited, you enter your BTC address at the machine and feed the machine with the appropriate amount of cash. Alternatively, you can have a purchase amount debited from your credit card. The machine converts the amount paid into BTC and transfers the corresponding bitcoins to the address entered .  

Another possibility is the direct exchange of Bitcoin between buyers and sellers, mostly private individuals with one another. Buyers and sellers place advertisements via peer-to-peer networks and arrange to meet in private when it comes to a cash purchase. Fiat money is handed over in cash and Bitcoin is transferred to the wallet. But be careful – this is where the greatest possibility of fraud lurks.

You have to put absolute trust in your counterpart or otherwise ensure that he does not have the opportunity to take your cash and disappear with it without first transferring Bitcoin to you. The best thing is that the transfer is carried out when the cash is handed over using an online wallet. In most cases, these wallets are also available as a mobile version.

The best time to buy bitcoin

If you want to buy Bitcoin, you should only do so after some preparation and research . Of course, the question arises as to the best time to buy Bitcoin. While it is impossible to predict when it will be correct, there are a number of criteria, theories, and aspects that will help determine when it will be appropriate.

Buy cheap, sell high – what applies in trade and on the stock market can of course also be transferred to the purchase of Bitcoin. Easier said than done, of course.

Bitcoin is more volatile and riskier than other investments

Risk and volatility are omnipresent for investors and traders and should be considered in all buying decisions . For Bitcoin investors, however, this is even more true than for investors who do not invest in cryptocurrencies.

Bitcoin buy forecast

Because while, for example, price changes of 10% for stocks or commodities practically never occur, with Bitcoin this may even be the case several times a month. This is particularly important for choosing the right time to buy Bitcoin because price changes have to be assessed differently. In addition, a higher risk and volatility is simply to be accepted .

In order to maximize the chance of buying bitcoins at the right time, it is worth taking a look at important investing fundamentals . These approaches have been tried and tested on the stock market and can also be transferred to bitcoins to a certain extent.

The power of emotions

Whether a newcomer to the crypto market or an experienced trader – every investor or trader must be aware that the purchase of Bitcoin (and other cryptocurrencies) is too often influenced by emotions or is completely controlled by them. Two emotional phenomena can lead to impulsive and therefore rash purchases at the wrong time: FOMO (Fear of Missing Out) and panic sales.

FOMO

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FOMO kicks in when you look at the trading chart and see a price climbing steeply upwards. The (often wrong) assumption is that the current upward trend will continue and that it is better to buy straight away before paying more unnecessarily. So you buy – without thinking twice – and you may catch a point near the all-time high, from which the price drops steeply again.

Panic sales

Icon 2

Panic sales, on the other hand, occur for existing Bitcoin investors with the opposite phenomenon. If you look at the trading chart and notice that a group of investors is parting with Bitcoin, you assume (often incorrectly) that the price decline will continue for a long time . In a panic, all existing BTCs may then be sold – in fact (unfortunately we don't know!) It could be a good time to buy Bitcoin!

Is there really the best time?

One thing must be said very clearly: all the tips presented so far can only help to estimate better times. In any case, there is no “best time” – it also depends on the investment goals and time horizon.

If you follow the current course development, you should start at the cheapest course – so the theory . However, you never know for sure how the course will change in the next second. You always only know in retrospect whether it was the best time and therefore far too late to make a purchase decision in the present. Register with eToro now and trade Bitcoin 24/7

67% of retail investor accounts lose money when trading CFDs from this provider.

Bitcoin course: how has it gone so far with the basis of all cryptocurrencies

Bitcoin is the first and oldest cryptocurrency ever available. What milestones, peaks and valleys has undergone the coin, we have summarized here in chronological order:20102011/12201320142015201620172018201920202021

Bitcoin course 2010

For the first time since its launch, Bitcoin can be quantified by an equivalent. In May 2010, two pizzas were exchanged for 10,000 BTC. In this way, Bitcoin was able to show an exchange rate for the first time. Bitcoin was worth the equivalent of $ 0.07 per coin. 

 

How is the Bitcoin price created?

Essentially, the value of a bitcoin arises from supply and demand . When there are more buyers than sellers, the Bitcoin price rises. Conversely, the price drops when there are more sellers than there are buyers. The price moves until the exchange has re-established a balance between buyers and sellers. 

Bitcoin forecast: how do experts see the future of Bitcoin?

60,000 euros all-time high – what else can Bitcoin achieve now? This question leaves many scenarios open. Bitcoin could have disappeared from the market in 10 years or, because of its potential, it could replace gold as a global reserve currency. It is difficult to make predictions about the further course of events.

Top traders see the current falling markets as a real opportunity for Bitcoin to make another run-up and to far exceed the previous all-time high. The next halving will also take place soon. Experience shows that after the Halvings , Bitcoin will rise , most recently by twice its value. Many crises are currently causing people to look for alternative currencies.

The trust and interest in Bitcoin is also growing among the general population and mass adaptation is not ruled out. This could justify further price increases. Experts and enthusiasts suspect that Bitcoin could develop in line with the gold price (according to Gold Bullion international) and reach a value between € 100,000 and € 300,000 by 2025 . However, there is also the possibility that strict regulations on cryptocurrencies could also damage the Bitcoin price.  

Alternative Bitcoin Investment Opportunities

Bitcoin ETP

Coincierge Icon 20

Bitcoin ETPs belong to the product class of exchange-traded debt securities . They enable investors to invest in various asset classes at low cost. In this way, investors can benefit from the performance of Bitcoin, but do not have to resort to unregulated trading opportunities.

However, investors should note that those with an ETP only hold a security in their hands and do not have any real coins that they can use to pay for goods. Nevertheless, an ETP is a good alternative to buying real Bitcoin, because the ETP replicates the value development of the coin 1: 1 and enables direct profit for investors.

Bitcoin certificates

Coincierge Icon 27

Bitcoin certificates are bonds that, like CFDs, are derivatives. If you don't want to buy real coins, but still want to benefit from price developments, you can invest in Bitcoin certificates in addition to CFDs or ETPs .

Certificates are a comparatively new investment option , but they are by no means unknown in the securities business. In other investment areas, such as the stock market, certificates have been firmly established since the 1990s. With a certificate, investors benefit directly from the respective course of the cryptocurrency.

Certificates are firmly linked to the value of one US dollar or one euro. If Bitcoin rises against the respective currency, you make a profit with a certificate, if the price falls, a loss occurs. In contrast to real Bitcoin, investors with a certificate only acquire shares of a coin. This also makes it possible to invest smaller sums and participate in the profits of the crypto market. Invest in Bitcoin & Bitcoin alternatives now at eToro

67% of retail investor accounts lose money when trading CFDs from this provider.

Buy bitcoin – investment or object of speculation?

With a market capitalization of over 250 billion euros , Bitcoin also clearly stands out from all other crypto currencies ( Ethereum – 23 billion, Ripple – 8 billion). Thus, there is more money in Bitcoin than the whole of Austria generated in one year (2019).

The price developments of the cryptocurrency are also unique. Bitcoin had a price increase of 1062% in 2017! This means that if you bought a Bitcoin on January 1st, 2017 for € 930, you could sell it on January 1st, 2018 for € 11,237. For a short time there was even an increase to € 16,892. Even in 2020, the price climbed from January 1 to June 1 from EUR 6,414 to EUR 9,157. Buying Bitcoin offers enormous potential for every risk-taker .  

Before you buy bitcoins, you should be clear about what you want to achieve with your investment . As with any financial investment, the higher the desired return, the higher the risk. This is due to the following factors:Supply & demandvalueacceptancecall

Supply & Demand: How to Buy and Sell Bitcoin

There are no central bodies (such as governments or banks) behind Bitcoin that determine the currency. Bitcoin traders will see this as an advantage, as no instance can manipulate the price. Inflation is also not possible because the number of Bitcoins is limited to around 21 million.

So there are no mechanisms to influence the price. Only supply and demand determine the price.

 

 

 

 

What investors should look out for when buying Bitcoin

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  • Define a trading strategy in advance. Long term or short term. Real bitcoin or alternative investment options.
  • Compare different trading platforms with each other
  • Setting an investment maximum to limit the risk of loss
  • Watch the market and find the right time to buy Bitcoin
  • Do not be irritated by the market fluctuations – they are normal!
  • Set up a compatible wallet

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