How To Trade Bitcoin Stock

The Bitcoin rate has doubled within a few weeks. From mid-March to early June 2020, the value of the major cryptocurrency rose from around $ 4,700 to over $ 10,000. That is more than 110 percent price gain in less than three months. This price development is reminiscent of the Bitcoin hype a few years ago: anyone who bought Bitcoins for a few hundred dollars or euros at the time is now a millionaire.

How can you invest in bitcoin stock as an investor, where can you buy Bitcoin and why can Bitcoin trading be interesting for both investors and speculators? We have selected providers where the Bitcoin purchase is easily done in just 15 minutes via PayPal. We’ll also tell you how you can alternatively buy Bitcoin in a marketplace (with a wallet).Artificial intelligence is now enabling the bot to learn about the bitcoin market and all of its history.AI has extensive usage in many industries now including crypto trading. Most companies such as hedge funds, deploy AI-powered analysis system to get better results in trading and to investment ideas.  AI simplify data analysis and execute trades at the best price hence help to build portfolios for companies.

Our recommendation: With a Bitcoin CFD, you can participate in the Bitcoin course particularly easily.

Product recommendation : With Plus500 you can buy and sell bitcoins. You can find more providers in our crypto broker comparison .

Alternatively, you can also use certificates benefit from the Bitcoin performance.

A little more complicated: You can also buy “real” Bitcoin on a Bitcoin marketplace or via a Bitcoin exchange .

YOU CAN BUY BITCOIN FROM THIS PROVIDER

Product recommendation : With Plus500 you can easily make deposits via PayPal and credit card, you can open an account in 15 minutes. Below we tell you what distinguishes the purchase of Bitcoin through a CFD broker, why a Bitcoin investment is so exciting for you as an investor and what options you also have to participate in the performance of Bitcoin.

Bitcoin (BTC) is the best known cryptocurrency and still the most important by far. In terms of market capitalization, Bitcoin is clearly ahead of the competition, and no other digital currency can compete with Bitcoin in terms of value: With approximately $ 160 billion, the market capitalization of Bitcoin in June 2020 is far ahead of that of Ethereum (24 billion), Tether (8 , 2 billion) and Ripple (8 billion).

The price development of the most important cryptocurrency is also unique: in 2016 alone, the Bitcoin price climbed by more than 125 percent, in 2017 the Bitcoin peaked at almost $ 20,000. If you trade bitcoins and have a close look at the bitcoin price, you can make a fortune with a little luck. In the past, the most successful cryptocurrency made some investors a millionaire.

Don’t miss any more current recommendations on Bitcoin, Ethereum & Co.!

Some analysts predict Bitcoin’s price will rise to $ 500,000 and more. As the “Blockchain and Cryptoasset Pre-Event” showed at the beginning of April 2019, more and more professional asset managers and institutional advisors want to recommend blockchain and cryptocurrencies as an investment . Even with more and more financial institutions, bitcoins continue to gain acceptance. For example, the US investment bank JPMorgan launched its own cryptocurrency and many customers can already buy cryptocurrencies in Swiss online trading.

Bitcoins are no longer just nameless online coins with which computer nerds make anonymous purchases on the Internet. Bitcoin trading is popular with both private investors and speculators, and the potential still seems great. The recent large price movements are proof of this.

Around the Bitcoin hype at the end of 2017, some critics saw a risky investment in Bitcoin and described the most important cryptocurrency as “hot air”.

Ultimately, the Bitcoin price is regulated by supply and demand. And the demand for anonymous money such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin & Co. continues to grow strongly. The reasons for this include, for example, the future-oriented blockchain technology, the investment in Bitcoin and capital controls, which can be successfully avoided with the help of crypto money.

Given the performance and technical capabilities of online currencies, interest in Bitcoin is growing steadily among many investors. If you buy Bitcoin and want to participate in the performance of the most important Internet currency, then there are several options for you – we have examined the advantages and disadvantages of each way.

Here we explain easily what cryptocurrencies are, what makes blockchain technology so secure, and how Bitcoin mining works.You can also find expert know-how about cryptocurrencies here: Comparison of crypto exchanges.Investing in blockchain technology.This is how investors can claim a cryptocurrency for tax purposes

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Investors who are primarily concerned with participation in the performance of Bitcoin can trade bitcoins relatively easily via a CFD broker. The account opening is particularly fast, you can deposit by credit card, PayPal or bank transfer.

You can think of a Bitcoin CFD as a security that reflects the Bitcoin price. As an investor, you thus participate directly in the development of the Bitcoin price, but do not own the Bitcoin physically. If you want, you can leverage the Bitcoin CFD – you can find out more in our CFD trading guide . Note that CFD trading has been more regulated since August 2018.

A 1: 1 participation without leverage is of course also possible. The biggest advantage with a Bitcoin CFD is that in the event of a sale, you can get your money back immediately and in full at any time. This is not a matter of course: There are daily payout limits on different Bitcoin exchanges, so a payout of your capital can sometimes take several days.

Our recommendation: If you want to buy or sell bitcoins as a CFD, you can use Plus500 , among other things . Plus500 offers deposits by credit card and PayPal as well as a very quick account opening without PostIdent. Of course, you can also use any other CFD broker of your choice. How you can easily trade Bitcoin through a broker is explained using the example of Plus500 in our simple  step-by-step guide to buying Bitcoin .

Another very convenient way to take part in the Bitcoin course is to buy Bitcoin certificates. The selection on the market is currently relatively limited, but the Swiss bank Vontobel offers an attractive offer.

With the Open End Participation Certificate on Bitcoin , you can easily invest in the price development of the most important digital currency. The Vontobel certificate replicates the performance of the bitcoin, but is not a “real” bitcoin, but a derivative of the cryptocurrency. The product enables almost 1: 1 participation in Bitcoin price gains and losses versus the US dollar – without a predefined repayment date. You can also buy mini futures on Vontobel’s Bitcoin .

If you want to buy Bitcoin, a certificate on the cryptocurrency is also a very convenient option in addition to the Bitcoin CFD, you only need a securities account as a prerequisite.

BaFin has classified cryptocurrencies as a “unit of account”. The result: Bitcoin, Ripple, NEO, EOS, Litecoin & Co. are subject to the same tax requirements as other currencies. The Treasury evaluates trading in cryptos as private sales transactions that fall under the Income Tax Act (EStG).

Tip: In our Bitcoin tax return guide , you will learn how to specify profits from cryptocurrencies in the tax return and what you can claim for tax purposes when trading crypto.

Deutsche Börse groups ETCs and ETNs under the Exchange Traded Products (ETPs) product class. Strictly speaking, Bitcoin ETPs are ETNs (Exchange Traded Notes). These are exchange traded debt securities that track the performance of underlying reference indices. In contrast to ETCs (Exchange Traded Commodities), ETNs are based on indices outside of the commodities sector. ETNs offer investors the opportunity to invest cheaply in a new asset class like Bitcoin.

Michael Krogmann, member of the management board of the Frankfurt Stock Exchange, explains: “With the product, investors can easily participate in the performance of the bitcoin without having to switch to unregulated crypto trading venues. Separate infrastructures such as crypto wallets are also not required for trading. ”Bitcoin is therefore traded and owned by a regulated security.

The first Bitcoin ETP has been available in EU since June 2020. With the BTCetc Bitcoin Exchange Traded Crypto (ISIN: DE000A27Z304) from ETC Issuance, the world’s first centrally cleared Bitcoin tracker was listed on Xetra. Centrally cleared means that the ETF is secured by the clearing system through a central counterparty to the exchange. The ETP is approved directly by BaFin and tradable on the EU stock exchange.

If you care about your anonymity in Bitcoin trading in addition to the performance, there is no way around the purchase of “real” Bitcoins, i.e. the purchase of Bitcoins in the form of “digital money” or in the form of data. Having a wallet is a basic requirement. This electronic wallet is comparable to a personal checking account for your pocket, you can use it to make transfers and receive or send bitcoins.

The transfer of bitcoins does not differ fundamentally from a bank transfer: instead of an account number, only a receiving address is used. Because the digital currency is sent directly from person to person without an intermediary, the fees incurred are lower than for the transaction via banks.

If bitcoins are bought on several portals, all bitcoins can be combined in a single bitcoin wallet. A Bitcoin wallet on a smartphone is suitable for everyday use, but a wallet is only possible for online payments on a PC or tablet. After downloading and installing a Bitcoin wallet, it should be secured with a strong password, a so-called passphrase. This access code must then be given in the future before every transaction.

Tip: If you want to learn more about how you trade Bitcoin and then “store” it in a Bitcoin wallet, we recommend our crypto-lexicon for further reading.

If you want to trade the cryptocurrency Bitcoin, you can do this online, for example, on a so-called Bitcoin marketplace. The most famous marketplaces are

eToro.

Coinbase.

Robinhood.

Gemini.

BitStamp.net.

Bitfinex.com.

Hitbtc.com.

In detail, it works like this: On marketplaces like Coinbase., registered users post their offers to buy or sell bitcoins in a different currency. Buyers can see how many bitcoins a seller offers at what price. A business comes into being as soon as an offer is accepted by another user, the potential buyer. The purchase price for the purchased bitcoins is transferred to the seller’s bank account and the buyer receives the purchased bitcoins as digital data for his wallet.

Depending on the marketplace, the operators charge a small fee for the exchange , deposit and / or payment of the money. This fee is usually relatively small. Buyers and sellers each bear half of the Bitcoin fees.

Another way to buy “real” bitcoins is through bitcoin exchanges. The best-known trading exchanges for cryptocurrencies include Binance, Bitfinex,  CEX.IO , Kraken, Bitstamp and Paymium. You should also note that opening or verifying accounts can take a few days.

Attention: The Bitcoin prices on the different trading platforms can differ greatly. While Bitcoin trading on crypto exchanges is automated, the trades on a marketplace are carried out manually. As an investor, you have to look for a suitable sales offer yourself.

If you really want to buy bitcoins, you only have to specify how many coins you want to buy at which rate (classic currencies such as US dollars or euros can be exchanged for bitcoins at any time). If the Bitcoin exchange finds a suitable offer, it buys the Bitcoins on behalf of the customer and then credits them to the customer account. Processing is particularly easy on CEX.IO , especially since credit cards such as VISA and MasterCard are also available as payment methods.

If you want to sell your bitcoins on Bitcoin exchanges, it works according to the same principle as when buying Bitcoins: within a few minutes, you put your sales offer on a Bitcoin exchange. If someone buys your bitcoins, the amount will be credited to your bank account.

Tip: In our crypto exchange comparison , we take a close look at the most important Bitcoin exchanges. Among other things, we test the trading platforms BSDEX, Coinbase and Bitstamp.

If you want to buy bitcoins, you can do this in various ways and providers. Bitcoin trading usually works similarly for all brokers for cryptocurrencies. In the following, we will demonstrate the Bitcoin buying process step by step using the example of the CFD broker Plus500 .

The interface of the platform is very clear for Bitcoin traders, the account opening works very quickly, usually within only 15 minutes. Another advantage: As a trader, you can use various deposit options, for example credit card or PayPal.

First go to the Plus500 page. The blue background button takes you to the platform of the CFD broker.

Before you can start trading Bitcoin, you have to make the first decision: do you want to trade Bitcoin with real money or start with a demo account? A demo account is particularly suitable for Bitcoin beginners or traders who want to get started with trading without real money. If you want to benefit from the Bitcoin courses directly with “real” money, you can open a real Bitcoin account immediately. Select your preferred account mode – then it can continue.

After you have decided on an account model, you can set up your account with just a few details. To do this, you have to enter your email address and create a password.

Now click on “Create account” and open your customer account. Alternatively, you can also set up an account using your Google account or your Facebook profile.

Important: When you open an account, you confirm that you are of legal age. You also agree to the data protection regulations of the platform.

After opening an account with Plus500, all you have to do is confirm your account. To do this, fill out the questionnaire for your personal data and, among other things, also state in which country you pay your taxes.

Typically, you will also need to fill out a questionnaire that will review your experience investing in bitcoins and CFD.

Tip: This query is only for your own protection. And: Even if your experience is considered to be too little for trading Bitcoin CFDs, it is often still possible to buy Bitcoin.

Before you get started, you can now deposit money into your Bitcoin account. This is possible under the menu item “Funds” on the left side. For example, select “bank transfer” as payment method, with Plus500 you can also buy and sell Bitcoin with PayPal, credit card. If you have problems with the verification of your means of payment, you can have Plus500 send you a short instruction on how to deposit money by email.

If you want to deposit money into your Plus500 account by transfer, your amount should appear in your trading account within five working days after the transfer. If not, contact Plus500 customer service .

Now you have overcome all hurdles and can start trading Bitcoin. Click on “Trading” in the menu on the left. With Plus500 you can buy other currencies, indices and raw materials in addition to cryptocurrencies. Select cryptocurrencies and click the “Buy” button in the Bitcoin column.

Finally, choose how many Bitcoin you want to buy – and you’re done. Congratulations, you’ve just bought a Bitcoin CFD over Plus500!

The Bitcoin price and thus the value of the Bitcoin depends on the supply and demand of investors – we have already told you this above. As demand increases, so does the bitcoin rate and vice versa. This means that the digital currency Bitcoin is not controlled by central banks or governments, but is managed decentrally.

And how is the bitcoin price composed? The total amount of bitcoins available is currently capped at 21 million. This limitation is intended to avoid inflation on the one hand and to generate the added value of the cryptocurrency on the other. Basically, however, it is assumed that the demand for Bitcoin will continuously increase – for example, by improving the trading conditions for Bitcoin and Bitcoin will thus become more and more attractive as a means of payment.

When Bitcoin first saw the light of the crypto world, the virtual currency initially had no value that could be quantified in other currencies. That has changed in the meantime, below you can see the Bitcoin exchange rate development (BTC) compared to the most important FIAT currencies:

Like any other currency, the bitcoin price is subject to fluctuations, the bitcoin price can also vary depending on the trading platform. Investors who want to trade Bitcoin should take into account the strong volatility of the cryptocurrency. In 2017 alone, the value of bitcoin increased 20-fold.

The legendary value development made Bitcoin famous as a cryptocurrency – and many investors were rich. Bitcoin is still one of the most important cryptocurrencies, also and above all because of its pioneering technology, the blockchain. The blockchain was a basic prerequisite for the triumph of Bitcoin and it will be indispensable in the future.

The reason is obvious: The trend is increasingly towards digital money and payment systems on the Internet. The security of mass payment transactions in the online world can only be guaranteed if blockchain technology (or a comparable anonymous technology) is used.

Dr. Cyrus de la Rubia, chief economist at HSH Nordbank, says: “The idea behind Bitcoin is at least as exciting and forward-looking as the cryptocurrency itself.” In the finanzen.net webinar, the currency expert went into detail about the future potential of blockchain technology and what that means for Bitcoin investors – find out more from the foreign exchange expert Dr. Cyrus de la Rubia . If you want to deal even more intensively with the opportunities that blockchain offers for you as an investor, then the best thing to do is to read our investing in blockchain technology guide .

Although cryptocurrencies are also known as internet currencies, bitcoins do not necessarily have to be bought over the internet. There are different ways in which the cryptocurrency can also be purchased offline for cash. The cheapest and fastest way to buy bitcoins is to buy them from a private person. Various platforms, for example Bitcoin-Treff, arrange private meetings with retailers in the area.

Caution: Please note that trading is very anonymous and unregulated. You should therefore choose your exchange partner very carefully.

In the meantime, there are also regular meetings in specific area at which Bitcoin fans discuss the latest developments in the field of digital currencies. Such a direct exchange is probably the easiest way to find out about bitcoins, blockchain – the security technology for bitcoin transactions on the Internet – and other cryptocurrencies. And often these so-called meetups also offer a good opportunity to buy and sell bitcoins.