Bitcoin trading with real coins from these providers
Bitcoin trading with real coins – that’s possible. We present three crypto exchanges where you can buy and sell “physical” bitcoins.
Coinbase is a crypto exchange from San Francisco. The platform works like an online shop for coins. You register, deposit money by credit card or bank transfer and purchase Bitcoin and other VCs using a form. The sale is also possible. Purchased coins are stored directly in a wallet at Coinbase. Coinbase’s margins are included in the rates.
Some key data on Coinbase: The company was founded in 2012, and since then it has had a combined turnover of 150 billion with 20 million customers. USD reached. Well-known investors from the financial sector stand behind the stock exchange. B. ICE / NYSE.
BitPanda is one of the largest crypto exchanges in German-speaking countries. The Vienna-based company was founded in 2014. In addition to bitcoins, you can buy and sell other VCs. BitPanda acts as a broker-dealer. Deposits are possible using various methods. 1.49 percent is due for purchases and 1.29 percent for sales as a surcharge or discount on the market price.
Binance is a stock exchange in the narrow sense. At the center is an order book in which customers place buy and sell orders. As with regular exchanges, matching takes place according to defined rules. There are no fixed spreads or markups: In the best case, the bid price corresponds to the ask price. Binance charges a commission of 0.10 percent per order. More than 100 coins can be traded. Deposits are only possible with coins. Binance has its roots in Asia and plans to open an office in Malta.
Bitcoin trading: real coins or CFDs?
Bitcoin trading is possible with real coins as well as with CFDs. It is not for nothing that CFDs are preferred to direct investments in other asset classes. What are the specific advantages of contracts for difference?
CFDs allow leverage and speculation on falling prices. The latter in particular can hardly be realized with real coins.
CFDs are cheaper for tax purposes because the flat-rate withholding tax and not your personal tax rate applies.
CFDs are not at risk of hacking. In the worst case, real coins are irrevocably lost overnight.
CFD brokers are financial service providers and are therefore under strict supervision. In contrast, crypto exchanges are practically unregulated. In addition, as established companies, CFD brokers mostly offer higher quality solutions in the areas of trading platforms and customer service.
Bitcoin trading platform: This is how you recognize quality
Real Bitcoin trading platforms are more than just a user interface for buying coins. Good CFD brokers provide you with a complete solution for trading and analysis. These include charting tools with numerous chart variants and indicators, social trading, development environments for automated trading systems including programming aids, news feeds from Reuters or Bloomberg and much more.
An important quality criterion for Bitcoin trading platforms is the course supply. Where do the courses come from? This question arises regardless of whether you are trading on a crypto exchange or a CFD broker. CFD brokers can e.g. B. derived from the Bitcoin Future at the CME. If this is the case, you can compare the prices in the broker’s Times & Sales with those on the stock exchange and determine the amount of the premiums. Bitcoin CFDs with a direct connection to the future are therefore a plus for every Bitcoin trading platform.
Another important criterion concerns the available order types. Stop Buy, Stop Loss Limit, If-Done and much more: The more order types you have available, the better tactical considerations can be implemented.
The charting tool is particularly important if you use technical analysis for decisions in Bitcoin trading. A fully developed tool with many drawing tools, individual workstations and storable charts is advantageous.
How does bitcoin trading work? Strategies for Success
What trading strategies can be used to make money in Bitcoin trading? There is no blueprint for profits. However, there is much to suggest that the established procedures from other markets also work with cryptocurrencies. Chart patterns in particular can therefore reveal a lot about the state of the market and its possible direction.
Trend following strategies are successfully used in other markets. The trend is your friend – this is one of the most important insights of active traders. Trends occur at all time levels. Those who identify a trend are at an advantage: From a statistical point of view, once a trend has started it is more likely than not to break.
A recognized approach is to mark trends with trend lines and channels and buy in an upward trend when the market is close to its tested trend line. Familiarize yourself with the considerations and tools of technical analysis to learn such strategies. By the way: Many CFD brokers provide their customers with webinars on these and other topics.
Bitcoin trading software: analysis, social trading or autopilot?
Bitcoin trading software helps to analyze the market and make concrete trading decisions. There are three variants: own analysis with the program, social trading or autopilot.
With Bitcoin Trading Software you can analyze the market yourself and get an idea. Does the volume match the trend? Have important brands been broken on the chart? Does a correction lose momentum noticeably? Are there any noticeable course gaps?
If you don’t want to analyze the market yourself, you can fall back on the analysis and trading decisions of others. Social trading has established itself in this regard. Users can publish their own trades on social trading platforms. Everyone in the “audience” has the option of having the trades of certain users automatically copied to their own account.
The principle of social trading is convincing: Even as a beginner, you have the opportunity to copy the returns of the best traders. These traders do not suffer any disadvantage from the publication of their trades, but are rewarded through the platform for sales.
Another variant of social trading software are fully automated mechanical trading systems. You can develop these yourself, obtain them free of charge from the Internet or purchase them for a fee.
How Safe is Bitcoin Trading? Measures for less risk
When trading bitcoins or CFDs there is always a price risk. You can reduce the risk of loss with just a few measures. The focus is on correct position sizing and the use of stop loss orders.
Secure each trade with a stop loss. The difference between your buying price and the stop loss is the risk of the trade. For example, if Bitcoin is trading at $ 8,000 and placing a stop loss at $ 7,200, you risk $ 800.
The risk should be proportionate to your account size. Try to risk a maximum of five percent of your capital per trade. This means only the part of your capital that you have earmarked for cryptocurrencies.
If you trade real coins, there is an additional risk of hacker attacks. Therefore, you should keep a larger inventory in different wallets. Cold storage can also be considered.
Bitcoin trading and taxes: what does the Treasury want?
The Treasury wants to share in the profits from Bitcoin trading. When trading Bitcoin as a CFD, the same rules apply as when trading other CFDs. Profits are taxed at 25 percent plus solidarity surcharge and church tax. You can receive EUR 801 tax-free per year. Taxes are withheld directly from German brokers and transferred to the tax office with final effect. You must declare and tax profits from trading with foreign brokers yourself.
More than Bitcoin: crypto copy funds as an alternative to single investment
This post addresses Bitcoin and ways to invest in the cryptocurrency. However, you should consider splitting your cryptocurrency investment across multiple coins and not just investing in Bitcoin. The reason is the diversification requirement: Never put everything on one card.
Instead, invest in a portfolio of Bitcoin, Ethereum, Ripple, Monero and other virtual currencies. As a result, they cover the entire segment and not just a single cryptocurrency. After all, it can never be predicted with absolute certainty how a single cryptocurrency will develop. The risk of a single cryptocurrency developing negatively is greater than the poor performance of the entire segment.