Which crypto exchanges are suitable for buying Bitcoin
The most important facts in brief
- There are many different trading places on the internet where investors can buy Bitcoins.
- The individual crypto exchanges and other trading places for digital assets have advantages and disadvantages.
- Recommended brokers for crypto trading: Etoro, Justtrade, finanzen.net Zero
One bitcoin cost around eight US cents in July 2010 - more than ten years later, the price is over 60,000 US dollars. In other words: back then, investors could not even buy a piece of chewing gum with the value of a Bitcoin; today, they can buy a mid-range car for it.
Like the stock market, the digital currency market experienced an extremely volatile 2020, with central banks buying trillions of dollars in bonds and governments launching unprecedented stimulus packages: Many investors feared demonetization and therefore looked for alternative investment opportunities.
Digital currencies such as Bitcoin are considered sustainable and therefore also a promising investment. Only recently, the renowned online payment service Paypal announced that American users will be able to use cryptocurrencies in the coming year.
Those who want to buy cryptocurrencies can get them from crypto exchanges. Although the market often still lacks the necessary state regulations and the scene is generally considered to be less trustworthy, there are also reputable providers.
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9.3 / 10
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- No deposit fees for all payment methods
- Cheap method to buy Bitcoin instantly
- One of the few providers that offer PayPal
- Very user-friendly trading for beginners
Crypto exchange | Cryptocurrencies | head office | website |
---|---|---|---|
Etoro | 23 Since May 2021: Dogecoin | Cyprus | etoro.de |
Binance | 150 | Malta | binance.com |
Justtrade | 8th | Frankfurt am Main | justtrade.com |
Nuri (formerly “Bitwala”) | 2 | Berlin | nuri.com |
Coinbase | 65 | USA (San Francisco) | coinbase.com |
Digital Exchange Stuttgart Stock Exchange (BSDEX) | 4th | Stuttgart | bsdex.de |
Scalable Capital | 4th | Munich | scalable.capital |
Octopuses | 68 | USA (San Francisco) | kraken.com |
Best Crypto Exchange Brokers 2021
WHAT IS ON THIS PAGE?
- The most important facts in brief
- Beste Crypto Exchange Brokers 2021
- What is a crypto exchange?
- Finding the right exchange
- Etoro in detail
- Justtrade in detail
- Scalable Capital: Bitcoin, Etherum and Litecoin via ETPs and ETCs
- Cryptos tradable like ETFs
- Binance in detail
- Coinbase in detail
- Stuttgart Digital Exchange (BSDEX) in detail
- Crypto exchange Kraken in detail
- Crypto Exchange Kraken – Deposit Options
- Recommended brokers 2021
- Frequently asked questions about crypto exchanges
What is a crypto exchange?
A crypto exchange is a digital trading platform on which cryptocurrencies can be bought, sold and exchanged: In the sense of the classic stock exchange, the price of a coin is based on the principle of supply and demand.
Buyers have two options for acquiring cryptocurrencies: one is a direct purchase via the provider - or a transaction between buyer and seller.
With a direct purchase, investors buy Bitcoin and Co. directly from the provider of the platform. This is uncomplicated and fast - but the costs are usually higher: Providers purchase the coins in advance and must keep them in stock at their own risk.
In the alternative, the purchase contract between two private individuals, the platform merely serves as an intermediary. The operator then retains a certain percentage of fees for this service. An example of such a marketplace is bitcoin.de.
Note: Anyone who wants to buy their own cryptocurrencies should take care of the subsequent storage beforehand. Investors should purchase or set up an external cold wallet for this purpose, where they can store their coins after the purchase: This provides the necessary security.
Finding the right exchange
The different providers have advantages and disadvantages. The conditions and typical criteria such as user-friendliness, payment options or security are important. To find the right exchange, however, investors should already have a basic understanding of the most important elements of cryptocurrency trading and pay attention to details when making their selection.
For example, platforms on which traders can trade cryptocurrencies against fiat money are advantageous. These are currencies such as the euro or US dollar. If a platform accepts official means of payment, the often tedious exchange of a cryptocurrency for fiat money is not necessary.
Tip: Sometimes it is worthwhile to be active on several exchanges in order to benefit from the advantages of individual providers. For example, investors can use the Coinbase platform to buy widely used cryptocurrencies such as Bitcoin or Ethereum and then use them to trade other coins on exchanges without fiat money. So it depends on how exactly investors want to invest in the currencies so that the exchange suits him. We present the conditions of some platforms.
Etoro in detail
info | Crypto exchange: Etoro |
---|---|
Homepage | etoro.de |
Hints | Cryptoassets are highly volatile, unregulated investment products. No EU investor protection. |
Seat | Cyprus |
Coins | 25 including BTC, ETH, XRP |
Payment Methods | including credit card, SEPA transfer, PayPal |
Deposit fee | 50 pips EUR> USD |
Minimum deposit | 50 USD |
Trading fee | The spread varies depending on the coin: e.g. Bitcoin 0.75% |
security | 2FA, SSL, deposit protection € 20,000 |
regulation | CySec, FCA |
The multi-asset platform Etoro has been around since 2007. At that time, the main business was shares - the provider has only enabled trading in cryptocurrencies since 2017. There are currently 16 different coins that can be bought and sold there.
After registration and successful verification, customers can transfer money to their account via credit card, Sepa transfer, Paypal and other payment methods. Etoro converts the deposited amount into US dollars for a fee. For a Sepa transfer from euros to US dollars, for example, this is 50 pips. A pip is the last decimal place mentioned.
Fees
There are no fees for opening and maintaining an account. The amount of the trading fees depends on the respective coin: When trading Bitcoins, the fee for the spread is 0.75 percent, for Ethereum it is 1.9 percent.
Etoro also charges a fee for the transfer of cryptocurrencies, as well as for inactivity from the twelfth month onwards. A full overview of all fees can be found here.
• Over 25 cryptocurrencies - new since May 2021: Dogecoin
• Payment methods: e.g. credit card, SEPA transfer, PayPal
• Security: 2FA, SSL, deposit protection €20,000
• Important: Cryptoassets are highly volatile unregulated investment products (your capital is at risk).
Service
The Etoro website is completely. A help centre answers the most important questions and the customer service can be reached via a contact form, live chat or by phone. Etoro offers users the option of a personal wallet - as already mentioned, a fee is charged for the transfer of coins. In addition, customers can also trade via the Etoro app.
Security
Etoro uses two-factor authentication and the website is protected with SSL encryption. The operator’s licence is subject to European regulations, as its headquarters are located in Cyprus. According to Etoro, customers’ funds are deposited with Tier 1 banks, which have a particularly high risk-bearing capacity. Deposit protection exists up to 20,000 euros.
Other
In addition to cryptocurrencies, Etoro also offers stocks, commodities and CFD trading. It is also known for its social trading model: here, customers can copy the investment strategies of other users.
Justtrade in detail
Since October 2020, Justtrade has also offered trading in digital currencies in addition to shares, ETFs and derivatives. In total, clients of the broker can buy and sell five cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ripple. According to the company, more are to follow.
info | Justtrade |
---|---|
Custody account management | For free |
Depot opening | Videoident |
Minimum spread pro rata for buy / sell | 0.3% |
crypto trading from a minimum volume | of € 50 |
Trading venue fee | 0 € |
Network fee | 0 € |
Safekeeping of crypto assets | 0 € |
Number of cryptocurrencies | Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, EOS, Chainlink, Stellar |
Safekeeping | The crypto values are stored by the Heydt GmbH & Co. KG Munich bank |
Deposit insurance | € 100,000 |
Additional voluntary deposit insurance | Via Sutor Bank at least € 750,000 |
App | Android & iOS |
website | justtrade.com |
To open a custody account, new customers need the Justtrade app. After they have entered some personal information, they must legitimise themselves via video identity. Justtrade uses the ID now procedure for this. If everything has worked out, Sutor Bank opens a securities account and a clearing account. Customers can deposit a credit balance via bank transfer.
Fees
Unlike investments in securities, trading in cryptocurrencies at Justtrade is not free. The online broker charges a minimum spread of 0.3 per cent pro rata for each purchase and sale. The minimum order volume on cryptocurrencies is 50 euros.
Important: Cryptocurrencies that investors buy at Justtrade cannot be transferred to a separate wallet. This means they are only suitable as speculative assets, investors cannot pay with them. Otherwise, Justtrade hardly charges any additional fees. However, a negative interest rate of 0.5 per cent per year is charged for the balance on the settlement account.
- Euro Custody account management fees
- Order costs
- Minimum spread 0.3
- 8 cryptocurrencies
Service
The service is, as usual with so-called neobrokers, very reduced. There are brief instructions to help beginners with trading. However, specific information on cryptoassets is missing. The operation of the platform is intuitive. Users can switch between securities and crypto trading within seconds. They do not necessarily have to use the app; the platform can also be used via the browser. Minus points are awarded for the customer service, which can only be reached via text message or email.
Security
Justtrade’s trading partner is Sutor Bank. It sells the crypto assets to investors and also buys them back. Bankhaus von der Heydt takes care of their safekeeping. The customers’ coins are stored separately from the bank’s holdings and are thus protected even in the event of insolvency. According to the bank, it has also insured all crypto assets against theft.
Scalable Capital: Bitcoin, Etherum and Litecoin via ETPs and ETCs
info Scalable Capital | Scalable Capital |
---|---|
Homepage | scalable.capital |
Seat | Munich, Germany |
Coins | 7 BTC, Bitcoin Cash, ETH, LTC, XRP, ADA, DOT |
Payment Methods | transfer |
Deposit fee | No |
Trading fee | Depending on the account: € 0.99 / € 0 + spread between 0.07 and 0.34% |
Other fees | ETP custody fee: 1 - 2.5% |
security | Insurance against hacking, deposit insurance up to 100,000 euros |
The Munich-based company Scalable Capital introduced trading in cryptocurrencies this year. In addition to classic financial products such as shares and ETFs, investors can invest in digital currencies via ETPs. ETP stands for exchange-traded product - cryptocurrencies are therefore traded in the form of securities and not the coin as such. As of July 2021, Scalable Capital offers ETPs for Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, Cardano and Polkadot.
Cryptos tradable like ETFs
The trading of cryptocurrencies works according to the same principle as is the case with shares and ETFs. Scalable Capital customers can purchase crypto ETPs via the trading venues Gettex and Xetra. Both one-off purchases and savings plans are possible. Usually, investors benefit from a positive performance of the respective cryptocurrency - however, one of the ETPs also allows betting on falling prices. However, investors should be aware that not every issuer also has real coins deposited and the cryptocurrencies thus mainly serve as speculative assets.
Good to know: Cryptocurrencies are normally taxed at up to 45 percent after income tax - unless investors hold the coins for more than one year. However, since ETPs are securities, they are subject to capital gains tax, which is only 25 per cent. This means that more of the return remains.
Account opening
Opening an account with Scalable Capital usually takes only a few minutes. New customers have to choose one of three subscription models. Depending on which variant they choose, the price structure changes:
The Free Broker is free of charge, but investors pay 0.99 euros per trade.
The Prime Broker, on the other hand, costs 35.88 euros per year, but there are no costs for purchases and sales on the Gettex trading platform.
With the Prime Broker flex, customers can cancel their subscription flexibly.
Once the decision has been made, the customer fills out an application form, makes an initial deposit and identifies himself via video or PostIdent. This completes the account opening process.
Fees
Trading with the Scalable Prime Broker is free of charge. However, a spread is charged for crypto ETPs, which is usually between 0.07 and 0.61 per cent. In addition, issuers charge a management fee on the ETP. The costs for this amount to a further 1 to 2.5 per cent annually. Single purchases on Gettex require a minimum purchase of 250 euros. Savings plans start from a minimum savings rate of 25 euros. Trading on Xetra is more expensive with an additional 3.99 euro order fee and 0.01 percent trading venue fee. However, the minimum order volume is waived.
- 4 cryptocurrencies tradable as ETP / ETC
- Minimum order via Gettex: 250 euros
- Securities savings plan from 25 euros
- Cooperation with Baader Bank AG
Service
Scalable Capital’s services meet the most important standards. A comprehensive FAQ section helps with any questions that may arise. If something still remains unanswered, customers can fall back on a telephone hotline and even a live chat. In addition, there is a regular newsletter, webinars and the fee-based, automated ETF asset management.
Security
Depending on the issuer, the coins are deposited with regulated custodians and in some cases even deliverable. In addition, some ETPs are insured against theft by hackers; customers can read this information at the respective product. Scalable Capital also cooperates with partner bank Baader Bank, which, in addition to the statutory deposit insurance of 100,000 euros, is also part of the voluntary deposit insurance of private banks.
Binance in detail
info | Crypto exchange: Binance |
---|---|
Homepage | binance.com |
Registration | With an email address via the website |
Seat | Malta |
Coins | over 150 coins including BTC, ETH, XRP |
Payment Methods | including bank transfer, credit card |
Deposit fee | 0 € for bank transfer 1.80 percent with credit card |
Trading fee | 0.1% of sales (purchase and sale) |
security | 2FA, SSL |
App | Android, iOS |
Binance is the largest digital trading platform in the world, based in Malta. It offers over 150 coins for purchase. For a long time, it was not possible to trade with euros on Binance. In the meantime, however, a few of the coins offered can be exchanged directly for euros: namely Bitcoin, Ethereum, Binance Coin, Ripple and Swipe. Binance requires verification for trading with fiat money.
Fees
Depositing in euros via bank transfer is free of charge, but not via credit card: Binance charges 1.8 percent fees here. The general trading fee is 0.1 percent per purchase or sale of the traded turnover.
- Trade: Over 150 Coins, Futures and Derivatives
- Deposit via SEPA transfer free of charge
- Trading fee: 0.1 per cent
- Security: 2FA, SSL, Binance Trust Wallet, Anti-phishing Code, Address Management
- iOS & Android App
Service
The service is convincing with a website - this is not a matter of course, as most crypto exchanges have an international headquarters. Binance also offers an app for iOS and Android devices: This makes it possible to trade on the go. The trading platform can also be accessed via the desktop.
Security
In July, Binance announced that it was cooperating financial institution CM-Equity. The partnership gives investors the certainty that Binance is backed by a company regulated by the Federal Financial Supervisory Authority (Bafin). But beware: Binance itself operates without regulation by the Maltese financial supervisory authority MFSA. Only CM-Equity is regulated. Binance provides SSL encryption for the use of the platform. In addition, the digital trading exchange shows all past log-in attempts on its homepage. In addition to the password, a two-factor authentication provides additional protection. Otherwise, there are security instructions and tips throughout the site on how investors can best protect themselves and their coins.
Other
Binance also offers numerous other features: a learning centre is designed to make it easier for newcomers to start trading with cryptocurrencies, the Trust Wallet is suitable for storing coins and the company’s own Binance Charity Fund supports charitable organisations.
Coinbase in detail
info | Crypto exchange: Coinbase |
---|---|
Seat | San Francisco, USA |
Coins | 50 including BTC, ETH, XRP |
Payment Methods | including bank transfer, credit card |
Deposit fee | no |
Trading fee | 1.49% - 3.99% via credit card and buy it now |
security | 2FA, AES-256, offline storage, insurance |
Coinbase is one of the oldest and most popular trading platforms for digital currencies with headquarters in the USA. Meanwhile, 34 coins are available for trading on Coinbase - for a long time, the provider limited itself only to the largest cryptocurrencies.
A few steps are necessary for registration and verification, for example uploading a suitable identification document. In order to buy the first coins, users have to transfer fiat money to their Coinbase account: This is possible either via bank transfer or credit card. Paypal can also be used for withdrawals.
Fees
There are no fees for a deposit on Coinbase - the provider imposes a fee of 0.15 euros on withdrawals. The fees for purchases and sales amount to 1.49 percent of the traded amount. Those who make an instant purchase via credit card have to pay fees of 3.99 percent.
- Fees: 1.49 % on the total amount
- Spread: 0.50
- Regulation: FinCEN
Numerous large investors are involved in Coinbase, including Facebook and Twitter, but also companies from the financial sector such as Andreessen Horowitz, Tiger Global or Spark Capital.
Service
As with Binance, the main content of the website is also available at Coinbase. The platform also offers an app that is compatible with Android and iOS. In addition, customers can use a personal Coinbase wallet that is accessible via the app. This way, traders can access their digital currencies anytime and anywhere.
Security
To ensure the security of digital data, Coinbase stores 98 percent of cryptocurrencies in an offline storage: this protects the data from hacker attacks. The importance of such storage is shown by the case of the crypto exchange Coincheck from 2018. Unknown persons captured crypto assets worth $530 million in an attack. The money in turn, which is circulating online at Coinbase, is protected via insurance. However, if the user himself is responsible for the data theft, Coinbase will not pay for the damage. Users’ banking information is secured via AES-256 encryption. Two-factor authentication also protects against unlawful access by third parties.
Stuttgart Digital Exchange (BSDEX) in detail
info | Crypto Exchange: Digital Exchange Börse Stuttgart (BSDEX) |
---|---|
Address website | bsdex.de |
Seat | Stuttgart |
Coins | 4 Bitcoin, Litecoin, Ethereum, XRP (Ripple) |
Payment Methods | SEPA transfer |
Deposit fee | no |
Trading fee | Taker order: 0.2%, Maker order: 0.35% |
security | fiduciary storage of the coins by blocknox GmbH |
regulation | BaFin |
Since December 2019, regulated trading venue for digital assets has been open to the general public: the Digital Exchange of the Stuttgart Stock Exchange. Currently, the cryptocurrencies Bitcoin, Ethereum, Litecoin and Ripple are available there.
Buying and selling against euros is possible free of charge. However, deposits are currently only possible with a Sepa transfer.
Verification for successful registration takes place via IDnow. For a video call, the customer must show a valid identification document. This procedure requires a camera, a microphone and a good internet connection.
Fees
BSDEX advertises low fees. In fact, the provider does not charge any fees for account management or for depositing or withdrawing fiat money or digital money. Fees are only charged for individual orders - the trading centre for digital assets distinguishes between taker orders and maker orders.
Taker orders are executed directly by the trader: The fees amount to 0.2 percent of the transaction volume. A maker order is not executed immediately, it first lands in the order book and traders can change it later. In the case of auctions, their volume is limited. The fees amount to 0.35 percent of the transaction amount.
- 4 cryptocurrencies: Bitcoin, Litecoin, Ethereum, Ripple
- Taker order: 0.2
- Maker order: 0.35
- Storage of the coins by blocknox GmbH
Service
The content of the website provider is also - but an English version also exists. The website has a very extensive FAQ section that leaves virtually no questions unanswered. However, there is not yet an app of its own. The parent company, Börse Stuttgart, already has the app “Bison”, on which users can also trade cryptocurrencies - but it is not compatible with BSDEX. Instead, the provider offers a free wallet where customers can safely store their coins.
Security
With Blocknox, Euwax and Solarisbank, BSDEX has exclusively partners. However, deposits are only secured by a third party for the cash balance, but not for the digital assets. Control bodies such as Bafin ensure a certain level of security for the consumer, but there is never a 100 per cent guarantee against hacker attacks with crypto exchanges and trading centres for digital assets.
Other
In the future, customers can expect the provider BSDEX to constantly improve its offering: for example, additional cryptocurrencies are to be added to the portfolio and the Bison app will also work for BSDEX.
Crypto exchange Kraken in detail
info | Crypto exchange: Kraken |
---|---|
Homepage | kraken.com |
Seat | San Francisco, USA |
Language website | English |
Coins | >50, including BTC, ETH, XRP, XMR |
Payment Methods | SEPA transfer, credit card |
Deposit fee | none via transfer 3.75% + 0.25 € via credit card |
Trading fee | up to USD 50,000 - maker order: 0.16% / taker order: 0.26% |
security | 2FA, PGP / GPG, cold wallet, master key |
The crypto exchange Kraken is based in the USA and has been on the market since 2011. In the scene, it is considered one of the safest digital trading platforms. With 47 different cryptocurrencies, Kraken also offers a large selection of altcoins - alternative coins - in addition to bitcoin. Kraken accepts several fiat currencies for the purchase of coins, including euros and US dollars.
Crypto Exchange Kraken - Deposit Options
After verification, customers can transfer money via sepa transfer free of charge. The amount should then be in the account within 72 hours - one of the partner banks is Fidor Bank, among others. The purchase of cryptocurrencies with a credit card is also possible, but then subject to a fee. The platform does not work with Paypal.
Fees
Fees are mainly incurred for transactions. Kraken distinguishes between maker orders and taker orders. For investments up to 50,000 US dollars, there is a 0.16 percent fee for makers and 0.26 percent for takers. The higher the transaction amount, the lower the fees. There are no account maintenance fees.
- No deposit fees via bank transfer
- Trading fee up to 50,000 USD: Maker order 0.16 % / Taker order 0.26 %.
- Security: 2FA, PGP/GPG, Cold-Wallet, Master Key
- Regulation: FinCEN
Service
The Kraken website is in English only - there is no version. If you don’t have a problem with that, you will find extensive knowledge that leaves almost no questions unanswered. At the same time, the site offers detailed instructions for newcomers and inexperienced traders. Kraken does not offer a personal wallet service - customers can either store their coins on Kraken’s corporate wallet or use their own external wallet. In addition to the web application, Kraken can also be used via an app.
Security
Like other platforms, Kraken uses two-factor authentication. Emails are encrypted with the PGP/GPG method and all relevant systems of the platform are isolated from each other. This also applies to the majority of digital assets, which are stored on a cold wallet. In addition, customers have the option of setting up a master key - certain applications are then only possible by additionally entering this key.
Other
Kraken offers three user levels that must be verified: the Starter Level, the Intermediate Level and the Pro Level. Depending on the status of the respective user, he or she receives certain privileges. For example, the limits for margin trades or withdrawals change.
- Over 25 cryptocurrencies - new since May 2021: Dogecoin
- Payment methods: credit card, SEPA transfer, PayPal, among others
- Security: 2FA, SSL, deposit protection €20,000
- Important: Cryptoassets are highly volatile unregulated investment products (your capital is at risk).
Crypto Prices (USD)
Bitcoin
Ethereum
Binance Coin
Cardano
Tether
XRP
Solana
Polkadot
Dogecoin
USD Coin
Recommended broker
eToro Experiences & Test 2021: Our Rating
9.3 / 10
eToro Experiences & Test 2021: Our Rating
- No deposit fees for all payment methods
- Cheap method to buy Bitcoin instantly
- One of the few providers that offer PayPal
- Very user-friendly trading for beginners
Recommended brokers 2021
According to their website support forum, this is “for security, regulatory compliance and fraud prevention�?. The limits are based on several factors that include the payment method you used, how old your account is, your purchase history, and more. These limits are calculated automatically.
eToro
Binance
Coinbase
Bitpanda
Frequently asked questions about crypto exchanges
Which crypto exchange is the best?
Although the market often still lacks the necessary state regulations and the scene is generally considered to be less trustworthy, there are also reputable crypto exchanges such as Coinbase or Etoro.
Is Binance reputable?
In July, Binance announced that it was cooperating with the
financial institution CM-Equity. The partnership gives investors the certainty that Binance is backed by a company regulated by the Federal Financial Supervisory Authority (Bafin).
Where is the best place to buy Bitcoins?
Crypto exchanges where you can easily buy Bitcoins are, for example, Etoro, Coinbase, Kraken or Binance. It is usually quicker to use a neo-broker such as Justtrade or Scalable Capital.